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The City of Chandler Housing and Redevelopment Department
Admissions and Continued Occupancy Policy
(ACOP)
2026
Effective 07/01/2026
TABLE OF CONTENTS
CHAPTER 1 ................................................................................................................................... 1
2
OVERVIEW OF THE PROGRAM AND PLAN ........................................................................ 1
PART I: THE PHA...................................................................................................................... 2
1-I.A. Overview ..................................................................................................................... 2
1-I.B. Organization and Structure of the PHA ....................................................................... 2
1-I.C. PHA Mission ............................................................................................................... 2
1-I.D. The PHA’s Commitment to Ethics and Service .......................................................... 3
PART II: THE PUBLIC HOUSING PROGRAM ....................................................................... 4
1-II.A. Overview and History of the Program ....................................................................... 4
1-II.B. Public HOUSING PROGRAM BASICS ................................................................... 5
1-II.C. Public Housing Partnerships ...................................................................................... 5
1-II.D. Applicable Regulations .............................................................................................. 9
PART III: THE ADMISSIONS AND CONTINUED OCCUPANCY POLICIES ..................... 10
1-III.A. Overview and Purpose of the Policy ...................................................................... 10
1-III.B. Contents of the Policy ............................................................................................. 10
1-III.C. Updating and Revising the Policy........................................................................... 11
CHAPTER 2 ................................................................................................................................... 1
FAIR HOUSING AND EQUAL OPPORTUNITY ..................................................................... 1
PART I: NONDISCRIMINATION ............................................................................................. 2
2-I.A. Overview ..................................................................................................................... 2
2-I.B. Nondiscrimination ....................................................................................................... 2
2.I.C. DISCRIMINATION COMPLAINTS ......................................................................... 4
PART II: POLICIES RELATED TO PERSONS WITH DISABILITIES ...................................... 6
2-II.A. Overview .................................................................................................................... 6
2-II.B. Definition of Reasonable Accommodation ................................................................ 7
2-II.C. Request for an Accommodation ................................................................................. 8
2-II.D. Verification of Disability ........................................................................................... 8
2-II.E. Approval/Denial of A Requested Accommodation .................................................... 9
2-II.F. Program Accessibility for Persons with Hearing or Vision Impairments ................ 10
2-II.G. Physical Accessibility .............................................................................................. 10
2-II.H. Denial or Termination of Assistance ....................................................................... 11
PART III: IMPROVING ACCESS TO SERVICES FOR PERSONS WITH LIMITED ENGLISH
PROFICIENCY (LEP) ............................................................................................ 12
2-III.A. Overview................................................................................................................. 12
3
CHAPTER 3 ................................................................................................................................... 1
ELIGIBILITY ............................................................................................................................... 1
3-I.A. Overview ..................................................................................................................... 2
3-I.B. Family and Household [24 CFR §5.105(a)(2), 24 CFR §5.403, FR notice 02/03/12, Notice
PIH 2014-20], Notice pih 2023-27, and fr notice 2/14/23 ...................................... 2
3-I.C. Family Break-Up and Remaining Member of Tenant Family .................................... 3
3-I.D. Head of Household [24 CFR 5.504(b)] ....................................................................... 4
3-I.E. Spouse, Cohead, and Other Adult ................................................................................ 4
3-I.F. DependentS AND MINORS [24 CFR §5.603] ............................................................ 5
3-I.G. Full-Time Student [24 CFR §5.603] ........................................................................... 5
3-I.H. Elderly and Near-Elderly Persons, and Elderly Family [24 CFR 5.100, 5.403, 945.105, and
fr notice 02/03/12] ................................................................................................... 6
3-I.I. Persons with Disabilities and Disabled Family [24 CFR §5.403, FR notice 02/03/12] 6
3-I.J. Guests [24 CFR §5.100] ............................................................................................... 7
3-I.K. Foster Children and Foster Adults [24 CFR 5.603] .................................................... 8
3-I.L. Absent Family Members .............................................................................................. 9
3-I.M. Live-In Aide.............................................................................................................. 10
PART II: BASIC ELIGIBILITY CRITERIA ................................................................................ 12
3-II.A. Income Eligibility and Targeting ............................................................................. 12
3-II.B. Citizenship or Eligible Immigration Status [24 CFR 5, Subpart E] ......................... 13
3-II.C. Social Security Numbers [24 CFR 5.216 and 5.218, Notice PIH 2018-24] ............ 15
3-II.D. Family Consent to Release of Information [24 CFR 5.232 and 24 CFR 5.230, HOTMA]
............................................................................................................................... 16
3-II.E. EIV SYSTEM SEARCHES [EIV FAQs; EIV System Training 9/30/20; AND NOTICE
PIH 2023-27] ......................................................................................................... 16
PART III: DENIAL OF ADMISSION ....................................................................................... 18
3-III.A. Overview................................................................................................................. 18
3-III.C. restriction on assistance based on assets [24 cfr 5.618] .......................................... 20
3-III.D. Other Permitted Reasons for Denial of Admission ................................................ 22
3-III.E. Screening ................................................................................................................. 25
3-III.F. Criteria for Deciding to Deny Admission ............................................................... 29
3-III.G. Prohibition Against Denial of Assistance to Victims of Domestic Violence, Dating
Violence, Sexual Assault, Stalking, and Human Trafficking ................................ 31
3-III.H. Notice of Eligibility or Denial ................................................................................ 33
CHAPTER 4 ................................................................................................................................... 1
4
APPLICATIONS, WAITING LIST, AND TENANT SELECTION ............................................. 1
PART I: THE APPLICATION PROCESS .................................................................................. 2
4-I.A. Overview ..................................................................................................................... 2
4-I.B. Applying For Assistance ............................................................................................. 2
4-I.C. Accessibility of the Application Process ..................................................................... 2
4-I.D. Placement on the Waiting List .................................................................................... 3
PART II: MANAGING THE WAITING LIST ............................................................................ 5
4-II.A. Overview .................................................................................................................... 5
4-II.B. Organization of the Waiting List ................................................................................ 5
4-II.C. Opening and Closing the Waiting List ....................................................................... 6
4-II.D. Family Outreach [24 CFR §903.2(d); 24 CFR §903.7(a) and (b)] ............................ 7
4-II.E. Reporting Changes in Family Circumstances ............................................................ 8
4-II.F. Updating the Waiting List .......................................................................................... 8
PART III: TENANT SELECTION ............................................................................................. 11
4-III.A. Overview................................................................................................................. 11
4-III.B. Selection Method .................................................................................................... 11
4-III.C. Notification of Selection ......................................................................................... 17
4-III.D. The Application Interview ...................................................................................... 18
4-III.E. Final Eligibility Determination [24 CFR §960.208] ............................................... 20
CHAPTER 5 ................................................................................................................................... 1
OCCUPANCY STANDARDS AND UNIT OFFERS ................................................................. 1
PART I: OCCUPANCY STANDARDS ...................................................................................... 2
5-I.A. Overview ..................................................................................................................... 2
5-I.B. Determining Unit Size ................................................................................................. 2
5-I.C. Exceptions to Occupancy Standards ............................................................................ 4
PART II: UNIT OFFERS [24 CFR §1.4(b)(2)(ii); 24 CFR §960.208] ..................................... 5
5-II.A. Overview .................................................................................................................... 5
5-II.B. Number of Offers ....................................................................................................... 5
5-II.C. Time Limit for Unit Offer Acceptance or Refusal ..................................................... 5
5-II.D. Refusals of Unit Offers .............................................................................................. 6
5-II.E. Accessible Units [24 CFR §8.27] ............................................................................... 7
5-II.F. Designated Housing .................................................................................................... 8
5
•
ANNUAL INCOME INCLUSIONS (EXHIBIT 6-1) ............................................. 10
•
ANNUAL INCOME EXCLUSIONS (AS UPDATED FOR HOTMA PER NOTICE PIH 2024-38)
(EXHIBIT 6-2) ............................................................................................................................... 10
•
TREATMENT OF FAMILY ASSETS (EXHIBIT 6-3) ............................................ 10
•
THE EFFECT OF WELFARE BENEFIT REDUCTION (EXHIBIT 6-4) ................ 10
TYPES OF EARNED INCOME NOT COUNTED IN ANNUAL INCOME .......................... 17
HOTMA REMOVED THE STATUTORY AUTHORITY FOR THE EID. THE EID IS AVAILABLE ONLY TO
FAMILIES THAT ARE ELIGIBLE FOR AND PARTICIPATING IN THE PROGRAM AS OF DECEMBER 31,
2023, OR BEFORE; NO NEW FAMILIES MAY BE ADDED ON OR AFTER JANUARY 1, 2024. IF A
FAMILY IS RECEIVING THE EID PRIOR TO OR ON THE EFFECTIVE DATE OF DECEMBER 31, 2023,
THEY ARE ENTITLED TO THE FULL AMOUNT OF THE BENEFIT FOR A FULL 24-MONTH PERIOD.
THE POLICIES BELOW ARE APPLICABLE ONLY TO SUCH FAMILIES. NO FAMILY WILL STILL BE
RECEIVING THE EID AFTER DECEMBER 31, 2025. THE EID WILL SUNSET ON JANUARY 1, 2026, AND
THE PHA POLICIES BELOW WILL NO LONGER BE APPLICABLE AS OF THAT DATE OR WHEN THE
LAST QUALIFYING FAMILY EXHAUSTS THEIR EXCLUSION PERIOD, WHICHEVER IS SOONER. 18
CALCULATION OF THE DISALLOWANCE ........................................................................... 18
CALCULATION OF THE EARNED INCOME DISALLOWANCE FOR AN ELIGIBLE MEMBER OF A
QUALIFIED FAMILY BEGINS WITH A COMPARISON OF THE MEMBER’S CURRENT INCOME WITH
THEIR “BASELINE INCOME.” THE FAMILY MEMBER’S BASELINE INCOME IS THEIR INCOME
IMMEDIATELY PRIOR TO QUALIFYING FOR THE EID. THE FAMILY MEMBER’S BASELINE INCOME
REMAINS CONSTANT THROUGHOUT THE PERIOD THAT THEY ARE PARTICIPATING IN THE EID.
....................................................................................................................................................... 18
PHA POLICY ................................................................................................................................ 19
BUSINESS EXPANSION ........................................................................................................... 20
PHA POLICY ................................................................................................................................ 20
CAPITAL INDEBTEDNESS ....................................................................................................... 20
PHA POLICY ................................................................................................................................ 20
NEGATIVE BUSINESS INCOME ............................................................................................. 20
6
WITHDRAWAL OF CASH OR ASSETS FROM A BUSINESS .............................................. 20
PHA POLICY ................................................................................................................................ 21
CO-OWNED BUSINESSES ....................................................................................................... 21
CHAPTER 6.B ................................................................................................................................ 1
INCOME AND RENT DETERMINATIONS UNDER HOTMA 102/104 .............................. 1
PART I: ANNUAL INCOME ..................................................................................................... 2
6-I.A. Overview [24 CFR 5.609] ........................................................................................... 2
6-I.B. Household Composition and Income .......................................................................... 3
6-I.C. calculating Annual Income .......................................................................................... 5
6-I.D. Earned Income ............................................................................................................. 7
6-I.F. Business and self-employment Income [24 CFR 5.609(b)(28);notice pih 2023-27] ... 9
6-I.G. student financial assistance [24 CFR 5.609(b)(9) ..................................................... 12
6-I.H. Periodic Payments [Notice PIH 2023-27] ................................................................. 16
6-I.J. Welfare Assistance ..................................................................................................... 20
6-I.M. Additional Exclusions from Annual Income [24CFR 5.609(B); FR Notice 1/31/2024]
............................................................................................................................... 22
PART III: ADJUSTED INCOME .............................................................................................. 41
6-III.A. Introduction............................................................................................................. 41
6-III.B. Dependent Deduction.............................................................................................. 42
6-III.C. Elderly or Disabled Family Deduction ................................................................... 42
6-III.D. HEALTH AND Medical CARE Expenses Deduction [24 CFR 5.611(a)(3)(i)] .... 42
6-III.E. Disability Assistance Expenses Deduction [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)]
............................................................................................................................... 44
6-III.F. CHILDCARE Expense Deduction .......................................................................... 46
PART IV: CALCULATING RENT ............................................................................................ 55
6-IV.A. Overview of Income-Based Rent Calculations ...................................................... 55
6-IV.B. Financial Hardships Affecting Minimum Rent [24 CFR 5.630] ............................ 57
6-IV.C. Utility Allowances [24 CFR 965, Subpart E] ......................................................... 60
6-IV.D. Prorated Rent for Mixed Families [24 CFR 5.520] ................................................ 62
6-Iv.E. Flat Rents and Family Choice In Rents [24 CFR 960.253] ..................................... 63
CHAPTER 7.B. ............................................................................................................................. 50
7
VERIFICATION UNDER HOTMA 102/104 [24 CFR §960.259, 24 CFR §5.230 Notice PIH 2023-
27] ......................................................................................................................... 50
PART I: GENERAL VERIFICATION REQUIREMENTS ......................................................... 51
7-I.A. Family Consent to Release of Information [24 CFR 960.259, 24 CFR 5.230; and notice pih
2023-27] ................................................................................................................ 51
7-I.d. Verification Hierarchy [Notice PIH 2023-27] ........................................................... 58
PART II: VERIFYING FAMILY INFORMATION .................................................................... 69
7-II.A. Verification of Legal Identity .................................................................................. 69
7-II.B. Social Security Numbers [24 CFR 5.216 and Notice PIH 2023-27] ....................... 69
7-II.C. Documentation of Age ............................................................................................. 71
7-II.D. Family Relationships................................................................................................ 72
7-II.E. Verification of Student Status .................................................................................. 73
7-II.F. Documentation of Disability ..................................................................................... 73
7-II.H. Verification of Preference Status ............................................................................. 76
PART III: VERIFYING INCOME AND ASSETS ..................................................................... 78
7-III.A. Earned Income ........................................................................................................ 78
7-III.B. Business and Self Employment Income ................................................................. 79
7-III.C. Periodic Payments and Payments In Lieu of Earnings ........................................... 80
7-III.D. Alimony or Child Support [Notice pih 2023-27] ................................................... 81
7-III.F. Assets and Income from Assets............................................................................... 82
7-III.G. Net Income from Rental Property ........................................................................... 83
7-III.I. Retirement Accounts ................................................................................................ 84
PART IV: VERIFYING MANDATORY DEDUCTIONS .......................................................... 86
7-IV.A. Dependent and Elderly/Disabled Household Deductions ...................................... 86
7-IV.D. Child Care Expenses............................................................................................... 90
CHAPTER 8 ................................................................................................................................... 1
LEASING AND INSPECTIONS [24 CFR 5, Subpart G; 24 CFR 966, Subpart A] ............ 1
PART I: LEASING ...................................................................................................................... 2
8-I.A. Overview ..................................................................................................................... 2
8-I.C. Execution of Lease ...................................................................................................... 4
8-I.D. Modifications to the Lease .......................................................................................... 4
8-I.E. Security Deposits [24 CFR 966.4(b)(5)]...................................................................... 5
8-I.F. Payments Under The Lease.......................................................................................... 7
8
PART II: INSPECTIONS .......................................................................................................... 10
8-II.A. Overview .................................................................................................................. 10
8-II.B. pha-conducted Inspections ....................................................................................... 10
CHAPTER 9.A. .............................................................................................................................. 1
REEXAMINATIONS ..................................................................................................................... 1
[24 CFR 960.257, 960.259, 966.4] ................................................................................................. 1
INTRODUCTION .......................................................................................................................... 1
THIS CHAPTER IS APPLICABLE UNTIL THE PHA’S HOTMA 102/104 COMPLIANCE DATE. AFTER
THIS DATE, THE PHA WILL FOLLOW POLICIES AS OUTLINED IN CHAPTER 9.B OF THE MODEL
POLICY. ......................................................................................................................................... 1
WITH THE EXCEPTION OF NON-PUBLIC HOUSING OVER INCOME FAMILIES, THE PHA IS
REQUIRED TO REEXAMINE EACH FAMILY’S INCOME AND COMPOSITION PERIODICALLY, AND
TO ADJUST THE FAMILY’S RENT ACCORDINGLY. PHAS MUST ADOPT POLICIES FOR
CONDUCTING ANNUAL AND INTERIM REEXAMINATIONS THAT ARE CONSISTENT WITH
REGULATORY REQUIREMENTS AND MUST CONDUCT REEXAMINATIONS IN ACCORDANCE
WITH SUCH POLICIES [24 CFR 960.257(C)]. ........................................................................... 1
THE FREQUENCY WITH WHICH THE PHA MUST REEXAMINE THE INCOME AND COMPOSITION
OF A FAMILY DEPENDS ON WHETHER THE FAMILY PAYS INCOME-BASED RENT OR FLAT
RENT. HUD REQUIRES THE PHA TO OFFER ALL FAMILIES THE CHOICE OF PAYING INCOME-
BASED RENT OR FLAT RENT AT LEAST ANNUALLY. THE PHA’S POLICIES FOR OFFERING
FAMILIES A CHOICE OF RENTS ARE LOCATED IN CHAPTER 6. ..................................... 1
THIS CHAPTER DISCUSSES BOTH ANNUAL AND INTERIM REEXAMINATIONS. ....... 1
PART I: ANNUAL REEXAMINATIONS FOR FAMILIES PAYING INCOME BASED RENTS. THIS PART
DISCUSSES THE REQUIREMENTS FOR ANNUAL REEXAMINATION OF INCOME AND FAMILY
COMPOSITION. FULL REEXAMINATIONS ARE CONDUCTED AT LEAST ONCE A YEAR FOR
FAMILIES PAYING INCOME-BASED RENTS. ........................................................................ 1
PART II: REEXAMINATIONS FOR FAMILIES PAYING FLAT RENTS. THIS PART CONTAINS THE
PHA’S POLICIES FOR CONDUCTING FULL REEXAMINATIONS OF FAMILY INCOME AND
COMPOSITION FOR FAMILIES PAYING FLAT RENTS. THESE FULL REEXAMINATIONS ARE
CONDUCTED AT LEAST ONCE EVERY THREE YEARS. THIS PART ALSO CONTAINS THE PHA’S
POLICIES FOR CONDUCTING ANNUAL UPDATES OF FAMILY COMPOSITION FOR FLAT RENT
FAMILIES. ..................................................................................................................................... 1
9
PART III: INTERIM REEXAMINATIONS. THIS PART INCLUDES HUD REQUIREMENTS AND PHA
POLICIES RELATED TO WHEN A FAMILY MAY AND MUST REPORT CHANGES THAT OCCUR
BETWEEN ANNUAL REEXAMINATIONS. .............................................................................. 1
PART IV: RECALCULATING TENANT RENT. AFTER GATHERING AND VERIFYING REQUIRED
INFORMATION FOR AN ANNUAL OR INTERIM REEXAMINATION, THE PHA MUST
RECALCULATE THE TENANT RENT. WHILE THE BASIC POLICIES THAT GOVERN THESE
CALCULATIONS ARE PROVIDED IN CHAPTER 6, THIS PART DESCRIBES THE POLICIES THAT
AFFECT THESE CALCULATIONS DURING A REEXAMINATION...................................... 1
POLICIES GOVERNING REASONABLE ACCOMMODATION, FAMILY PRIVACY, REQUIRED
FAMILY COOPERATION, AND PROGRAM ABUSE, AS DESCRIBED ELSEWHERE IN THIS ACOP,
APPLY TO ANNUAL AND INTERIM REEXAMINATIONS.................................................... 2
PART I: ANNUAL REEXAMINATIONS FOR FAMILIES PAYING INCOME-BASED RENTS [24 CFR
960.257] .......................................................................................................................................... 2
9-I.A. OVERVIEW ......................................................................................................................... 2
FOR THOSE FAMILIES WHO CHOOSE TO PAY INCOME-BASED RENT, THE PHA MUST CONDUCT
A REEXAMINATION OF INCOME AND FAMILY COMPOSITION AT LEAST ANNUALLY [24 CFR
960.257(A)(1)]. FOR FAMILIES WHO CHOOSE FLAT RENTS, THE PHA MUST CONDUCT A
REEXAMINATION OF FAMILY COMPOSITION AT LEAST ANNUALLY AND MUST CONDUCT A
REEXAMINATION OF FAMILY INCOME AT LEAST ONCE EVERY THREE YEARS [24 CFR
960.257(A)(2)]. PHAS ALSO HAVE THE OPTION OF USING A SAFE HARBOR INCOME
VERIFICATION FROM ANOTHER FEDERAL MEANS-TESTED PROGRAM TO VERIFY GROSS
ANNUAL INCOME. CHAPTER 7 CONTAINS THE PHA’S POLICIES RELATED TO USE OF SAFE
HARBOR INCOME VERIFICATIONS. FOR ANY NON-PUBLIC HOUSING OVER INCOME FAMILIES,
THE PHA MAY NOT CONDUCT AN ANNUAL REEXAMINATION OF FAMILY INCOME. POLICIES
RELATED TO THE REEXAMINATION PROCESS FOR FAMILIES PAYING FLAT RENT ARE
LOCATED IN PART II OF THIS CHAPTER............................................................................... 2
FOR ALL RESIDENTS OF PUBLIC HOUSING, WHETHER THOSE RESIDENTS ARE PAYING
INCOME-BASED OR FLAT RENTS, THE PHA MUST CONDUCT AN ANNUAL REVIEW OF
COMMUNITY SERVICE REQUIREMENT COMPLIANCE. THIS ANNUAL REEXAMINATION IS ALSO
A GOOD TIME TO HAVE RESIDENTS SIGN CONSENT FORMS FOR CRIMINAL BACKGROUND
CHECKS IN CASE THE CRIMINAL HISTORY OF A RESIDENT IS NEEDED AT SOME POINT FOR
THE PURPOSES OF LEASE ENFORCEMENT OR EVICTION. .............................................. 2
THE PHA IS REQUIRED TO OBTAIN ALL OF THE INFORMATION NECESSARY TO CONDUCT
REEXAMINATIONS. HOW THAT INFORMATION WILL BE COLLECTED IS LEFT TO THE
DISCRETION OF THE PHA. FAMILIES ARE REQUIRED TO PROVIDE CURRENT AND ACCURATE
INFORMATION ON INCOME, ASSETS, ALLOWANCES AND DEDUCTIONS, FAMILY COMPOSITION
AND COMMUNITY SERVICE COMPLIANCE AS PART OF THE REEXAMINATION PROCESS [24 CFR
960.259]. ......................................................................................................................................... 2
10
THIS PART CONTAINS THE PHA’S POLICIES FOR CONDUCTING ANNUAL REEXAMINATIONS.
......................................................................................................................................................... 2
9-I.B STREAMLINED ANNUAL REEXAMINATIONS [24 CFR 960.257] .............................. 3
HUD PERMITS PHAS TO STREAMLINE THE INCOME DETERMINATION PROCESS FOR FAMILY
MEMBERS WITH FIXED SOURCES OF INCOME. WHILE THIRD-PARTY VERIFICATION OF ALL
INCOME SOURCES MUST BE OBTAINED DURING THE INTAKE PROCESS AND EVERY THREE
YEARS THEREAFTER, IN THE INTERVENING YEARS THE PHA MAY DETERMINE INCOME FROM
FIXED SOURCES BY APPLYING A VERIFIED COST OF LIVING ADJUSTMENT (COLA) OR RATE OF
INTEREST. THE PHA MAY, HOWEVER, OBTAIN THIRD-PARTY VERIFICATION OF ALL INCOME,
REGARDLESS OF THE SOURCE. FURTHER, UPON REQUEST OF THE FAMILY, THE PHA MUST
PERFORM THIRD-PARTY VERIFICATION OF ALL INCOME SOURCES........................... 3
FIXED SOURCES OF INCOME INCLUDE SOCIAL SECURITY AND SSI BENEFITS, PENSIONS,
ANNUITIES, DISABILITY OR DEATH BENEFITS, AND OTHER SOURCES OF INCOME SUBJECT TO
A COLA OR RATE OF INTEREST. THE DETERMINATION OF FIXED INCOME MAY BE
STREAMLINED EVEN IF THE FAMILY ALSO RECEIVES INCOME FROM OTHER NON-FIXED
SOURCES....................................................................................................................................... 3
TWO STREAMLINING OPTIONS ARE AVAILABLE, DEPENDING UPON THE PERCENTAGE OF THE
FAMILY’S INCOME THAT IS RECEIVED FROM FIXED SOURCES. IF AT LEAST 90 PERCENT OF
THE FAMILY’S INCOME IS FROM FIXED SOURCES, THE PHA MAY STREAMLINE THE
VERIFICATION OF FIXED INCOME BUT IS NOT REQUIRED TO VERIFY NON-FIXED INCOME
AMOUNTS. IF THE FAMILY RECEIVES LESS THAN 90 PERCENT OF ITS INCOME FROM FIXED
SOURCES, THE PHA MAY STREAMLINE THE VERIFICATION OF FIXED INCOME AND MUST
VERIFY NON-FIXED INCOME ANNUALLY. .......................................................................... 3
PHA POLICY ................................................................................................................................. 3
THE PHA WILL STREAMLINE THE ANNUAL REEXAMINATION PROCESS BY APPLYING THE
VERIFIED COLA OR INTEREST RATE TO FIXED-INCOME SOURCES. THE PHA WILL DOCUMENT
IN THE FILE HOW THE DETERMINATION THAT A SOURCE OF INCOME WAS FIXED WAS MADE.
......................................................................................................................................................... 3
IF A FAMILY MEMBER WITH A FIXED SOURCE OF INCOME IS ADDED, THE PHA WILL USE
THIRD-PARTY VERIFICATION OF ALL INCOME AMOUNTS FOR THAT FAMILY MEMBER. 3
IF VERIFICATION OF THE COLA OR RATE OF INTEREST IS NOT AVAILABLE, THE PHA WILL
OBTAIN THIRD-PARTY VERIFICATION OF INCOME AMOUNTS. .................................... 3
THIRD-PARTY VERIFICATION OF FIXED SOURCES OF INCOME WILL BE OBTAINED DURING
THE INTAKE PROCESS AND AT LEAST ONCE EVERY THREE YEARS THEREAFTER. 3
THIRD-PARTY VERIFICATION OF NON-FIXED INCOME WILL BE OBTAINED ANNUALLY
REGARDLESS OF THE PERCENTAGE OF FAMILY INCOME RECEIVED FROM FIXED SOURCES.
......................................................................................................................................................... 3
11
9-I.C. SCHEDULING ANNUAL REEXAMINATIONS .............................................................. 4
THE PHA MUST ESTABLISH A POLICY TO ENSURE THAT THE ANNUAL REEXAMINATION FOR
EACH FAMILY PAYING AN INCOME-BASED RENT IS COMPLETED WITHIN A 12-MONTH PERIOD
[24 CFR 960.257(A)(1)]. ................................................................................................................ 4
PHA POLICY ................................................................................................................................. 4
GENERALLY, THE PHA WILL SCHEDULE ANNUAL REEXAMINATIONS TO COINCIDE WITH THE
FAMILY'S ANNIVERSARY DATE. THE PHA WILL BEGIN THE ANNUAL REEXAMINATION
PROCESS APPROXIMATELY 120 DAYS IN ADVANCE OF THE SCHEDULED EFFECTIVE DATE.
......................................................................................................................................................... 4
ANNIVERSARY DATE IS DEFINED AS 12 MONTHS FROM THE EFFECTIVE DATE OF THE FAMILY’S
LAST ANNUAL REEXAMINATION OR, DURING A FAMILY’S FIRST YEAR IN THE PROGRAM,
FROM THE EFFECTIVE DATE OF THE FAMILY’S INITIAL EXAMINATION (ADMISSION).
4
IF THE FAMILY TRANSFERS TO A NEW UNIT, THE PHA WILL PERFORM A NEW ANNUAL
REEXAMINATION, AND THE ANNIVERSARY DATE WILL BE CHANGED..................... 4
THE PHA MAY ALSO SCHEDULE AN ANNUAL REEXAMINATION FOR COMPLETION PRIOR TO
THE ANNIVERSARY DATE FOR ADMINISTRATIVE PURPOSES. ...................................... 4
NOTIFICATION OF AND PARTICIPATION IN THE ANNUAL REEXAMINATION PROCESS
4
THE PHA IS REQUIRED TO OBTAIN INFORMATION NEEDED TO CONDUCT ANNUAL
REEXAMINATIONS. HOW THAT INFORMATION WILL BE COLLECTED IS LEFT TO THE
DISCRETION OF THE PHA. HOWEVER, PHAS SHOULD GIVE TENANTS WHO WERE NOT
PROVIDED THE OPPORTUNITY TO PROVIDE CONTACT INFORMATION AT THE TIME OF
ADMISSION THE OPTION TO COMPLETE FORM HUD-92006 AT THIS TIME. THE PHA SHOULD
PROVIDE THE FAMILY WITH THE OPPORTUNITY TO UPDATE, CHANGE, OR REMOVE
INFORMATION FROM THE HUD-92006 AT THE TIME OF THE ANNUAL REEXAMINATION
[NOTICE PIH 2009-36]. ................................................................................................................ 4
PHA POLICY ................................................................................................................................. 4
FAMILIES GENERALLY ARE REQUIRED TO PARTICIPATE IN AN ANNUAL REEXAMINATION
INTERVIEW, WHICH MUST BE ATTENDED BY THE HEAD OF HOUSEHOLD, SPOUSE, OR
COHEAD. IF PARTICIPATION IN AN IN-PERSON INTERVIEW POSES A HARDSHIP BECAUSE OF A
FAMILY MEMBER’S DISABILITY, THE FAMILY SHOULD CONTACT THE PHA TO REQUEST A
REASONABLE ACCOMMODATION (SEE CHAPTER 2). ....................................................... 4
NOTIFICATION OF ANNUAL REEXAMINATION INTERVIEWS WILL BE SENT BY FIRST-CLASS
MAIL AND WILL CONTAIN THE DATE, TIME, AND LOCATION OF THE INTERVIEW. IN
ADDITION, IT WILL INFORM THE FAMILY OF THE INFORMATION AND DOCUMENTATION THAT
MUST BE BROUGHT TO THE INTERVIEW. ............................................................................ 4
12
IF THE FAMILY IS UNABLE TO ATTEND A SCHEDULED INTERVIEW, THE FAMILY SHOULD
CONTACT THE PHA IN ADVANCE OF THE INTERVIEW TO SCHEDULE A NEW APPOINTMENT. IN
ALL CIRCUMSTANCES, IF A FAMILY DOES NOT ATTEND THE SCHEDULED INTERVIEW THE
PHA WILL SEND A SECOND NOTIFICATION WITH A NEW INTERVIEW APPOINTMENT TIME.
......................................................................................................................................................... 5
IF A FAMILY FAILS TO ATTEND TWO SCHEDULED INTERVIEWS WITHOUT PHA APPROVAL,
THE FAMILY WILL BE IN VIOLATION OF THEIR LEASE AND MAY BE TERMINATED IN
ACCORDANCE WITH THE POLICIES IN CHAPTER 13. ........................................................ 5
AN ADVOCATE, INTERPRETER, OR OTHER ASSISTANT MAY ASSIST THE FAMILY IN THE
INTERVIEW PROCESS. ............................................................................................................... 5
9-I.D. CONDUCTING ANNUAL REEXAMINATIONS ............................................................. 6
THE TERMS OF THE PUBLIC HOUSING LEASE REQUIRE THE FAMILY TO FURNISH
INFORMATION REGARDING INCOME AND FAMILY COMPOSITION AS MAY BE NECESSARY FOR
THE REDETERMINATION OF RENT, ELIGIBILITY, AND THE APPROPRIATENESS OF THE
HOUSING UNIT [24 CFR 966.4(C)(2)]. ....................................................................................... 6
PHA POLICY ................................................................................................................................. 6
FAMILIES WILL BE ASKED TO BRING ALL REQUIRED INFORMATION (AS DESCRIBED IN THE
REEXAMINATION NOTICE) TO THE REEXAMINATION APPOINTMENT. THE REQUIRED
INFORMATION WILL INCLUDE A PHA-DESIGNATED REEXAMINATION FORM, AN
AUTHORIZATION FOR THE RELEASE OF INFORMATION/PRIVACY ACT NOTICE, AS WELL AS
SUPPORTING DOCUMENTATION RELATED TO THE FAMILY’S INCOME, EXPENSES, AND
FAMILY COMPOSITION. ............................................................................................................ 6
ANY REQUIRED DOCUMENTS OR INFORMATION THAT THE FAMILY IS UNABLE TO PROVIDE
AT THE TIME OF THE INTERVIEW OR ANY STATED DEADLINE MUST BE PROVIDED WITHIN 10
BUSINESS DAYS OF THE INTERVIEW. IF THE FAMILY IS UNABLE TO OBTAIN THE
INFORMATION OR MATERIALS WITHIN THE REQUIRED TIME FRAME, THE FAMILY MAY
REQUEST AN EXTENSION. ....................................................................................................... 6
IF THE FAMILY DOES NOT PROVIDE THE REQUIRED DOCUMENTS OR INFORMATION WITHIN
THE REQUIRED TIME FRAME (PLUS ANY EXTENSIONS), THE FAMILY WILL BE IN VIOLATION
OF THEIR LEASE AND MAY BE TERMINATED IN ACCORDANCE WITH THE POLICIES IN
CHAPTER 13. ................................................................................................................................ 6
THE INFORMATION PROVIDED BY THE FAMILY GENERALLY MUST BE VERIFIED IN
ACCORDANCE WITH THE POLICIES IN CHAPTER 7. UNLESS THE FAMILY REPORTS A CHANGE,
OR THE AGENCY HAS REASON TO BELIEVE A CHANGE HAS OCCURRED IN INFORMATION
PREVIOUSLY REPORTED BY THE FAMILY, CERTAIN TYPES OF INFORMATION THAT ARE
VERIFIED AT ADMISSION TYPICALLY DO NOT NEED TO BE RE-VERIFIED ON AN ANNUAL
BASIS. THESE INCLUDE: ........................................................................................................... 6
13
•
LEGAL IDENTITY ................................................................................................ 6
•
AGE ......................................................................................................................... 6
•
SOCIAL SECURITY NUMBERS .......................................................................... 6
•
A PERSON’S DISABILITY STATUS ................................................................... 6
•
CITIZENSHIP OR IMMIGRATION STATUS ...................................................... 6
CHANGE IN UNIT SIZE ............................................................................................................... 7
CHANGES IN FAMILY OR HOUSEHOLD COMPOSITION MAY MAKE IT APPROPRIATE TO
CONSIDER TRANSFERRING THE FAMILY TO COMPLY WITH OCCUPANCY STANDARDS. THE
PHA MAY USE THE RESULTS OF THE ANNUAL REEXAMINATION TO REQUIRE THE FAMILY TO
MOVE TO AN APPROPRIATE SIZE UNIT [24 CFR 960.257(A)(4)]. POLICIES RELATED TO SUCH
TRANSFERS ARE LOCATED IN CHAPTER 12. ....................................................................... 7
CRIMINAL BACKGROUND CHECKS ....................................................................................... 7
INFORMATION OBTAINED THROUGH CRIMINAL BACKGROUND CHECKS MAY BE USED FOR
LEASE ENFORCEMENT AND EVICTION [24 CFR 5.903(E)(1)(II)]. CRIMINAL BACKGROUND
CHECKS OF RESIDENTS WILL BE CONDUCTED IN ACCORDANCE WITH THE POLICY IN SECTION
13-IV.B. .......................................................................................................................................... 7
PHA POLICY ................................................................................................................................. 7
EACH HOUSEHOLD MEMBER AGE 18 AND OVER WILL BE REQUIRED TO EXECUTE A CONSENT
FORM FOR A CRIMINAL BACKGROUND CHECK AS PART OF THE ANNUAL REEXAMINATION
PROCESS. ...................................................................................................................................... 7
ADDITIONALLY, HUD RECOMMENDS THAT AT ANNUAL REEXAMINATIONS PHAS ASK
WHETHER THE TENANT, OR ANY MEMBER OF THE TENANT’S HOUSEHOLD, IS SUBJECT TO A
LIFETIME SEX OFFENDER REGISTRATION REQUIREMENT IN ANY STATE [NOTICE PIH 2012-28].
......................................................................................................................................................... 7
PHA POLICY ................................................................................................................................. 7
AT THE ANNUAL REEXAMINATION, THE PHA WILL ASK WHETHER THE TENANT, OR ANY
MEMBER OF THE TENANT’S HOUSEHOLD, IS SUBJECT TO A LIFETIME SEX OFFENDER
REGISTRATION REQUIREMENT IN ANY STATE. THE PHA WILL USE THE DRU SJODIN
NATIONAL SEX OFFENDER DATABASE TO VERIFY THE INFORMATION PROVIDED BY THE
TENANT......................................................................................................................................... 7
14
IF THE PHA PROPOSES TO TERMINATE ASSISTANCE BASED ON LIFETIME SEX OFFENDER
REGISTRATION INFORMATION, THE PHA MUST NOTIFY THE HOUSEHOLD OF THE PROPOSED
ACTION AND MUST PROVIDE THE SUBJECT OF THE RECORD AND THE TENANT A COPY OF THE
RECORD AND AN OPPORTUNITY TO DISPUTE THE ACCURACY AND RELEVANCE OF THE
INFORMATION PRIOR TO TERMINATION. [24 CFR 5.903(F) AND 5.905(D)]. (SEE CHAPTER 13.)
......................................................................................................................................................... 7
COMPLIANCE WITH COMMUNITY SERVICE ....................................................................... 7
FOR FAMILIES WHO INCLUDE NONEXEMPT INDIVIDUALS, THE PHA MUST DETERMINE
COMPLIANCE WITH COMMUNITY SERVICE REQUIREMENTS ONCE EACH 12 MONTHS [24 CFR
960.257(A)(3)]. ............................................................................................................................... 7
SEE CHAPTER 11 FOR THE PHA’S POLICIES GOVERNING COMPLIANCE WITH THE COMMUNITY
SERVICE REQUIREMENT. ......................................................................................................... 7
9-I.E. EFFECTIVE DATES ........................................................................................................... 8
AS PART OF THE ANNUAL REEXAMINATION PROCESS, THE PHA MUST MAKE APPROPRIATE
ADJUSTMENTS IN THE RENT AFTER CONSULTATION WITH THE FAMILY AND UPON
VERIFICATION OF THE INFORMATION [24 CFR 960.257(A)(1)]. ....................................... 8
PHA POLICY ................................................................................................................................. 8
IN GENERAL, AN INCREASE IN THE TENANT RENT THAT RESULTS FROM AN ANNUAL
REEXAMINATION WILL TAKE EFFECT ON THE FAMILY’S ANNIVERSARY DATE, AND THE
FAMILY WILL BE NOTIFIED AT LEAST 30 DAYS IN ADVANCE. ..................................... 8
IF LESS THAN 30 DAYS REMAIN BEFORE THE SCHEDULED EFFECTIVE DATE, THE INCREASE
WILL TAKE EFFECT ON THE FIRST OF THE MONTH FOLLOWING THE END OF THE 30-DAY
NOTICE PERIOD. ......................................................................................................................... 8
IF THE PHA CHOOSES TO SCHEDULE AN ANNUAL REEXAMINATION FOR COMPLETION PRIOR
TO THE FAMILY’S ANNIVERSARY DATE FOR ADMINISTRATIVE PURPOSES, THE EFFECTIVE
DATE WILL BE DETERMINED BY THE PHA, BUT WILL ALWAYS ALLOW FOR THE 30-DAY
NOTICE PERIOD. ......................................................................................................................... 8
IF THE FAMILY CAUSES A DELAY IN PROCESSING THE ANNUAL REEXAMINATION, INCREASES
IN THE TENANT RENT WILL BE APPLIED RETROACTIVELY, TO THE SCHEDULED EFFECTIVE
DATE OF THE ANNUAL REEXAMINATION. THE FAMILY WILL BE RESPONSIBLE FOR ANY
UNDERPAID RENT AND MAY BE OFFERED A REPAYMENT AGREEMENT IN ACCORDANCE WITH
THE POLICIES IN CHAPTER 16. ................................................................................................ 8
IN GENERAL, A DECREASE IN THE TENANT RENT THAT RESULTS FROM AN ANNUAL
REEXAMINATION WILL TAKE EFFECT ON THE FAMILY’S ANNIVERSARY DATE. ... 8
15
IF THE PHA CHOOSES TO SCHEDULE AN ANNUAL REEXAMINATION FOR COMPLETION PRIOR
TO THE FAMILY’S ANNIVERSARY DATE FOR ADMINISTRATIVE PURPOSES, THE EFFECTIVE
DATE WILL BE DETERMINED BY THE PHA. ........................................................................ 8
IF THE FAMILY CAUSES A DELAY IN PROCESSING THE ANNUAL REEXAMINATION, DECREASES
IN THE TENANT RENT WILL BE APPLIED PROSPECTIVELY, FROM THE FIRST DAY OF THE
MONTH FOLLOWING COMPLETION OF THE REEXAMINATION PROCESSING. .......... 8
DELAYS IN REEXAMINATION PROCESSING ARE CONSIDERED TO BE CAUSED BY THE FAMILY
IF THE FAMILY FAILS TO PROVIDE INFORMATION REQUESTED BY THE PHA BY THE DATE
SPECIFIED, AND THIS DELAY PREVENTS THE PHA FROM COMPLETING THE REEXAMINATION
AS SCHEDULED. .......................................................................................................................... 8
PART II: REEXAMINATIONS FOR FAMILIES PAYING FLAT RENTS ................................ 9
[24 CFR 960.253(F)] ...................................................................................................................... 9
9-II.A. OVERVIEW ....................................................................................................................... 9
HUD REQUIRES THAT THE PHA OFFER ALL FAMILIES THE CHOICE OF PAYING INCOME-BASED
RENT OR FLAT RENT AT LEAST ANNUALLY. THE PHA’S POLICIES FOR OFFERING FAMILIES A
CHOICE OF RENTS ARE LOCATED IN CHAPTER 6. ............................................................. 9
FOR FAMILIES WHO CHOOSE FLAT RENTS, THE PHA MUST CONDUCT A REEXAMINATION OF
FAMILY COMPOSITION AT LEAST ANNUALLY AND MUST CONDUCT A REEXAMINATION OF
FAMILY INCOME AT LEAST ONCE EVERY THREE YEARS [24 CFR 960.253(F)THE PHA IS ONLY
REQUIRED TO PROVIDE THE AMOUNT OF INCOME-BASED RENT THE FAMILY MIGHT PAY IN
THOSE YEARS THAT THE PHA CONDUCTS A FULL REEXAMINATION OF INCOME AND FAMILY
COMPOSITION, OR UPON REQUEST OF THE FAMILY AFTER THE FAMILY SUBMITS UPDATED
INCOME INFORMATION [24 CFR 960.253(E)(2)]. HOWEVER, THESE REGULATIONS ARE NOT
APPLICABLE TO OVER-INCOME FAMILIES. ONCE AN OVER-INCOME DETERMINATION IS
MADE, THE PHA MUST CONDUCT AN INTERIM REEXAMINATION AT 12 AND 24 MONTHS, AS
APPLICABLE, TO DETERMINE IF THE FAMILY REMAINS OVER-INCOME [NOTICE PIH 2023-03].
......................................................................................................................................................... 9
AS IT DOES FOR FAMILIES THAT PAY INCOME-BASED RENT, THE PHA MUST ALSO REVIEW
COMPLIANCE WITH THE COMMUNITY SERVICE REQUIREMENT FOR FAMILIES WITH
NONEXEMPT INDIVIDUALS. .................................................................................................... 9
THIS PART CONTAINS THE PHA’S POLICIES FOR CONDUCTING REEXAMINATIONS OF FAMILIES
WHO CHOOSE TO PAY FLAT RENTS. ..................................................................................... 9
9-II.B. FULL REEXAMINATION OF FAMILY INCOME AND COMPOSITION ................... 9
FREQUENCY OF REEXAMINATION ........................................................................................ 9
16
PHA POLICY ................................................................................................................................. 9
FOR FAMILIES PAYING FLAT RENTS, THE PHA WILL CONDUCT A FULL REEXAMINATION OF
FAMILY INCOME AND COMPOSITION ONCE EVERY THREE YEARS. ........................... 9
HOWEVER, FOR FLAT RENT FAMILIES WHO BECOME OVER-INCOME, THIS POLICY WILL NOT
APPLY. THE PHA WILL INSTEAD CONDUCT AN INTERIM REEXAMINATION AT 12 AND 24
MONTHS FOLLOWING THE INITIAL OVER-INCOME DETERMINATION AS NEEDED TO VERIFY
THE FAMILY REMAINS OVER-INCOME. THE FAMILY WILL CONTINUE TO BE GIVEN A CHOICE
BETWEEN INCOME-BASED AND FLAT RENT AT EACH ANNUAL REEXAMINATION DURING THE
OVER-INCOME GRACE PERIOD............................................................................................... 9
IF THE FAMILY IS SUBSEQUENTLY DETERMINED TO NO LONGER BE OVER-INCOME:
9
IF THE DETERMINATION IS THE RESULT OF AN ANNUAL REEXAMINATION, THE FAMILY WILL
BE GIVEN A CHOICE BETWEEN INCOME-BASED OR FLAT RENT AT REEXAM. IF THE FAMILY
SELECTS FLAT RENT, THE PHA WILL RESUME REEXAMINATION OF FAMILY INCOME AND
COMPOSITION ONCE EVERY THREE YEARS. .................................................................... 10
IF THE DETERMINATION IS AS A RESULT OF AN INTERIM REEXAMINATION, THE PHA WILL
CONDUCT AN ANNUAL REEXAMINATION FOR THE FAMILY AT THEIR NEXT SCHEDULED
ANNUAL DATE. IF THE FAMILY SELECTS FLAT RENT, THE PHA WILL RESUME
REEXAMINATION OF FAMILY INCOME AND COMPOSITION ONCE EVERY THREE YEARS.
FAMILIES WILL ONLY BE GIVEN THE CHOICE BETWEEN INCOME-BASED AND FLAT RENT AT
ANNUAL REEXAMINATION. .................................................................................................. 10
REEXAMINATION POLICIES .................................................................................................. 11
PHA POLICY ............................................................................................................................... 11
IN CONDUCTING FULL REEXAMINATIONS FOR FAMILIES PAYING FLAT RENTS, THE PHA WILL
FOLLOW THE POLICIES USED FOR THE ANNUAL REEXAMINATION OF FAMILIES PAYING
INCOME-BASED RENT AS SET FORTH IN SECTIONS 9-I.B THROUGH 9-I.D ABOVE. 11
9-II.C. REEXAMINATION OF FAMILY COMPOSITION (“ANNUAL UPDATE”) .............. 12
AS NOTED ABOVE, FULL REEXAMINATIONS ARE CONDUCTED EVERY THREE YEARS FOR
FAMILIES PAYING FLAT RENTS. IN THE YEARS BETWEEN FULL REEXAMINATIONS,
REGULATIONS REQUIRE THE PHA TO CONDUCT A REEXAMINATION OF FAMILY COMPOSITION
(“ANNUAL UPDATE”) [24 CFR 960.257(A)(2)]. ..................................................................... 12
THE ANNUAL UPDATE PROCESS IS SIMILAR TO THE ANNUAL REEXAMINATION PROCESS,
EXCEPT THAT THE PHA DOES NOT COLLECT INFORMATION ABOUT THE FAMILY’S INCOME
AND EXPENSES, AND THE FAMILY’S RENT IS NOT RECALCULATED FOLLOWING AN ANNUAL
UPDATE. ...................................................................................................................................... 12
17
SCHEDULING ............................................................................................................................. 12
THE PHA MUST ESTABLISH A POLICY TO ENSURE THAT THE REEXAMINATION OF FAMILY
COMPOSITION FOR FAMILIES CHOOSING TO PAY THE FLAT RENT IS COMPLETED AT LEAST
ANNUALLY [24 CFR 960.257(A)(2)]. ....................................................................................... 12
PHA POLICY ............................................................................................................................... 12
FOR FAMILIES PAYING FLAT RENTS, ANNUAL UPDATES WILL BE CONDUCTED IN EACH OF
THE 2 YEARS FOLLOWING THE FULL REEXAMINATION............................................... 12
IN SCHEDULING THE ANNUAL UPDATE, THE PHA WILL FOLLOW THE POLICY USED FOR
SCHEDULING THE ANNUAL REEXAMINATION OF FAMILIES PAYING INCOME-BASED RENT AS
SET FORTH IN SECTION 9-I.B. ABOVE. ................................................................................ 12
CONDUCTING ANNUAL UPDATES ....................................................................................... 12
THE TERMS OF THE PUBLIC HOUSING LEASE REQUIRE THE FAMILY TO FURNISH
INFORMATION NECESSARY FOR THE REDETERMINATION OF RENT AND FAMILY
COMPOSITION [24 CFR 966.4(C)(2)]. ...................................................................................... 12
PHA POLICY ............................................................................................................................... 12
GENERALLY, THE FAMILY WILL NOT BE REQUIRED TO ATTEND AN INTERVIEW FOR AN
ANNUAL UPDATE. HOWEVER, IF THE PHA DETERMINES THAT AN INTERVIEW IS WARRANTED,
THE FAMILY MAY BE REQUIRED TO ATTEND. ................................................................ 12
NOTIFICATION OF THE ANNUAL UPDATE WILL BE SENT BY FIRST-CLASS MAIL AND WILL
INFORM THE FAMILY OF THE INFORMATION AND DOCUMENTATION THAT MUST BE
PROVIDED TO THE PHA. THE FAMILY WILL HAVE 10 BUSINESS DAYS TO SUBMIT THE
REQUIRED INFORMATION TO THE PHA. IF THE FAMILY IS UNABLE TO OBTAIN THE
INFORMATION OR DOCUMENTS WITHIN THE REQUIRED TIME FRAME, THE FAMILY MAY
REQUEST AN EXTENSION. THE PHA WILL ACCEPT REQUIRED DOCUMENTATION BY MAIL, BY
EMAIL, BY FAX, OR IN PERSON. ........................................................................................... 12
IF THE FAMILY’S SUBMISSION IS INCOMPLETE, OR THE FAMILY DOES NOT SUBMIT THE
INFORMATION IN THE REQUIRED TIME FRAME, THE PHA WILL SEND A SECOND WRITTEN
NOTICE TO THE FAMILY. THE FAMILY WILL HAVE 10 BUSINESS DAYS FROM THE DATE OF THE
SECOND NOTICE TO PROVIDE THE MISSING INFORMATION OR DOCUMENTATION TO THE PHA.
....................................................................................................................................................... 13
IF THE FAMILY DOES NOT PROVIDE THE REQUIRED DOCUMENTS OR INFORMATION WITHIN
THE REQUIRED TIME FRAME (PLUS ANY EXTENSIONS), THE FAMILY WILL BE IN VIOLATION
OF THEIR LEASE AND MAY BE TERMINATED IN ACCORDANCE WITH THE POLICIES IN
CHAPTER 13. .............................................................................................................................. 13
18
CHANGE IN UNIT SIZE .............................................................................................................. 14
CHANGES IN FAMILY OR HOUSEHOLD COMPOSITION MAY MAKE IT APPROPRIATE TO
CONSIDER TRANSFERRING THE FAMILY TO COMPLY WITH OCCUPANCY STANDARDS. THE
PHA MAY USE THE RESULTS OF THE ANNUAL UPDATE TO REQUIRE THE FAMILY TO MOVE TO
AN APPROPRIATE SIZE UNIT [24 CFR 960.257(A)(4)]. POLICIES RELATED TO SUCH TRANSFERS
ARE LOCATED IN CHAPTER 12. ............................................................................................ 14
CRIMINAL BACKGROUND CHECKS ........................................................................................ 14
INFORMATION OBTAINED THROUGH CRIMINAL BACKGROUND CHECKS MAY BE USED FOR
LEASE ENFORCEMENT AND EVICTION [24 CFR 5.903(E)]. CRIMINAL BACKGROUND CHECKS OF
RESIDENTS WILL BE CONDUCTED IN ACCORDANCE WITH THE POLICY IN SECTION 13-IV.B.
....................................................................................................................................................... 14
PHA POLICY ............................................................................................................................... 14
EACH HOUSEHOLD MEMBER AGE 18 AND OVER WILL BE REQUIRED TO EXECUTE A CONSENT
FORM FOR CRIMINAL BACKGROUND CHECK AS PART OF THE ANNUAL UPDATE PROCESS.
....................................................................................................................................................... 14
COMPLIANCE WITH COMMUNITY SERVICE ......................................................................... 14
FOR FAMILIES WHO INCLUDE NONEXEMPT INDIVIDUALS, THE PHA MUST DETERMINE
COMPLIANCE WITH COMMUNITY SERVICE REQUIREMENTS ONCE EACH 12 MONTHS [24 CFR
960.257(A)(3)]. ............................................................................................................................. 14
SEE CHAPTER 11 FOR THE PHA’S POLICIES GOVERNING COMPLIANCE WITH THE COMMUNITY
SERVICE REQUIREMENT. ....................................................................................................... 14
PART III: INTERIM REEXAMINATIONS [24 CFR 960.257; 24 CFR 966.4] ......................... 15
9-III.A. OVERVIEW .................................................................................................................... 15
FAMILY CIRCUMSTANCES MAY CHANGE DURING THE PERIOD BETWEEN ANNUAL
REEXAMINATIONS. HUD AND PHA POLICIES DEFINE THE TYPES OF INFORMATION ABOUT
CHANGES IN FAMILY CIRCUMSTANCES THAT MUST BE REPORTED, AND UNDER WHAT
CIRCUMSTANCES THE PHA MUST PROCESS INTERIM REEXAMINATIONS TO REFLECT THOSE
CHANGES. HUD REGULATIONS ALSO PERMIT THE PHA TO CONDUCT INTERIM
REEXAMINATIONS OF INCOME OR FAMILY COMPOSITION AT ANY TIME. ............. 15
IN ADDITION TO SPECIFYING WHAT INFORMATION THE FAMILY MUST REPORT, HUD
REGULATIONS PERMIT THE FAMILY TO REQUEST AN INTERIM DETERMINATION IF OTHER
ASPECTS OF THE FAMILY’S INCOME OR COMPOSITION CHANGE. THE PHA MUST COMPLETE
THE INTERIM REEXAMINATION WITHIN A REASONABLE TIME AFTER THE FAMILY’S
REQUEST..................................................................................................................................... 15
19
THIS PART INCLUDES HUD AND PHA POLICIES THAT DESCRIBE THE CHANGES FAMILIES ARE
REQUIRED TO REPORT, THE CHANGES FAMILIES MAY CHOOSE TO REPORT, AND HOW THE PHA
WILL PROCESS BOTH PHA- AND FAMILY-INITIATED INTERIM REEXAMINATIONS.15
9-III.B. CHANGES IN FAMILY AND HOUSEHOLD COMPOSITION .................................. 15
THE PHA MUST ADOPT POLICIES PRESCRIBING WHEN AND UNDER WHAT CONDITIONS THE
FAMILY MUST REPORT CHANGES IN FAMILY COMPOSITION. HOWEVER, DUE TO PROVISIONS
OF THE PUBLIC HOUSING LEASE, THE PHA HAS LIMITED DISCRETION IN THIS AREA.
15
CHANGES IN FAMILY OR HOUSEHOLD COMPOSITION MAY MAKE IT APPROPRIATE TO
CONSIDER TRANSFERRING THE FAMILY TO COMPLY WITH OCCUPANCY STANDARDS.
POLICIES RELATED TO SUCH TRANSFERS ARE LOCATED IN CHAPTER 12. ............. 15
PHA POLICY ............................................................................................................................... 15
ALL FAMILIES, THOSE PAYING INCOME-BASED RENT AS WELL AS FLAT RENT, MUST REPORT
ALL CHANGES IN FAMILY AND HOUSEHOLD COMPOSITION THAT OCCUR BETWEEN ANNUAL
REEXAMINATIONS (OR ANNUAL UPDATES). .................................................................... 15
THE PHA WILL CONDUCT INTERIM REEXAMINATIONS TO ACCOUNT FOR ANY CHANGES IN
HOUSEHOLD COMPOSITION THAT OCCUR BETWEEN ANNUAL REEXAMINATIONS.15
NEW FAMILY MEMBERS NOT REQUIRING APPROVAL .................................................. 15
THE ADDITION OF A FAMILY MEMBER AS A RESULT OF BIRTH, ADOPTION, OR COURT-
AWARDED CUSTODY DOES NOT REQUIRE PHA APPROVAL. HOWEVER, THE FAMILY IS
REQUIRED TO PROMPTLY NOTIFY THE PHA OF THE ADDITION [24 CFR 966.4(A)(1)(V)].
15
PHA POLICY ............................................................................................................................... 16
THE FAMILY MUST INFORM THE PHA OF THE BIRTH, ADOPTION, OR COURT-AWARDED
CUSTODY OF A CHILD WITHIN 10 BUSINESS DAYS. ....................................................... 16
NEW FAMILY AND HOUSEHOLD MEMBERS REQUIRING APPROVAL ........................ 17
WITH THE EXCEPTION OF CHILDREN WHO JOIN THE FAMILY AS A RESULT OF BIRTH,
ADOPTION, OR COURT-AWARDED CUSTODY, A FAMILY MUST REQUEST PHA APPROVAL TO
ADD A NEW FAMILY MEMBER [24 CFR 966.4(A)(1)(V)] OR OTHER HOUSEHOLD MEMBER (LIVE-
IN AIDE OR FOSTER CHILD) [24 CFR 966.4(D)(3)]. ............................................................. 17
THE PHA MAY ADOPT REASONABLE POLICIES CONCERNING RESIDENCE BY A FOSTER CHILD
OR A LIVE-IN AIDE AND DEFINING THE CIRCUMSTANCES IN WHICH PHA CONSENT WILL BE
GIVEN OR DENIED. UNDER SUCH POLICIES, THE FACTORS CONSIDERED BY THE PHA MAY
INCLUDE [24 CFR 966.4(D)(3)(I)]: ........................................................................................... 17
20
•
WHETHER THE ADDITION OF A NEW OCCUPANT MAY NECESSITATE A TRANSFER
OF THE FAMILY TO ANOTHER UNIT, AND WHETHER SUCH UNITS ARE AVAILABLE.
17
•
THE PHA’S OBLIGATION TO MAKE REASONABLE ACCOMMODATION FOR
PERSONS WITH DISABILITIES. .............................................................................................. 17
PHA POLICY ............................................................................................................................... 17
FAMILIES MUST REQUEST PHA APPROVAL TO ADD A NEW FAMILY MEMBER, LIVE-IN AIDE,
FOSTER CHILD, OR FOSTER ADULT. THIS INCLUDES ANY PERSON NOT ON THE LEASE WHO IS
EXPECTED TO STAY IN THE UNIT FOR MORE THAN 14 CONSECUTIVE DAYS OR A TOTAL OF 30
CUMULATIVE CALENDAR DAYS DURING ANY 12-MONTH PERIOD AND THEREFORE NO
LONGER QUALIFIES AS A “GUEST.” REQUESTS MUST BE MADE IN WRITING AND APPROVED
BY THE PHA PRIOR TO THE INDIVIDUAL MOVING INTO THE UNIT. .......................... 17
IF ADDING A PERSON TO A HOUSEHOLD (OTHER THAN A CHILD BY BIRTH, ADOPTION, OR
COURT-AWARDED CUSTODY) WILL REQUIRE A TRANSFER TO A LARGER SIZE UNIT (UNDER
THE TRANSFER POLICY IN CHAPTER 12), THE PHA WILL APPROVE THE ADDITION ONLY IF THE
FAMILY CAN DEMONSTRATE THAT THERE ARE MEDICAL NEEDS OR OTHER EXTENUATING
CIRCUMSTANCES, INCLUDING REASONABLE ACCOMMODATION, THAT SHOULD BE
CONSIDERED BY THE PHA. EXCEPTIONS WILL BE MADE ON A CASE-BY-CASE BASIS.
17
THE PHA WILL NOT APPROVE THE ADDITION OF A NEW FAMILY OR HOUSEHOLD MEMBER
UNLESS THE INDIVIDUAL MEETS THE PHA’S ELIGIBILITY CRITERIA (SEE CHAPTER 3) AND
DOCUMENTATION REQUIREMENTS (SEE CHAPTER 7, PART II). .................................. 17
IF THE PHA DETERMINES THAT AN INDIVIDUAL DOES NOT MEET THE PHA’S ELIGIBILITY
CRITERIA OR DOCUMENTATION REQUIREMENTS, THE PHA WILL NOTIFY THE FAMILY IN
WRITING OF ITS DECISION TO DENY APPROVAL OF THE NEW FAMILY OR HOUSEHOLD
MEMBER AND THE REASONS FOR THE DENIAL. ............................................................. 17
THE PHA WILL MAKE ITS DETERMINATION WITHIN 10 BUSINESS DAYS OF RECEIVING ALL
INFORMATION REQUIRED TO VERIFY THE INDIVIDUAL’S ELIGIBILITY. ................. 17
DEPARTURE OF A FAMILY OR HOUSEHOLD MEMBER .................................................. 18
PHA POLICY ............................................................................................................................... 18
IF A FAMILY MEMBER CEASES TO RESIDE IN THE UNIT, THE FAMILY MUST INFORM THE PHA
WITHIN 10 BUSINESS DAYS. THIS REQUIREMENT ALSO APPLIES TO FAMILY MEMBERS WHO
HAD BEEN CONSIDERED TEMPORARILY ABSENT, WHO ARE NOW PERMANENTLY ABSENT.
....................................................................................................................................................... 18
IF A LIVE-IN AIDE, FOSTER CHILD, OR FOSTER ADULT CEASES TO RESIDE IN THE UNIT, THE
FAMILY MUST INFORM THE PHA WITHIN 10 BUSINESS DAYS. ................................... 18
21
9-III.C. CHANGES AFFECTING INCOME OR EXPENSES ................................................... 19
INTERIM REEXAMINATIONS CAN BE SCHEDULED EITHER BECAUSE THE PHA HAS REASON TO
BELIEVE THAT CHANGES IN INCOME OR EXPENSES MAY HAVE OCCURRED, OR BECAUSE THE
FAMILY REPORTS A CHANGE. WHEN A FAMILY REPORTS A CHANGE, THE PHA MAY TAKE
DIFFERENT ACTIONS DEPENDING ON WHETHER THE FAMILY REPORTED THE CHANGE
VOLUNTARILY, OR BECAUSE IT WAS REQUIRED TO DO SO. ....................................... 19
PHA POLICY ............................................................................................................................... 19
THIS SECTION ONLY APPLIES TO FAMILIES PAYING INCOME-BASED RENT. FAMILIES PAYING
FLAT RENT ARE NOT REQUIRED TO REPORT CHANGES IN INCOME OR EXPENSES.19
PHA-INITIATED INTERIM REEXAMINATIONS ................................................................... 19
PHA-INITIATED INTERIM REEXAMINATIONS ARE THOSE THAT ARE SCHEDULED BASED ON
CIRCUMSTANCES OR CRITERIA DEFINED BY THE PHA. THEY ARE NOT SCHEDULED BECAUSE
OF CHANGES REPORTED BY THE FAMILY. ....................................................................... 19
PHA POLICY ............................................................................................................................... 19
THE PHA WILL CONDUCT INTERIM REEXAMINATIONS IN EACH OF THE FOLLOWING
INSTANCES: ............................................................................................................................... 19
FOR FAMILIES RECEIVING THE EARNED INCOME DISALLOWANCE (EID), THE PHA WILL
CONDUCT AN INTERIM REEXAMINATION AT THE CONCLUSION OF THE 24-MONTH
ELIGIBILITY PERIOD................................................................................................................ 19
IF THE FAMILY HAS REPORTED ZERO INCOME, THE PHA WILL CONDUCT AN INTERIM
REEXAMINATION EVERY THREE MONTHS AS LONG AS THE FAMILY CONTINUES TO REPORT
THAT THEY HAVE NO INCOME............................................................................................. 19
IF AT THE TIME OF THE ANNUAL REEXAMINATION, IT IS NOT FEASIBLE TO ANTICIPATE A
LEVEL OF INCOME FOR THE NEXT 12 MONTHS (E.G. SEASONAL OR CYCLIC INCOME), THE PHA
WILL SCHEDULE AN INTERIM REEXAMINATION TO COINCIDE WITH THE END OF THE PERIOD
FOR WHICH IT IS FEASIBLE TO PROJECT INCOME. ......................................................... 19
IF AT THE TIME OF THE ANNUAL REEXAMINATION, TENANT DECLARATIONS WERE USED ON
A PROVISIONAL BASIS DUE TO THE LACK OF THIRD-PARTY VERIFICATION, AND THIRD-
PARTY VERIFICATION BECOMES AVAILABLE, THE PHA WILL CONDUCT AN INTERIM
REEXAMINATION. .................................................................................................................... 19
THE PHA MAY CONDUCT AN INTERIM REEXAMINATION AT ANY TIME IN ORDER TO CORRECT
AN ERROR IN A PREVIOUS REEXAMINATION, OR TO INVESTIGATE A TENANT FRAUD
COMPLAINT. .............................................................................................................................. 19
22
FAMILY-INITIATED INTERIM REEXAMINATIONS ........................................................... 20
THE PHA MUST ADOPT POLICIES PRESCRIBING WHEN AND UNDER WHAT CONDITIONS THE
FAMILY MUST REPORT CHANGES IN FAMILY INCOME OR EXPENSES [24 CFR 960.257(C)]. IN
ADDITION, HUD REGULATIONS REQUIRE THAT THE FAMILY BE PERMITTED TO OBTAIN AN
INTERIM REEXAMINATION ANY TIME THE FAMILY HAS EXPERIENCED A CHANGE IN
CIRCUMSTANCES SINCE THE LAST DETERMINATION [24 CFR 960.257(B)]. .............. 20
REQUIRED REPORTING ............................................................................................................ 20
HUD REGULATIONS GIVE THE PHA THE DISCRETION TO DETERMINE THE CIRCUMSTANCES
UNDER WHICH FAMILIES WILL BE REQUIRED TO REPORT CHANGES AFFECTING INCOME.
....................................................................................................................................................... 20
PHA POLICY ............................................................................................................................... 20
FAMILIES ARE REQUIRED TO REPORT ALL INCREASES IN EARNED INCOME, INCLUDING NEW
EMPLOYMENT, WITHIN 10 BUSINESS DAYS OF THE DATE THE CHANGE TAKES EFFECT. 20
THE PHA WILL NOTE THE INFORMATION IN THE TENANT FILE BUT WILL NOT CONDUCT AN
INTERIM REEXAMINATION. .................................................................................................. 20
FAMILIES ARE NOT REQUIRED TO REPORT ANY OTHER CHANGES IN INCOME. ... 20
OPTIONAL REPORTING ............................................................................................................. 20
THE FAMILY MAY REQUEST AN INTERIM REEXAMINATION ANY TIME THE FAMILY HAS
EXPERIENCED A CHANGE IN CIRCUMSTANCES SINCE THE LAST DETERMINATION [24 CFR
960.257(B)]. THE PHA MUST PROCESS THE REQUEST IF THE FAMILY REPORTS A CHANGE THAT
WILL RESULT IN A REDUCED FAMILY INCOME [PH OCC GB, P. 159].......................... 20
IF A FAMILY REPORTS A DECREASE IN INCOME FROM THE LOSS OF WELFARE BENEFITS DUE
TO FRAUD OR NON-COMPLIANCE WITH A WELFARE AGENCY REQUIREMENT TO PARTICIPATE
IN AN ECONOMIC SELF-SUFFICIENCY PROGRAM, THE FAMILY’S SHARE OF THE RENT WILL
NOT BE REDUCED [24 CFR 5.615]. FOR MORE INFORMATION REGARDING THE REQUIREMENT
TO IMPUTE WELFARE INCOME SEE CHAPTER 6. ............................................................. 20
PHA POLICY ............................................................................................................................... 20
IF A FAMILY REPORTS A CHANGE THAT IT WAS NOT REQUIRED TO REPORT AND THAT
WOULD RESULT IN AN INCREASE IN THE TENANT RENT, THE PHA WILL NOTE THE
INFORMATION IN THE TENANT FILE, BUT WILL NOT CONDUCT AN INTERIM REEXAMINATION.
....................................................................................................................................................... 20
23
IF A FAMILY REPORTS A CHANGE THAT IT WAS NOT REQUIRED TO REPORT AND THAT
WOULD RESULT IN A DECREASE IN THE TENANT RENT, THE PHA WILL CONDUCT AN INTERIM
REEXAMINATION. SEE SECTION 9-III.D. FOR EFFECTIVE DATES. ............................... 20
FAMILIES MAY REPORT CHANGES IN INCOME OR EXPENSES AT ANY TIME. ........ 21
9-III.D. PROCESSING THE INTERIM REEXAMINATION .................................................... 22
METHOD OF REPORTING ........................................................................................................ 22
PHA POLICY ............................................................................................................................... 22
THE FAMILY MAY NOTIFY THE PHA OF CHANGES EITHER ORALLY OR IN WRITING. IF THE
FAMILY PROVIDES ORAL NOTICE, THE PHA MAY ALSO REQUIRE THE FAMILY TO SUBMIT THE
CHANGES IN WRITING. ........................................................................................................... 22
GENERALLY, THE FAMILY WILL NOT BE REQUIRED TO ATTEND AN INTERVIEW FOR AN
INTERIM REEXAMINATION. HOWEVER, IF THE PHA DETERMINES THAT AN INTERVIEW IS
WARRANTED, THE FAMILY MAY BE REQUIRED TO ATTEND. ..................................... 22
BASED ON THE TYPE OF CHANGE REPORTED, THE PHA WILL DETERMINE THE
DOCUMENTATION THE FAMILY WILL BE REQUIRED TO SUBMIT. THE FAMILY MUST SUBMIT
ANY REQUIRED INFORMATION OR DOCUMENTS WITHIN 10 BUSINESS DAYS OF RECEIVING A
REQUEST FROM THE PHA. THIS TIME FRAME MAY BE EXTENDED FOR GOOD CAUSE WITH PHA
APPROVAL. THE PHA WILL ACCEPT REQUIRED DOCUMENTATION BY MAIL, BY EMAIL, OR IN
PERSON. ...................................................................................................................................... 22
EFFECTIVE DATES.................................................................................................................... 22
THE PHA MUST MAKE THE INTERIM REEXAMINATION WITHIN A REASONABLE TIME AFTER
THE FAMILY REQUEST [24 CFR 960.257(B)]. ....................................................................... 22
PHA POLICY ............................................................................................................................... 22
IF THE TENANT RENT IS TO INCREASE: .............................................................................. 22
THE INCREASE GENERALLY WILL BE EFFECTIVE ON THE FIRST OF THE MONTH FOLLOWING
30 DAYS’ NOTICE TO THE FAMILY. ..................................................................................... 22
IF A FAMILY FAILS TO REPORT A CHANGE WITHIN THE REQUIRED TIME FRAMES, OR FAILS TO
PROVIDE ALL REQUIRED INFORMATION WITHIN THE REQUIRED TIME FRAMES, THE
INCREASE WILL BE APPLIED RETROACTIVELY, TO THE DATE IT WOULD HAVE BEEN
EFFECTIVE HAD THE INFORMATION BEEN PROVIDED ON A TIMELY BASIS. THE FAMILY WILL
BE RESPONSIBLE FOR ANY UNDERPAID RENT AND MAY BE OFFERED A REPAYMENT
AGREEMENT IN ACCORDANCE WITH THE POLICIES IN CHAPTER 16. ....................... 22
24
IF THE TENANTS RENT IS TO DECREASE: ........................................................................... 22
THE DECREASE WILL BE EFFECTIVE ON THE FIRST DAY OF THE MONTH FOLLOWING THE
MONTH IN WHICH THE CHANGE WAS REPORTED. IN CASES WHERE THE CHANGE CANNOT BE
VERIFIED UNTIL AFTER THE DATE THE CHANGE WOULD HAVE BECOME EFFECTIVE, THE
CHANGE WILL BE MADE RETROACTIVELY. ..................................................................... 22
PART IV: RECALCULATING TENANT RENT ....................................................................... 24
9-IV.A. OVERVIEW .................................................................................................................... 24
FOR THOSE FAMILIES PAYING INCOME-BASED RENT, THE PHA MUST RECALCULATE THE
RENT AMOUNT BASED ON THE INCOME INFORMATION RECEIVED DURING THE
REEXAMINATION PROCESS AND NOTIFY THE FAMILY OF THE CHANGES [24 CFR 966.4, 960.257].
WHILE THE BASIC POLICIES THAT GOVERN THESE CALCULATIONS ARE PROVIDED IN
CHAPTER 6, THIS PART LAYS OUT POLICIES THAT AFFECT THESE CALCULATIONS DURING A
REEXAMINATION. .................................................................................................................... 24
9-IV.B. CHANGES IN UTILITY ALLOWANCES [24 CFR 965.507, 24 CFR 966.4] ............. 24
THE TENANT RENT CALCULATIONS MUST REFLECT ANY CHANGES IN THE PHA’S UTILITY
ALLOWANCE SCHEDULE [24 CFR 960.253(C)(3)]. CHAPTER 16 DISCUSSES HOW UTILITY
ALLOWANCE SCHEDULES ARE ESTABLISHED. ............................................................... 24
PHA POLICY ............................................................................................................................... 24
UNLESS THE PHA IS REQUIRED TO REVISE UTILITY ALLOWANCES RETROACTIVELY, REVISED
UTILITY ALLOWANCES WILL BE APPLIED TO A FAMILY’S RENT CALCULATIONS AT THE FIRST
ANNUAL REEXAMINATION AFTER THE ALLOWANCE IS ADOPTED. ......................... 24
9-IV.C. NOTIFICATION OF NEW TENANT RENT ................................................................ 24
THE PUBLIC HOUSING LEASE REQUIRES THE PHA TO GIVE THE TENANT WRITTEN NOTICE
STATING ANY CHANGE IN THE AMOUNT OF TENANT RENT, AND WHEN THE CHANGE IS
EFFECTIVE [24 CFR 966.4(B)(1)(II)]. ....................................................................................... 24
WHEN THE PHA REDETERMINES THE AMOUNT OF RENT (TOTAL TENANT PAYMENT OR
TENANT RENT) PAYABLE BY THE TENANT, NOT INCLUDING DETERMINATION OF THE PHA’S
SCHEDULE OF UTILITY ALLOWANCES FOR FAMILIES IN THE PHA’S PUBLIC HOUSING
PROGRAM, OR DETERMINES THAT THE TENANT MUST TRANSFER TO ANOTHER UNIT BASED
ON FAMILY COMPOSITION, THE PHA MUST NOTIFY THE TENANT THAT THE TENANT MAY ASK
FOR AN EXPLANATION STATING THE SPECIFIC GROUNDS OF THE PHA DETERMINATION, AND
THAT IF THE TENANT DOES NOT AGREE WITH THE DETERMINATION, THE TENANT SHALL
HAVE THE RIGHT TO REQUEST A HEARING UNDER THE PHA’S GRIEVANCE PROCEDURE [24
CFR 966.4(C)(4)]. ......................................................................................................................... 24
25
PHA POLICY ............................................................................................................................... 24
THE NOTICE TO THE FAMILY WILL INCLUDE THE ANNUAL AND ADJUSTED INCOME AMOUNTS
THAT WERE USED TO CALCULATE THE TENANT RENT. ............................................... 24
9-IV.D. DISCREPANCIES .......................................................................................................... 25
DURING AN ANNUAL OR INTERIM REEXAMINATION, THE PHA MAY DISCOVER THAT
INFORMATION PREVIOUSLY REPORTED BY THE FAMILY WAS IN ERROR, OR THAT THE
FAMILY INTENTIONALLY MISREPRESENTED INFORMATION. IN ADDITION, THE PHA MAY
DISCOVER ERRORS MADE BY THE PHA. WHEN ERRORS RESULTING IN THE OVERPAYMENT OR
UNDERPAYMENT OF RENT ARE DISCOVERED, CORRECTIONS WILL BE MADE IN ACCORDANCE
WITH THE POLICIES IN CHAPTER 15. .................................................................................. 25
CHAPTER 9.B. ............................................................................................................................. 25
REEXAMINATIONS UNDER HOTMA 102/104 .................................................................. 25
PART I: ANNUAL REEXAMINATIONS FOR FAMILIES PAYING INCOME-BASED RENTS; [24
CFR 960.257] ....................................................................................................... 26
9-I.A. Overview ................................................................................................................... 26
9-I.B. Scheduling Annual Reexaminations .......................................................................... 27
9-I.C. Conducting Annual Reexaminations ......................................................................... 28
9-I.F. Effective Dates ........................................................................................................... 32
PART II: REEXAMINATIONS FOR FAMILIES PAYING FLAT RENTS [24 CFR 960.253(f)]33
9-II.A. Overview .................................................................................................................. 33
9-II.B. Full Reexamination of Family Income and Composition ........................................ 33
9-II.C. Reexamination of Family Composition (“Annual Update”) .................................... 34
PART III: INTERIM REEXAMINATIONS [24 CFR 960.257(b); 24 CFR 966.4; and Notice PIH
2023-27] ............................................................................................................... 36
9-III.A. Overview................................................................................................................. 36
9-III.B. Changes in Family and Household Composition.................................................... 36
9-III.C. Changes Affecting Income or Expenses ................................................................. 38
9-III.D. effective dates ......................................................................................................... 42
9-IV.A. Overview ................................................................................................................ 43
9-IV.B. Changes in Utility Allowances [24 CFR 965.507, 24 CFR 966.4] ........................ 43
9-IV.C. Notification of New Tenant Rent ........................................................................... 43
9-IV.D. Discrepancies .......................................................................................................... 43
Chapter 10 ............................................................................................................................... 1
26
PETS [24 CFR §5, Subpart C; 24 CFR §960, Subpart G] ................................................... 1
PART I: ASSISTANCE ANIMALS [Section 504; Fair Housing Act (42 U.S.C.); 24 CFR 5.303; 24
CFR 960.705] ......................................................................................................... 2
10-I.A. Overview ................................................................................................................... 2
10-I.B. Approval of Assistance Animals [Notice FHEO 2020-01] ....................................... 2
10-I.C. Care and Handling ..................................................................................................... 5
PART II: PET POLICIES FOR ALL DEVELOPMENTS [24 CFR 5, Subpart C; 24 CFR 960, Subpart
G] ............................................................................................................................. 6
10-II.A. Overview .................................................................................................................. 6
10-II.B. Management Approval of Pets ................................................................................. 6
10-II.C. Standards for Pets [24 CFR 5.318; 960.707(b)] ....................................................... 8
10-II.D. Pet Rules ................................................................................................................ 10
PART III: PET DEPOSITS AND FEES IN ELDERLY/DISABLED DEVELOPMENTS .......... 15
10-III.A. Overview............................................................................................................... 15
10-III.B. Pet Deposits .......................................................................................................... 15
10-III.C. Other Charges ....................................................................................................... 16
PART IV: PET DEPOSITS AND FEES IN GENERAL OCCUPANCY DEVELOPMENTS ... 17
10-IV.A. Overview .............................................................................................................. 17
10-IV.B. Pet Deposits .......................................................................................................... 17
10-IV.C. Non-Refundable Nominal Pet Fee ........................................................................ 18
10-IV.D. Other Charges ....................................................................................................... 19
CHAPTER 11 ................................................................................................................................. 1
COMMUNITY SERVICE ........................................................................................................... 1
PART I: COMMUNITY SERVICE REQUIREMENT ................................................................. 1
11-I.A. Overview ................................................................................................................... 1
11-I.B. Requirements ............................................................................................................. 2
11-I.C. Determination of Exemption Status and Compliance [24 CFR §960.605(c)(3)] ..... 5
11-I.D. Documentation And Verification [24 CFR §960.605(c)(4)], §960.607, Notice PIH 2016-
08] ............................................................................................................................ 8
11-I.E. Noncompliance .......................................................................................................... 9
PART II: IMPLEMENTATION OF COMMUNITY SERVICE ................................................ 11
11-II.A. Overview ................................................................................................................ 11
TRANSFER POLICY .................................................................................................................. 1
27
PART I EMERGENCY TRANSFERS ......................................................................................... 2
12-I.A. Overview ................................................................................................................... 2
12-I.B. Emergency Transfers ................................................................................................. 3
12-I.C. Emergency Transfer Procedures ................................................................................ 4
12-I.D. Costs of Transfer ....................................................................................................... 4
PART II: PHA REQUIRED TRANSFERS .................................................................................. 5
12-II.A. Overview .................................................................................................................. 5
12-II.B. Types of PHA Required Transfers ........................................................................... 5
12-II.C. Adverse Action [24 CFR 966.4(e)(8)(i)].................................................................. 7
12-II.D. Cost of Transfer ....................................................................................................... 7
PART III: TRANSFERS REQUESTED BY TENANTS .............................................................. 8
12-III.A. Overview................................................................................................................. 8
12-III.B. Types of Resident Requested Transfers .................................................................. 8
12-III.C. Eligibility for Transfer ............................................................................................ 9
12-III.D. Security Deposits .................................................................................................. 10
12-III.E. Cost of Transfer ..................................................................................................... 10
12-III.F. Handling of Requests ............................................................................................ 10
PART IV: TRANSFER PROCESSING ..................................................................................... 11
12-IV.A. Overview .............................................................................................................. 11
12-IV.B. Transfer List.......................................................................................................... 11
12-IV.C. Transfer Offer Policy ............................................................................................ 12
12-IV.D. Good Cause for Unit Refusal ............................................................................... 12
12-IV.E. Deconcentration .................................................................................................... 13
12-IV.F. Reexamination Policies for Transfers ................................................................... 13
LEASE TERMINATIONS ........................................................................................................... 1
PART I: TERMINATION BY TENANT ..................................................................................... 2
13-I.A. Tenant Chooses To Terminate The Lease [24 CFR 966.4(k)(1)(ii) and 24 CFR 966.4(i)(1)]
................................................................................................................................. 2
PART II: TERMINATION BY PHA – MANDATORY............................................................... 3
13-II.A. Overview .................................................................................................................. 3
13-II.B. Failure to Provide Consent [24 CFR 960.259(a) and (b)] ........................................ 3
13-II.C. Failure To Document Citizenship [24 CFR 5.514(c) and (d) and 24 CFR 960.259(a)]
................................................................................................................................. 3
28
13-II.D. Failure To Disclose And Document Social Security Numbers [24 CFR 5.218(c), 24 CFR
960.259(a)(3), Notice PIH 2018-24] ....................................................................... 4
13-II.E. Failure To Accept The PHA’s Offer of A Lease Revision [24 CFR 966.4(i)(2)(ii)(E)]
................................................................................................................................. 4
13-II.F. Methamphetamine Conviction [24 CFR 966.4(l)(5)(i)(A)]...................................... 5
13-II.G. Lifetime Registered Sex Offenders (PIH Notice 2012-28) ...................................... 5
13-II.H. Noncompliance With Community Service Requirements [24 CFR 966.4(i)(2)(ii)(D), 24
CFR 960.603(b) and 24 CFR 960.607(b)(2)(ii) and (c)] ......................................... 5
13-II.I Death of a Sole Family Member [Notice PIH 2012-4] .............................................. 5
PART III: TERMINATION BY PHA – OTHER AUTHORIZED REASONS........................... 10
13-III.A. Overview............................................................................................................... 10
13-III.B. Mandatory Lease Provisions [24 CFR 966.4(i)(5)] .............................................. 12
13-III.C. Other Authorized Reasons For Termination [24 CFR 966.4(I)(2) and (5)(ii)(B)] 17
13-III.D. Alternatives to Termination of Tenancy ............................................................... 19
13-III.E. Criteria for Deciding to Terminate Tenancy ......................................................... 20
13-III.F. Terminations Related To Domestic Violence, Dating Violence, Sexual Assault, Stalking,
or human trafficking .............................................................................................. 22
PART IV: NOTIFICATION REQUIREMENTS, EVICTION PROCEDURES, AND RECORD
KEEPING ............................................................................................................... 27
13-IV.A. Overview .............................................................................................................. 27
13-IV.B. Conducting Criminal Records Checks [24 CFR 5.903(e)(ii) and 24 CFR 960.259]27
13-IV.C. Disclosure of Criminal Records To Family [24 CFR 5.903(f), 24 CFR 5.905(d) and 24
CFR 966.4(I)(5)(iv)] .............................................................................................. 28
13-IV.D. Lease Termination Notice [24 CFR 966.4(I)(3)] ................................................. 29
13-IV.E. Eviction [24 CFR 966.4(i)(4) and 966.4(m)] ........................................................ 34
13-IV.F. Notification To Post Office [24 CFR 966.4(i)(5)(iii)(B)] ..................................... 34
13-IV.G. Record Keeping .................................................................................................... 34
GRIEVANCES AND APPEALS ................................................................................................. 1
PART I: INFORMAL HEARINGS FOR PUBLIC HOUSING APPLICANTS ........................... 2
14-I.A. Overview ................................................................................................................... 2
14-I.B. Informal Hearing Process [24 CFR §960.208(a) and PH Occ GB, p. 58] ................. 2
PART II: INFORMAL HEARINGS WITH REGARD TO NONCITIZENS ............................... 8
14-II.A. Hearing and Appeal Provisions for Noncitizens [24 CFR §5.514].......................... 8
PART III: GRIEVANCE PROCEDURES FOR PUBLIC HOUSING RESIDENTS ................. 12
14-III.A. Requirements [24 CFR §966.52] .......................................................................... 12
29
14-III.B. Definitions [24 CFR §966.53; 24 CFR §966.51(a)(2)(i)] ..................................... 12
14-III.C. Applicability [24 CFR §966.51] ........................................................................... 14
14-III.D. Informal Settlement of Grievance [24 CFR §966.54] [See local procedure, “Grievance
Policy and Flowchart” for details] ......................................................................... 15
14-III.E. Procedures to Obtain a Hearing After the Informal Settlement Meeting [24 CFR
§966.56(a)] ............................................................................................................ 16
14-III.F. Selection of Hearing Officer/PANEL [24 CFR §966.53(e), PIH 2016-05] .......... 18
14-III.G. REMOTE HEARINGS [PIH 2020-32] ................................................................ 18
14-III.H. Procedures Governing The Hearing [24 CFR §966.56] ....................................... 21
14-III.I. Decision of the Hearing Officer/Panel [24 CFR §966.57] ..................................... 25
CHAPTER 15 ................................................................................................................................. 1
PROGRAM INTEGRITY ............................................................................................................ 1
PART I: PREVENTING, DETECTING, AND INVESTIGATING ERRORS AND PROGRAM ABUSE 2
15-I.A. Preventing Errors and Program Abuse ...................................................................... 2
15-I.B. Detecting Errors and Program Abuse ........................................................................ 3
15-I.C. Investigating Errors and Program Abuse................................................................... 4
PART II: CORRECTIVE MEASURES AND PENALTIES ......................................................... 6
15-II.A. Under- Or Overpayment .......................................................................................... 6
15-II.B. Family-Caused Errors and Program Abuse .............................................................. 6
15-II.C. PHA-Caused Errors or Program Abuse ................................................................... 8
15-II.D. Criminal Prosecution................................................................................................ 9
15-II.E. Fraud and Program Abuse Recoveries ................................................................... 10
CHAPTER 16 ................................................................................................................................. 1
PROGRAM ADMINISTRATION .............................................................................................. 1
PART I: SETTING UTILITY ALLOWANCES ............................................................................ 2
[24 CFR 965 Subpart E] ......................................................................................................... 2
16-I.A. Overview ................................................................................................................... 2
16-I.B Utility Allowances ...................................................................................................... 2
16-I.C. Surcharges for PHA-Furnished Utilities [24 CFR 965.506] ..................................... 4
16-I.D. Notice Requirements [24 CFR 965.502] ................................................................... 4
16-I.E. Reasonable Accommodation AND INDIVIDUAL RELIEF [24 CFR 965.508] ...... 5
PART II: ESTABLISHING FLAT RENTS .................................................................................. 6
16-II.A. Overview .................................................................................................................. 6
30
16-II.B. Flat Rents [24 CFR 960.253(b) and Notice PIH 2022-33] ...................................... 6
PART III: FAMILY DEBTS TO THE PHA ................................................................................. 8
16-III.A. Overview................................................................................................................. 8
16-III.B. Repayment Policy ................................................................................................... 8
PART IV: PUBLIC HOUSING ASSESSMENT SYSTEM (PHAS) .......................................... 12
16-IV.A. Overview .............................................................................................................. 12
16-IV.B. PHAS Indicators [24 CFR 902 Subparts A, B, C, D, and E]................................ 13
16-IV.C. PHAS Scoring [24 CFR 902 Subpart F] ............................................................... 14
PART V: RECORD KEEPING ................................................................................................. 15
16-V.A. Overview ................................................................................................................ 15
16-V.B. Record Retention.................................................................................................... 16
16-V.C. Records Management ............................................................................................. 17
PART VI: REPORTING REQUIREMENTS FOR CHILDREN WITH ELEVATED BLOOD LEAD
LEVEL .................................................................................................................... 19
16-VI.A. Reporting Requirements [24 CFR §35.1130(e), Notice PIH 2017-13] ............... 19
PART VII: VIOLENCE AGAINST WOMEN ACT (VAWA): NOTIFICATION, DOCUMENTATION,
AND CONFIDENTIALITY .................................................................................... 20
16-VII.A. Overview ............................................................................................................ 20
16-VII.B. Definitions [24 CFR 5.2003, FR Notice 8/6/13] ................................................. 21
16-VII.C. Notification [24 CFR 5.2005(a)] ......................................................................... 23
16-VII.D. Documentation [24 CFR 5.2007] ........................................................................ 25
16-VII.E. Confidentiality [24 CFR 5.2007(b)(4)] ............................................................... 27
GLOSSARY ................................................................................................................................ 1
A.
ACRONYMS USED IN PUBLIC HOUSING ....................................................... 1
B.
GLOSSARY OF PUBLIC HOUSING terms .......................................................... 4
Intro I
Introduction
ABOUT THE ACOP
REFERENCES CITED IN THE ACOP
Authority for PHA policies is derived from many sources. Primary among these sources are regulations
and guidance issued by HUD. State law also directs PHA policy. State law must be followed where such
law exists and does not conflict with federal regulations. In the absence of legal requirements or HUD
guidance, industry practice may lead to PHA policy. Finally, the public housing lease will affect PHA policy
and therefore must be consistent with federal and state laws and regulations.
HUD
HUD provides the primary source of PHA policy through federal regulations, HUD Notices and
handbooks. Compliance with federal regulations, current HUD Notices and HUD handbooks is
mandatory.
HUD provides nonmandatory guidance to PHAs through HUD published guidebooks. Expired HUD
Notices and handbooks also provide guidance for PHA policy. Following HUD guidance is optional, as
long as PHA policies comply with federal law, federal regulations and mandatory policy. Because HUD
has already determined that the guidance it provides is consistent with mandatory policies, PHA reliance
on HUD guidance provides the PHA with a “safe harbor.”
Content contained on the HUD website can provide further clarification of HUD policies. For example,
FAQs on the HUD website can provide direction on the application of federal regulations to a specific
pattern.
State Law
Where there is no mandatory federal guidance, PHAs must comply with state law, if it exists. Where state
law is more restrictive than federal law, but does not conflict with it, the PHA should follow the state law.
Industry Practice
Where no law or HUD authority exists on a particular subject, industry practice may support PHA policy.
An industry practice is a way of doing things that is followed by most housing authorities.
Intro I
RESOURCES CITED IN THE ACOP
The ACOP cites several documents. Where a document or resource is cited frequently, it may be
abbreviated. Where it is cited only once or twice, the ACOP may contain the entire name of the
document or resource. Following is a key to abbreviations used for various sources that are frequently
cited in the ACOP, and a list of references and document locations that are referenced in the ACOP or
that may be helpful to you.
Public Housing Occupancy Guidebook
In June 2020 HUD began issuing a new version of the Public Housing Occupancy Guidebook chapter-by-
chapter. Unlike the previous version of the guidebook in which chapters were numbered, the new version
includes chapter names, but no numbers. As the new version of the guidebook has not yet been fully
released, and since the previous version of the guidebook contains guidance not found in the new
version, the policy cites both versions of the guidebook. Therefore, where the Public Housing Occupancy
Guidebook is cited in the policy, the citation will make a distinction between the “old” and “new” versions
of the guidebook. The “old” version of the guidebook will continue to be cited as PH OCC GB with a
chapter/page reference (example: PH OCC GB, p. 5-4). If HUD has also released a new chapter on the
same topic with information that either adds new information or updates existing information from the
previous guidebook, the new guidebook will be cited as New PH OCC GB with a chapter title and page
reference (example: New PH OCC GB, Lease Requirements, p. 11).
On September 29, 2023, HUD issued Notice PIH 2023-27 to implement sections 102 and 104 of the
Housing Opportunity Through Modernization Act of 2016 (HOTMA). The notice supersedes relevant
portion of the guidebook, specifically the chapters on eligibility and occupancy, income determinations,
and reexaminations. Where chapters have not been altered by the HOTMA implementation notice, the
model policy continues to site the Public Housing Occupancy Guidebook.
Abbreviations
Throughout the ACOP, abbreviations are used to designate certain documents in citations. The following
is a table of abbreviations of documents cited by the ACOP.
Abbreviation
Document
CFR
Code of Federal Regulations
HUD-50058 IB
HUD-50058 Instruction Booklet
PH OCC GB
Public Housing Occupancy Guidebook, June 2003
New PH OCC GB
Public Housing Occupancy Guidebook, Various dates of release
RHIIP FAQs
Rental Housing Integrity Improvement Program (RHIIP) Frequently
Asked Questions
VG
Verification Guidance, March 2004 (attachment to PIH Notice 2004-
1)
Intro I
Resources and Where to Find Them
The HUD website is https://www.hud.gov/.
Guidebooks, handbooks, and other HUD resources may be found at the HUDClips website:
https://www.hud.gov/program_offices/administration/hudclips
Following is a list of resources helpful to the PHA or referenced in the ACOP, and the online location of each.
Document and Location
Code of Federal Regulations http://www.ecfr.gov
Enterprise Income Verification (EIV) System PHA Security Procedures
https://www.hud.gov/sites/documents/EIVSECGUIDEPHA.PDF
Executive Order 11063 https://www.archives.gov/federal-register/codification/executive-order/11063.html
Federal Register https://www.federalregister.gov/
HOTMA Final Rule https://www.federalregister.gov/documents/2023/02/14/2023-01617/housing-opportunity-
through-modernization-act-of-2016-implementation-of-sections-102-103-and-
104?utm_campaign=subscription+mailing+list&utm_source=federalregister.gov&utm_medium=email
HOTMA Implementation Notice, PIH 2023-27 https://www.hud.gov/sites/dfiles/OCHCO/documents/2023-
27pihn.pdf
Joint Statement of the Department of Housing and Urban Development and the Department of Justice, issued
May 17, 2004 https://www.justice.gov/sites/default/files/crt/legacy/2010/12/14/joint_statement_ra.pdf
Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin
Discrimination Affecting Limited English Proficient Persons, published January 22, 2007
https://www.lep.gov/guidance/HUD_guidance_Jan07.pdf
Notice PIH 2010-26, Nondiscrimination and Accessibility Notice
http://www.hud.gov/offices/pih/publications/notices/10/pih2010-26.pdf
Notice PIH 2017-12, Administrative Guidance for Effective and Mandated Use of the Enterprise Income
Verification (EIV) System https://www.hud.gov/sites/documents/PIH2017-12EIVNOTICE.PDF
Public Housing Occupancy Guidebook, June 2003 https://www.hud.gov/sites/documents/DOC_10760.PDF
VAWA Resources https://www.hud.gov/vawa
1-1
CHAPTER 1
OVERVIEW OF THE PROGRAM AND PLAN
INTRODUCTION
The PHA receives its operating subsidy for the public housing program from the Department of Housing
and Urban Development. The PHA is not a federal department or agency. A public housing agency (PHA)
is a governmental or public body, created and authorized by state law to develop and operate housing
and housing programs for low-income families. The PHA enters into an Annual Contributions Contract
with HUD to administer the public housing program. The PHA must ensure compliance with federal laws,
regulations, and notices, and must establish policy and procedures to clarify federal requirements and to
ensure consistency in program operation.
This chapter contains information about the PHA and its programs with emphasis on the public housing
program. It also contains information about the purpose, intent, and use of the plan and guide.
There are three parts to this chapter:
Part I: The Public Housing Agency (PHA). This part includes a description of the PHA, its jurisdiction, its
programs, and its mission and intent.
Part II: The Public Housing Program. This part contains information about public housing operation,
roles and responsibilities, and partnerships.
Part III: The Admissions and Continued Occupancy (ACOP). This part discusses the purpose and
organization of the plan and its revision requirements.
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PART I: THE PHA
1-I.A. OVERVIEW
This part describes the PHA’s creation and authorization, the general structure of the organization, and
the relationship between the PHA Board and staff.
1-I.B. ORGANIZATION AND STRUCTURE OF THE PHA
Public housing is funded by the federal government and administered by the City of Chandler Housing
and Redevelopment Division for the jurisdiction of City of Chandler.
PHAs are governed by a board of officials that are generally called “commissioners.” Although some PHAs
may use a different title for their officials, this document will hitherto refer to the “board of
commissioners” or the “board” when discussing the board of governing officials.
Commissioners are appointed in accordance with state housing law and generally serve in the same
capacity as the directors of a corporation. The board of commissioners establishes policies under which
the PHA conducts business and ensures that those policies are followed by PHA staff. The board is
responsible for preserving and expanding the agency’s resources and assuring the agency’s continued
viability and success.
Formal actions of the PHA are taken through written resolutions, adopted by the board, and entered into
the official records of the PHA.
The principal staff member of the PHA is the executive director (ED), who is selected and hired by the
board. The ED oversees the day-to-day operations of the PHA and is directly responsible for carrying out
the policies established by the commissioners. The ED’s duties include hiring, training, and supervising
the PHA’s staff, as well as budgeting and financial planning for the agency. Additionally, the ED is charged
with ensuring compliance with federal and state laws, and program mandates. In some PHAs, the ED is
known by another title, such as chief executive officer or president.
1-I.C. PHA MISSION
The purpose of a mission statement is to communicate the purpose of the agency to people inside and
outside of the agency. It provides the basis for strategy development, identification of critical success
factors, resource allocation decisions, as well as ensuring client and stakeholder satisfaction.
PHA Policy
The Housing and Redevelopment Division (the Housing Authority) of the City of Chandler is a local
municipal subcomponent unit of government incorporated within the City of Chandler with the
purpose of providing, facilitating, and managing affordable housing products and supportive
services to eligible persons with limited incomes, through a variety of federal, state, local and
private resources.
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1-I.D. THE PHA’S COMMITMENT TO ETHICS AND SERVICE
As a public service agency, the PHA is committed to providing excellent service to all public housing
applicants, residents, and the public. In order to provide superior service, the PHA resolves to:
•
Administer applicable federal and state laws and regulations to achieve high ratings in compliance
measurement indicators while maintaining efficiency in program operation to ensure fair and
consistent treatment of clients served.
•
Provide housing that is safe, habitable, functionally adequate, operable, and free of health and
safety hazards—in compliance with the National Standards for the Physical Inspection of Real
Estate: Inspection Standards (NSPIRE)— for very low- and low-income families.
•
Achieve a healthy mix of incomes in its public housing developments by attracting and retaining
higher income families and by working toward deconcentration of poverty goals.
•
Encourage self-sufficiency of participant families and assist in the expansion of family
opportunities that address educational, socio-economic, recreational, and other human service
needs.
•
Promote fair housing and the opportunity for very low- and low-income families of all races,
ethnicities, national origins, religions, ethnic backgrounds, and with all types of disabilities, to
participate in the public housing program and its services.
•
Create positive public awareness and expand the level of family and community support in
accomplishing the PHA’s mission.
•
Attain and maintain a high level of standards and professionalism in day-to-day management of
all program components.
•
Administer an efficient, high-performing agency through continuous improvement of the PHA’s
support systems and commitment to our employees and their development.
The PHA will make every effort to keep residents informed of program rules and regulations, and to
advise participants of how the program rules affect them.
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PART II: THE PUBLIC HOUSING PROGRAM
1-II.A. OVERVIEW AND HISTORY OF THE PROGRAM
The intent of this section is to provide the public and staff an overview of the history and operation of
public housing.
The United States Housing Act of 1937 (the “Act”) is responsible for the birth of federal housing program
initiatives, known as public housing. The Act was intended to provide financial assistance to states and
cities for public works projects, slum clearance, and the development of affordable housing for low-
income residents. There have been many changes to the program since its inception in 1937.
The Housing Act of 1965 established the availability of federal assistance, administered through local
public agencies, to provide rehabilitation grants for home repairs and rehabilitation. This act also created
the federal Department of Housing and Urban Development (HUD).
The Housing Act of 1969 created an operating subsidy for the public housing program for the first time.
Until that time, public housing was a self-sustaining program.
In 1998, the Quality Housing and Work Responsibility Act (QHWRA) – also known as the Public Housing
Reform Act or Housing Act of 1998 – was signed into law. Its purpose was to provide more private sector
management guidelines to the public housing program and provide residents with greater choices. It also
allowed PHAs more remedies to replace or revitalize severely distressed public housing developments.
Highlights of the Reform Act include: the establishment of flat rents; the requirement for PHAs to develop
five-year and annual plans; income targeting, a requirement that 40% of all new admissions in public
housing during any given fiscal year be reserved for extremely low-income families; and resident self-
sufficiency incentives.
On July 29, 2016, the Housing Opportunity Through Modernization Act of 2016 (HOTMA) was signed into
law. HOTMA made numerous changes to statutes governing HUD programs, including sections of the
United States Housing Act of 1937. Title I of HOTMA contains 14 different sections that impact the public
housing and Section 8 programs. The Final Rule implementing broad changes to income and assets in
Sections 102 and 104 of HOTMA, and for PHAs that administer the public housing program over-income
provisions in Section 103, was officially published in the Federal Register on February 14, 2023. On
September 29, 2023, HUD issued notice PIH 2023-27, which provided guidance to PHAs on the
implementation of the program changes described in the Final Rule.
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1-II.B. PUBLIC HOUSING PROGRAM BASICS
HUD writes and publishes regulations in order to implement public housing laws enacted by Congress.
HUD contracts with the PHA to administer programs in accordance with HUD regulations and provides an
operating subsidy to the PHA. The PHA must create written policies that are consistent with HUD
regulations. Among these policies is the PHA’s Admissions and Continued Occupancy Policy (ACOP). The
ACOP must be approved by the board of commissioners of the PHA.
The job of the PHA pursuant to HUD regulations is to provide safe, habitable dwelling units, to low-
income families at an affordable rent. The PHA screens applicants for public housing and, if they are
determined to be eligible for the program, the PHA makes an offer of a housing unit. If the applicant
accepts the offer, the PHA and the applicant will enter into a written lease agreement. At this point, the
applicant becomes a tenant in the public housing program.
In the context of the public housing program, a tenant is defined as the adult person(s) (other than a live-
in aide who (1) executed the lease with the PHA as lessee of the dwelling unit, or, if no such person now
resides in the unit, (2) who resides in the unit, and who is the remaining head of household of the tenant
family residing in the dwelling unit. [24 CFR §966.53]. The Public Housing Occupancy Guidebook refers to
tenants as “residents.” The terms “tenant” and “resident” are used interchangeably in this policy.
Additionally, this policy uses the term “family” or “families” for residents or applicants, depending on
context.
Since the PHA owns the public housing development, the PHA is the landlord. The PHA must comply with
all of the legal and management responsibilities of a landlord in addition to administering the program in
accordance with HUD regulations and PHA policy.
1-II.C. PUBLIC HOUSING PARTNERSHIPS
To administer the public housing program, the PHA must enter into an Annual Contributions Contract
(ACC) with HUD. The PHA also enters into a contractual relationship with the tenant through the public
housing lease. These contracts define and describe the roles and responsibilities of each party.
In addition to the ACC, the PHA and family must also comply with federal regulations and other HUD
publications and directives. For the program to work and be successful, all parties involved – HUD, the
PHA, and the tenant – play an important role.
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The following chart illustrates key aspects of these relationships.
The Public Housing Relationships
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What Does HUD Do?
Federal law is the source of HUD responsibilities. HUD has the following major responsibilities:
•
Develop regulations, requirements, handbooks, notices, and other guidance to implement
housing legislation passed by Congress.
•
Allocate operating subsidies to PHAs
•
Allocate capital funding to PHAs
•
Provide technical assistance to PHAs on interpreting and applying program requirements
•
Monitor PHA compliance with program requirements and PHA performance in program
administration.
What does the PHA do?
The PHA’s responsibilities originate in federal regulations and the ACC. The PHA owns and manages
public housing developments, administers the program under contract with HUD and has the following
major responsibilities:
•
Ensure compliance with all non-discrimination, equal opportunity, and fair housing laws, and
ensure that the program is accessible to persons with disabilities
•
Establish local policies and procedures for operating the program
•
Accept applications from interested applicant families and determine whether they are income
eligible for the program
•
Maintain waiting list and select families for admission
•
Screen applicant families for suitability as renters
•
Maintain housing units by making any necessary repairs in a timely manner
•
Make unit offers to families (minimize vacancies without overcrowding)
•
Maintain properties to the standard of safe, habitable dwelling units (including assuring
compliance with National Standards for the Physical Inspection of Real Estate (NSPIRE)
•
Make sure the PHA has adequate financial resources to maintain its housing stock
•
Perform regular reexaminations of family income and composition in accordance with HUD
requirements
•
Collect rent due from the assisted family and comply with and enforce provisions of the lease
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•
Ensure that families comply with program rules
•
Provide families with prompt and professional service
•
Comply with all fair housing and equal opportunity requirements. HUD regulations and
requirements, the ACC, HUD-approved applications for funding, the PHA’s ACOP, and other
applicable federal, state, and local laws.
What does the Tenant do?
The tenant’s responsibilities are articulated in the public housing lease. The tenant has the following
broad responsibilities:
•
Comply with the terms of the lease and PHA house rules, as applicable
•
Provide the PHA with complete and accurate information, determined by the PHA to be necessary
for administration of the program
•
Cooperate in attending all appointments scheduled by the PHA
•
Allow the PHA to inspect the unit at reasonable times and after reasonable notice
•
Take responsibility for care of the housing unit, including any violations of NSPIRE caused by the
family
•
Not engage in drug-related or violent criminal activity
•
Notify the PHA before moving or termination of the lease
•
Use the assisted unit only for residence and as the sole residence of the family. Not sublet the unit
or assign the lease
•
Promptly notify the PHA of any changes in family composition
•
Not commit fraud, bribery, or any other corrupt or criminal act in connection with any housing
programsTake care of the housing unit and report maintenance problems to the PHA promptly
If all parties fulfill their obligations in a professional and timely manner, the program responsibilities
will be fulfilled in an effective manner.
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1-II.D. APPLICABLE REGULATIONS
Applicable regulations include:
•
24 CFR Part 5: General Program Requirements
•
24 CFR Part 8: Nondiscrimination
•
24 CFR Part 35: Lead-Based Paint
•
24 CFR Part 902: Public Housing Assessment System
•
24 CFR Part 903: Public Housing Agency Plans
•
24 CFR Part 945: Designated Housing
•
24 CFR Part 960: Admission and Occupancy Policies
•
24 CFR Part 965: PHA-Owned or Leased Projects – General Provisions
•
24 CFR Part 966: Lease and Grievance Procedures
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PART III: THE ADMISSIONS AND CONTINUED OCCUPANCY POLICIES
1-III.A. OVERVIEW AND PURPOSE OF THE POLICY
The ACOP is the PHA’s written statement of policies used to carry out the housing program in accordance
with federal law and regulations, and HUD requirements. The ACOP is required by HUD, and it must be
available for public review [CFR 24 Part 903]. The ACOP also contains policies that support the objectives
contained in the PHA’s Agency Plan.
All issues related to public housing not addressed in this ACOP are governed by federal regulations, HUD
handbooks and guidebooks, notices and applicable state and local laws. The policies in this ACOP have
been designed to ensure compliance with the consolidated ACC and all HUD-approved applications for
program funding. The PHA is responsible for complying with all changes in HUD regulations pertaining to
public housing. If such changes conflict with this plan, HUD regulations will have precedence.
1-III.B. CONTENTS OF THE POLICY
Unlike the housing choice voucher program, HUD regulations for public housing do not contain a list of
what must be included in the ACOP. However, individual regulations contain requirements of inclusion in
the PHA’s written policy. At a minimum, the ACOP plan should cover PHA policies on these subjects:
•
The organization of the waiting list and how families are selected and offered available units,
including any PHA admission preferences, procedures for removing applicant names from the
waiting list, and procedures for closing and reopening the PHA waiting list (Chapters 4 and 5);
•
Transfer policies and the circumstances under which a transfer would take precedence over an
admission (Chapter 12);
•
Standards for determining eligibility, suitability for tenancy, and the size and type of the unit
needed (Chapters 3 and 5);
•
Procedures for verifying the information the family has provided (Chapter 7);
•
The method for achieving de-concentration of poverty and income-mixing of public housing
developments (Chapter 4);
•
Grievance procedures (Chapter 14);
•
Policies concerning payment by a family to the PHA of amounts the family owes the PHA (Chapter
15 and 16);
•
Interim redeterminations of family income and composition (Chapter 9);
•
Policies Regarding Community Service Requirements; (Chapter 11);
•
Polices and rules about safety and ownership of pets in public housing (Chapter 10).
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Mandatory vs. Discretionary Policy
HUD makes a distinction between mandatory policies and non-mandatory policies:
•
Mandatory policies: those driven by legislation, regulations, current handbooks, current PIH
notices, and legal opinions from the Office of General Counsel,
•
Optional, non-binding guidance includes guidebooks, FAQs, PIH notices that have expired and
recommendations from individual HUD staff.
HUD expects PHAs to develop policies and procedures that are consistent with mandatory policies and to
make clear the optional policies the PHA has adopted. The ACOP is comprised of mandatory policies and
optional PHA policy. HUD emphasizes the need for a clearly written and comprehensive ACOP to guide
staff in the clear and consistent application of policy.
HUD suggestions, recommendations, written issuances, and guidance are consistent with mandatory
federal policy. Therefore, using HUD guidance in the preparation of PHA policy, even though it is not
mandatory, provides a PHA with a “safe harbor.” If a PHA adopts an alternative policy, it must make its
own determination that such policy is consistent with legislation, regulations, and other mandatory
requirements. There may be very good reasons for adopting a policy or procedure that is different from
that suggested by HUD, but PHAs should carefully think through those decisions and be able to articulate
how their policy is consistent with federal laws, regulations, and mandatory policy.
1-III.C. UPDATING AND REVISING THE POLICY
The PHA will revise this ACOP as needed to comply with changes in HUD regulations. The original policy
and any changes must be approved by the board of commissioners of the PHA, the pertinent sections
included in the Agency Plan, and a copy provided to HUD.
PHA Policy
The PHA will review and update the ACOP as needed to reflect changes in regulations, PHA
operations, or when needed to ensure staff consistency in operation.
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CHAPTER 2
FAIR HOUSING AND EQUAL OPPORTUNITY
INTRODUCTION
This chapter explains the laws and HUD regulations requiring PHAs to affirmatively further civil rights and
fair housing in all federally assisted housing programs. The letter and spirit of these laws are
implemented through consistent policy and procedures. The responsibility to further nondiscrimination
pertains to all areas of the PHA’s public housing operations.
This chapter describes HUD regulations and PHA policies related to these topics in three parts:
Part I: Nondiscrimination. This part presents the body of laws and regulations governing the
responsibilities of the PHA regarding nondiscrimination.
Part II: Policies Related to Persons with Disabilities. This part discusses the rules and policies of
the public housing program related to reasonable accommodation for persons with disabilities. These
rules and policies are based on the Fair Housing Act (42.U.S.C.) and Section 504 of the Rehabilitation
Act of 1973, and incorporate guidance from the Joint Statement of The Department of Housing and
Urban Development and the Department of Justice (DOJ), issued May 17, 2004.
Part III: Prohibition of Discrimination against Limited English Proficiency (LEP). This part details
the obligations of the PHA to ensure meaningful access to the public housing program and its
activities by persons with Limited English Proficiency (LEP). This part incorporates the Final Guidance
to Federal Financial Assistance Recipients Regarding Title VI Prohibition against National Origin
Discrimination Affecting Limited English Proficiency (LEP) Persons published January 22, 2007, in the
Federal Register.
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PART I: NONDISCRIMINATION
2-I.A. OVERVIEW
Federal laws require PHAs to treat all applicants and tenant families equally, providing the same quality
of service, regardless of family characteristics and background. Federal law prohibits discrimination in
housing on the basis of race, color, religion, sex, national origin, age, familial status, and disability. In
addition, HUD regulations provide for additional protections regarding sexual orientation, gender
identity, and marital status. The PHA will comply fully with all federal, state, and local nondiscrimination
laws, and with rules and regulations governing fair housing and equal opportunity in housing and
employment, including:
•
Title VI of the Civil Rights Act of 1964
•
Title VIII of the Civil Rights Act of 1968 (as amended by the Community Development Act of 1974
and the Fair Housing Amendments Act of 1988)
•
Executive Order 11063 and 13988.
•
Section 504 of the Rehabilitation Act of 1973
•
The Age Discrimination Act of 1975
•
Title II of the Americans with Disabilities Act (to the extent that it applies, otherwise Section 504
and the Fair Housing Amendments govern)
•
The Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender
Identity Final Rule, published in the Federal Register February 3, 2012, and further clarified in Notice
PIH 2014-20.
•
Violence against Women Act (VAWA)
When more than one civil rights law applies to a situation, the laws will be read and applied together.
Any applicable state laws or local ordinances and any legislation protecting individual rights of tenants,
applicants, or staff that may subsequently be enacted.
PHA Policy
No state or local nondiscrimination laws or ordinances apply.
2-I.B. NONDISCRIMINATION
Federal regulations prohibit discrimination against certain protected classes and other groups of people.
State and local requirements, as well as PHA policies, can prohibit discrimination against additional
classes of people.
The PHA shall not discriminate because of race, color, sex, religion, familial status, age, disability, or
national origin (called “protected classes”).
Familial status includes children under the age of 18 living with parents or legal custodians, pregnant
women, and people securing custody of children under the age of 18.
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The PHA will not discriminate on the basis of marital status, gender identity, or sexual orientation [FR
Notice 02/03/12; Executive Order 13988].
PHA Policy
The PHA does not identify any additional protected classes.
The PHA will not use any of these factors to:
•
Deny to any family the opportunity to apply for housing, nor deny to any qualified applicant the
opportunity to participate in the public housing program
•
Provide housing that is different from that provided to others
•
Subject anyone to segregation or disparate treatment
•
Subject anyone to sexual harassment
•
Restrict anyone's access to any benefit enjoyed by others in connection with the housing program
•
Treat a person differently in determining eligibility or other requirements for admission
•
Steer an applicant or tenant toward or away from a particular area based on any of these factors
•
Deny anyone access to the same level of services
•
Deny anyone the opportunity to participate in a planning or advisory group that is an integral part
of the housing program
•
Discriminate in the provision of residential real estate transactions
•
Discriminate against someone because they are related to or associated with a member of a
protected class
•
Publish or cause to be published an advertisement or notice indicating the availability of housing
that prefers or excludes persons who are members of a protected class
Providing Information to Families
The PHA must take steps to ensure that families are fully aware of all applicable civil rights laws. As part
of the public housing orientation process, the PHA will provide information to public housing applicant
families about civil rights requirements.
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2.I.C. DISCRIMINATION COMPLAINTS
General Housing Discrimination Complaints
If an applicant or tenant family believes that any family member has been discriminated against by the
PHA, the family should advise the PHA. The PHA should make every reasonable attempt to determine
whether the applicant or tenant family’s assertions have merit and take any warranted corrective action.
In all cases, the PHA may advise the family to file a fair housing complaint if the family feels they have
been discriminated against under the Fair Housing Act.
PHA Policy
Applicants or tenant families who believe that they have been subject to unlawful discrimination
may notify the PHA either orally or in writing.
Within 10 business days of receiving the complaint, the PHA will investigate and attempt to
remedy discrimination complaints made against the PHA. The PHA will also advise the family of
their right to file a fair housing complaint with HUD’s Office of Fair Housing and Equal Opportunity
(FHEO). The fair housing poster, posted in conspicuous and accessible locations in PHA lobbies,
will reference how to file a complaint with FHEO.
The PHA will keep a record of all complaints, investigations, notices, and corrective actions. (See
Chapter 16.)
Complaints under the Equal Access Final Rule [Notice PIH 2014-20]
Notice PIH 2014-20 requires an articulated complaint process for allegations of discrimination under the
Equal Access Final rule. The Equal Access Final Rule requires that PHAs provide equal access regardless of
marital status, gender identity, or sexual orientation. The PHA will be informed on these obligations by
the HUD Field Office or FHEO when an Equal Access complaint investigation begins.
PHA Policy
Applicants or tenant families who believe that they have been subject to unlawful discrimination
based on marital status, gender identity, or sexual orientation under the Equal Access Rule may
notify the PHA either orally or in writing.
Within 10 business days of receiving the complaint, the PHA will provide a written notice to those
alleged to have violated the rule. The PHA will also send a written notice to the complainant
informing them that notice was sent to those alleged to have violated the rule, as well as
information on how to complete and submit a housing discrimination complaint form to HUD’s
FHEO.
The PHA will attempt to remedy discrimination complaints made against the PHA and will conduct
an investigation into all allegations of discrimination.
Within 10 business days following the conclusion of the PHA’s investigation, the PHA will provide
the complainant and those alleged to have violated the rule with findings and either a proposed
corrective action plan or an explanation of why corrective action is not warranted.
The PHA will keep a record of all complaints, investigations, notices, and corrective actions. (See
Chapter 16.)
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VAWA Complaint Processing [Notice FHEO 2023-01]
A complainant may, not later than one year after an alleged VAWA violation has occurred or terminated,
file a complaint with FHEO alleging such violation. If there is a violation that began prior to a year before
the complaint is filed, but it continues into the one-year time period, HUD will accept the complaint. FHEO
will investigate the complaint if it is timely and FHEO otherwise has jurisdiction. If a complaint is filed
more than one year after the alleged violation occurred or terminated, FHEO may, but is not required to,
investigate the allegations under the additional authority and procedures described in FHEO 2023-01.
Complaints do not need to allege a violation of the Fair Housing Act for FHEO to accept and investigate
the complaint.
PHA Policy
Applicants or tenant families who wish to file a VAWA complaint against the PHA may notify the
PHA either orally or in writing.
The PHA will advise the family of their right to file a VAWA complaint with HUD’s FHEO. The PHA
will inform the family that not later than one year after an alleged VAWA violation has occurred or
terminated, applicants and tenants who believe they have been injured by a VAWA violation or will
be injured by such a violation that is about to occur may file a VAWA complaint using FHEO’s
online complaint form via mail, email, or telephone.
The PHA will attempt to remedy complaints made against the PHA and will conduct an
investigation into all allegations of discrimination.
The PHA will keep a record of all complaints, investigations, notices, and corrective actions. (See
Chapter 16.)
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PART II: POLICIES RELATED TO PERSONS WITH DISABILITIES
2-II.A. OVERVIEW
One type of disability discrimination prohibited by the Fair Housing Act is the refusal to make reasonable
accommodation in rules, policies, practices, or services when such accommodation may be necessary to
afford a person with a disability the equal opportunity to use and enjoy a program or dwelling under the
program.
The PHA must ensure that persons with disabilities have full access to the PHA’s programs and services.
This responsibility begins with the first inquiry of an interested family and continues through every
programmatic area of the public housing program [24 CFR 8].
The PHA must provide a notice to each tenant that the tenant may, at any time during the tenancy,
request reasonable accommodation of a handicap of a household member, including reasonable
accommodation so that the tenant can meet lease requirements or other requirements of tenancy [24
CFR §966.7(b)].
PHA Policy
The PHA will provide for alternate format applications for persons requiring a reasonable
accommodation in the online application process.
The PHA will ask all applicants and participants if they require any type of accommodations, in
writing, on the intake application, reexamination documents, and notices of adverse action by the
PHA, by including the following language:
For applicants:
The City of Chandler Housing and Redevelopment Division is committed to fully complying
with all state, federal and local laws involving non-discrimination and equal opportunity. Any
person who believes he/she needs a reasonable accommodation to participate in any program
for the City of Chandler Housing and Redevelopment Division should notify our office at least
twenty-four hours prior to the date of the accommodation will be required.
For Reexamination documents and notices of adverse action by the PHA:
The City of Chandler Housing and Redevelopment Division is committed to fully complying
with all state, federal and local laws involving non-discrimination and equal opportunity. Any
person who believes he/she needs a reasonable accommodation to participate in any program
for the City of Chandler Housing and Redevelopment Division should notify their housing
specialist at least twenty-four hours prior to the date of the accommodation will be required.
The PHA will display posters and other housing information and signage in locations throughout the
PHA’s office in such a manner as to be easily readable from a wheelchair.
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2-II.B. DEFINITION OF REASONABLE ACCOMMODATION
A “reasonable accommodation” is a change, exception, or adjustment to a policy, practice, or service that
may be necessary for a person with a disability to have an equal opportunity to use and enjoy a dwelling,
including public and common use spaces. Since policies and services may have a different effect on
persons with disabilities than on other persons, treating persons with disabilities the same as others will
sometimes deny them an equal opportunity to use and enjoy a dwelling. [Joint Statement of the
Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act].
Federal regulations stipulate that requests for accommodations will be considered reasonable if they do
not create an "undue financial and administrative burden" for the PHA or result in a “fundamental
alteration” in the nature of the program or service offered. A fundamental alteration is a modification
that alters the essential nature of a provider’s operations.
Types of Reasonable Accommodations
When it is reasonable (see definition above and Section 2-II.E), the PHA shall accommodate the needs of a
person with disabilities. Examples include but are not limited to:
•
Permitting applications and reexaminations to be completed by mail, telephone, or walk-in.
Reexaminations must be by appointment only. Walk-in applicants will be directed to the online
process only during times the waitlist is open.
•
Providing “large-print” forms
•
Conducting home visits
•
Permitting a higher utility allowance for the unit if a person with disabilities requires the use of
specialized equipment related to the disability
•
Modifying or altering a unit or physical system if such a modification or alteration is necessary to
provide equal access to a person with a disability
•
Installing a ramp into a dwelling or building
•
Installing grab bars in a bathroom
•
Installing visual fire alarms for hearing impaired persons
•
Allowing a change in the family’s rent due date to correspond with the receipt of the head of
household or spouse/cohead’s SSi or SSDI benefits.
•
Allowing a PHA-approved live-in aide to reside in the unit if that person is determined to be
essential to the care of a person with disabilities, is not obligated for the support of the person
with disabilities and would not be otherwise living in the unit.
•
Providing a designated handicapped-accessible parking space
•
Allowing an assistance animal
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•
Permitting an authorized designee or advocate to participate in the application or certification
process and any other meetings with PHA staff
•
Displaying posters and other housing information in locations throughout the PHA's office in such
a manner as to be easily readable from a wheelchair
2-II.C. REQUEST FOR AN ACCOMMODATION
If an applicant or participant indicates that an exception, change, or adjustment to a rule, policy, practice,
or service is needed because of a disability, HUD requires that the PHA treat the information as a request
for a reasonable accommodation, even if no formal request is made [Joint Statement of the Departments
of HUD and Justice: Reasonable Accommodations under the Fair Housing Act].
The family must explain what type of accommodation is needed to provide the person with the disability
full access to the PHA’s programs and services.
If the need for the accommodation is not readily apparent or known to the PHA, the family must explain
the relationship between the requested accommodation and the disability.
PHA Policy
The PHA will encourage the family to make its request in writing using a reasonable
accommodation request form.
2-II.D. VERIFICATION OF DISABILITY
The regulatory civil rights definition for persons with disabilities is provided in Exhibit 2-1 at the end of
this chapter. The definition of a person with a disability for the purpose of obtaining a reasonable
accommodation is much broader than the HUD definition of disability, which is used for waiting list
preferences and income allowances.
Before providing an accommodation, the PHA must determine that the person meets the definition of a
person with a disability, and that the accommodation will enhance the family’s access to the PHA’s
programs and services.
If a person’s disability is obvious or otherwise known to the PHA, and if the need for the requested
accommodation is also readily apparent or known, no further verification will be required [Joint
Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing
Act].
If a family indicates that an accommodation is required for a disability that is not obvious or otherwise
known to the PHA, the PHA must verify that the person meets the definition of a person with a disability,
and that the limitations imposed by the disability require the requested accommodation.
When verifying a disability, the PHA will follow the verification policies provided in Chapter 7. All
information related to a person’s disability will be treated in accordance with the confidentiality policies
provided in Chapter 16 (Program Administration). In addition to the general requirements that govern all
verification efforts, the following requirements apply when verifying a disability:
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•
Third-party verification must be obtained from an individual identified by the family who is
competent to make the determination. A doctor or other medical professional, a peer support
group, a non-medical service agency, or a reliable third party who is in a position to know about
the individual’s disability may provide verification of a disability [Joint Statement of the
Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act]
•
The PHA must request only information that is necessary to evaluate the disability-related need
for the accommodation. The PHA may not inquire about the nature or extent of any disability.
•
Medical records will not be accepted or retained in the participant file.
•
In the event the PHA does receive confidential information about a person’s specific diagnosis,
treatment, or the nature or severity of the disability, the PHA will dispose of it. In place of the
information, the PHA will note in the file that the disability and other requested information have
been verified, the date the verification was received, and the name and address of the
knowledgeable professional who sent the information [Notice PIH 2010-26].
2-II.E. APPROVAL/DENIAL OF A REQUESTED ACCOMMODATION [Joint Statement of the Departments of
HUD and Justice: Reasonable Accommodations under the Fair Housing Act, Notice PIH 2010-26]
The PHA must approve a request for an accommodation if the following three conditions are met.
•
The request was made by or on behalf of a person with a disability.
•
There is a disability-related need for the accommodation.
•
The requested accommodation is reasonable, meaning it would not impose an undue financial
and administrative burden on the PHA, or fundamentally alter the nature of the PHA’s operations.
Requests for accommodations must be assessed on a case-by-case basis. The determination of undue
financial and administrative burden must be made on a case-by-case basis involving various factors, such
as the overall size of the PHA’s program with respect to the number of employees, type of facilities and
size of budget, type of operation including composition and structure of workforce, the nature and cost
of the requested accommodation, and the availability of alternative accommodations that would
effectively meet the family’s disability-related needs.
Before making a determination whether to approve the request, the PHA may enter into discussion and
negotiation with the family, request more information from the family, or may require the family to sign a
consent form so that the PHA may verify the need for the requested accommodation.
PHA Policy
After a request for an accommodation is presented, the PHA will respond, in writing, within 10
business days.
If the PHA denies a request for an accommodation because there is no relationship, or nexus,
found between the disability and the requested accommodation, the PHA will discuss with the
family the reason for the denial. If the family cannot provide additional information to clarify the
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requested accommodation, the PHA will notify the family, in writing, or its determination within 10
business days from the date of the most recent discussion or communication with the family.
The notice will inform the family of the right to appeal the PHA’s decision through an informal
hearing (if applicable) or the grievance process (see Chapter 14).
If the PHA denies a request for an accommodation because it is not reasonable (it would impose
an undue financial and administrative burden or fundamentally alter the nature of the PHA’s
operations), the PHA will discuss with the family whether an alternative accommodation could
effectively address the family’s disability-related needs without a fundamental alteration to the
public housing program and without imposing an undue financial and administrative burden.
If the PHA believes that the family has failed to identify a reasonable alternative accommodation
after interactive discussion and negotiation, the PHA will notify the family, in writing, of its
determination within 10 business days from the date of the most recent discussion or
communication with the family.
2-II.F. PROGRAM ACCESSIBILITY FOR PERSONS WITH HEARING OR VISION IMPAIRMENTS
HUD regulations require the PHA to take reasonable steps to ensure that persons with disabilities related
to hearing and vision have reasonable access to the PHA's programs and services [24 CFR §8.6].
At the initial point of contact with each applicant, the PHA shall inform all applicants of alternative forms
of communication that can be used other than plain language paperwork.
PHA Policy
To meet the needs of persons with hearing impairments, TTD/TTY (text telephone display /
teletype) communication will be available.
To meet the needs of persons with vision impairments, large-print and audio versions of key
program documents will be made available upon request. When visual aids are used in public
meetings or presentations, or in meetings with PHA staff, one-on-one assistance will be provided
upon request.
Additional examples of alternative forms of communication are sign language interpretation;
having material explained orally by staff; or having a third-party representative (a friend, relative
or advocate, named by the applicant) to receive, interpret, and explain housing materials and be
present at all meetings.
2-II.G. PHYSICAL ACCESSIBILITY
The PHA must comply with a variety of regulations pertaining to physical accessibility, including the
following.
•
Notice PIH 2010-26
•
Section 504 of the Rehabilitation Act of 1973
•
The Americans with Disabilities Act of 1990
•
The Architectural Barriers Act of 1968
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•
The Fair Housing Act of 1988
The PHA’s policies concerning physical accessibility must be readily available to applicants and resident
families. They can be found in three key documents.
•
This policy, the Admissions and Continued Occupancy Policy, describes the key policies that
govern the PHA’s responsibilities with regard to physical accessibility.
•
Notice PIH 2010-26 summarizes information about pertinent laws and implementing regulations
related to non-discrimination and accessibility in federally funded housing programs.
•
The PHA Plan provides information about self-evaluation, needs assessment, and transition plans.
The design, construction, or alteration of PHA facilities must conform to the Uniform Federal Accessibility
Standards (UFAS). Notice PIH 2010-26 contains specific information on calculating the percentages of
units for meeting UFAS requirements.
Newly constructed facilities must be designed to be readily accessible to and usable by persons with
disabilities. Alterations to existing facilities must be accessible to the maximum extent feasible, defined as
not imposing an undue financial and administrative burden on the operations of the public housing
program.
2-II.H. DENIAL OR TERMINATION OF ASSISTANCE
A PHA’s decision to deny or terminate the assistance of a family that includes a person with disabilities is
subject to consideration of reasonable accommodation [24 CFR §966.7].
When applicants are denied assistance, the notice of denial must inform them of their right to request an
informal hearing [24 CFR §960.208(a)].
When a family’s lease is terminated, the notice of termination must inform the family of their right to
request a hearing in accordance with the PHA’s grievance process [24 CFR §966.4(l)(3)(ii)].
When reviewing reasonable accommodation requests, the PHA must consider whether reasonable
accommodation will allow the family to overcome the problem that led to the PHA’s decision to deny or
terminate assistance. If a reasonable accommodation will allow the family to meet the requirements, the
PHA must make the accommodation [24 CFR §966.7].
In addition, the PHA must provide reasonable accommodation for persons with disabilities to participate
in the hearing process [24 CFR §966.56(h)].
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PART III: IMPROVING ACCESS TO SERVICES FOR PERSONS WITH LIMITED ENGLISH PROFICIENCY (LEP)
2-III.A. OVERVIEW
Language for Limited English Proficiency (LEP) Persons can be a barrier to accessing important benefits
or services, understanding, and exercising important rights, complying with applicable responsibilities, or
understanding other information provided by the public housing program. In certain circumstances,
failure to ensure that LEP persons can effectively participate in or benefit from federally assisted
programs and activities may violate the prohibition under Title VI against discrimination on the basis of
national origin. This part incorporates the Final Guidance to Federal Assistance Recipients Regarding Title
VI Prohibition against National Origin Discrimination Affecting Limited English Proficiency (LEP) Persons,
published January 22, 2007, in the Federal Register.
The PHA will take affirmative steps to communicate with people who need services or information in a
language other than English. These persons will be referred to as Persons with Limited English
Proficiency (LEP).
LEP persons are defined as persons who do not speak English as their primary language and who have a
limited ability to read, write, speak, or understand English. For the purposes of this Admissions and
Continued Occupancy Policy, LEP persons are public housing applicants and resident families, and
parents and family members of applicants and resident families.
In order to determine the level of access needed by LEP persons, the PHA will balance the following four
factors: (1) the number or proportion of LEP persons eligible to be served or likely to be encountered by
the public housing program; (2) the frequency with which LEP persons come into contact with the
program; (3) the nature and importance of the program, activity, or service provided by the program to
people’s lives; and (4) the resources available to the PHA and costs. Balancing these four factors will
ensure meaningful access by LEP persons to critical services while not imposing undue burdens on the
PHA.
2-III.B. ORAL INTERPRETATION
The PHA will offer competent interpretation services free of charge, upon request, to the LEP person.
PHA Policy
The PHA will utilize a language line for telephone interpreter services.
When exercising the option to conduct remote hearings, however, the PHA will coordinate with a
remote interpretation service which, when available, uses video conferencing technology rather
than voice-only interpretation.
Where LEP persons desire, they will be permitted to use, at their own expense, an interpreter of
their own choosing, in place of or as a supplement to the free language services offered by the
PHA. The PHA, at its discretion, may choose to use the language services even when LEP persons
desire to use an interpreter of their choosing. The interpreter may be a family member or friend. If
the interpreter chosen by the family is a minor, the PHA will not rely as on the minor to serve as
the interpreter.
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The PHA will analyze the various kinds of contacts it has with the public, to assess language needs
and decide what reasonable steps should be taken. “Reasonable steps” may not be reasonable
where the costs imposed substantially exceed the benefits.
Where feasible and possible, the PHA will train and hire bilingual staff to be available to act as
interpreters and translators, will pool resources with other PHAs, and will standardize documents.
2-III.C. WRITTEN TRANSLATION
Translation is the replacement of a written text from one language into an equivalent written text in
another language.
PHA Policy
In order to comply with written-translation obligations, the PHA will take the following steps:
The PHA will provide written translations of vital documents for each eligible LEP language
group that constitutes 5 percent or 1,000 persons, whichever is less, of the population of
persons eligible to be served or likely to be affected or encountered. Translation of other
documents, if needed, can be provided orally; or
If there are fewer than 50 persons in a language group that reaches the 5 percent trigger,
the PHA may not translate vital written materials, but will provide written notice in the
primary language of the LEP language group of the right to receive competent oral
interpretation of those written materials, free of cost.
2-III.D. IMPLEMENTATION PLAN
After completing the four-factor analysis and deciding what language assistance services are appropriate,
the PHA shall determine whether it is necessary to develop a written implementation plan to address the
identified needs of the LEP populations it serves.
If the PHA determines that it is not necessary to develop a written implementation plan, the absence of a
written plan does not obviate the underlying obligation to ensure meaningful access by LEP persons to
the PHA’s public housing program and services.
PHA Policy
If it is determined that the PHA serves very few LEP persons, and the PHA has very limited
resources, the PHA will not develop a written LEP plan, but will consider alternative ways to
articulate in a reasonable manner a plan for providing meaningful access. Entities having
significant contact with LEP persons, such as schools, grassroots and faith-based organizations,
community groups, and groups working with new immigrants will be contacted for input into the
process.
If the PHA determines it is appropriate to develop a written LEP plan, the following five steps will
be taken: (1) Identifying LEP individuals who need language assistance; (2) identifying language
assistance measures; (3) training staff; (4) providing notice to LEP persons; and (5) monitoring and
updating the LEP plan.
2-14
2-15
EXHIBIT 2-1: Definition of a Person with a Disability Under Federal Civil Rights Laws
[24 CFR Parts §8.3 and §100.201]
A person with a disability, as defined under federal civil rights laws, is any person who:
•
Has a physical or mental impairment that substantially limits one or more of the major life
activities of an individual, or
•
Has a record of such impairment, or
•
Is regarded as having such impairment
The phrase “physical or mental impairment” includes:
•
Any physiological disorder or condition, cosmetic or disfigurement, or anatomical loss affecting
one or more of the following body systems: neurological; musculoskeletal; special sense organs;
respiratory, including speech organs; cardiovascular; reproductive; digestive; genitourinary; hemic
and lymphatic; skin; and endocrine; or
•
Any mental or psychological disorder, such as mental retardation, organic brain syndrome,
emotional or mental illness, and specific learning disabilities. The term “physical or mental
impairment” includes but is not limited to such diseases and conditions as orthopedic, visual,
speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple
sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, drug addiction
and alcoholism.
“Major life activities” includes, but is not limited to, caring for oneself, performing manual tasks, walking,
seeing, hearing, breathing, learning, and/or working.
“Has a record of such impairment” means has a history of, or has been misclassified as having, a mental
or physical impairment that substantially limits one or more major live activities.
“Is regarded as having an impairment” is defined as having a physical or mental impairment that does not
substantially limit one or more major life activities but is treated by a public entity (such as the PHA) as
constituting such a limitation; has none of the impairments defined in this section but is treated by a
public entity as having such an impairment; or has a physical or mental impairment that substantially
limits one or more major life activities, only as a result of the attitudes of others toward that impairment.
The definition of a person with disabilities does not include:
•
Current illegal drug users
•
People whose alcohol use interferes with the rights of others
•
Persons who objectively pose a direct threat or substantial risk of harm to others that cannot be
controlled with a reasonable accommodation under the public housing program.
The above definition of disability determines whether an applicant or participant is entitled to any of the
protections of federal disability civil rights laws. Thus, a person who does not meet this definition of
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disability is not entitled to a reasonable accommodation under federal civil rights and fair housing laws
and regulations.
The HUD definition of a person with a disability is much narrower than the civil rights definition of
disability. The HUD definition of a person with a disability is used for purposes of receiving the disabled
family preference, the $550 elderly/disabled household deduction , the allowance for medical expenses,
or the allowance for disability assistance expenses.
The definition of a person with a disability for purposes of granting a reasonable accommodation request
is much broader than the HUD definition of disability. Many people will not qualify as a disabled person
under the public housing program, yet an accommodation is needed to provide equal opportunity.
3-1
CHAPTER 3
ELIGIBILITY
INTRODUCTION
The PHA is responsible for ensuring that every individual and family admitted to the public housing
program meets all program eligibility requirements. This includes any individual approved to join the
family after the family has been admitted to the program. The family must provide any information
needed by the PHA to confirm eligibility and determine the level of the family’s assistance.
To be eligible for the public housing program:
The applicant family must:
−
Qualify as a family as defined by HUD and the PHA.
−
Have income at or below HUD-specified income limits.
−
Qualify on the basis of citizenship or the eligible immigrant status of family members.
−
Provide social security number information for household members as required.
−
Consent to the PHA’s collection and use of family information as provided for in PHA-provided
consent forms.
−
Not currently be receiving a duplicative subsidy.
−
Meet net asset and property ownership restriction requirements.
The PHA must determine that the current or past behavior of household members does not include
activities that are prohibited by HUD or the PHA.
This chapter contains three parts:
Part I: Definitions of Family and Household Members. This part contains HUD and PHA
definitions of family and household members and explains initial and ongoing eligibility issues
related to these members.
Part II: Basic Eligibility Criteria. This part discusses income eligibility, and rules regarding
citizenship, social security numbers, and family consent.
Part III: Denial of Admission. This part covers factors related to an applicant’s past or current
conduct (e.g., criminal activity) that can cause the PHA to deny admission as well as the asset
limitation for public housing.
3-2
PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS
3-I.A. OVERVIEW
Some eligibility criteria and program rules vary depending upon the composition of the family requesting
assistance. In addition, some requirements apply to the family as a whole and others apply to individual
persons who will live in the public housing unit. This part provides information that is needed to correctly
identify family and household members and explains HUD's eligibility rules.
3-I.B. FAMILY AND HOUSEHOLD [24 CFR §5.105(A)(2), 24 CFR §5.403, FR NOTICE 02/03/12, NOTICE PIH
2014-20], NOTICE PIH 2023-27, AND FR NOTICE 2/14/23
The terms family and household have different meanings in the public housing program.
Family
To be eligible for admission, an applicant must qualify as a family. Family as defined by HUD includes but
is not limited to the following, regardless of actual or perceived sexual orientation, gender identity, or
marital status, a single person, who may be an elderly person, displaced person, disabled person, near-
elderly person, or any other single person; an otherwise eligible youth who has attained at least 18 years
of age and not more than 24 years of age and who has left foster care, or will leave foster care within 90
days, in accordance with a transition plan described in section 475(5)(H) of the Social Security Act (42
U.S.C. 675(5)(H), and is homeless or is at risk of becoming homeless at age 16 or older; or a group of
persons residing together. Such group includes, but is not limited to, a family with or without children (a
child who is temporarily away from the home because of placement in foster care is considered a
member of the family), an elderly family, a near-elderly family, a disabled family, a displaced family, and
the remaining member of a tenant family. The PHA has the discretion to determine if any other group of
persons qualifies as a family. Gender Identity means actual or perceived gender characteristics.
Sexual orientation means homosexuality, heterosexuality, or bisexuality.
PHA Policy
A family also includes two or more individuals who are not related by blood, marriage, adoption,
or other operation of law, but who either can demonstrate that they have lived together
previously or certify that each individual’s income and other resources will be available to meet
the needs of the family.
Each family must identify the individuals to be included in the family at the time of application and
must update this information if the family’s composition changes.
Household
Household is a broader term that includes additional people who, with the PHA’s permission, live in a
public housing unit, such as live-in aides, foster children, and foster adults.
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3-I.C. FAMILY BREAK-UP AND REMAINING MEMBER OF TENANT FAMILY
Family Break-up
Except under the following conditions, the PHA has discretion to determine which members of an
assisted family continue to receive assistance if the family breaks up:
•
If the family breakup results from an occurrence of domestic violence, dating violence, sexual
assault, stalking, or human trafficking, the PHA must ensure that the victim retains assistance. (For
documentation requirements and policies related to domestic violence, dating violence, sexual
assault, stalking, and human trafficking see Section 16-VII.D of this ACOP.)
•
If a court determines the disposition of property between members of the assisted family, the
PHA is bound by the court’s determination of which family members continue to receive
assistance.
PHA Policy
When a family on the waiting list breaks up into two otherwise eligible families, only one of the
new families may retain the original application date. Other former family members may submit a
new application with a new application date if the waiting list is open.
If a family breaks up into two otherwise eligible families while living in public housing, only one of
the new families will retain occupancy of the unit.
If a court determines the disposition of property between members of the applicant or resident
family, the PHA will abide by the court's determination.
In the absence of a judicial decision or an agreement among the original family members, the PHA
will determine which family will retain their placement on the waiting list, or continue in
occupancy. In making its determination, the PHA will take into consideration the following factors:
(1) the interest of any minor children, including custody arrangements
(2) the interest of any ill, elderly, or disabled family members
(3) the interest of any family member who is or has been the victim of domestic violence,
dating violence, sexual assault, stalking, or human trafficking, , including a family member
who was forced to leave a public housing unit as a result of such actual or threatened
abuse, and provides documentation in accordance with Section 16-VII.D of this ACOP;
(4) (4) any possible risks to family members as a result of criminal activity, and
(5) (5) the recommendations of social service professionals.
3-4
Remaining Member of a Tenant Family [24 CFR 5.403]
The HUD definition of family includes the remaining member of a tenant family, which is a member of a
resident family who remains in the unit when other members of the family have left the unit [PH Occ GB,
p. 26]. Household members such as live-in aides, foster children, and foster adults do not qualify as
remaining members of a family.
If dependents are the only “remaining members of a tenant family” and there is no family member able
to assume the responsibilities of the head of household, see Chapter 6, Section 6-I.B, for the policy on
“Caretakers for a Child.”
3-I.D. HEAD OF HOUSEHOLD [24 CFR 5.504(B)]
Head of household means the adult member of the family who is considered the head for purposes of
determining income eligibility and rent. The head of household is responsible for ensuring that the family
fulfills all of its responsibilities under the program, alone or in conjunction with a cohead or spouse.
PHA Policy
The family may designate any qualified family member as the head of household.
The head of household must have the legal capacity to enter into a lease under state and local
law. A minor who is emancipated under state law may be designated as head of household.
3-I.E. SPOUSE, COHEAD, AND OTHER ADULT
A family may have a spouse or cohead, but not both [HUD-50058 IB, p. 13].
Spouse means the marriage partner of the head of household.
PHA Policy
A marriage partner includes the partner in a "common law" marriage as defined in state law. The
term “spouse” does not apply to friends, roommates, or significant others who are not marriage
partners. A minor who is emancipated under state law may be designated as a spouse.
A cohead is an individual in the household who is equally responsible with the head of household for
ensuring that the family fulfills all of its responsibilities under the program, but who is not a spouse. A
family can have only one cohead.
PHA Policy
Minors who are emancipated under state law may be designated as a cohead.
Other adult means a family member, other than the head, spouse, or cohead, who is 18 years of age or
older. Foster adults and live-in aides are not considered other adults [HUD-50058 IB, p. 14].
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3-I.F. DEPENDENTS AND MINORS [24 CFR §5.603]
A minor is a member of the family, other than the head of family or spouse, who is under 18 years of age.
A dependent is a family member who is under 18 years of age or a person of any age who is a person with
a disability or a full-time student, except that the following persons can never be dependents: the head of
household, spouse, cohead, foster children/adults, and live-in aides. Identifying each dependent in the
family is important because each dependent qualifies the family for a deduction from annual income as
described in Chapter 6.
Joint Custody of Dependents
PHA Policy
Dependents that are subject to a joint custody arrangement will be considered a member of the
family if they live with the applicant or resident family 50 percent or more of the time.
When more than one applicant or assisted family (regardless of program) are claiming the same
dependents as family members, the family with primary custody at the time of the initial
examination or reexamination will be able to claim the dependents. If there is a dispute about
which family should claim them, the PHA will make the determination based on available
documents such as court orders, an IRS income tax return showing which family has claimed the
child for income tax purposes, school records, or other credible documentation acceptable to the
PHA.
3-I.G. FULL-TIME STUDENT [24 CFR §5.603]
A full-time student (FTS) is a person who is attending school or vocational training on a full-time basis. The
time commitment or subject load that is needed to determine if attendance is full-time is defined by the
educational institution.
Identifying each FTS is important because (1) each family member that is an FTS, other than the head,
spouse, or cohead, qualifies the family for a dependent deduction and (2) the income of such an FTS is
treated differently from the income of other family members.
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3-I.H. ELDERLY AND NEAR-ELDERLY PERSONS, AND ELDERLY FAMILY [24 CFR 5.100, 5.403, 945.105,
AND FR NOTICE 02/03/12]
Elderly Persons
An elderly person is a person who is at least 62 years of age [24 CFR §5.100].
Near-Elderly Persons
A near-elderly person is a person who is 50-61 years of age [24 CFR §945.105].
Elderly Family
An elderly family is one in which the head, spouse, cohead, or sole member is an elderly person [24 CFR
§5.403]. Identifying elderly families is important because these families qualify for the elderly family
allowance and the medical allowance as described in Chapter 6 and may qualify for a particular type of
development as noted in Chapter 4.
3-I.I. PERSONS WITH DISABILITIES AND DISABLED FAMILY [24 CFR §5.403, FR NOTICE 02/03/12]
Persons with Disabilities
Under the public housing program, special rules apply to persons with disabilities and to any family
whose head, spouse, or cohead is a person with disabilities. The technical definitions of individual with
handicaps and persons with disabilities are provided in Exhibit 3-1 at the end of this chapter. These
definitions are used for a number of purposes including ensuring that persons with disabilities are not
discriminated against based upon disability.
As discussed in Chapter 2, the PHA must make all aspects of the public housing program accessible to
persons with disabilities and consider requests for reasonable accommodations when a person’s
disability limits their full access to the unit, the program, or the PHA’s services.
Disabled Family
A disabled family is one in which the head, spouse, or cohead is a person with disabilities. Identifying
disabled families is important because these families qualify for the disabled family allowance and the
medical allowance as described in Chapter 6 and may qualify for a particular type of development as
noted in Chapter 4.
Even though persons with drug or alcohol dependencies are considered persons with disabilities for the
purpose of non-discrimination, this does not prevent the PHA from denying admission or taking action
under the lease for reasons related to alcohol and drug abuse in accordance with the policies found in
Part III of this chapter and in Chapter 13.
3-7
3-I.J. GUESTS [24 CFR §5.100]
A guest is defined as a person temporarily staying in the unit with the consent of a tenant or other
member of the household who has express or implied authority to so consent on behalf of the tenant.
The lease must provide that the tenant has the right to exclusive use and occupancy of the leased unit by
the members of the household authorized to reside in the unit in accordance with the lease, including
reasonable accommodation of their guests [24 CFR §966.4(d)]. The head of household is responsible for
the conduct of visitors and guests, inside the unit as well as anywhere on or near PHA premises [24 CFR
§966.4(f)].
PHA Policy
A resident family must notify the PHA when overnight guests will be staying in the unit for more
than three days. A guest can remain in the unit no longer than 14 consecutive days or a total of 30
cumulative calendar days during any 12-month period.
A family may request an exception to this policy for valid reasons (e.g., care of a relative
recovering from a medical procedure expected to last 20 consecutive days). An exception will not
be made unless the family can identify and provide documentation of the residence to which the
guest will return.
Children who are subject to a joint custody arrangement or for whom a family has visitation
privileges, that are not included as a family member because they live outside of the public
housing unit more than 50 percent of the time, are not subject to the time limitations of guests as
described above.
Former residents who have been evicted are not permitted as overnight guests.
Guests who represent the public housing unit address as their residence address or address of
record for receipt of benefits or any other purposes will be considered unauthorized occupants. In
addition, guests who remain in the unit beyond the allowable time limit will be considered
unauthorized occupants, and their presence constitutes a violation of the lease.
The PHA will consider unauthorized occupants to be trespassers. The family in tenancy that allows
an unauthorized occupant to reside in their unit is not in compliance with the lease and is subject
to termination of tenancy. Some examples of unauthorized occupants include:
•
A former resident of the PHA who has been evicted from a PHA development;
•
Persons that have been trespassed from a PHA development;
•
Guests who represent the unit address as their residence address or address of record for
receipt of benefits or any other purposes will be considered unauthorized occupants;
•
Family members over age 17 or emancipated minors who moved from the dwelling unit to
establish new households;
3-8
•
Persons that have joined the household without undergoing screening;
•
Guests who remain in the unit beyond the allowable time limit; and
•
A person (often a relative) that came to the unit as an extended visitor because the resident
needed support, for example, after a medical procedure but stayed on in the unit beyond the
time needed by the resident.
Former residents who have been evicted or trespassed are not permitted as visitors or overnight guests.
The burden of proof that the individual is a guest rests on the family. In the absence of such proof, the
individual will be considered an unauthorized member of the household and the PHA will terminate
assistance since prior approval was not requested for the addition.
3-I.K. FOSTER CHILDREN AND FOSTER ADULTS [24 CFR 5.603]
A foster adult is a member of the household who is 18 years of age or older and meets the definition of a
foster adult under state law. In general, a foster adult is a person who is 18 years of age or older, is
unable to live independently due to a debilitating physical or mental condition, and is placed with the
family by an authorized placement agency or by judgement, decree, or other order of any court of
competent jurisdiction.
A foster child is a member of the household who meets the definition of a foster child under state law. In
general, a foster child is placed with the family by an authorized placement agency (e.g., public child
welfare agency) or by judgement, decree, or other order of any court of competent jurisdiction.
Foster children and foster adults that are living with an applicant or resident family are considered
household members but not family members. The income of foster children/adults is not counted in
family annual income and foster children/adults do not qualify for a dependent deduction [24 CFR §5.603
and HUD-50058 IB, pp. 13-14].
PHA Policy
A foster child or foster adult may be allowed to reside in the unit if their presence would not
overcrowd the unit.
Children that are temporarily absent from the home as a result of placement in foster care are discussed
in Section 3-I.L.
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3-I.L. ABSENT FAMILY MEMBERS
Individuals may be temporarily or permanently absent from the unit for a variety of reasons including
educational activities, placement in foster care, employment, and illness.
Definitions of Temporarily and Permanently Absent
PHA Policy
Generally, an individual who is or is expected to be absent from the public housing unit for 30
consecutive days is considered temporarily absent and continues to be considered a family
member. Generally, an individual who is or is expected to be absent from the public housing unit
for more than 30 consecutive days is considered permanently absent and no longer a family
member. Exceptions to this general policy are discussed below.
Absent Students
PHA Policy
When someone who has been considered a family member attends school away from home, the
person will continue to be considered a family member unless information becomes available to
the PHA indicating that the student has established a separate household, or the family declares
that the student has established a separate household.
Absences Due to Placement in Foster Care [24 CFR §5.403]
Children temporarily absent from the home as a result of placement in foster care are considered
members of the family.
PHA Policy
If a child has been placed in foster care, the PHA will verify with the appropriate agency whether
and when the child is expected to be returned to the home. Unless the agency confirms that the
child has been permanently removed from the home, the child will be counted as a family
member.
Absent Head, Spouse, or Cohead
PHA Policy
An employed head, spouse, or cohead absent from the unit, up to a maximum of 180 consecutive
days due to employment will continue to be considered a family member. A head, spouse, or
cohead who is absent from the unit because of a military deployment or active service will
continue to be considered a family member.
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Individuals Confined for Medical Reasons
PHA Policy
An individual confined to a nursing home or hospital on a permanent basis is not considered a
family member, and the income of that person is not counted.
If there is a question about the status of a family member, the PHA will request verification from a
responsible medical professional and will use this determination. If the responsible medical
professional cannot provide a determination, the person generally will be considered temporarily
absent. The family may present evidence that the family member is confined on a permanent
basis and request that the person not be considered a family member.
Return of Permanently Absent Family Members
PHA Policy
The family must request PHA approval for the return of any adult family members that the PHA
has determined to be permanently absent. The individual is subject to the eligibility and screening
requirements discussed elsewhere in this chapter.
3-I.M. LIVE-IN AIDE
Live-in aide means a person who resides with one or more elderly persons, or near-elderly persons, or
persons with disabilities, and who: (1) is determined to be essential to the care and well-being of the
persons, (2) is not obligated for the support of the persons, and (3) would not be living in the unit except
to provide the necessary supportive services [24 CFR §5.403].
The PHA must approve a live-in aide if needed as a reasonable accommodation in accordance with 24
CFR 8.
A live-in aide is considered a household member but not a family member.
The income of the live-in aide is not counted in determining the annual income of the family. [24 CFR
§5.609(c)(5)]. Relatives may be approved as live-in aides if they meet all the criteria defining a live-in aide.
However, a relative who serves as a live-in aide is not considered a family member and would not be
considered a remaining member of a tenant family.
PHA Policy
A family’s request for a live-in aide may be made in writing. The PHA will verify the need for a live-
in aide with a reliable, knowledgeable professional as provided by the family, such as a doctor,
social worker, or case worker, that the live-in aide is essential for the care and well-being of the
elderly, near elderly, or disabled family member.
For continued approval, the family must submit a new written request subject to PHA verification
at every other year during the annual reexamination unless a knowledgeable professional
declares on verification that disability-related need is permanent or lifelong.
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In addition, the family and live-in aide will be required to submit a certification stating that the live-
in aide is (1) not obligated for the support of the person(s) needing the care, and (2) would not be
living in the unit except to provide the necessary supportive services.
The PHA has the discretion not to approve a particular person as a live-in aide, and may withdraw
such approval, if [24 CFR §966.4(d)(3)(i)]:
1) The person commits fraud, bribery or any other corrupt or criminal act in connection with
any federal housing program;
2) The person has a history of drug-related criminal activity or violent criminal activity; or
3) The person currently owes rent or other amounts to the PHA or to another PHA in
connection with Section 8 or public housing assistance under the 1937 Act.
Within 10 business days of receiving a request for a live-in aide, including all required
documentation related to the request, the PHA will notify the family of its decision in writing.
Occasional, intermittent, multiple, or rotating care givers typically do not reside in the unit and would not
qualify as live-in aides. Therefore, an additional bedroom should not be approved for a live-in aide under
these circumstances [PIH 2014-25].
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PART II: BASIC ELIGIBILITY CRITERIA
3-II.A. INCOME ELIGIBILITY AND TARGETING
Income Limits
HUD is required by law to establish income limits that determine the income eligibility of applicants for
HUD’s assisted housing programs, including the public housing program. The income limits are published
annually and are based on HUD estimates of the median incomes for families of different sizes in a
particular area or county.
Types of Low-Income Families [24 CFR §5.603(b)]
Low-income family. A family whose annual income does not exceed 80 percent of the median income for
the area, adjusted for family size.
Very low-income family. A family whose annual income does not exceed 50 percent of the median income
for the area, adjusted for family size.
Extremely low-income family. A family whose annual income does not exceed the federal poverty level or
30 percent of the median income for the area, whichever number is higher.
Area median income is determined by HUD, with adjustments for smaller and larger families. HUD may
establish income ceilings higher or lower than 30, 50, or 80 percent of the median income for an area if
HUD finds that such variations are necessary because of unusually high or low family incomes. HUD also
publishes over-income limits annually, but these are not used at admission. Over-income limits will be
discussed in Chapter 13.
Using Income Limits for Eligibility [24 CFR 960.201and Notice PIH 2023-27
Income limits are used to determine eligibility at admission. Eligibility is established by comparing a
family's annual income with HUD’s published income limits. To be income-eligible, a family must be a low-
income family. Income and net family assets of household members are excluded when determining
income eligibility; however, household members are considered for purposes of unit size and occupany
standards.
Using Income Limits for Targeting [24 CFR 960.202(b)]
At least 40 percent of the families admitted from the PHA waiting list to the public housing program
during a PHA fiscal year must be extremely low-income families. This is called the “basic targeting
requirement.”
If admissions of extremely low-income families to the PHA’s housing choice voucher program during a
PHA fiscal year exceed the 75 percent minimum targeting requirement for that program, such excess
shall be credited against the PHA’s public housing basic targeting requirement for the same fiscal year.
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The fiscal year credit for housing choice voucher program admissions that exceed the minimum voucher
program targeting requirement must not exceed the lower of:
•
Ten percent of public housing waiting list admissions during the PHA fiscal year
•
Ten percent of waiting list admission to the PHA’s housing choice voucher program during the
PHA fiscal year
•
The number of qualifying low-income families who commence occupancy during the fiscal year of
public housing units located in census tracts with a poverty rate of 30 percent or more. For this
purpose, qualifying low-income family means a low-income family other than an extremely low-
income family.
For discussion of how income targeting is used in tenant selection, see Chapter 4.
3-II.B. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5, SUBPART E]
Housing assistance is available only to individuals who are U.S. citizens, U.S. nationals (herein referred to
as citizens and nationals), or noncitizens that have eligible immigration status. At least one family
member must be a citizen, national, or noncitizen with eligible immigration status in order for the family
to qualify for any level of assistance.
All applicant families must be notified of the requirement to submit evidence of their citizenship status
when they apply. Where feasible, and in accordance with the PHA’s Limited English Proficiency (LEP) Plan,
the notice must be in a language that is understood by the individual if the individual is not proficient in
English.
Declaration [24 CFR 5.508]
HUD requires each family member to declare whether the individual is a citizen, a national, or an eligible
noncitizen, except those members who elect not to contend that they have eligible immigration status.
Those who elect not to contend their status are considered to be ineligible noncitizens. For citizens,
nationals, and eligible noncitizens the declaration must be signed personally by the head, spouse,
cohead, and any other family member 18 or older, and by a parent or guardian for minors. The family
must identify in writing any family members who elect not to contend their immigration status (see
Ineligible Noncitizens below). No declaration is required for live-in aides, foster children, or foster adults.
U.S. Citizens and Nationals
In general, citizens and nationals are required to submit only a signed declaration that claims their status.
However, HUD regulations permit the PHA to request additional documentation of their status, such as a
passport.
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PHA Policy
Family members who declare citizenship or national status will not be required to provide
additional documentation unless the PHA receives information indicating that an individual’s
declaration may not be accurate.
Eligible Noncitizens
In addition to providing a signed declaration, those declaring eligible noncitizen status must sign a
verification consent form and cooperate with PHA efforts to verify their immigration status as described
in Chapter 7. The documentation required for establishing eligible noncitizen status varies depending
upon factors such as the date the person entered the U.S., the conditions under which eligible
immigration status has been granted, the person’s age, and the date on which the family began receiving
HUD-funded assistance.
Lawful residents of the Marshall Islands, the Federated States of Micronesia, and Palau, together known
as the Freely Associated States, or FAS, are eligible for housing assistance under Section 141 of the
Compacts of Free Association between the U.S. Government and the Governments of the FAS [Public Law
106-504].
Ineligible Noncitizens
Those noncitizens who do not wish to contend their immigration status are required to have their names
listed on a non-contending family members listing, signed by the head, spouse, or cohead (regardless of
citizenship status), indicating their ineligible immigration status. The PHA is not required to verify a family
member’s ineligible status and is not required to report an individual’s unlawful presence in the U.S. to
the United States Citizenship and Immigration Services (USCIS).
Providing housing assistance to noncitizen students is prohibited [24 CFR §5.522]. This prohibition
extends to the noncitizen spouse of a noncitizen student as well as to minor children who accompany or
follow to join the noncitizen student. Such prohibition does not extend to the citizen spouse of a
noncitizen student or to the children of the citizen spouse and noncitizen student. Such a family is eligible
for prorated assistance as a mixed family.
Mixed Families
A family is eligible for admission as long as at least one member is a citizen, national, or eligible
noncitizen. Families that include eligible and ineligible individuals are considered mixed families. Such
families will be given notice that their assistance will be prorated, and that they may request a hearing if
they contest this determination. See Chapter 6 for a discussion of how rents are prorated, and Chapter
14 for a discussion of grievance hearing procedures.
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Ineligible Families [24 CFR 5.514(d), (e), and (f)]
A PHA may elect to provide assistance to a family before the verification of the eligibility of the individual
or one family member [24 CFR §5.512(b)]. Otherwise, no individual or family may be assisted prior to the
affirmative establishment by the PHA that the individual or at least one family member is eligible [24 CFR
§5.512(a)].
PHA Policy
The PHA will not provide assistance to a family before the verification of at least one family
member as a citizen, national, or eligible noncitizen.
When a PHA determines that an applicant family does not include any citizens, nationals, or
eligible noncitizens, following the verification process, the family will be sent a written notice
within 10 business days of the determination.
The notice will explain the reasons for the denial of assistance and will advise the family of its right
to request an appeal to the United States Citizenship and Immigration Services (USCIS), or to
request a grievance hearing with the PHA. The grievance hearing with the PHA may be requested
in lieu of the USCIS appeal, or at the conclusion of the USCIS appeal process. The notice must also
inform the applicant family that assistance may not be delayed until the conclusion of the USCIS
appeal process, but that it may be delayed pending the completion of the grievance hearing
process.
Grievance hearing procedures are contained in Chapter 14.
Timeframe for Determination of Citizenship Status [24 CFR §5.508(g)]
For new occupants joining the resident family the PHA must verify status at the first interim or regular
reexamination following the person’s occupancy, whichever comes first.
If an individual qualifies for a time extension for the submission of required documents, the PHA must
grant such an extension for no more than 30 days [24 CFR §5.508(h)].
Each family member is required to submit evidence of eligible status only one time during continuous
occupancy.
PHA Policy
The PHA will verify the status of applicants at the time other eligibility factors are determined.
3-II.C. SOCIAL SECURITY NUMBERS [24 CFR 5.216 AND 5.218, NOTICE PIH 2018-24]
The applicant and all members of the applicant’s household must disclose the complete and accurate
social security number (SSN) assigned to each household member, and the documentation necessary to
verify each SSN. If a child under age 6 has been added to an applicant family within the 6 months prior to
program admission, an otherwise eligible family may be admitted to the program and must disclose and
document the child’s SSN within 90 days of admission. A detailed discussion of acceptable
documentation is provided in Chapter 7.
3-16
Note: These requirements do not apply to noncitizens who do not contend eligible immigration status.
The PHA must deny assistance to an applicant family if they do not meet the SSN disclosure and
documentation requirements contained in 24 CFR 5.216.
3-II.D. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 5.232 AND 24 CFR 5.230, HOTMA]
HUD requires each adult family member, and the head of household, spouse, or cohead, regardless of
age, to sign form HUD-9886-A, Authorization for the Release of Information Privacy Act Notice, the form
HUD-52675, Debts Owed to Public Housing Agencies and Terminations, and other consent forms as
needed to collect information relevant to the family’s eligibility and level of assistance. Chapter 7 provides
detailed information concerning the consent forms and verification requirements. The consent form
remains effective until the family is denied assistance, assistance is terminated, or the family provides
written notification to revoke consent.
The PHA must deny admission to the program if any member of the applicant family fails to sign and
submit consent forms which allow the PHA to obtain information that the PHA has determined is
necessary in administration of the public housing program [24 CFR §960.259(a) and (b)] and 24 CFR
5.232(a)],
Upon the PHA’s HOTMA 102/104 compliance date, the following on revocation of consent is added:
However, this does not apply if the applicant or participant, or any member of their family, revokes their
consent with respect to the ability of the PHA to access financial records from financial institutions,
unless the PHA establishes a policy that revocation of consent to access financial records will result in
denial of admission or termination of assistance [24 CFR 5.232 (c)].
PHA Policy
PHA will require the form HUD-9886 to be signed at least once for each adult household member,
but the PHA may require the form HUD-9886 to be signed at any other time, as needed. The PHA
has established a policy that the family’s revocation of consent to allow the PHA to access records
from financial institutions will result in denial of admission.
3-II.E. EIV SYSTEM SEARCHES [EIV FAQS; EIV SYSTEM TRAINING 9/30/20; AND NOTICE PIH 2023-27]
Existing Tenant Search
Prior to admission to the program, the PHA must search for all household members using the EIV Existing
Tenant Search module. The PHA must review the reports for any SSA matches involving another PHA or a
multifamily entity and follow up on any issues identified. The PHA must provide the family with a copy of
the Existing Tenant Search results if requested. At no time may any family member receive duplicative
assistance.
3-17
If the tenant is a new admission to the PHA, and a match is identified at a multifamily property, the PHA
must report the program admission date to the multifamily property and document the notification in
the tenant file. The family must provide documentation of move-out from the assisted unit, as applicable.
PHA Policy
The PHA will contact the other PHA, or owner identified in the report to confirm that the family
has moved out of the unit and obtain documentation of current tenancy status, including a form
HUD-50058 or 50059, as applicable, showing an end of participation.
The PHA will only approve assistance contingent upon the move-out from the currently occupied
assisted unit.
Debts Owed to PHAs and Terminations
All adult household members must sign the form HUD-52675, Debts Owed to Public Housing and
Terminations. Prior to admission to the program, the PHA must search for each adult family member in
the Debts Owed to PHAs and Terminations module.
If a current or former tenant disputes the information in the module, the tenant should contact the PHA
directly in writing to dispute the information and provide any documentation that supports the dispute. If
the PHA determines that the disputed information is incorrect, the PHA will update or delete the record
from EIV. Former tenants may dispute debt and termination information for a period of up to three years
from the end of participation date in the program.
PHA Policy
The PHA will require each adult household member to sign the form HUD-52675 once at the
eligibility determination. Any new members added to the household after admission will be
required to sign the form HUD-52675 prior to being added to the household.
The PHA will search the Debts Owed to PHAs and Terminations module as part of the eligibility
determination for new households and as part of the screening process for any household
members added after the household is admitted to the program. If any information on debts or
terminations is returned by the search, the PHA will determine if this information warrants a
denial in accordance with the policies in Part III of this chapter.
EIV Income Report
For each new admission, the PHA is required to review income information in EIV to confirm and validate
family reported income within 120 days ater the move-in information is transmitted to HUD. The PHA
must print and maintain copies of the reports in the tenant file and resolve any discrepancies with the
family.
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PART III: DENIAL OF ADMISSION
3-III.A. OVERVIEW
A family that does not meet the eligibility criteria discussed in Parts I and II, must be denied admission.
In addition, HUD requires or permits the PHA to deny admission based on certain types of current or past
behaviors of family members as discussed in this part. The PHA’s authority in this area is limited by the
Violence against Women Act (VAWA), which prohibits the denial of admission to an otherwise qualified
applicant on the basis, or as a direct result of the fact, that the applicant is or has been the victim of
domestic violence, dating violence, sexual assault, stalking, or human trafficking [see 24 CFR §5.2005(b)].
While the regulations state that the PHA must prohibit admission for certain types of criminal activity and
give the PHA the option to deny for other types of previous criminal history, more recent HUD rules and
OGC guidance must also be taken into consideration when determining whether a particular individual’s
criminal history merits denial of admission.
When considering any denial of admission, PHAs may not use arrest records as the basis for the denial.
Further, HUD does not require the adoption of “One Strike” policies and reminds PHAs of their obligation
to safeguard the due process rights of applicants and tenants [Notice PIH 2015-19].
HUD’s Office of General Counsel issued a memo on April 4, 2016, regarding the application of Fair
Housing Act standards to the use of criminal records. This memo states that a PHA violates the Fair
Housing Act when their policy or practice has an unjustified discriminatory effect, even when the PHA had
no intention to discriminate. Where a policy or practice that restricts admission based on criminal history
has a disparate impact on a particular race, national origin, or other protected class, that policy or
practice is in violation of the Fair Housing Act if it is not necessary to serve a substantial, legitimate,
nondiscriminatory interest of the PHA, or if that interest could be served by another practice that has a
less discriminatory effect [OGC Memo 4/4/16]. HUD codified this stance on disparate impact and
discriminatory effects in a final rule dated March 31, 2023. In doing so, HUD also standardized its long-
practiced three-step approach to assessing burdens of proof.
PHAs who impose blanket prohibitions on any person with any conviction record, no matter when the
conviction occurred, what the underlying conduct entailed, or what the convicted person has done since
then will be unable to show that such policy or practice is necessary to achieve a substantial, legitimate,
nondiscriminatory interest. Even a PHA with a more tailored policy or practice that excludes individuals
with only certain types of convictions must still prove that its policy is necessary. To do this, the PHA must
show that its policy accurately distinguishes between criminal conduct that indicates a demonstrable risk
to resident safety and property and criminal conduct that does not.
This part covers the following topics:
•
Required denial of admission
•
The asset limitation in public housing
•
Other permitted reasons for denial of admission
3-19
•
Screening
•
Criteria for deciding to deny admission
•
Prohibition against denial of admission to victims of domestic violence, dating violence, sexual
assault, stalking, or human trafficking
•
Notice of eligibility or denial
3-III.B. Required Denial of Admission [24 CFR §960.204]
PHAs are required to establish standards that prohibit admission of an applicant to the public housing
program if they have engaged in certain criminal activity or if the PHA has reasonable cause to believe
that a household member’s current use or pattern of use of illegal drugs, or current abuse or pattern of
abuse of alcohol may threaten the health, safety, or right to peaceful enjoyment of the premises by other
residents.
Where the statute requires that the PHA prohibit admission for a prescribed period of time after some
disqualifying behavior or event, the PHA may choose to continue that prohibition for a longer period of
time [24 CFR §960.204(a)].
HUD requires the PHA to deny assistance in the following cases:
•
Any member of the household has been evicted from federally assisted housing in the last 3 years for
drug-related criminal activity. HUD permits but does not require the PHA to admit an otherwise-
eligible family if the household member has completed a PHA-approved drug rehabilitation program
or the circumstances which led to eviction no longer exist (e.g., the person involved in the criminal
activity no longer lives in the household).
PHA Policy
The PHA will admit an otherwise-eligible family who was evicted from federally assisted housing
within the past 3 years for drug-related criminal activity only if the PHA is able to verify that the
household member who engaged in the criminal activity has completed a supervised drug
rehabilitation program approved by the PHA, or the person who committed the crime is no longer
living in the household. If it is found that after admission the ineligible family member is residing
in the unit, the family will be terminated.
•
The PHA determines that any household member is currently engaged in the use of illegal drugs. Drug
means a controlled substance as defined in Section 102 of the Controlled Substances Act [21 U.S.C.
802]. Currently engaged in the illegal use of a drug means a person has engaged in the behavior recently
enough to justify a reasonable belief that there is continuing illegal drug use by a household member
[24 CFR §960.205(b)(1)].
PHA Policy
Currently engaged in is defined as any use of illegal drugs during the previous three (3) months.
3-20
•
The PHA has reasonable cause to believe that any household member's current use or pattern of use
of illegal drugs, or current abuse or pattern of abuse of alcohol, may threaten the health, safety, or
right to peaceful enjoyment of the premises by other residents.
PHA Policy
The PHA will consider the use of a controlled substance or alcohol to be a pattern if there is more
than one incident during the previous three (3) months.
In determining reasonable cause, the PHA will consider all credible evidence, including but not
limited to, any record of convictions, arrests, or evictions of household members related to the
use of illegal drugs or the abuse of alcohol. A record or records of arrest(s) will not be used as the
sole basis for the denial or proof that the applicant engaged in disqualifying criminal activity. The
PHA will also consider evidence from treatment providers or community-based organizations
providing services to household members.
•
Any household member has ever been convicted of drug-related criminal activity for the production
or manufacture of methamphetamine on the premises of federally assisted housing.
•
Any household member is subject to a lifetime registration requirement under a state lifetime sex
offender registration program.
State laws purporting to legalize medical or recreational marijuana directly conflict with the admission
and continued requirements of the Quality Housing and Work Responsibility Act of 1998 (“Public Housing
Reform Act”) and are thus subject to preemption. [September 24, 1999, HUD Letter Re: Medical Use of
Marijuana]
PHA Policy
The use, possession, or growing of marijuana by any household member on the premises of a
subsidized unit is grounds for termination of assistance. The “premises” includes, but is not limited
to, the interior and exterior of the subsidized unit, patio/balcony, sidewalks, walkways, recreation
areas/common areas, laundry room, parking lot, etc.).
Household members with a “medical marijuana card” are not exempt from this rule.
The use of marijuana may include smoking, edibles, or other forms of the drug.
3-III.C. RESTRICTION ON ASSISTANCE BASED ON ASSETS [24 CFR 5.618]
Upon the PHA’s HOTMA 102/104 compliance date, the following section on the asset limitation is added. The
asset limitation does not apply until the PHA’s HOTMA compliance date.
There are two circumstances under which a family is ineligible for the program based on asset
ownership.
First, assistance may not be provided to any family if the family’s net assets exceed the HUD-published
asset limitation amount (adjusted annually by HUD).
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•
This amount is listed in HUD’s current year Inflation-Adjusted Values tables
•
$103,200 for 2025
Second, the family has real property that is suitable for occupancy by the family as a residence and the
family has:
•
A present ownership interest in the real property;
•
A legal right to reside in the real property; and
•
The effective legal authority to sell (based on state or local laws of the jurisdiction where the property
is located) the real property.
The PHA does not have the discretion not to enforce or provide limited enforcement of the asset
limitation at admission. However, the real property restriction does not apply in the following
circumstances:
•
Any property for which the family is receiving assistance for a manufactured home under 24 CFR
982.620 or under the HCV Homeownership program;
•
Any property that is jointly owned by a member of the family and at least one non-household
member who does not live with the family, if the non-household member resides at the jointly owned
property;
•
Any family that is offering the property for sale; or
•
Any person who is a victim of domestic violence, dating violence, sexual assault, or stalking.
-
When a family asks for an exception because a family member is a victim of domestic violence,
dating violence, sexual assault, or stalking, the PHA must comply with all the confidentiality
requirements under VAWA. The PHA must accept a self-certification from the family member, and
the restrictions on requesting documentation under VAWA apply.
A property is considered suitable for occupancy unless the family demonstrates that it:
•
Does not meet the disability-related needs for all members of the family (e.g., physical accessibility
requirements, disability-related need for additional bedrooms, proximity to accessible transportation,
etc.);
•
Is not sufficient for the size of the family;
PHA Policy
The PHA defines not sufficient for the size of the family as being overcrowded based on the PHA’s
occupancy standards in Chapter 5.
Is geographically located so as to be a hardship for the family (e.g., the distance or commuting time
between the property and the family’s place of work or school would be a hardship to the family, as
determined by the PHA or owner);
PHA Policy
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In general, the PHA defines a geographic hardship to include when a family members’ work, school,
health care provider, or other necessary service is located an unreasonable distance from the real
property or there is a lack of adequate transportation options for the family to access work, school,
health care, or other necessary services. The PHA will consider circumstantial details a family faces
when determining whether a geographical hardship is present.
•
Is not safe to reside in because of the physical condition of the property (e.g., property’s physical
condition poses a risk to the family’s health and safety and the condition of the property cannot be
easily remedied); or
•
Is not a property that a family may reside in under the State or local laws of the jurisdiction where the
property is located.
If a family meets one of the above exceptions, the real property is not automatically excluded from the
calculation of net family assets. Unless the real property is specifically excluded from net family assets as
described in 24 CFR 5.603 and Chapter 6 of this policy, it will be included in net family assets. If the value
of that real property brings the net family assets above the HUD-published asset limitation amount, the
family is out of compliance with the asset limitation.
See Chapter 7 for information on verifying net family assets for purposes of the asset limitation.
3-III.D. OTHER PERMITTED REASONS FOR DENIAL OF ADMISSION
HUD permits but does not require the PHA to deny admission for the reasons discussed in this section.
Criminal Activity [24 CFR 960.203 (c)]
The PHA is responsible for screening family behavior and suitability for tenancy. In doing so, the PHA may
consider an applicant’s history of criminal activity involving crimes of physical violence to persons or
property and other criminal acts, which would adversely affect the health, safety, or welfare of other
tenants.
PHA Policy
If any household member is currently engaged in or has engaged in any of the following criminal
activities, within the past three (3) years, the family will be denied admission.
Drug-related criminal activity, defined by HUD as the illegal manufacture, sale, distribution, or use of a
drug, or the possession of a drug with intent to manufacture, sell, distribute, or use the drug [24 CFR
5.100].
Violent criminal activity, defined by HUD as any criminal activity that has as one of its elements the use,
attempted use, or threatened use of physical force substantial enough to cause, or be reasonably likely to
cause, serious bodily injury or property damage [24 CFR 5.100].
Criminal activity that may threaten the health, safety, or welfare of other tenants [24 CFR 960.203(c)(3)].
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Criminal activity that may threaten the health or safety of PHA staff, contractors, subcontractors, or
agents.
Criminal sexual conduct, including but not limited to sexual assault, incest, open, and gross lewdness, or
child abuse.
Evidence of such criminal activity includes, but is not limited to:
Any record of convictions, arrests, or evictions for suspected drug-related or violent criminal activity of
household members within the past three (3) years. A record or records of arrest(s) will not be used as
the sole basis for the denial or proof that the applicant engaged in disqualifying criminal activity.
In making its decision to deny assistance, the PHA will consider the factors discussed in Sections 3-III.F
and 3-III.G. Upon consideration of such factors, the PHA may, on a case-by-case basis, decide not to deny
assistance.
Previous Behavior [24 CFR 960.203(c) and (d) and PH Occ GB, p. 48]
HUD authorizes the PHA to deny admission based on relevant information pertaining to the family’s
previous behavior and suitability for tenancy.
In the event of the receipt of unfavorable information with respect to an applicant, the PHA must
consider the time, nature, and extent of the applicant’s conduct (including the seriousness of the
offense). As discussed in Section 3-III.F, the PHA may also need to consider whether the cause of the
unfavorable information may be that the applicant is the victim of domestic violence, dating violence,
sexual assault, or stalking.
PHA Policy
The PHA will deny admission to an applicant family if the PHA determines that the family:
•
Has a pattern of unsuitable past performance in meeting financial obligations, including
rent within the past three years.
•
Has a pattern of disturbance of neighbors, destruction of property, or living or
housekeeping habits at prior residences within the past three years, which may adversely
affect the health, safety, or welfare of other tenants.
•
Owes rent or other amounts to this or any other PHA or owner in connection with any
assisted housing program.
•
The family has breached the terms of a repayment agreement entered into with the PHA,
unless the family repays the full amount of the debt covered in the repayment agreement
prior to being selected from the waiting list.
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•
Misrepresented or does not provide true and complete information related to eligibility,
including income, award of preferences for admission, expenses, family composition or
rent, or any other information that the PHA or HUD determines is necessary in the
administration of the program.
•
Any family member has been evicted from federally assisted housing or abandoned the
federally assisted housing in the last three years. (Staff would consider the date and
circumstances of any past eviction or termination in determining its relevance to PHA
tenancy.)
•
Has a household member, regardless of age, who has been trespassed (including criminally
trespassed) from a City of Chandler Public Housing site during the last three years.
•
Has committed fraud, bribery, or any other corrupt or criminal act in connection with any
federal housing program in the last three years.
•
Owes rent or other amounts to any PHA in connection with HCV Section 8, public housing,
or other public housing assistance under the 1937 Act, unless the family repays the full
amount of the debt prior to being selected from the waiting list.
−
When denying admission due to family debts as shown in HUD’s EIV system, the
PHA will provide the family with a copy of the EIV Debt Owed to PHA and
Termination report.
−
If the family wishes to dispute the information in the report, the family must contact
the PHA that entered the information in EIV in writing, explaining why EIV
information is disputed.
−
The family must also provide a copy of the letter and all applicable verification to the
PHA to support the family’s claim. The PHA will consider the information provided
by the family prior to issuing a notice of denial.
•
Has engaged in or threatened violent or abusive behavior toward PHA personnel:
−
Abusive or violent behavior towards PHA personnel includes verbal as well as physical
abuse or violence. Use of racial epithets, or other language, written or oral, that is
customarily used to intimidate may be considered abusive or violent behavior.
−
Threatening refers to oral or written threats or physical gestures that communicate
intent to abuse or commit violence.
In making its decision to deny admission, the PHA will consider the factors discussed in Sections 3-
III.F and 3-III.G. Upon consideration of such factors, the PHA may, on a case-by-case basis, decide
not to deny admission.
The PHA will consider the existence of mitigating factors, such as loss of employment or other
financial difficulties, before denying admission to an applicant based on the failure to meet prior
financial obligations.
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3-III.E. SCREENING
Screening for Eligibility
PHAs are authorized to obtain criminal conviction records from law enforcement agencies to screen
applicants for admission to the public housing program. This authority assists the PHA in complying with
HUD requirements and PHA policies to deny assistance to applicants who are engaging in or have
engaged in certain criminal activities. In order to obtain access to the records the PHA must require every
applicant family to submit a consent form signed by each adult household member [24 CFR 5.903].
The PHA may not pass along to the applicant the costs of a criminal records check [24 CFR 960.204(d)].
PHA Policy
The PHA will perform criminal background checks through local law enforcement for all adult
household members. The PHA may not pass along to the applicant the costs of a criminal records
check.
If the results of the criminal background check indicate there may have been past criminal activity,
but the results are inconclusive, the PHA will request a fingerprint card and will request
information from the National Crime Information Center (NCIC).
PHAs are required to perform criminal background checks necessary to determine whether any
household member is subject to a lifetime registration requirement under a state sex offender program
in the state where the housing is located, as well as in any other state where a household member is
known to have resided [24 CFR 960.204(a)(4)].
PHA Policy
The PHA will use the Dru Sjodin National Sex Offender database to screen applicants
for admission.
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Additionally, PHAs must ask whether the applicant, or any member of the applicant’s household, is
subject to a lifetime registered sex offender registration requirement in any state. [Notice PIH 2012-28].
If the PHA proposes to deny admission based on a criminal record or on lifetime sex offender registration
information, the PHA must notify the household of the proposed action and must provide the subject of
the record and the applicant a copy of the record and an opportunity to dispute the accuracy and
relevance of the information prior to a denial of admission [24 CFR 5.903(f) and 5.905(d)].
Obtaining Information from Drug Treatment Facilities [24 CFR §960.205]
HUD authorizes PHAs to request and obtain information from drug abuse treatment facilities concerning
applicants. Specifically, the PHA may require each applicant to submit for all household members who
are at least 18 years of age, and for each family head, spouse, or cohead regardless of age, one or more
consent forms signed by such household members that requests any drug abuse treatment facility to
inform the PHA whether the drug abuse treatment facility has reasonable cause to believe that the
household member is currently engaging in illegal drug use.
Drug Abuse Treatment Facility means an entity that holds itself out as providing, and provides, diagnosis,
treatment, or referral for treatment with respect to the illegal drug use, and is either an identified unit
within a general care facility, or an entity other than a general medical care facility.
Currently engaging in illegal use of a drug means illegal use of a drug that occurred recently enough to
justify a reasonable belief that there is continuing illegal drug use by a household member.
Any consent form used for the purpose of obtaining information from a drug abuse treatment facility to
determine whether a household member is currently engaging in illegal drug use must expire
automatically after the PHA has made a final decision to either approve or deny the admission of such
person.
Any charges incurred by the PHA for information provided from a drug abuse treatment facility may not
be passed on to the applicant or tenant. If the PHA chooses to obtain such information from drug abuse
treatment facilities, it must adopt and implement one of the two following policies:
Policy A: The PHA must submit a request for information to a drug abuse treatment facility for all
families before they are admitted. The request must be submitted for each proposed household
member who is at least 18 years of age, and for each family head, spouse, or cohead regardless of
age.
Policy B: The PHA must submit a request for information only for certain household members,
whose criminal record indicates prior arrests or conviction for any criminal activity that may be a
sole basis for denial of admission or whose prior tenancy records indicate that the proposed
household member engaged in destruction of property or violent activity against another person,
or they interfered with the right of peaceful enjoyment of the premises of other residents.
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If the PHA chooses to obtain such information, it must abide by the HUD requirements for records
management and confidentiality as described in 24 CFR 960.205(f).
PHA Policy
The PHA will obtain information from drug abuse treatment facilities to determine whether any
applicant family’s household members are currently engaging in illegal drug activity only when the
PHA has determined that the family will be denied admission based on a family member’s drug-
related criminal activity, and the family claims that the culpable family member has successfully
completed a supervised drug or alcohol rehabilitation program.
Screening for Suitability as a Tenant [24 CFR 960.203(c)]
The PHA is responsible for the screening and selection of families to occupy public housing units. The
PHA may consider all relevant information. Screening is important to public housing communities and
program integrity, and to ensure that assisted housing is provided to those families that will adhere to
lease obligations.
PHA Policy
The PHA will consider the family’s history with respect to the following factors:
•
Payment of rent and utilities
•
Caring for a unit and premises
•
Respecting the rights of other residents to the peaceful enjoyment of their housing
•
Criminal activity that is a threat to the health, safety, or property of others
•
Behavior of all household members as related to the grounds for denial as detailed in
Sections 3-III.B and C
•
Compliance with any other essential conditions of tenancy
Resources Used to Check Applicant Suitability [PH Occ. GB, pp. 47-56]
PHAs have a variety of resources available to them for determination of the suitability of applicants.
Generally, PHAs should reject applicants who have recent behavior that would warrant lease termination
for a public housing resident.
PHA Policy
In order to determine the suitability of applicants the PHA will examine applicant history for the
past three years. Such background checks will include:
Past Performance in Meeting Financial Obligations, Especially Rent
PHA and landlord references for the past three years, gathering information about past
performance meeting rental obligations such as rent payment record, late payment record,
whether the PHA/landlord ever began or completed lease termination for non-payment, and
whether utilities were ever disconnected in the unit. PHAs and landlords will be asked if they
would rent to the applicant family again.
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If an applicant has no rental payment history the PHA will check court records of eviction
actions and other financial judgments, and credit reports. A lack of credit history will not
disqualify someone from becoming a public housing resident, but a poor credit rating may.
Applicants with no rental payment history will also be asked to provide the PHA with personal
references. The references will be requested to complete a verification of the applicant’s ability
to pay rent if no other documentation of ability to meet financial obligations is available. The
applicant will also be required to complete a checklist documenting their ability to meet
financial obligations.
If previous landlords do not respond to requests from the PHA, the applicant may provide
other documentation that demonstrates their ability to meet financial obligations (e.g., rent
receipts, cancelled checks, etc.)
Disturbances of Neighbors, Destruction of Property or Living or Housekeeping Habits at Prior Residences
that May Adversely Affect Health, Safety, or Welfare of Other Tenants, or Cause Damage to the Unit or
the Development
PHA and landlord references for the past three years, gathering information on whether the
applicant kept a unit clean, safe and sanitary; whether they violated health or safety codes;
whether any damage was done by the applicant to a current or previous unit or the
development, and, if so, how much the repair of the damage cost; whether the applicant’s
housekeeping caused insect or rodent infestation; and whether the neighbors complained
about the applicant or whether the police were ever called because of disturbances.
Police and court records within the past three years will be used to check for any evidence of
disturbance of neighbors or destruction of property that might have resulted in arrest or
conviction. A record or records of arrest(s) will not be used as the sole basis for the denial or
proof that the applicant engaged in disqualifying activity.
A personal reference will be requested to complete a verification of the applicant’s ability to
care for the unit and avoid disturbing neighbors if no other documentation is available. In
these cases, the applicant will also be required to complete a checklist documenting their
ability to care for the unit and to avoid disturbing neighbors.
Home visits may be used to determine the applicant’s ability to care for the unit.
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3-III.F. CRITERIA FOR DECIDING TO DENY ADMISSION
Evidence
PHA Policy
The PHA will use the preponderance of the evidence as the standard for making all admission
decisions.
Preponderance of the evidence is defined as evidence which is of greater weight or more convincing
than the evidence which is offered in opposition to it; that is, evidence which as a whole, shows
that the fact sought to be proved is more probable than not.
Preponderance of the evidence may not be determined by the number of witnesses, but by the
greater weight of all evidence.
The fact that an applicant or tenant was arrested for a disqualifying offense shall not be treated or
regarded as proof that the applicant or tenant engaged in disqualifying criminal activity. The arrest
may, however, trigger an investigation to determine whether the applicant or tenant actually
engaged in disqualifying criminal activity. As part of its investigation, CCHRD may obtain the police
report associated with the arrest and consider the reported circumstances of the arrest. CCHRD
may also consider any statements made by witnesses or the applicant or tenant not included in
the police report; whether criminal charges were filed; whether, if filed, criminal charges were
abandoned, dismissed, not prosecuted, or ultimately resulted in an acquittal; and any other
evidence relevant to determining whether or not the applicant or tenant engaged in disqualifying
activity.
Consideration of Circumstances [24 CFR 960.203(c)(3) and (d)]
HUD authorizes the PHA to consider all relevant circumstances when deciding whether to deny
admission based on a family’s past history except in the situations for which denial of admission is
mandated (see Section 3-III.B).
In the event the PHA receives unfavorable information with respect to an applicant, consideration must
be given to the time, nature, and extent of the applicant’s conduct (including the seriousness of the
offense). In a manner consistent with its policies, PHAs may give consideration to factors that might
indicate a reasonable probability of favorable future conduct.
PHA Policy
The PHA will consider the following facts and circumstances prior to making its decision:
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•
The seriousness of the case, especially with respect to how it would affect other residents’
safety or property
•
The effects that denial of admission may have on other members of the family who were not
involved in the action or failure to act
•
The extent of participation or culpability of individual family members, including whether the
culpable family member is a minor or a person with disabilities, or (as discussed further in
Section 3-III.F) a victim of domestic violence, dating violence, sexual assault, stalking, or
human trafficking
•
The length of time since the violation occurred, including the age of the individual at the time
of the conduct, as well as the family’s recent history and the likelihood of favorable conduct
in the future.
•
While a record or records of arrest(s) will not be used as the sole basis for denial, an arrest may
trigger an investigation to determine whether the applicant actually engaged in disqualifying
criminal activity. As part of its investigation, the PHA may obtain the police report associated with
the arrest and consider the reported circumstances of the arrest. The PHA may also consider:
−
Any statements made by witnesses, or the applicant not included in the police report
−
Whether criminal charges were filed
−
Whether, if filed, criminal charges were abandoned, dismissed, not prosecuted, or
ultimately resulted in an acquittal
−
Any other evidence relevant to determining whether or not the applicant engaged in
disqualifying activity
•
Evidence of criminal conduct will be considered if it indicates a demonstrable risk to safety and/or
property
•
Evidence of the applicant family’s participation in or willingness to participate in social service or
other appropriate counseling service programs
•
In the case of drug or alcohol abuse, whether the culpable household member is participating in
or has successfully completed a supervised drug or alcohol rehabilitation program or has
otherwise been rehabilitated successfully
The PHA will require the applicant to submit evidence of the household member’s current participation in
or successful completion of a supervised drug or alcohol rehabilitation program, or evidence of otherwise
having been rehabilitated successfully.
Removal of a Family Member's Name from the Application
Should the PHA’s screening process reveal that an applicant’s household includes an individual subject to
state lifetime registered sex offender registration; the PHA must offer the family the opportunity to
3-31
remove the ineligible family member from the household. If the family is unwilling to remove that
individual from the household, the PHA must deny admission to the family. [Notice PIH 2012-28].
For other criminal activity, the PHA may permit the family to exclude the culpable family members as a
condition of eligibility. [24 CFR 960.203(c)(3)(i)].
PHA Policy
As a condition of receiving assistance, a family may agree to remove the culpable family member
from the application. In such instances, the head of household must certify that the family
member will not be permitted to visit or to stay as a guest in the public housing unit.
After admission to the program, the family must present evidence of the former family member’s
current address upon PHA request.
Reasonable Accommodation [PH Occ GB, pp. 58-60]
If the family includes a person with disabilities, the PHA’s decision concerning denial of admission is
subject to consideration of reasonable accommodation in accordance with 24 CFR Part 8.
PHA Policy
If the family indicates that the behavior of a family member with a disability is the reason for the
proposed denial of admission, the PHA will determine whether the behavior is related to the
disability. If so, upon the family’s request, the PHA will determine whether alternative measures
are appropriate as a reasonable accommodation. The PHA will only consider accommodations
that can reasonably be expected to address the behavior that is the basis of the proposed denial
of admission. See Chapter 2 for a discussion of reasonable accommodation.
3-III.G. Prohibition Against Denial of Assistance to Victims of Domestic Violence, Dating Violence,
Sexual Assault, Stalking, and Human Trafficking
The Violence against Women Act (VAWA) and the HUD regulations at 24 CFR 5.2005(b) prohibit PHAs from
denying admission to an otherwise qualified applicant on the basis or as a direct result of the fact that
the applicant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking.
Although the VAWA 2022 statute does not specifically include human trafficking in the list of victims
protected under VAWA, in 2022 HUD began including human trafficking as part of the list of victims
protected under VAWA (as seen in Notices PIH 2022-06, PIH 2022-22, and PIH 2022-24). In the absence of
a final rule implementing VAWA 2022 and to mirror HUD’s recent usage, this policy includes human
trafficking in addition to domestic violence, dating violence, sexual assault, and stalking anywhere such a
list appears. Definitions of key terms used in VAWA are provided in Section 16-VII of this ACOP, where
general VAWA requirements and policies pertaining to notification, documentation, and confidentiality
are also located.
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Notification
VAWA requires PHAs to provide applicants who are denied assistance with a notice of VAWA Notice of
Occupancy Rights (form HUD-5380) and a domestic violence certification form (HUD-5382) at the time the
applicant is denied.
PHA Policy
The PHA acknowledges that a victim of domestic violence, dating violence, sexual assault, stalking,
or human trafficking may have an unfavorable history (e.g., a poor credit history, poor rental
history, a record of previous damage to an apartment, a prior arrest record) due to adverse
factors that would warrant denial under the PHA’s policies.
While the PHA is not required to identify whether adverse factors that resulted in the applicant’s
denial are a result of domestic violence, dating violence, sexual assault, stalking, or human
trafficking, the applicant may inform the PHA that their status as a victim is directly related to the
grounds for the denial. The PHA will request that the applicant provide enough information to the
PHA to allow the PHA to make an objectively reasonable determination, based on all
circumstances, whether the adverse factor is a direct result of their status as a victim.
The PHA will include in its notice of denial information about the protection against denial
provided by VAWA in accordance with section 16-VII.C of this ACOP, a notice of VAWA rights, and a
copy of the form HUD-5382. The PHA will request in writing that an applicant wishing to claim this
protection notify the PHA within 14 business days.
Documentation
Victim Documentation [24 CFR §5.2007]
PHA Policy
If an applicant claims the protection against denial of admission that VAWA provides to victims of
domestic violence, dating violence, sexual assault, stalking, or human trafficking, the PHA will
request in writing that the applicant provide documentation supporting the claim in accordance
with Section 16-VII.D of this ACOP.
Perpetrator Documentation
PHA Policy
If the perpetrator of the abuse is a member of the applicant family, the applicant must provide
additional documentation consisting of one of the following:
•
A signed statement (1) requesting that the perpetrator be removed from the application and
(2) certifying that the perpetrator will not be permitted to visit or to stay as a guest in the
public housing unit
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•
Documentation that the perpetrator has successfully completed, or is successfully
undergoing, rehabilitation or treatment. The documentation must be signed by an employee
or agent of a domestic violence service provider or by a medical or other knowledgeable
professional from whom the perpetrator has sought or is receiving assistance in addressing
the abuse. The signer must attest under penalty of perjury to their belief that the
rehabilitation was successfully completed or is progressing successfully. The victim and
perpetrator must also sign or attest to the documentation.
3-III.H. NOTICE OF ELIGIBILITY OR DENIAL
The PHA will notify an applicant family of its final determination of eligibility in accordance with the
policies in Section 4-III.E.
If a PHA uses a criminal record or sex offender registration information obtained under 24 CFR 5, Subpart
J, as the basis of a denial, a copy of the record must precede the notice to deny, with an opportunity for
the applicant to dispute the accuracy and relevance of the information before the PHA can move to deny
the application. In addition, a copy of the record must be provided to the subject of the record [24 CFR
5.903(f) and 5.905(d)].
PHA Policy
If, based on a criminal record or sex offender registration information an applicant family appears
to be ineligible, the PHA will notify the family in writing of the proposed denial and provide a copy
of the record to the applicant and to the subject of the record. The family will be given 10 business
days to dispute the accuracy and relevance of the information. If the family does not contact the
PHA to dispute the information within that 10-day period, the PHA will proceed with issuing the
notice of denial of admission. A family that does not exercise their right to dispute the accuracy of
the information prior to issuance of the official denial letter will still be given the opportunity to do
so as part of the informal hearing process.
Notice requirements related to denying admission to noncitizens are contained in Section 3-II.B.
Notice policies related to denying admission to applicants who may be victims of domestic violence,
dating violence, sexual assault, stalking or human trafficking are contained in Section 3-III.F.
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EXHIBIT 3-1: Detailed Definitions Related To Disabilities
Person with Disabilities [24 CFR §5.403]
The term person with disabilities means a person who has any of the following types of conditions.
1. Has a disability, as defined in 42 U.S.C. Section 423(d)(1)(A), which reads:
• Inability to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death, or which has lasted or
can be expected to last for a continuous period of not less than 12 months
• In the case of an individual who has attained the age of 55 and is blind (within the meaning of
“blindness” as defined in Section 416(i)(1) of this title), inability by reason of such blindness to
engage in substantial gainful activity, requiring skills or ability comparable to those of any
gainful activity in which he has previously engaged with some regularity and over a substantial
period of time.
2. Has a developmental disability as defined in the Developmental Disabilities Assistance and Bill of
Rights Act of 2000 [42 U.S.C.15002(8)], which defines developmental disability in functional terms
as follows:
(A) IN GENERAL - The term developmental disability means a severe, chronic disability of an
individual that-
(i) is attributable to a mental or physical impairment or combination of mental and physical
impairments;
(ii) is manifested before the individual attains age 22;
(iii) is likely to continue indefinitely;
(iv) results in substantial functional limitations in 3 or more of the following areas of major life
activity: (I) self-care, (II) receptive and expressive language, (III) learning, (IV) mobility, (V) self-
direction, (VI) capacity for independent living, (VII) economic self-sufficiency; and
(v) reflects the individual’s need for a combination and sequence of special, interdisciplinary,
or generic services, individualized supports, or other forms of assistance that are of lifelong or
extended duration and are individually planned and coordinated.
(B) INFANTS AND YOUNG CHILDREN – An individual from birth to age 9, inclusive, who has a
substantial developmental delay or specific congenital or acquired condition, may be considered
to have a developmental disability without meeting 3 or more of the criteria described in clauses
(i) through (v) of subparagraph (A) if the individual, without services and supports, has a high
probability of meeting those criteria later in life.
3. Has a physical, mental, or emotional impairment that is expected to be of long continued and
indefinite duration; substantially impedes their ability to live independently and is of such a
nature that the ability to live independently could be improved by more suitable housing
conditions.
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People with the acquired immunodeficiency syndrome (AIDS) or any conditions arising from the etiologic
agent for AIDS are not excluded from this definition.
A person whose disability is based solely on any drug or alcohol dependence does not qualify as a person
with disabilities for the purposes of this program.
For purposes of reasonable accommodation and program accessibility for persons with disabilities, the
term person with disabilities refers to an individual with handicaps.
Individual with Handicaps [24 CFR 8.3]
Individual with handicaps means any person who has a physical or mental impairment that substantially
limits one or more major life activities; has a record of such an impairment, or is regarded as having such
an impairment. The term does not include any individual who is an alcoholic or drug abuser whose
current use of alcohol or drugs prevents the individual from participating in the program or activity in
question, or whose participation, by reason of such current alcohol or drug abuse, would constitute a
direct threat to property or the safety of others. As used in this definition, the phrase:
(1) Physical or mental impairment includes:
(a) Any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one
or more of the following body systems: neurological; musculoskeletal; special sense organs;
respiratory, including speech organs; cardiovascular; reproductive; digestive; genitourinary; hemic
and lymphatic; skin; and endocrine
(b) Any mental or psychological disorder, such as mental retardation, organic brain syndrome,
emotional or mental illness, and specific learning disabilities. The term physical or mental
impairment includes, but is not limited to, such diseases and conditions as orthopedic, visual,
speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple
sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, drug addiction
and alcoholism.
(2) Major life activities mean functions such as caring for oneself, performing manual tasks, walking,
seeing, hearing, speaking, breathing, learning, and working.
(3) Has a record of such an impairment means has a history of, or has been misclassified as having, a
mental or physical impairment that substantially limits one or more major life activities.
(4) Is regarded as having an impairment means:
(a) Has a physical or mental impairment that does not substantially limit one or more major life
activities but that is treated by a recipient as constituting such a limitation
(b) Has a physical or mental impairment that substantially limits one or more major life activities only
as a result of the attitudes of others toward such impairment
(c) Has none of the impairments defined in paragraph (a) of this section but is treated by a recipient
as having such an impairment
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CHAPTER 4
APPLICATIONS, WAITING LIST, AND TENANT SELECTION
INTRODUCTION
When a family wishes to reside in public housing, the family must submit a pre-application that provides
the PHA with the information needed to make a preliminary determination of the family’s eligibility. HUD
requires the PHA to place all eligible families that apply for public housing on a waiting list. When a unit
becomes available, the PHA must select families from the waiting list in accordance with HUD
requirements and PHA policies as stated in its Admissions and Continued Occupancy Policy (ACOP) and
its annual plan.
The PHA is required to adopt a clear approach to accepting applications, placing families on the waiting
list, and selecting families from the waiting list, and must follow this approach consistently. The actual
order in which families are selected from the waiting list can be affected if a family has certain
characteristics designated by HUD or the PHA to receive preferential treatment.
HUD regulations require that the PHA comply with all equal opportunity requirements, and it must
affirmatively further fair housing goals in the administration of the program [24 CFR §960.103, PH Occ GB
p. 13]. Adherence to the selection policies described in this chapter ensures that the PHA will be in
compliance with all relevant fair housing requirements, as described in Chapter 2.
This chapter describes HUD and PHA policies for accepting applications, managing the waiting list, and
selecting families from the waiting list. The PHAs policies for assigning unit size and making unit offers
are contained in Chapter 5. Together, Chapters 4 and 5 of the ACOP comprise the PHA’s Tenant Selection
and Assignment Plan (TSAP).
The policies outlined in this chapter are organized into three sections, as follows:
Part I: The Application Process. This part provides an overview of the application process and
discusses how applicants can obtain and submit applications. It also specifies how the PHA will
handle the applications it receives.
Part II: Managing the Waiting List. This part presents the policies that govern how the PHA’s
waiting list is structured, when it is opened and closed, and how the public is notified of the
opportunity to apply for public housing. It also discusses the process the PHA will use to keep the
waiting list current.
Part III: Tenant Selection. This part describes the policies that guide the PHA in selecting families
from the waiting list as units become available. It also specifies how in-person interviews will be
used to ensure that the PHA has the information needed to make a final eligibility determination.
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PART I: THE APPLICATION PROCESS
4-I.A. OVERVIEW
This part describes the policies that guide the PHA’s efforts to distribute and accept pre-
applications/applications, and to make preliminary determinations of applicant family eligibility that
affect placement of the family on the waiting list. This part also describes the PHA’s obligation to ensure
the accessibility of the application process.
4-I.B. APPLYING FOR ASSISTANCE
Any family that wishes to reside in public housing must apply for admission to the program [24 CFR
§1.4(b)(2)(ii), 24 CFR §960.202(a)(2)(iv), and PH Occ GB, p. 68]. HUD permits the PHA to determine the
format and content of its applications, as well how such applications will be made available to interested
families, and how applications will be accepted by the PHA.
However, the PHA must include Form HUD-92006, Supplement to Application for Federally Assisted
Housing, as part of the PHA’s application [Notice PIH 2009-36].
PHA Policy
Families wishing to apply will be required to complete a pre-application. No one will be denied the
right to request or submit a pre-application when the waitlist is open. The PHA will utilize an online
application process. Applicants may use any computer, tablet, or smart phone with internet access
to apply.
Alternate formats will be available for Reasonable Accommodations. Alternate formats may
include requesting a pre-application for reasonable accommodation, modification, and auxiliary
aids or services by contacting the PHA office. Applicants may also submit a paper pre-application
by email, or in person at the PHA office. The PHA will also strive to accommodate those that may
not have internet access to a computer at the Chandler Public Libraries.
The PHA required two-step process will be used when it is expected that a family will not be
selected from the waiting list for at least 60 days from the date of pre-application. Under the two-
step application process, the applicant must complete a Pre-Application.
During the Pre-Application process, the PHA initially will require families to provide only the
information needed to make an initial assessment of the family’s placement on the waitlist. The
family will be required to provide all of the information necessary to establish family eligibility and
the amount of rent the family will pay when selected from the waiting list.
Applications must be filled out completely in order to be accepted by the PHA for processing. If an
application is incomplete, the PHA will notify the family of the additional information required.
4-I.C. ACCESSIBILITY OF THE APPLICATION PROCESS
The PHA must take a variety of steps to ensure that the application process is accessible to those people
who might have difficulty complying with the standard PHA application process.
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Elderly or Disabled Populations [24 CFR §8; PH Occ GB, p. 68]
The PHA must provide reasonable accommodation as needed for elderly persons or persons with
disabilities to make the application process fully accessible. The facility where applications are accepted,
and the application process must be fully accessible or the PHA must provide an alternate approach that
provides equal access to the program. Chapter 2 provides a full discussion of the PHA’s policies related
to providing reasonable accommodations for people with disabilities.
The PHA will provide for alternate format pre-applications to the online application process for persons
requiring a reasonable accommodation that have been approved by the City of Chandler Housing and
Redevelopment Division.
Limited English Proficiency (LEP)
PHAs are required to take reasonable steps to ensure meaningful access to their programs and activities
by persons with Limited English Proficiency (LEP) [24 CFR 1]. Chapter 2 provides a full discussion on the
PHA’s policies related to ensuring access to people with Limited English Proficiency (LEP).
4-I.D. PLACEMENT ON THE WAITING LIST
The PHA must accept applications from families for whom the list is open unless there is good cause for
not accepting the application (such as denial of assistance) for the grounds stated in the regulations [24
CFR §982.206(b)(2)].
The PHA will accept applications only from approved methods. The PHA will not accept duplicate
applications for the same program.
The PHA reserves the right to review pre-applications for an initial assessment prior to placing on the
waiting list.
Where the family is determined to be ineligible, the PHA must notify the family in writing [24 CFR
960.208(a); PH Occ GB, p. 41].
No applicant has a right or entitlement to be listed on the waiting list, or to any particular position on the
waiting list.
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Eligible for Placement on the Waiting List
PHA Policy
The PHA will utilize a random lottery selection for pre-application placement on the waitlist. All
interested persons are encouraged to apply. Once the waitlist closes, all accepted pre-applications
will be shuffled randomly through a computerized selection process and each pre-application will
be given a sequential waitlist number based on where their pre-application fell during the shuffle.
The sequential number will be the pre-application’s waitlist number. Because the PHA reserves the
right to limit the number of pre-applications placed on an established waitlist, only those pre-
applications with a waitlist number less than, or equal to, the pre-determined number of pre-
applications, will be placed on the waitlist and become part of the established waitlist. Those pre-
applications with a waitlist number greater than the pre-determined number of pre-applications
to be placed on the waitlist will be denied. (Note: Pre-applicants are encouraged to claim
preferences for which they qualify, but these preferences will only be taken into consideration at
the point when a pre-applicant is selected from the waitlist to start the eligibility process. Pre-
applicants with preferences will be selected from an established waitlist before pre-applicants
without preferences.)
Only pre-applicants who submitted a completed pre-application prior to the deadline will be
placed on the list for selection in the random lottery selection process. The PHA reserves the right
to select from the pre-applicant list a pre-determined number of pre-applications to move to the
waitlist. For each public posting, the PHA will assess the needs at the time of the waitlist and the
pre-determined number of waitlist spots will be posted on the public notice. Applicants will
receive written notification through the mail via U.S. Postal Service that their pre-application has
been placed on the waitlist or that their pre-application has been denied, notification will be done
within 60 to 90 days of closing of the pre-application period.
Waitlist numbers will not be disclosed at any time while an applicant is on a waitlist. Applicants
may access their online account to determine if their application is still active, or they may make
inquiries at the housing office.
The PHA will assign families on the waiting list according to the bedroom size for which a family
qualifies as established in its occupancy standards (see Chapter 5).
Placement on the waiting list does not indicate that the family is, in fact, eligible for assistance. A
final determination of eligibility will be made when the family is selected from the waiting list.
The second phase is when the family is selected from the waiting list. This is called Eligibility,
during which time the PHA will verify any preference(s) claimed and determine eligibility and
suitability for admission to the program (See Chapter 3).
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PART II: MANAGING THE WAITING LIST
4-II.A. OVERVIEW
The PHA must have policies regarding the type of waiting list it will utilize as well as how the waiting list
will be organized and managed. This includes policies on notifying the public on the opening and closing
of the waiting list to new applicants, updating family information, purging the list of families that are no
longer interested in or eligible for public housing, and conducting outreach to ensure a sufficient number
of applicants.
In addition, HUD imposes requirements on how the PHA may structure its waiting list and how families
must be treated if they apply for public housing at a PHA that administers more than one assisted
housing program.
4-II.B. ORGANIZATION OF THE WAITING LIST
The PHA’s public housing waiting list must be organized in such a manner to allow the PHA to accurately
identify and select families in the proper order, according to the admissions policies described in this
ACOP.
PHA Policy
The waiting list will contain the following information for each applicant listed:
•
Name and identifying number of head of household;
•
Unit size (family members), based on applicant information supplied on the pre-
application;
•
Amount annual income;
•
Date and time of application/ application number;
•
Race and ethnicity of the head of household;
•
Disabled or Elderly status of head of household;
•
Preference points, based on applicant information supplied on the pre-application
•
The specific site(s) selected (only if PHA offers site-based waiting lists)
The PHA may adopt one community-wide waiting list or site-based waiting lists. The PHA must obtain
approval from HUD through submission of its Annual Plan before it may offer site-based waiting lists.
Site-based waiting lists allow families to select the development where they wish to reside and must be
consistent with all applicable civil rights and fair housing laws and regulations [24 CFR §903.7(b)(2)].
PHA Policy
The PHA will maintain one single community-wide waiting list for its developments. Within the list,
the PHA will designate subparts to easily identify who should be offered the next available unit
(i.e., mixed populations, general occupancy, unit size, and accessible units).
The PHA will not adopt site-based waiting lists.
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HUD requires that public housing applicants must be offered the opportunity to be placed on the waiting
list for any tenant-based or project-based voucher or moderate rehabilitation program that the PHA
operates if 1) the other programs’ waiting lists are open, and 2) the family is qualified for the other
programs [24 CFR §982.205(a)(2)(i)].
HUD permits, but does not require, that PHAs maintain a single merged waiting list for their public
housing, Section 8, and other subsidized housing programs [24 CFR §982.205(a)(1)].
PHA Policy
The PHA will not merge the public housing waiting list with the waiting list for any other program
the PHA operates.
4-II.C. OPENING AND CLOSING THE WAITING LIST
Closing the Waiting List
The PHA is permitted to close the waiting list, in whole or in part, if it has an adequate pool of families to
fully lease units in all its developments, or for administrative reasons. The PHA may close the waiting list
completely, or restrict intake by preference, type of project, or by size and type of dwelling unit. [PH Occ
GB, p. 31].
PHA Policy
The PHA will disclose in the public notice the close of the waitlist. The PHA reserves the right to
close the waiting list when the estimated waiting period for housing applicants on the list reaches
24 months, or the PHA will assess the needs at the time of the waitlist and the pre-determined
number of waitlist spots will be posted on the public notice or for administrative reasons. Where
the PHA has particular preferences or other criteria that require a specific category of family, the
PHA may elect to continue to accept applications from these applicants while closing the waiting
list to others.
The PHA reserved the right to select from the applicant pool a pre-determined number of
applicants to move to the waitlist. For each posting, the PHA will assess the needs at the time of
the waitlist and the pre-determine number of waitlist spots will be posted on the public notice.
Reopening the Waiting List
If the waiting list has been closed, it may be reopened at any time. The PHA should publish a notice
announcing the opening of the waiting list in local newspapers of general circulation, minority media, and
other suitable media outlets. Such notice must comply with HUD fair housing requirements. The PHA
should specify who may apply, and where and when applications will be received.
PHA Policy
The PHA will announce the reopening of the waiting list at least 10 business days prior to the date
applications will first be accepted. If the list is only being reopened for certain categories of
families, this information will be contained in the notice. The notice will specify where, when, and
how applications are to be received.
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The PHA will give public notice by publishing the relevant information in suitable media outlets
including, but not limited to:
•
East Valley Tribune
•
All Arizona PHA’s
•
City Scope
•
Local Social Service Agencies
•
Chanweb
•
Channel 11 Public Service
•
La Voz
The PHA will also publish the public notice on its website, or social media platforms and other
online platforms for local housing news.
4-II.D. FAMILY OUTREACH [24 CFR §903.2(D); 24 CFR §903.7(A) AND (B)]
The PHA should conduct outreach as necessary to ensure that the PHA has a sufficient number of
applicants on the waiting list to fill anticipated vacancies and to assure that the PHA is affirmatively
furthering fair housing and complying with the Fair Housing Act.
Because HUD requires the PHA to admit a specified percentage of extremely low-income families, the
PHA may need to conduct special outreach to ensure an adequate number of such families apply for
public housing.
PHA outreach efforts must comply with fair housing requirements. This includes:
•
Analyzing the housing market area and the populations currently being served to identify
underserved populations
•
Ensuring that outreach efforts are targeted to media outlets that reach eligible populations that
are underrepresented in the program
•
Avoiding outreach efforts that prefer or exclude people who are members of a protected class
PHA outreach efforts must be designed to inform qualified families about the availability of units under
the program. These efforts may include, as needed, any of the following activities:
•
Submitting press releases to local newspapers, including minority newspapers
•
Developing informational materials and flyers to distribute to other agencies
•
Providing application forms to other public and private agencies that serve the low-income
population
•
Developing partnerships with other organizations that serve similar populations, including
agencies that provide services for persons with disabilities
PHA Policy
The PHA will monitor the characteristics of the population being served and the characteristics of
the population as a whole in the PHA’s jurisdiction. Targeted outreach efforts will be undertaken if
a comparison suggests that certain populations are being underserved.
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4-II.E. REPORTING CHANGES IN FAMILY CIRCUMSTANCES
PHA Policy
While the family is on the waiting list, the family must inform the PHA, within 10 business days of
changes in family size or composition, preference status, or contact information, including current
residence, mailing address, and phone number. The changes must be submitted in writing either
through the applicant’s online account or on a Change Report form. If using a Change Report
form, the applicant copy of the form must be time and date stamped by the City of Chandler
Housing office to be considered valid. The copy of the form will be provided to the participant.
Upon completion of the online resident system, the family will be urged to use the PHA
website/online process for submitting Change Report.
Changes in an applicant's circumstances while on the waiting list may affect the family's
qualification for a particular bedroom size or entitlement to a preference. When an applicant
reports a change that affects their placement on the waiting list, the waiting list will be updated
accordingly. Families with preferences will be selected before families not claiming a preference.
4-II.F. UPDATING THE WAITING LIST
HUD requires the PHA to establish policies that describe the circumstances under which applicants will
be removed from the waiting list [24 CFR §960.202(a)(2)(iv)].
Purging the Waiting List [NEW PH OCC GB 2.4]
The decision to remove an applicant family that includes a person with disabilities from the waiting list is
subject to reasonable accommodation. If the applicant did not respond to the PHA’s request for
information or updates because of the family member’s disability, the PHA must, upon the family’s
request, reinstate the applicant family to their former position on the waiting list as a reasonable
accommodation [24 CFR §8.4(a), 24 CFR §100.204(a), and NEW PH Occ GB,Chp. 2.4; 2.4.2]. See Chapter 2
for further information regarding reasonable accommodations.
PHA Policy
The waiting list will be purged every other year to ensure that all applicant information is current.
To update the waiting list, the PHA will send an update request via mail or email to each family on
the waiting list to determine whether the family continues to be interested in, and to qualify for
the program.
This update request will be sent to the last address or email that the PHA has on record for the
family. The update request will provide a deadline by which the family must respond and will state
that failure to respond will result in the applicant’s name being removed from the waiting list.
Families must respond via the online system on or before the due date or respond by mail as
indicated in purge letter instructions. Responses should be postmarked or received by the PHA
not later than 30 days from the date of the PHA letter.
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If the family fails to respond within 14 business days, the family will be removed from the waiting
list and the notice will be mailed to the last address of record or other address provided by the
applicant.
If the notice is returned by the post office with no forwarding address, the applicant will be
removed from the waiting list and a notice will be mailed to the last address of record or other
address provided by the applicant.
If the notice is returned by the post office with a forwarding address, the notice will be re-sent to
the address indicated. The family will have 14 business days to respond from the date the letter
was re-sent. If the family fails to respond within this time frame, the family will be removed from
the waiting list and a notice will be mailed to the last address of record.
Applicants’ names may be withdrawn or removed either at their request or because the PHA is
unable to contact them to follow up on their application.
No informal hearing is required following withdrawal of an application for non-response, although
the PHA usually maintains files of withdrawn applications for three years or until the next HUD
occupancy audit [NEW PH OCC GB, 2.4]
If a family is removed from the waiting list for failure to respond, management may reinstate the
family if the lack of response was due to PHA error, or to circumstances beyond the family’s
control. If the lack of response was due to circumstances beyond the family’s control, or as a result
of a family member’s disability, or as a direct result of status as a victim of domestic violence,
dating violence, sexual assault, or stalking, including an adverse factor resulting from such abuse,
the family will need to provide a written statement outlining the issue and the evidence to support
the claim.
Removal from the Waiting List [NEW PH OCC GB, 2.4]
PHA Policy
The PHA will not remove an applicant’s name from the waiting list unless:.
•
The applicant requests in writing to be removed from the list (no hearing required);
•
The applicant does not meet either the eligibility, or suitability criteria for the program
(hearing required, as this is an eligibility decision);
•
The applicant has been pulled and has been offered a unit and accepts the unit (see 10.7,
Offer of a Unit.) (no hearing required)
•
If the PHA determines that the family is not eligible for admission (see Chapter 3) at any time
while the family is on the waiting list, the family will be removed from the waiting list (hearing
required);
•
If the family is removed from the waiting list for a non-response to a request for information
(no hearing required).
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If a family is removed from the waiting list because the PHA has determined the family is not
eligible for admission, a notice will be sent to the family’s address of record as well as to any
alternate address provided on an informal review request. The notice will state the reasons the
family was removed from the waiting list and will inform the family how to request an informal
hearing regarding the PHA’s decision (see Chapter 14) [24 CFR §960.208(a)].
PHA Policy
If the PHA receives no response from the applicant within the specified time frame, the applicant
shall be removed from the waiting list. If the applicant responds within 60 calendar days of the
due date, the PHA will review for return to the waiting list.
This will be allowed only once during the time a family is on the waiting list.
Notice and Right to Dispute Denial [NEW PH OCC GB 10.1.1]
PHAs must send a formal notice of rejection to an applicant who is rejected for admission.
The notice can be worded so that rejections for eligibility and for screening can be handled on the same
form. If the household is rejected because of criminal activity, the notice should include language that
offers the applicant a copy of the criminal records and an opportunity to dispute the accuracy and
relevance of the record.
The informal hearing for rejected applicants is not a Grievance Hearing. Only PHA residents are entitled
to grievance hearings.
Informal Hearing for Rejected Applicants [NEW PH OCC GB, 10.1.1]
The purpose of the hearing is to permit the applicant to hear the details of the reasons for rejection,
present evidence to the contrary if available, and claim mitigating circumstances if possible. The person
who made the original decision to reject, or a subordinate of that person, may not conduct the hearing. A
written record of the hearing decision should be mailed to the applicant and placed in the applicant’s file.
If the hearing decision overturns the rejection, processing for admission should resume (24 CFR §
960.208)
This is not a hearing for a non-responsive applicant dropped during the update or during any other time
the applicant did not respond to a request for information. A non-responsive applicant does not get a
hearing.
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PART III: TENANT SELECTION
4-III.A. OVERVIEW
The PHA must establish tenant selection policies for families being admitted to public housing [24 CFR
§960.201(a)]. The PHA must not require any specific income or racial quotas for any developments [24
CFR §903.2(d)]. The PHA must not assign persons to a particular section of a community or to a
development or building based on race, color, religion, sex, disability, familial status, or national origin for
purposes of segregating populations [24 CFR §1.4(b) and 24 CFR §903.2(d)].
The order in which families will be selected from the waiting list depends on the selection method chosen
by the PHA and is impacted in part by any selection preferences that the family qualifies for. The
availability of units also may affect the order in which families are selected from the waiting list.
The PHA must maintain a clear record of all information required to verify that the family is selected from
the waiting list according to the PHA’s selection policies [24 CFR §960.206(e)(2)]. The PHA’s policies must
be posted any place where the PHA receives applications. The PHA must provide a copy of its tenant
selection policies upon request to any applicant or tenant. The PHA may charge the family for providing a
copy of its tenant selection policies [24 CFR §960.202(c)(2)].
PHA Policy
When an applicant or resident family requests a copy of the PHA’s tenant selection policies, the
PHA will provide copies to them free of charge.
4-III.B. SELECTION METHOD
PHAs must describe the method for selecting applicant families from the waiting list, including the system
of admission preferences that the PHA will use.
Local Preferences [24 CFR §960.206]
PHAs are permitted to establish local preferences and to give priority to serving families that meet those
criteria. HUD specifically authorizes and places restrictions on certain types of local preferences. HUD
also permits the PHA to establish other local preferences, at its discretion.
Any local preferences established must be consistent with the PHA plan and the consolidated plan and
must be based on local housing needs and priorities that can be documented by generally accepted data
sources [24 CFR §960.206(a)].
If the PHA has a Housing Choice Voucher program, the PHA must offer, and if accepted, provide the
family a selection preference for an appropriate-sized public housing unit that first becomes available for
occupancy after the time period expires for an HCV family whose HAP contract is being terminated due to
an owner failing to make required repairs within the required time frame, and who are unable to lease a
new unit within the term of the voucher [24 CFR 982.404€(2)].
4-12
These preferences will not have the purpose or effect of delaying or otherwise denying admission to the
program based on the race, color, ethnic origin, gender, religion, disability, or age of any member of an
applicant family [24 CFR §960.206].
PHA Policy
Families will be selected from the waitlist in numeric order, based on a family’s assigned
sequential number with consideration provided for eligible preferences. Families with a
preference will be selected before families without a preference.
Preferences will be calculated in a “lumping” order, whereby, a family with one preference will
have the same number of points as a family with multiple preferences.
Among applicants with the same preference points, date and time of application will be used to
determine placement on the waiting list.
Emergency VAWA Transfer Preference (1 point): The PHA will offer a preference to a family that
includes a victim of domestic violence, dating violence, sexual assault, stalking, or human
trafficking who are seeking an emergency transfer under VAWA from the PHA’s Housing Choice
Voucher program or other covered housing program operated by the PHA.
HCV Abatement-Affected Family Preference (2 points): The PHA will provide a preference for an
HCV family whose HAP contract is being terminated due to an owner failing to make required
repairs within the required time frame, and who were unable to lease a new unit within the term
of the voucher.
The PHA uses the following Local Preferences:
A.
Displaced person(s): Individuals or families who have/has been displaced by local
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 24 CFR § 5.403(b).
B.
Living in Chandler: Applicant must physically live in the City of Chandler.
C.
Working in Chandler: Applicant must physically work or be hired to work in the City of
Chandler.
D.
Chronically Homeless: The following definition must be met. A chronically homeless person
as defined by the U.S. Department of HUD (24 CFR 578.3): (1) A “homeless individual with a
disability,” as defined in Section 401(9) of the McKinney–Vento Homeless Assistance Act (42
U.S.C. 11360(9)), who: (i) Lives in a place not meant for human habitation, a safe haven, or
in an emergency shelter; and ii) Has been homeless and living as described in paragraph
(1)(i) of this definition continuously for at least 12 months or on at least 4 separate
occasions in the last 3 years, as long as the combined occasions equal at least 12 months
and each break in homelessness separating the occasions included at least 7 consecutive
nights of not living as described in paragraph (1)(i). Stays in institutional care facilities for
fewer than 90 days will not constitute as a break in homelessness, but rather such stays are
included in the 12–month total, as long as the individual was living or residing in a place not
meant for human habitation, a safe haven, or an emergency shelter immediately before
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entering the institutional care facility; (2) An individual who has been residing in an
institutional care facility, including a jail, substance abuse or mental health treatment
facility, hospital, or other similar facility, for fewer than 90 days and met all of the criteria in
paragraph (1) of this definition, before entering that facility; or (3) A family with an adult
head of household (or if there is no adult in the family, a minor head of household) who
meets all of the criteria in paragraph (1) or (2) of this definition, including a family whose
composition has fluctuated while the head of household has been homeless.
E.
Currently Employed/Employment Program: Families whose Head, Spouse, or Sole Member
is employed. Applicants with an adult family member enrolled in an employment training
program or currently working (20) hours a week. Working hours must be attributed to only
one family member. Family members cannot combine work hours.
F.
Full-time Student: Applicants with an adult family member enrolled in school on a full-time
basis.
G.
Elderly families where the head of household or spouse is at least 62+ years of age.
H.
Disabled families and families with a disabled household member.
The above preferences are not weighted and will be used in a “lumping” manner so as to allow an
applicant with one preference to have the same advantage as an applicant qualifying for all preferences.
Applicants are encouraged to claim as many preferences for which they qualify.
Verification of preferences will be conducted at the time of eligibility. Selected applicants going through
the eligibility process who have claimed preferences for which they do not qualify and cannot verify will
be returned to the waitlist and their pre-application will be updated with the correct preference
information.
Income Targeting Requirement [24 CFR §960.202(b)]
HUD requires that extremely low-income (ELI) families make up at least 40 percent of the families
admitted to public housing during the PHA’s fiscal year. ELI families are those with annual incomes at or
below the federal poverty level or 30 percent of the area median income, whichever number is higher
[Federal Register notice 6/25/14]. To ensure this requirement is met, the PHA may skip non-ELI families on
the waiting list in order to select an ELI family.
If a PHA also operates a housing choice voucher (HCV) program, admissions of extremely low-income
families to the PHA’s HCV program during a PHA fiscal year that exceed the 75 percent minimum target
requirement for the voucher program, shall be credited against the PHA’s basic targeting requirement in
the public housing program for the same fiscal year. However, under these circumstances the fiscal year
credit to the public housing program must not exceed the lower of: (1) ten percent of public housing
waiting list admissions during the PHA fiscal year; (2) ten percent of waiting list admissions to the PHA’s
housing choice voucher program during the PHA fiscal year; or (3) the number of qualifying low-income
families who commence occupancy during the fiscal year of PHA public housing units located in census
4-14
tracts with a poverty rate of 30 percent or more. For this purpose, qualifying low-income family means a
low-income family other than an extremely low-income family.
PHA Policy
The PHA will monitor progress in meeting the ELI requirement throughout the fiscal year. ELI
families will be selected ahead of other eligible families on an as-needed basis to ensure that the
income targeting requirement is met.
Mixed Population Developments [24 CFR §960.407]
A mixed population development is a public housing development or portion of a development that was
reserved for elderly families and disabled families at its inception (and has retained that character) or the
PHA at some point after its inception obtained HUD approval to give preference in tenant selection for all
units in the development (or portion of a development) to elderly and disabled families [24 CFR
§960.102]. Elderly family means a family whose head, spouse, cohead, or sole member is a person who is
at least 62 years of age. Disabled family means a family whose head, spouse, cohead, or sole member is a
person with disabilities [24 CFR §5.403]. The PHA must give elderly and disabled families equal
preference in selecting these families for admission to mixed population developments. The PHA may
not establish a limit on the number of elderly or disabled families that may occupy a mixed population
development.
In selecting elderly and disabled families to fill these units, the PHA must first offer the units that have
accessibility features for families that include a person with a disability and require the accessibility
features of such units. The PHA may not discriminate against elderly or disabled families that include
children (Fair Housing Amendments Act of 1988).
Units Designated for Elderly or Disabled Families [24 CFR §945]
The PHA may designate projects or portions of a public housing project specifically for elderly or disabled
families. The PHA must have a HUD-approved allocation plan before the designation may take place.
Among the designated developments, the PHA must also apply any preferences that it has established. If
there are not enough elderly families to occupy the units in a designated elderly development, the PHA
may allow near-elderly families to occupy the units [24 CFR §945.303(c)(1)]. Near-elderly family means a
family whose head, spouse, or cohead is at least 50 years old, but is less than 62 [24 CFR §5.403].
If there are an insufficient number of elderly families and near-elderly families for the units in a
development designated for elderly families, the PHA must make available to all other families any unit
that is ready for re-rental and has been vacant for more than 60 consecutive days [24 CFR §945.303(c)(2)].
The decision of any disabled family or elderly family not to occupy or accept occupancy in designated
housing shall not have an adverse effect on their admission or continued occupancy in public housing or
their position on or placement on the waiting list. However, this protection does not apply to any family
who refuses to occupy or accept occupancy in designated housing because of the race, color, religion,
sex, disability, familial status, or national origin of the occupants of the designated housing or the
surrounding area [24 CFR §945.303(d)(1) and (2)].
4-15
This protection does apply to an elderly family or disabled family that declines to accept occupancy,
respectively, in a designated project for elderly families or for disabled families, and requests occupancy
in a general occupancy project or in a mixed population project [24 CFR §945.303(d)(3)].
PHA Policy
The PHA has designated elderly housing. The PHA’s development with designated housing is as
follows:
Kingston Arms, 127 North Kingston
When there are insufficient elderly families on the waiting list who wish to reside in a designated elderly
development, near-elderly families will receive a preference over other families for designated elderly
units.
Deconcentration of Poverty and Income-Mixing [24 CFR §903.1 and §903.2]
The PHA's admission policy must be designed to provide for deconcentration of poverty and income-
mixing by bringing higher income tenants into lower income projects and lower income tenants into
higher income projects. A statement of the PHA’s deconcentration policies must be included in its annual
plan [24 CFR §903.7(b)].
The PHA’s deconcentration policy must comply with its obligation to meet the income targeting
requirement [24 CFR §903.2(c)(5)].
Developments subject to the deconcentration requirement are referred to as ‘covered developments’
and include general occupancy (family) public housing developments. The following developments are
not subject to deconcentration and income mixing requirements: developments operated by a PHA with
fewer than 100 public housing units; mixed population or developments designated specifically for
elderly or disabled families; developments operated by a PHA with only one general occupancy
development; developments approved for demolition or for conversion to tenant-based public housing;
and developments approved for a mixed-finance plan using HOPE VI or public housing funds [24 CFR
§903.2(b)].
Steps for Implementation [24 CFR §903.2(c)(1)]
To implement the statutory requirement to deconcentrate poverty and provide for income mixing in
covered developments, the PHA must comply with the following steps:
Step 1. The PHA must determine the average income of all families residing in all the PHA's covered
developments. The PHA may use the median income, instead of average income, provided that the PHA
includes a written explanation in its annual plan justifying the use of median income.
PHA Policy
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The PHA will determine the average income of all families in all covered developments on an
annual basis.
Step 2. The PHA must determine the average income (or median income, if median income was used in
Step 1) of all families residing in each covered development. In determining average income for each
development, the PHA has the option of adjusting its income analysis for unit size in accordance with
procedures prescribed by HUD.
PHA Policy
The PHA will determine the average income of all families residing in each covered development
(not adjusting for unit size) on an annual basis.
Step 3. The PHA must then determine whether each of its covered developments falls above, within, or
below the established income range (EIR), which is from 85% to 115% of the average family income
determined in Step 1. However, the upper limit must never be less than the income at which a family
would be defined as an extremely low-income family (federal poverty level or 30 percent of median
income, whichever number is higher).
Step 4. The PHA with covered developments having average incomes outside the EIR must then
determine whether or not these developments are consistent with its local goals and annual plan.
Step 5. Where the income profile for a covered development is not explained or justified in the annual
plan submission, the PHA must include in its admission policy its specific policy to provide for
deconcentration of poverty and income mixing.
Depending on local circumstances the PHA’s deconcentration policy may include, but is not limited to the
following:
•
Providing incentives to encourage families to accept units in developments where their income
level is needed, including rent incentives, affirmative marketing plans, or added amenities
•
Targeting investment and capital improvements toward developments with an average income
below the EIR to encourage families with incomes above the EIR to accept units in those
developments
•
Establishing a preference for admission of working families in developments below the EIR
•
Skipping a family on the waiting list to reach another family in an effort to further the goals of
deconcentration
•
Providing other strategies permitted by statute and determined by the PHA in consultation with
the residents and the community through the annual plan process to be responsive to local needs
and PHA strategic objectives
A family has the sole discretion whether to accept an offer of a unit made under the PHA's
deconcentration policy. The PHA must not take any adverse action toward any eligible family for choosing
not to accept an offer of a unit under the PHA's deconcentration policy [24 CFR §903.2(c)(4)].
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If, at annual review, the average incomes at all general occupancy developments are within the EIR, the
PHA will be considered to be in compliance with the deconcentration requirement and no further action
is required.
PHA Policy
For developments outside the EIR the PHA will take the following actions to provide for
deconcentration of poverty and income mixing:
The PHA's Deconcentration Policy, as described in the PHA Plan, may include skipping of families
on the waiting list in order to bring families above the established income range into
developments below the established income range, and to bring families below the established
income range into developments above the established income range.
Order of Selection [24 CFR §960.206(e)]
The PHA system of preferences may select families either according to the date and time of application or
by a random selection process.
PHA Policy
The PHA will utilize a lottery system and families will be selected from the waitlist in numeric
order, based on a family’s assigned sequential number with consideration provided for eligible
preferences. Families with a preference will be selected before families without a preference.
Preferences will be calculated in a “lumping” order, whereby, a family with one preference will
have the same number of points as a family with multiple preferences. The methods and formats
of pre-applications will be posted in each notice and will depend upon the needs at the time the
waitlist is opened.
When selecting applicants from the waiting list, the PHA will match the characteristics of the
available unit (unit size, accessibility features, unit type) to the applicants on the waiting lists. The
PHA will offer the unit to the highest-ranking applicant who qualifies for that unit size or type, or
that requires the accessibility features.
By matching unit and family characteristics, it is possible that families who are lower on the
waiting list may receive an offer of housing ahead of families with an earlier date and time of
application or higher preference status.
Factors such as deconcentration or income mixing, and income targeting will also be considered in
accordance with HUD requirements and PHA policy.
4-III.C. NOTIFICATION OF SELECTION
When the family has been selected from the waiting list, the PHA must notify the family [24 CFR
§960.208].
PHA Policy
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The PHA will notify the family by first class mail or email when it is selected from the waiting list.
The notice will inform the family of the following:
−
Date, time, and location of the eligibility interview, or process for obtaining an eligibility
interview appointment, and any procedures for rescheduling the interview;
−
Who is required to attend the interview;
−
All eligibility documents that must be provided, including information about what
constitutes acceptable documentation, and due dates;
−
Documents that must be provided at the interview to document eligibility for a preference,
if applicable; and
−
Other documents and information that should be brought to the interview.
If a notification letter is returned to the PHA with no forwarding address or the online system is not
updated with the current information to maintain active status on the waiting list, the family will be
removed from the waiting list without further notice. Such failure to act on the part of the applicant
prevents the PHA from making an eligibility determination; however, an informal review may be
requested.
4-III.D. THE APPLICATION INTERVIEW
HUD recommends that the PHA obtain the information and documentation needed to make an eligibility
determination through a private interview. Being invited to attend an interview does not constitute
admission to the program.
Assistance cannot be provided to the family until all SSN documentation requirements are met.
However, if the PHA determines that an applicant family is otherwise eligible to participate in the
program, the family may retain its place on the waiting list for a period of time determined by the PHA
[Notice PIH 2018-24].
Reasonable accommodation must be made for elderly persons or persons with disabilities who are
unable to attend an interview due to their disability [24 CFR §8.4(a) and 24 CFR §100.204(a)].
PHA Policy
Families selected from the waiting list are required to participate in an eligibility interview.
The head of household and all adult family members will be strongly encouraged to attend the
interview together. However, the head of household, the spouse, or a legal representative
(documented through a legal power of attorney or guardianship) may attend the interview on
behalf of the family. Verification of information pertaining to adult members of the household not
present at the interview will not begin until signed release forms are returned to the PHA.
The interview will be conducted only if the head of household, or spouse, or legal representative
provides appropriate documentation of legal identity (Chapter 7 provides a discussion of proper
4-19
documentation of legal identity). If the family representative does not provide the required
documentation at the time of the scheduled interview, they will be required to provide the
documentation within 10 business days.
Pending disclosure and documentation of social security numbers, the PHA will allow the family to
retain its place on the waiting list for thirty (30) days.
If the family is claiming a waiting list preference, the family must provide documentation to verify
their eligibility for a preference (see Chapter 7). If the family is verified as eligible for the
preference, the PHA will proceed with the interview. If the PHA determines the family is not
eligible for the preference, the interview will not proceed, and the family will be placed back on the
waiting list according to the date and time of their application.
The family must provide the information necessary to establish the family’s eligibility, including
suitability, and to determine the appropriate amount of rent the family will pay. The family must
also complete required forms, provide required signatures, and submit required documentation.
If any materials are missing, the PHA will provide the family with a written list of items that must
be submitted.
Any required documents or information that the family is unable to provide at the interview must
be provided. Upon formal review of all submitted documentation a notice will be sent to the
applicant family giving 10 business days to supply supporting documents.(Chapter 7 provides
details about longer submission deadlines for particular items, including documentation of Social
Security numbers and eligible noncitizen status).
After the first 10 business day notice, if there are documents outstanding, an additional 10
business day notice of request for documentation will be sent to the applicant family. If the family
is unable to obtain the information or materials within the required time frame, the family may
request an extension for reasonable cause, to be reviewed by management. If the required
documents and information are not provided within the required time frame (plus any
extensions), the family will be sent a notice of denial (see Chapter 3).
An advocate, interpreter, or other assistant may assist the family with the application and the
interview process.
Interviews will be conducted in English. For Limited English Proficiency (LEP) applicants, the PHA
will provide translation services in accordance with the PHA’s LAP plan.
If the family is unable to attend a scheduled interview, the family should contact the PHA in
advance of the interview to schedule a new appointment.
In all circumstances, if a family does not attend a scheduled interview, the PHA will send another
notification letter with a new interview appointment time. Applicants who fail to attend two
scheduled interviews without PHA approval will have their applications made inactive based on
the family’s failure to supply information needed to determine eligibility.
4-20
The second appointment letter will state that failure to appear for the appointment without a
request to reschedule will be interpreted to mean that the family is no longer interested, and their
application will be made inactive. Such failure to act on the part of the applicant prevents the PHA
from making an eligibility determination; therefore, the PHA will not offer an informal hearing.
4-III.E. FINAL ELIGIBILITY DETERMINATION [24 CFR §960.208]
The PHA must verify all information provided by the family (see Chapter 7). Based on verified information
related to the eligibility requirements, including PHA suitability standards, the PHA must make a final
determination of eligibility (see Chapter 3).
When a determination is made that a family is eligible and satisfies all requirements for admission,
including tenant selection criteria, the applicant must be notified of the approximate date of occupancy
insofar as that date can be reasonably determined [24 CFR§ 960.208(b)].
PHA Policy
The PHA will notify a family in writing of their eligibility within 10 business days of the
determination and will provide the approximate date of occupancy insofar as that date can be
reasonably determined.
The PHA will expedite the administrative process for determining eligibility to the extent possible
for applicants who are admitted to the public housing program as a result of an emergency
transfer from another PHA program.
The PHA must promptly notify any family determined to be ineligible for admission of the basis for such
determination, and must provide the applicant upon request, within a reasonable time after the
determination is made, with an opportunity for an informal hearing on such determination [24 CFR
§960.208(a)].
PHA Policy
If the PHA determines that the family is ineligible, the PHA will send written notification of the
ineligibility determination within 10 business days of the determination. The notice will specify the
reasons for ineligibility and will inform the family of its right to request an informal hearing (see
Chapter 14).
If the PHA uses a criminal record or sex offender registration information obtained under 24 CFR §5,
Subpart J, as the basis of a denial, a copy of the record must precede the notice to deny, with an
opportunity for the applicant to dispute the accuracy and relevance of the information before the PHA
can move to deny the application. See Section 3-III.G for the PHA’s policy regarding such circumstances.
Upon making an eligibility determination, the PHA must provide the family a notice of VAWA rights (form
HUD-5380) as well as the HUD VAWA self-certification form (form HUD-5382) in accordance with the
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Violence against Women Act of 2013, and as outlined in 16-VII.C., at the time the applicant is provided
assistance or at the time the applicant is denied assistance. The notice and self-certification from must
accompany the written notification of eligibility determination. This notice must be provided in both of
the following instances: (1) when a family actually begins receiving assistance (lease execution); or (2)
when a family is notified of its ineligibility.
5-1
CHAPTER 5
OCCUPANCY STANDARDS AND UNIT OFFERS
INTRODUCTION
The PHA must establish policies governing occupancy of dwelling units and offering dwelling units to
qualified families.
This chapter contains policies for assigning unit size and making unit offers. The PHA’s waiting list and
selection policies are contained in Chapter 4. Together, Chapters 4 and 5 of the ACOP comprise the PHA’s
Tenant Selection and Assignment Plan (TSAP).
Policies in this chapter are organized in two parts.
Part I: Occupancy Standards. This part contains the PHA’s standards for determining the
appropriate unit size for families of different sizes, compositions, and types.
Part II: Unit Offers. This part contains the PHA’s policies for making unit offers and describes
actions to be taken when unit offers are refused.
5-2
PART I: OCCUPANCY STANDARDS
5-I.A. OVERVIEW
Occupancy standards are established by the PHA to ensure that units are occupied by families of the
appropriate size. This policy maintains the maximum usefulness of the units, while preserving them from
underutilization or from excessive wear and tear due to overcrowding. Part I of this chapter explains the
occupancy standards. These standards describe the methodology and factors the PHA will use to
determine the size unit for which a family qualifies and includes the identification of the minimum and
maximum number of household members for each unit size. This part also identifies circumstances
under which an exception to the occupancy standards may be approved.
5-I.B. DETERMINING UNIT SIZE
In selecting a family to occupy a particular unit, the PHA may match characteristics of the family with the
type of unit available, for example, number of bedrooms [24 CFR §960.206(c)].
HUD does not specify the number of persons who may live in public housing units of various sizes. PHAs
are permitted to develop appropriate occupancy standards as long as the standards do not have the
effect of discriminating against families with children [PH Occ GB, p. 62].
Although the PHA does determine the size of unit the family qualifies for under the occupancy standards,
the PHA does not determine who shares a bedroom/sleeping room.
The PHA’s occupancy standards for determining unit size must be applied in a manner consistent with
fair housing requirements.
PHA Policy
PHA will use the same occupancy standards for each of its developments.
The PHA’s occupancy standards are as follows:
•
The PHA will assign one bedroom for each two persons within the household, except in the
following circumstances:
−
Persons of the opposite sex (other than spouses/couples, and children under age 5) will
not be required to share a bedroom.
−
Persons of different generations will not be required to share a bedroom (e.g.,
grandparents, parents) except:
o A single pregnant woman with no other household members and a single parent
with one child and no other household members will be assigned a 1-bedroom
unit. Assuming no other changes in family composition, after the child reaches
the age of 5 years, the family will be eligible for transfer to a 2-bedroom unit.
−
An unborn child will not be counted as a person in determining unit size.
5-3
−
Live-in aides will be allocated a separate bedroom. No additional bedrooms will be
provided for the live-in aide’s family.
−
Single person families will be allocated a zero or one bedroom.
−
Children related to a household member by birth, adoption, or court awarded custody
will be considered when determining unit size.
−
Foster children will be considered when determining unit size. The family may add
foster children to the household as long as it does not overcrowd the unit based on the
PHA’s occupancy standard.
−
Children away at school, but for whom the unit is considered the primary residence,
and children temporarily placed outside the home, will be considered when
determining unit size.
−
Children in the process of being adopted will be considered when determining unit size.
−
Children who will live in the unit less than 50 percent of the time will not be considered
when determining unit size.
The PHA will reference the following standards in determining the appropriate unit bedroom size for a
family:
OCCUPANCY STANDARDS
BEDROOM SIZE
MINIMUM NUMBER OF
PERSONS
MAXIMUM NUMBER OF
PERSONS
0
1
1
1
1
2
2
2
4
3
3
6
4
4
8
5
6
10
6
8
12
5-4
5-I.C. EXCEPTIONS TO OCCUPANCY STANDARDS
Types of Exceptions
PHA Policy
The PHA will consider granting exceptions to the occupancy standards at the family’s request if the
PHA determines the exception is justified by the relationship, age, sex, health, or disability of
family members, or other personal circumstances.
For example, an exception may be granted if a larger bedroom size is needed for medical
equipment due to its size and/or function, or as a reasonable accommodation for a person with
disabilities. An exception may also be granted for a smaller bedroom size in cases where the
number of household members exceeds the maximum number of persons allowed for the unit
size in which the family resides (according to the chart in Section 5-I.B) and the family does not
want to transfer to a larger size unit.
When evaluating exception requests the PHA will consider the size and configuration of the unit.
In no case will the PHA grant an exception that is in violation of local housing or occupancy codes,
regulations, or laws.
Requests from applicants to be placed on the waiting list for a unit size smaller than designated by
the occupancy standards will be approved as long as the unit is not overcrowded according to
local code, and the family agrees not to request a transfer for a period of two years from the date
of admission, unless they have a subsequent change in family size or composition.
To prevent vacancies, the PHA may provide an applicant family with a larger unit than the
occupancy standards permit. However, in these cases the family must agree to move to a suitable,
smaller unit when another family qualifies for the larger unit and there is an appropriate size unit
available for the family to transfer to.
Processing of Exceptions
PHA Policy
All requests for exceptions to the occupancy standards must be submitted in writing, which may
include email.
In the case of a request for exception as a reasonable accommodation, the PHA will encourage the
resident to make the request in writing using a reasonable accommodation request form.
However, the PHA will consider the exception request any time the resident indicates that an
accommodation is needed whether or not a formal written request is submitted.
Requests for a larger size unit must explain the need or justification for the larger size unit and
must include appropriate documentation. Requests based on health-related reasons must be
verified by a knowledgeable professional source, unless the disability and the disability-related
5-5
request for accommodation is readily apparent or otherwise known.The PHA will notify the family
of its decision within 10 business days of receiving the family’s request.
PART II: UNIT OFFERS [24 CFR §1.4(b)(2)(ii); 24 CFR §960.208]
5-II.A. OVERVIEW
The PHA must assign eligible applicants to dwelling units in accordance with a plan that is consistent with
civil rights and nondiscrimination laws.
In filling an actual or expected vacancy, the PHA must offer the dwelling unit to an applicant in the
appropriate offer sequence. The PHA will offer the unit until it is accepted. This section describes the
PHA’s policies with regard to the number of unit offers that will be made to applicants selected from the
waiting list. This section also describes the PHA’s policies for offering units with accessibility features.
PHA Policy
The PHA will maintain a record of units offered, including location, date and circumstances of each
offer, each acceptance or rejection, including the reason for the rejection.
5-II.B. NUMBER OF OFFERS
PHA Policy
Under this plan, the PHA will determine how many locations within its jurisdiction have available
units of suitable size and type in the appropriate type of project. Applicants from the appropriate
waiting list will be offered two (2) suitable vacant units for occupancy.
The offers will be made in sequence and the applicant must refuse the first offer before the
second offer is made. If both offers are rejected, unless there is a good cause for refusing the
offers, the applicant will be removed from the waiting list and will be required to complete a new
application when the waiting list is open.
If the applicant is on the waiting list for the Housing Choice Voucher Section 8 program, refusal of
a public housing unit will not affect placement on the other list.
If the PHA offers an accessible unit to a non-disabled applicant and the offer is rejected, the offer
will not count.
5-II.C. TIME LIMIT FOR UNIT OFFER ACCEPTANCE OR REFUSAL
PHA Policy
Applicants must accept or refuse a unit offer within three (3) business days of the date of the unit
offer. Offers made by telephone will be confirmed by letter or email.
5-6
5-II.D. REFUSALS OF UNIT OFFERS
Good Cause for Unit Refusal
An elderly or disabled family may decline an offer for designated housing. Such a refusal must not
adversely affect the family's position on or placement on the public housing waiting list [24 CFR
§945.303(d)].
PHA Policy
Applicants may refuse to accept a unit offer for "good cause." Good cause includes situations in
which an applicant is willing to move but is unable to do so at the time of the unit offer, or the
applicant demonstrates that acceptance of the offer would cause undue hardship not related to
considerations of the applicant’s race, color, national origin, etc. [PH Occ GB, p. 104]. Examples of
good cause for refusal of a unit offer include, but are not limited to, the following:
•
The family demonstrates to the PHA’s satisfaction that accepting the unit offer will require
an adult household member to quit a job, drop out of an educational institution or job
training program, or take a child out of day care or an educational program for children
with disabilities.
•
The family demonstrates to the PHA’s satisfaction that accepting the offer will place a
family member’s life, health, or safety in jeopardy. The family should offer specific and
compelling documentation such as restraining orders; other court orders; risk assessments
related to witness protection from a law enforcement agency; or documentation of
domestic violence, dating violence, sexual assault, stalking, or human trafficking in
accordance with Section 16-VII.D of this ACOP. Reasons offered must be specific to the
family. Refusals due to location alone do not qualify for this good cause exemption.
•
A health professional verifies temporary hospitalization or recovery from illness of the
principal household member, other household members (as listed on final application) or
live-in aide necessary to the care of the principal household member.
The unit is inappropriate for the applicant’s disabilities, or the family does not need the
accessible features in the unit offered and does not want to be subject to a 30-day notice to
move.
•
The unit has lead-based paint and the family includes children under the age of six.
In the case of a unit refusal for good cause the applicant will not be removed from the waiting list as
described later in this section. The applicant will remain at the top of the waiting list until the family
receives an offer for which they do not have good cause to refuse.
The PHA will require documentation of good cause for unit refusals.
5-7
Unit Refusal Without Good Cause
PHA Policy
When an applicant rejects the final unit offer without good cause, the PHA will remove the
applicant’s name from the waiting list and send notice to the family of such removal. The notice
will inform the family of their right to request an informal hearing and the process for doing so
(see Chapter 14).
The applicant may reapply for assistance if the waiting list is open. If the waiting list is not open,
the applicant must wait to reapply until the PHA opens the waiting list.
5-II.E. ACCESSIBLE UNITS [24 CFR §8.27]
PHAs must adopt suitable means to assure that information regarding the availability of accessible units
reaches eligible individuals with disabilities and take reasonable nondiscriminatory steps to maximize the
utilization of such units by eligible individuals whose disability requires the accessibility features of a
particular unit.
When an accessible unit becomes vacant, before offering such units to a non-disabled applicant the PHA
must offer such units:
•
First, to a current resident of another unit of the same development, or other public housing
development under the PHA’s control, who has a disability that requires the special features of the
vacant unit and is occupying a unit not having such features, or if no such occupant exists, then
•
Second, to an eligible qualified applicant on the waiting list having a disability that requires the
special features of the vacant unit.
When offering an accessible unit to an applicant not having a disability requiring the accessibility features
of the unit, the PHA may require the applicant to agree (and may incorporate this agreement in the lease)
to move to a non-accessible unit when available.
PHA Policy
Families requiring an accessible unit may be over-housed in such a unit if there are no resident or
applicant families of the appropriate size who also require the accessible features of the unit.
When there are no resident or applicant families requiring the accessible features of the unit,
including families who would be over-housed, the PHA may offer the unit to a non-disabled
applicant.
When an applicant who does not require accessibility features for disabled persons accepts an
accessible unit, the applicant acknowledges and agrees to transfer to a unit without such features
should another person eligible for housing assistance need the accessible dwelling unit. The
applicant further acknowledges the responsibility for all costs associated with the transfer to
another dwelling unit.
5-8
5-II.F. DESIGNATED HOUSING
When applicable, the PHA’s policies for offering units designated for elderly families only or for disabled
families only are described in the PHA’s Designated Housing Plan.
Page 6-9
Chapter 6.A.
INCOME AND RENT DETERMINATIONS
[24 CFR Part 5, Subparts E and F; 24 CFR 960, Subpart C]
INTRODUCTION
This chapter is applicable prior to the PHA’s HOTMA 102/104 compliance date. After
this date, the PHA will follow policies as outlined in Chapter 6.B. of the model policy.
The program regulations in the current Code of Federal Regulations (CFRs) were updated
for HOTMA on January 1, 2024. As a result, pre-HOTMA regulations from 2023 are no
longer available on the electronic CFRs. However, since full HOTMA implementation is still
pending, the pre-HOTMA regulations continue to apply to some elements of the program,
and this chapter makes references to both pre-HOTMA and HOTMA regulations where
applicable. Where HOTMA regulations apply, citations in this chapter have been provided
indicating that current HOTMA CFRs are applicable. For all other citations, the pre-HOTMA
CFRs apply. The federal government archives previous versions of the CFRs, and PHAs may
access them here: https://www.govinfo.gov/app/collection/cfr/2023/title24.
A family’s annual income is used to determine their income eligibility for the public housing
program and is also used to calculate the amount of the family’s rent payment. The PHA
will use the policies and methods described in this chapter to ensure that only income-
eligible families receive assistance and that no family pays more or less rent than is
required under the regulations. This chapter describes HUD regulations and PHA policies
related to these topics in three parts as follows:
Part I: Annual Income. HUD regulations specify the sources of income to include and
exclude to arrive at a family’s annual income. These requirements and PHA policies
for calculating annual income are found in Part I.
Part II: Adjusted Income. Once annual income has been established HUD
regulations require the PHA to subtract from annual income any of five mandatory
deductions for which a family qualifies. These requirements and PHA policies for
calculating adjusted income are found in Part II.
Part III: Calculating Rent. This part describes the statutory formula for calculating
total tenant payment (TTP), the use of utility allowances, and the methodology for
determining family rent payment. Also included here are flat rents and the family’s
choice in rents.
PART I: ANNUAL INCOME
Page 6-10
6-I.A. OVERVIEW
5.609 Annual income.
(a) Annual income means all amounts, monetary or not, which:
(1) Go to, or on behalf of, the family head or spouse (even if temporarily absent) or to any
other family member; or
(2) Are anticipated to be received from a source outside the family during the 12-month
period following admission or annual reexamination effective date; and
(3) Which are not specifically excluded in paragraph [5.609(c)].
(4) Annual income also means amounts derived (during the 12-month period) from assets
to which any member of the family has access.
In addition to this general definition, HUD regulations establish policies for treating specific
types of income and assets. The full texts of those portions of the regulations are provided
in exhibits at the end of this chapter as follows:
•
Annual Income Inclusions (Exhibit 6-1)
•
Annual Income Exclusions (as updated for HOTMA per Notice PIH 2024-38) (Exhibit 6-2)
•
Treatment of Family Assets (Exhibit 6-3)
•
The Effect of Welfare Benefit Reduction (Exhibit 6-4)
Sections 6-I.B and 6-I.C discuss general requirements and methods for calculating annual
income. The rest of this section describes how each source of income is treated for the
purposes of determining annual income. Verification requirements for annual income are
discussed in Chapter 7.A.
Page 6-11
6-I.B. HOUSEHOLD COMPOSITION AND INCOME
Income received by all family members must be counted unless specifically excluded by the
regulations. It is the responsibility of the head of household to report changes in family
composition. The rules on which sources of income are counted vary somewhat by family
member. The chart below summarizes how family composition affects income
determinations.
Summary of Income Included and Excluded by Person
Live-in aides
Income from all sources is excluded [24 CFR 5.609(b)(8)
as updated for HOTMA].
Foster child or foster adult
Income from all sources is excluded [24 CFR 5.609(b)(8)
as updated for HOTMA].
Head, spouse, or cohead
Other adult family members
All sources of income not specifically excluded by the
regulations are included [24 CFR 5.609(a)].
Minors
Earned income of children under 18 years of age is
excluded [24 CFR 5.609(b)(3) as updated for HOTMA].
All sources of income, except those specifically excluded
by the regulations, are included.
Full-time students 18 years
of age or older (not head,
spouse, or cohead)
Earned income in excess of the dependent deduction is
excluded [24 CFR 5.609(b)(14) as updated for HOTMA].
All sources of income, except those specifically excluded
by the regulations, are included.
Temporarily Absent Family Members
The income of family members approved to live in the unit will be counted, even if the
family member is temporarily absent from the unit [HCV GB, p. 5-18].
PHA Policy
Generally an individual who is or is expected to be absent from the assisted unit for
180 consecutive days or less is considered temporarily absent and continues to be
considered a family member. Generally an individual who is or is expected to be
absent from the assisted unit for more than 180 consecutive days is considered
Page 6-12
permanently absent and no longer a family member. Exceptions to this general
policy are discussed below.
Absent Students
PHA Policy
When someone who has been considered a family member attends school away
from home, the person will continue to be considered a family member unless
information becomes available to the PHA indicating that the student has
established a separate household or the family declares that the student has
established a separate household.
Absences Due to Placement in Foster Care
Children temporarily absent from the home as a result of placement in foster care are
considered members of the family [24 CFR 5.403].
PHA Policy
If a child has been placed in foster care, the PHA will verify with the appropriate
agency whether and when the child is expected to be returned to the home. Unless
the agency confirms that the child has been permanently removed from the home,
the child will be counted as a family member.
Absent Head, Spouse, or Cohead
PHA Policy
An employed head, spouse, or cohead absent from the unit more than 180
consecutive days due to employment will continue to be considered a family
member.
Individuals Confined for Medical Reasons
PHA Policy
An individual confined to a nursing home or hospital on a permanent basis is not
considered a family member.
If there is a question about the status of a family member, the PHA will request
verification from a responsible medical professional and will use this determination.
If the responsible medical professional cannot provide a determination, the person
generally will be considered temporarily absent. The family may present evidence
that the family member is confined on a permanent basis and request that the
person not be considered a family member.
Page 6-13
Joint Custody of Children
PHA Policy
Dependents that are subject to a joint custody arrangement will be considered a
member of the family, if they live with the applicant or resident family 50 percent or
more of the time.
When more than one applicant or assisted family (regardless of program) are
claiming the same dependents as family members, the family with primary custody
at the time of the initial examination or reexamination will be able to claim the
dependents. If there is a dispute about which family should claim them, the PHA will
make the determination based on available documents such as court orders, an IRS
income tax return showing which family has claimed the child for income tax
purposes, school records, or other credible documentation.
Caretakers for a Child
PHA Policy
The approval of a caretaker is at the PHA’s discretion and subject to the PHA’s
screening criteria. If neither a parent nor a designated guardian remains in a
household, the PHA will take the following actions.
If a responsible agency has determined that another adult is to be brought
into the unit to care for a child for an indefinite period, the designated
caretaker will not be considered a family member until a determination of
custody or legal guardianship is made.
If a caretaker has assumed responsibility for a child without the involvement
of a responsible agency or formal assignment of custody or legal
guardianship, the caretaker will be treated as a visitor for 90 days. After the
90 days has elapsed, the caretaker will be considered a family member
unless information is provided that would confirm that the caretaker’s role is
temporary. In such cases the PHA will extend the caretaker’s status as an
eligible visitor.
At any time that custody or guardianship legally has been awarded to a
caretaker, the lease will be transferred to the caretaker, as head of
household.
During any period that a caretaker is considered a visitor, the income of the
caretaker is not counted in annual income and the caretaker does not qualify
the family for any deductions from income.
Page 6-14
6-I.C. ANTICIPATING ANNUAL INCOME
The PHA is required to count all income “anticipated to be received from a source outside
the family during the 12-month period following admission or annual reexamination
effective date” [24 CFR 5.609(a)(2)]. Policies related to anticipating annual income are
provided below.
Basis of Annual Income Projection
The PHA generally will use current circumstances to determine anticipated income for the
coming 12-month period. HUD authorizes the PHA to use other than current circumstances
to anticipate income when:
•
An imminent change in circumstances is expected [HCV GB, p. 5-17]
•
It is not feasible to anticipate a level of income over a 12-month period (e.g., seasonal or
cyclic income) [24 CFR 5.609(d)]
•
The PHA believes that past income is the best available indicator of expected future
income [24 CFR 5.609(d)]
PHAs are required to use HUD’s Enterprise Income Verification (EIV) system in its entirety as
a third-party source to verify employment and income information, and to reduce
administrative subsidy payment errors in accordance with HUD administrative guidance
[24 CFR 5.233(a)(2)].
HUD allows PHAs to use tenant-provided documents (pay stubs) dated within 120 days of
the date received by the PHA to project income once EIV data has been received in such
cases where the family does not dispute the EIV employer data and where the PHA does
not determine it is necessary to obtain additional third-party data. The PHA may also
accept a statement dated within the appropriate benefit year for fixed income sources.
PHA Policy
When EIV is obtained and the family does not dispute the EIV employer data, the
PHA will use current tenant-provided documents to project annual income. When
the tenant-provided documents are pay stubs, the PHA will make every effort to
obtain current and consecutive pay stubs dated within the last 120 days.
The PHA will obtain written and/or oral third-party verification in accordance with
the verification requirements and policy in Chapter 7 in the following cases:
If EIV or other UIV data is not available,
If the family disputes the accuracy of the EIV employer data, and/or
If the PHA determines additional information is needed.
Page 6-15
In such cases, the PHA will review and analyze current data to anticipate annual
income. In all cases, the family file will be documented with a clear record of the
reason for the decision, and a clear audit trail will be left as to how the PHA
annualized projected income.
When the PHA cannot readily anticipate income based upon current circumstances
(e.g., in the case of seasonal employment, unstable working hours, or suspected
fraud), the PHA will review and analyze historical data for patterns of employment,
paid benefits, and receipt of other income and use the results of this analysis to
establish annual income.
Any time current circumstances are not used to project annual income, a clear
rationale for the decision will be documented in the file. In all such cases the family
may present information and documentation to the PHA to show why the historic
pattern does not represent the family’s anticipated income.
Known Changes in Income
If the PHA verifies an upcoming increase or decrease in income, annual income will
be calculated by applying each income amount to the appropriate part of the 12-
month period.
Example: An employer reports that a full-time employee who has been receiving
$8/hour will begin to receive $8.25/hour in the eighth week after the effective date
of the reexamination. In such a case the PHA would calculate annual income as
follows: ($8/hour × 40 hours × 7 weeks) + ($8.25 × 40 hours × 45 weeks).
The family may present information that demonstrates that implementing a change
before its effective date would create a hardship for the family. In such cases the
PHA will calculate annual income using current circumstances and then require an
interim reexamination when the change actually occurs. This requirement will be
imposed even if the PHA’s policy on reexaminations does not require interim
reexaminations for other types of changes.
When tenant-provided third-party documents are used to anticipate annual income,
they will be dated within 120 days of the date received by the PHA. Statements
dated within the appropriate benefit year will be accepted for fixed income sources.
Projecting Income
In HUD’s EIV webcast of January 2008, HUD made clear that PHAs are not to use EIV
quarterly wages to project annual income.
Page 6-16
6-I.D. EARNED INCOME
Types of Earned Income Included in Annual Income
Wages and Related Compensation [24 CFR 5.609(a); Notice PIH 2023-27;
Notice PIH 2024-38]
The earned income of each member of the family who is 18 years of age or older, or who is
the head of household or spouse/cohead regardless of age, is included in annual income.
Income received as a day laborer or seasonal worker is also included in annual income,
even if the source, date, or amount of the income varies [24 CFR 5.609 (b)(24) as updated
for HOTMA].
Earned income means income or earnings from wages, tips, salaries, other employee
compensation, and net income from self-employment. Earned income does not include
any pension or annuity, transfer payments (meaning payments made or income received in
which no goods or services are being paid for, such as welfare, social security, and
governmental subsidies for certain benefits), or any cash or in-kind benefits [24 CFR 5.100
as updated for HOTMA].
A day laborer is defined as an individual hired and paid one day at a time without an
agreement that the individual will be hired or work again in the future [24 CFR 5.603(b) as
updated for HOTMA]. Income earned as a day laborer is not considered nonrecurring
income.
A seasonal worker is defined as an individual who is hired into a short-term position (e.g.,
for which the customary employment period for the position is six months or fewer) and
the employment begins about the same time each year (such as summer or winter).
Typically, the individual is hired to address seasonal demands that arise for the particular
employer or industry [24 CFR 5.603(b) as updated for HOTMA]. Some examples of seasonal
work include employment limited to holidays or agricultural seasons. Seasonal work may
include but is not limited to employment as a lifeguard, ballpark vendor, or snowplow
driver [Notice PIH 2023-27]. Income earned as a seasonal worker is not considered
nonrecurring income.
PHA Policy
The PHA will include in annual income the gross amount, before any payroll
deductions, of wages and salaries, overtime pay, commissions, fees, tips and
bonuses, and other compensation.
For persons who regularly receive bonuses or commissions, the PHA will verify and
then average amounts received for the two years preceding admission or interim
reexamination. If only a one-year history is available, the PHA will use the prior year
Page 6-17
amounts. In either case the family may provide, and the PHA will consider, a
credible justification for not using this history to anticipate future bonuses or
commissions. If a new employee has not yet received any bonuses or commissions,
the PHA will count only the amount estimated by the employer. The file will be
documented appropriately.
Some Types of Military Pay
All regular pay, special pay and allowances of a member of the Armed Forces are counted
except for the special pay to a family member serving in the Armed Forces who is exposed
to hostile fire [24 CFR 5.609(b)(11) as updated for HOTMA].
Types of Earned Income Not Counted in Annual Income
Earnings of a Minor [24 CFR 5.609(b)(3) as updated for HOTMA]
A minor is a member of the family, other than the head of household or spouse, who is
under 18 years of age. Employment income earned by minors is not included in annual
income. All other sources of unearned income, except those specifically excluded by the
regulations, are included.
Earned Income of Full-Time Students [24 CFR 5.609(b)(14) as updated for HOTMA]
The earned income of a dependent full-time student in excess of the amount of the
dependent deduction is excluded from annual income. All sources of unearned income,
except those specifically excluded by the regulations, are included.
A family member other than the head of household or spouse/cohead is considered a full-
time student if they are attending school or vocational training on a full-time basis [24 CFR
5.603(b)]. Full-time status is defined by the educational or vocational institution the student
is attending [New PH OCC GB, Lease Requirements, p. 5].
Income of a Live-in Aide
Income earned by a live-in aide, as defined in [24 CFR 5.403], is not included in annual
income [24 CFR 5.609(b)(8) as updated for HOTMA]. (See Eligibility chapter for a full
discussion of live-in aides.)
Page 6-18
6-I.E. EARNED INCOME DISALLOWANCE [24 CFR 960.255; Streamlining Final Rule (SFR)
Federal Register 3/8/16; Notice PIH 2023-27]
HOTMA removed the statutory authority for the EID. The EID is available only to families
that are eligible for and participating in the program as of December 31, 2023, or before;
no new families may be added on or after January 1, 2024. If a family is receiving the EID
prior to or on the effective date of December 31, 2023, they are entitled to the full amount
of the benefit for a full 24-month period. The policies below are applicable only to such
families. No family will still be receiving the EID after December 31, 2025. The EID will
sunset on January 1, 2026, and the PHA policies below will no longer be applicable as of
that date or when the last qualifying family exhausts their exclusion period, whichever is
sooner.
Calculation of the Disallowance
Calculation of the earned income disallowance for an eligible member of a qualified family
begins with a comparison of the member’s current income with their “baseline income.”
The family member’s baseline income is their income immediately prior to qualifying for
the EID. The family member’s baseline income remains constant throughout the period
that they are participating in the EID.
Calculation Method
Initial 12-Month Exclusion
During the initial exclusion period of 12 consecutive months, the full amount (100 percent)
of any increase in income attributable to new employment or increased earnings is
excluded.
PHA Policy
The initial EID exclusion period will begin on the first of the month following the
date an eligible member of a qualified family is first employed or first experiences
an increase in earnings.
Second 12-Month Exclusion
During the second exclusion period of 12 consecutive months, the PHA must exclude at
least 50 percent of any increase in income attributable to employment or increased
earnings.
PHA Policy
Page 6-19
During the second 12-month exclusion period, the PHA will exclude 100 percent of
any increase in income attributable to new employment or increased earnings.
Lifetime Limitation
The EID has a two-year (24-month) lifetime maximum. The two-year eligibility period begins
at the same time that the initial exclusion period begins and ends 24 months later. During
the 24-month period, an individual remains eligible for EID even if they receive assistance
from a different housing agency, move between public housing and Section 8 assistance, or
have breaks in assistance. The EID will sunset on January 1, 2026. In no circumstances will a
family member’s exclusion period continue past January 1, 2026.
Individual Savings Accounts [24 CFR 960.255(d)]
PHA Policy
The PHA chooses not to establish a system of individual savings accounts (ISAs) for
families who qualify for the EID.
6-I.F. BUSINESS INCOME [24 CFR 5.609(b)(28) as updated for HOTMA; Notice PIH 023-
27]
Annual income includes “the net income from the operation of a business or profession.
Net income is gross income minus business expenses that allows the business to operate.
Gross income is all income amounts received into the business, prior to the deduction of
business expenses.
Expenditures for business expansion or amortization of capital indebtedness shall not be
used as deductions in determining net income. An allowance for depreciation of assets
used in a business or profession may be deducted, based on straight line depreciation, as
provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from
the operation of a business or profession will be included in income, except to the extent
the withdrawal is reimbursement of cash or assets invested in the operation by the family.
PHA Policy
To determine business expenses that may be deducted from gross income, the PHA
will use current applicable Internal Revenue Service (IRS) rules for determining
allowable business expenses [see IRS Publication 535], unless a topic is addressed
by HUD regulations or guidance as described below.
Independent Contractors
Income received as an independent contractor is included in annual income, even if the
source, date, or amount of the income varies [24 CFR 2.609 (b)(24) as updated for HOTMA].
Page 6-20
An independent contractor is defined as an individual who qualifies as an independent
contractor instead of an employee in accordance with the Internal Revenue Code federal
income tax requirements and whose earnings are consequently subject to the self-
employment tax. In general, an individual is an independent contractor if the payer has the
right to control or direct only the result of the work and not what will be done and how it
will be done [24 CFR 5.603(b) as updated for HOTMA]. This may include individuals such as
third-party delivery and transportation service providers and “gig workers” like babysitters,
landscapers, rideshare drivers, and house cleaners. Income earned as an independent
contractor is not considered nonrecurring income.
Business Expansion
HUD regulations do not permit the PHA to deduct from gross income expenses for
business expansion.
PHA Policy
Business expansion is defined as any capital expenditures made to add new business
activities, to expand current facilities, or to operate the business in additional
locations. For example, purchase of a street sweeper by a construction business for
the purpose of adding street cleaning to the services offered by the business would
be considered a business expansion. Similarly, the purchase of a property by a hair
care business to open at a second location would be considered a business
expansion.
Capital Indebtedness
HUD regulations do not permit the PHA to deduct from gross income the amortization of
capital indebtedness.
PHA Policy
Capital indebtedness is defined as the principal portion of the payment on a capital
asset such as land, buildings, and machinery. This means the PHA will allow as a
business expense interest, but not principal, paid on capital indebtedness.
Negative Business Income
If the net income from a business is negative, no business income will be included in
annual income; a negative amount will not be used to offset other family income.
Withdrawal of Cash or Assets from a Business
Page 6-21
HUD regulations require the PHA to include in annual income the withdrawal of cash or
assets from the operation of a business or profession unless the withdrawal reimburses a
family member for cash or assets invested in the business by the family.
PHA Policy
Acceptable investments in a business include cash loans and contributions of assets
or equipment. For example, if a member of a tenant family provided an up-front
loan of $2,000 to help a business get started, the PHA will not count as income any
withdrawals from the business up to the amount of this loan until the loan has been
repaid. Investments do not include the value of labor contributed to the business
without compensation.
Co-owned Businesses
PHA Policy
If a business is co-owned with someone outside the family, the family must
document the share of the business it owns. If the family’s share of the income is
lower than its share of ownership, the family must document the reasons for the
difference.
6-I.G. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b)(9) as updated for HOTMA]
The regulations distinguish between two categories of student financial assistance paid to
both full-time and part-time students. The first category is any assistance to students under
section 479B of the Higher Education Act of 1965 (Title IV of the HEA), which must be
excluded from the family’s annual income [24 CFR 5.609(b)(9)(i) as updated for HOTMA].
Examples of assistance under title IV of the HEA include:
•
Federal Pell Grants;
•
Teach Grants;
•
Federal Work Study Programs;
•
Federal Perkins Loans;
•
Income earned in employment and training programs under section 134 of the
Workforce Innovation and Opportunity Act (WIOA); or
•
Bureau of Indian Affairs/Education student assistance programs
-
The Higher Education Tribal Grant
-
The Tribally Controlled Colleges or Universities Grant Program
Page 6-22
The second category is any other grant-in-aid, scholarship, or other assistance amounts an
individual receives for the actual covered costs charged by the institute of higher education
(not otherwise excluded by the Federally mandated income exclusions) [24 CFR
5.609(b)(9)(ii)]. Other student financial assistance received by the student that, either by
itself or in combination with HEA assistance, exceeds the actual covered costs is included in
income.
Actual covered costs are defined as the actual costs of:
•
Tuition, books, and supplies;
-
Including supplies and equipment to support students with learning disabilities or
other disabilities
•
Room and board; and
•
Other fees required and charged to a student by the educational institution.
Page 6-23
For a student who is not the head of household or spouse/cohead, actual covered costs
also include the reasonable and actual costs of housing while attending the institution of
higher education and not residing in an assisted unit.
Further, to qualify, other student financial assistance must be expressly:
•
For tuition, book, supplies, room and board, or other fees required and charged to the
student by the educational institution;
•
To assist a student with the costs of higher education; or
•
To assist a student who is not the head of household or spouse with the reasonable
and actual costs of housing while attending the educational institution and not residing
in an assisted unit.
The student financial assistance may be paid directly to the student or to the educational
institution on the student’s behalf. However, any student financial assistance paid to the
student must be verified by the PHA.
The financial assistance must be a grant or scholarship received from:
•
The Federal government;
•
A state, tribal, or local government;
•
A private foundation registered as a nonprofit;
•
A business entity (such as corporation, general partnership, limited liability company,
limited partnership, joint venture, business trust, public benefit corporation, or
nonprofit entity); or
•
An institution of higher education.
Student financial assistance, does not include:
•
Financial support provided to the student in the form of a fee for services performed
(e.g., a work study or teaching fellowship that is not excluded under section 479B of the
Higher Education Act HEA);
•
Gifts, including gifts from family or friends; or
•
Any amount of the scholarship or grant that, either by itself or in combination with
assistance excluded under the HEA, exceeds the actual covered costs of the student.
Calculating Income from Student Financial Assistance [HOTMA Student Financial
Assistance Resource Sheet; Notice PIH 2023-27]
The formula for calculating the amount of other student financial assistance that is
excluded from income always begins with deducting the assistance received under 479B of
the HEA from the total actual covered costs, because the 479B assistance is intended to pay
Page 6-24
the student’s actual covered costs. When a student receives assistance from both Title IV of
the HEA and from other sources, the assistance received under Title IV of the HEA must be
applied to the student’s actual covered costs first and then other student financial
assistance is applied to any remaining actual covered costs. Once actual costs are covered,
any remaining student financial assistance is considered income.
PHA Policy
If a student only receives financial assistance under Title IV of the HEA and does not
receive any other student financial assistance, the PHA will exclude the full amount
of the assistance received under Title IV from the family’s annual income. The PHA
will not calculate actual covered costs in this case.
If the student does not receive any assistance under Title IV of the HEA but does
receive assistance from another source, the PHA will first calculate the actual
covered costs to the student in accordance with 24 CFR 5.609(b)(ii). The PHA will
then subtract the total amount of the student’s financial assistance from the
student’s actual covered costs. The PHA will include any amount of financial
assistance in excess of the student’s actual covered costs in the family’s annual
income.
Example 1
•
Actual covered costs: $20,000
•
Other student financial assistance: $25,000
•
Excluded income: $20,000 ($25,000 in financial assistance -
$20,000 in actual covered costs)
•
Included income: $5,000
When a student receives assistance from both Title IV of the HEA and from other
sources, the PHA will first calculate the actual covered costs to the student in
accordance with 24 CFR 5.609(b)(ii) as updated for HOTMA. The assistance received
under Title IV of the HEA will be applied to the student’s actual covered costs first
and then the other student financial assistance will be applied to any remaining
actual covered costs.
Page 6-25
If the amount of assistance excluded under Title IV of the HEA equals or exceeds the
actual covered costs, none of the assistance included under other student financial
assistance” would be excluded from income.
Example 2
•
Actual covered costs: $25,000
•
Title IV HEA assistance: $26,000
•
Title IV HEA assistance covers the students entire actual
covered costs.
•
Other Student Financial Assistance: $5,000
•
Excluded income: The entire Title IV HEA assistance of $26,000
•
Included income: All other financial assistance of $5,000
If the amount of assistance excluded under Title IV of the HEA is less than the actual
covered costs, the PHA will exclude the amount of other student financial assistance up to
the amount of the remaining actual covered costs.
Page 6-26
Example 3
•
Actual covered costs: $22,000
•
Title IV HEA assistance: $15,000
•
The remaining amount not covered by Title IV HEA assistance
is $7,000 ($22,000 in actual covered costs - $15,000 in Title IV
HEA assistance).
•
Other Student Financial Assistance: $5,000
•
$7,000 in remaining actual covered costs - $5,000 in other
financial assistance
•
Excluded income: $15,000 entire amount of the Title IV
HEA Assistance + $5,000 in other financial assistance
•
Included income: $0
Example 4
•
Actual covered costs: $18,000
•
Title IV HEA Assistance: $15,000
•
The remaining amount not covered by Title IV HEA assistance is
$3,000 ($18,000 in actual covered costs - $15,000 in Title IV
HEA Assistance)
•
Other student Financial Assistance: $5,000
•
When other student financial assistance is applied, financial
assistance exceeds actual covered costs by $2,000 ($3,000 in
actual covered costs - $5,000 in other financial assistance).
•
Included income: $2,000 (the amount by which the financial aid
exceeds the student's actual covered costs).
Page 6-27
6-I.H. PERIODIC PAYMENTS [Notice PIH 2023-27]
Periodic payments are forms of income received on a regular basis.
Income that will not be repeated beyond the coming year (i.e., the 12 months following the
effective date of the certification), based on information provided by the family, is
considered nonrecurring income and is excluded from annual income. Income that has a
discrete end date and will not be repeated beyond the coming year is excluded from a
family’s annual income because it is nonrecurring income. For example, a family receives
income from a guaranteed income program in their city that has a discrete beginning and
end date. While the guaranteed income will be repeated in the coming year, it will end
before the family’s next annual reexamination. This income is fully excluded from annual
income.
However, this does not include unemployment income and other types of periodic
payments that are received at regular intervals (such as weekly, monthly, or yearly).
Unemployment income and other types of periodic payments are not considered
nonrecurring income, unless explicitly excluded from income under 25 CFR 5.609(b) as
updated for HOTMA, and thus they are included in annual income.
Insurance payments and settlements for personal or property losses, including but not
limited to payments under health insurance, motor vehicle insurance, and workers’
compensation, are excluded from annual income. Any workers’ compensation is always
excluded from annual income, regardless of the frequency or length of the payments.
Lump-Sum Payments for the Delayed Start of a Periodic Payment [24 CFR 5.609(b)(16)
as updated for HOTMA]
Deferred periodic amounts from Supplemental Security Income (SSI) and Social Security
benefits that are received in a lump sum amount or in prospective monthly amounts, or
any deferred Department of Veterans Affairs (VA) disability benefits that are received in a
lump sum amount or in prospective monthly amounts are excluded from annual income.
PHA Policy
The PHA will include in annual income lump sums received as a result of delays in
processing periodic payments (other than those specifically excluded by the
regulation), such as unemployment or welfare assistance.
When a delayed-start payment is received that is to be included and the family
reports this during the period in which the PHA is processing an annual
reexamination, the PHA will adjust the family’s rent retroactively for the period the
payment was intended to cover.
Page 6-28
If the delayed-start payment is received outside of the time the PHA is processing an
annual reexamination, then the PHA will consider whether the amount meets the
threshold to conduct an interim reexamination. If so, the PHA will conduct an
interim in accordance with PHA policies in Chapter 9. If not, the PHA will consider
the amount when processing the family’s next annual recertification.
Retirement Accounts [24 CFR 5.609(b)(26) as updated for HOTMA; Notice PIH 2023-27]
Income received from any account under a retirement plan recognized as such by the IRS,
including individual retirement arrangements (IRAs), employer retirement plans, and
retirement plans for self-employed individuals is not considered actual income from assets.
However, any distribution of periodic payments from such accounts is included in annual
income at the time they are received by the family.
An asset moved to a retirement account held by a member of the family is not considered
to be an asset disposed of for less than fair market value.
Social Security Benefits [Notice PIH 2023-27]
The PHA is required to use the gross benefit amount to calculate annual income from
Social Security benefits.
Annually in October, the Social Security Administration (SSA) announces the cost-of-living
adjustment (COLA) by which federal Social Security and SSI benefits are adjusted to reflect
the increase, if any, in the cost of living. The federal COLA does not apply to state-paid
disability benefits. Effective the day after the SSA has announced the COLA, PHAs are
required to factor in the COLA when determining Social Security and SSI annual income for
all annual reexaminations and interim reexaminations of family income that have not yet
been completed and will be effective January 1 or later of the upcoming year [Notice PIH
2023-27]. When a family member’s benefits are garnished, levied, or withheld to pay
restitution, child support, tax debt, student loan debt, or other debts, the PHA must use the
gross amount of the income, prior to the reduction, to determine a family’s annual income.
PHA Policy
Annual income includes “all amounts received,” not the amount that a family may be
legally entitled to receive but which they do not receive. When the SSA overpays an
individual, resulting in a withholding or deduction from their benefit amount until
the overpayment is paid in full, the PHA must use the reduced benefit amount after
deducting only the amount of the overpayment withholding from the gross benefit
amount.
Page 6-29
6-I.I. NONRECURRING INCOME [24 CFR 5.609(b)(24) as updated for HOTMA and Notice
PIH 2023-27]
Nonrecurring income, which is income that will not be repeated beyond the coming year
(e.g., 12 months following the effective date of the certification) based on information
provided by the family, is excluded from annual income. The PHA may accept a self-
certification from the family stating that the income will not be repeated in the coming
year. See Chapter 7 for PHA policies related to verification of nonrecurring income.
Income received as an independent contractor, day laborer, or seasonal worker is not
excluded from income as nonrecurring income, even if the source, date, or amount of the
income varies.
Income that has a discrete end date and will not be repeated beyond the coming year
during the family’s upcoming annual reexamination period will be excluded from a family’s
annual income as nonrecurring income. This exclusion does not include unemployment
income and other types of periodic payments that are received at regular intervals (such as
weekly, monthly, or yearly).
Income amounts excluded under this category may include, but are not limited to:
•
Nonrecurring payments made to the family or to a third party on behalf of the family to
assist with utilities;
•
Payments for eviction prevention;
•
Security deposits to secure housing;
•
Payments for participation in research studies (depending on the duration); and
•
General one-time payments received by or on behalf of the family.
Nonrecurring income that is excluded under the regulations includes:
•
Payments from the U.S. Census Bureau for employment (relating to decennial census
or the American Community Survey) lasting no longer than 180 days and not
culminating in permanent employment [24 CFR 5.609(b)(24)(i) as updated for HOTMA].
•
Direct federal or state payments intended for economic stimulus or recovery [24 CFR
5.609(b)(24)(ii) as updated for HOTMA].
•
Amounts directly received by the family as a result of state refundable tax credits or
state or federal tax refunds at the time they are received [24 CFR 5.609(b)(24)(iii) and (iv)
as updated for HOTMA].
•
Gifts for holidays, birthdays, or other significant life events or milestones (e.g., wedding
gifts, baby showers, anniversaries) [24 CFR 5.609(b)(24)(v) as updated for HOTMA].
•
Non-monetary, in-kind donations, such as food, clothing, or toiletries, received from a
food bank or similar organization [24 CFR 5.609(b)(24)(vi) as updated for HOTMA]. When
calculating annual income, PHAs are prohibited from assigning monetary value to such
non-monetary in-kind donations received by the family [Notice PIH 2023-27]. Non-
Page 6-30
recurring, non-monetary in-kind donations from friends and family are excluded as
non-recurring income. However, the value of regular in-kind donations (such as the
value of groceries) received by friends and family are included.
•
Lump-sum additions to net family assets, including but not limited to lottery or
other contest winnings [24 CFR 5.609(b)(24)(vii) as updated for HOTMA].
6-I.J. STATE PAYMENTS TO ALLOW INDIVIDUALS WITH DISABILITIES TO LIVE AT HOME
[24 CFR 5.609(b)(19) as updated for HOTMA]
Payments made by or authorized by a state Medicaid agency (including through a managed
care entity) or other state or federal agency to an assisted family to enable a member of
the assisted family who has a disability to reside in the family’s assisted unit are excluded.
Authorized payments may include payments to a member of the assisted family through
state Medicaid-managed care systems, other state agencies, federal agencies, or other
authorized entities.
The payments must be received for caregiving services a family member provides to enable
another member of the assisted family who has a disability to reside in the family’s assisted
unit. Payments to a family member for caregiving services for someone who is not a
member of the assisted family (such as for a relative that resides elsewhere) are not
excluded from income.
Furthermore, if the agency is making payments for caregiving services to the family
member for an assisted family member and for a person outside of the assisted family,
only the payments attributable to the caregiving services for the caregiver’s assisted family
member would be excluded from income.
Page 6-31
6-I.K. CIVIL RIGHTS SETTLEMENTS [24 CFR 5.609(b)(25) as updated for HOTMA; FR
Notice 2/14/23]
Regardless of how the settlement or judgment is structured, civil rights settlements or
judgments, including settlements or judgments for back pay, are excluded from annual
income. This may include amounts received because of litigation or other actions, such as
conciliation agreements, voluntary compliance agreements, consent orders, other forms of
settlement agreements, or administrative or judicial orders under the Fair Housing Act,
Title VI of the Civil Rights Act, Section 504 of the Rehabilitation Act (Section 504), the
Americans with Disabilities Act, or any other civil rights or fair housing statute or
requirement.
While these civil rights settlement or judgment amounts are excluded from income, the
settlement or judgment amounts will generally be counted toward the family’s net family
assets (e.g., if the funds are deposited into the family’s savings account or a revocable trust
under the control of the family or some other asset that is not excluded from the definition
of net family assets). Income generated on the settlement or judgment amount after it has
become a net family asset is not excluded from income. For example, if the family received
a settlement or back pay and deposited the money in an interest-bearing savings account,
the interest from that account would be income at the time the interest is received.
Furthermore, if a civil rights settlement or judgment increases the family’s net family assets
such that they exceed the HUD-published threshold amount ($50,000 for 2024, and
$51,600 for 2025), then income will be imputed on the net family assets pursuant to 24 CFR
5.609(a)(2). If the imputed income, which HUD considers unearned income, increases the
family’s annual adjusted income by 10 percent or more, then an interim reexamination of
income will be required unless the addition to the family’s net family assets occurs within
the last three months of the family’s income certification period and the PHA or owner
chooses not to conduct the examination.
Page 6-32
6-I.L. ADDITIONAL EXCLUSIONS FROM ANNUAL INCOME [24 CFR 5.609(b) as updated
for HOTMA; FR Notice 1/31/2024]
Other exclusions contained in 24 CFR 5.609(b) as updated for HOTMA and FR Notice
1/31/2024 that have not been discussed earlier in this chapter include the following:
•
Payments received for the care of foster children or foster adults or state or tribal
kinship or guardianship care payments [24 CFR 5.609(b)(4) as updated for HOTMA].
•
Insurance payments and settlements for personal or property losses, including but not
limited to payments through health insurance, motor vehicle insurance, and workers’
compensation [24 CFR 5.609(b)(5) as updated for HOTMA]. However, periodic payments
paid at regular intervals (such as weekly, monthly, or yearly) for a period of greater than
one year that are received in lieu of wages are included in annual income [Notice PIH
2023-27].
•
Amounts received by the family that are specifically for, or in reimbursement of, the
cost of health and medical care expenses for any family member [24 CFR 5.609(b)(6) as
updated for HOTMA].
•
Any amounts recovered in any civil action or settlement based on a claim of
malpractice, negligence, or other breach of duty owed to a family member arising out of
law, that resulted in a member of the family becoming disabled [24 CFR 5.609(b)(7) as
updated for HOTMA].
•
Income and distributions from any Coverdell education savings account under Section
530 of the Internal Revenue Code of 1986 or any qualified tuition program under
Section 529 of such Code [24 CFR 5.609(b)(10) as updated for HOTMA].
•
Income earned by government contributions to, and distributions from, “baby bond”
accounts created, authorized, or funded by federal, state, or local government [24 CFR
5.609(b)(10) as updated for HOTMA].
•
The special pay to a family member serving in the Armed Forces who is exposed to
hostile fire [24 CFR 5.609(b)(11) as updated for HOTMA].
•
Payments related to aid and attendance under 38 U.S.C. 1521 to veterans in need of
regular aid and attendance [24 CFR 5.609(b)(17) as updated for HOTMA]. This income
exclusion applies only to veterans in need of regular aid and attendance and not to
other beneficiaries of the payments, such as a surviving spouse [Notice PIH 2023-27].
•
Loan proceeds (the net amount disbursed by a lender to or on behalf of a borrower,
under the terms of a loan agreement) received by the family or a third party (e.g.,
proceeds received by the family from a private loan to enable attendance at an
educational institution or to finance the purchase of a car) [24 CFR 5.609(b)(20) as
updated for HOTMA]. The loan borrower or co-borrower must be a member of the
family for this income exclusion to be applicable [Notice PIH 2023-27].
Page 6-33
•
Payments received by tribal members as a result of claims relating to the
mismanagement of assets held in trust by the United States, to the extent such
payments are also excluded from gross income under the Internal Revenue Code or
other federal law [24 CFR 5.609(b)(21) as updated for HOTMA]. Generally, payments
received by tribal members in excess of the first $2,000 of per capita shares are
included in a family’s annual income for purposes of determining eligibility. However, as
explained in Notice PIH 2023-27, payments made under the Cobell Settlement, and
certain per capita payments under the recent Tribal Trust Settlements, must be
excluded from annual income.
•
Replacement housing “gap” payments made in accordance with 49 CFR Part 24 that
offset increased out of pocket costs of displaced persons that move from one federally
subsidized housing unit to another federally subsidized housing unit. Such replacement
housing “gap” payments are not excluded from annual income if the increased cost of
rent and utilities is subsequently reduced or eliminated, and the displaced person
retains or continues to receive the replacement housing “gap” payments [24 CFR
5.609(b)(23) as updated for HOTMA].
•
Income earned on amounts placed in a family’s Family Self-Sufficiency account
[24 CFR 5.609(b)(27) as updated for HOTMA].
•
Amounts received by participants in other publicly assisted programs which are
specifically for or in reimbursement of out-of-pocket expenses incurred (e.g., special
equipment, clothing, transportation, childcare, etc.) and which are made solely to allow
participation in a specific program [24 CFR 5.609(c)(12)(ii) as updated for HOTMA].
•
Amounts received by a person with a disability that are disregarded for a limited time
for purposes of Supplemental Security Income eligibility and benefits because they are
set aside for use under a Plan to Attain Self-Sufficiency (PASS) [(24 CFR 5.609(b)(12)(i) as
updated for HOTMA].
•
Amounts received under a resident service stipend not to exceed $200 per month. A
resident service stipend is a modest amount received by a resident for performing a
service for the PHA or owner, on a part-time basis, that enhances the quality of life in
the development [24 CFR 5.600(b)(12)(iii) as updated for HOTMA].
Page 6-34
State and Local Employment Training Programs [24 CFR 5.609(b)(12)(iv) as updated for
HOTMA]
•
Incremental earnings and benefits to any family member resulting from participation in
qualifying training program funded by HUD or in qualifying federal, state, tribal, or local
employment training programs (including training programs not affiliated with a local
government) and training of a family member as resident management staff are
excluded from annual income. Amounts excluded by this provision must be received
under employment training programs with clearly defined goals and objectives and are
excluded only for the period during which the family member participates in the
training program unless those amounts are excluded under 24 CFR 5.609(b)(9)(i) [24
CFR 5.609(b)(12)(iv) as updated for HOTMA].
PHA Policy
The PHA defines training program as “a learning process with goals and
objectives, generally having a variety of components, and taking place in a series
of sessions over a period of time. It is designed to lead to a higher level of
proficiency, and it enhances the individual’s ability to obtain employment. It may
have performance standards to measure proficiency. Training may include but is
not limited to: (1) classroom training in a specific occupational skill, (2) on-the-job
training with wages subsidized by the program, or (3) basic education” [expired
Notice PIH 98-2, p. 3].
The PHA defines incremental earnings and benefits as the difference between (1)
the total amount of welfare assistance and earnings of a family member prior to
enrollment in a training program and (2) the total amount of welfare assistance
and earnings of the family member after enrollment in the program [expired
Notice PIH 98-2, pp. 3-4].
In calculating the incremental difference, the PHA will use as the pre-enrollment
income the total annualized amount of the family member’s welfare assistance
and earnings reported on the family’s most recently completed HUD-50058.
End of participation in a training program must be reported in accordance with
the PHA’s interim reporting requirements (see Chapter 11).
•
Reparation payments paid by a foreign government pursuant to claims filed under the
laws of that government by persons who were persecuted during the Nazi era [24 CFR
5.609(b)(13) as updated for HOTMA].
•
Adoption assistance payments for a child in excess of the amount of the dependent
deduction per adopted child [24 CFR 5.609(b)(15) as updated for HOTMA].
•
Refunds or rebates on property taxes paid on the dwelling unit [24 CFR 5.609(b)(20) as
updated for HOTMA].
Page 6-35
•
Amounts that HUD is required by federal statute to exclude from consideration as
income for purposes of determining eligibility or benefits under a category of
assistance programs that includes assistance under any program to which the
exclusions set forth in 24 CFR 5.609(b) as updated for HOTMA apply. HUD will publish a
notice in the Federal Register to identify the benefits that qualify for this exclusion.
Updates will be published when necessary [24 CFR 5.609(b)(22) as updated for HOTMA].
HUD publishes an updated list of these exclusions periodically. The most recent list of
exclusions was published in the Federal Register on January 31, 2024. It includes:
(a) The value of the allotment provided to an eligible household under the Food Stamp
Act of 1977 (7 U.S.C. 2017 (b)). This exclusion also applies to assets.
(b) Benefits under Section 1780 of the Richard B. Russell School Lunch Act and Child
Nutrition Act of 1966, including WIC and reduced-price lunches.
(c) Payments, including for supportive services and reimbursement of out-of-pocket
expenses, to volunteers under the Domestic Volunteer Services Act of 1973 (42
U.S.C. 5044(g), 5058). The exclusion also applies to assets.
-
Except, the exclusion does not apply when the Chief Executive Officer of the
Corporation for National and Community Service determines that the value of all
such payments, adjusted to reflect the number of hours such volunteers are
serving, is equivalent to or greater than the minimum wage then in effect under
the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) or the minimum
wage, under the laws of the State where such volunteers are serving, whichever
is the greater (42 U.S.C. 5044(f)(1)).
(d) Certain payments received under the Alaska Native Claims Settlement Act (43
U.S.C. 1626(c)).
(e) Income derived from certain submarginal land of the United States that is held in
trust for certain Indian tribes (25 U.S.C. 5506).
(f)
Payments or allowances made under the Department of Health and Human
Services’ Low-Income Home Energy Assistance Program (42 U.S.C. 8624(f)(1)).
(g) Allowances, earnings, and payments to individuals participating in programs under
the Workforce Investment Act of 1998 which was reauthorized as the Workforce
Innovation and Opportunity Act of 2014 (29 U.S.C. 3241(a)(2)).
(h) Deferred disability benefits from the Department of Veterans Affairs, whether
received as a lump sum or in monthly prospective amounts.
(i)
Income derived from the disposition of funds to the Grand River Band of Ottawa
Indians (Pub. L. 94-540, 90 Section 6).
Page 6-36
(j)
Payments, funds, or distributions authorized, established, or directed by the
Seneca Nation Settlement Act of 1990 (25 U.S.C. 1774f(b)).
(k) A lump sum or periodic payment received by an individual Indian pursuant to the
Class Action Settlement Agreement in the United States District Court case entitled Elouise
Cobell et al. v. Ken Salazar et al., for a period of one year from the time of receipt of that
payment as provided in the Claims Resolution Act of 2010.
(l)
The first $2,000 of per capita shares received from judgment funds awarded by the
Indian Claims Commission or the U. S. Claims Court, the interests of individual
Indians in trust or restricted lands, including the first $2,000 per year of income
received by individual Indians from funds derived from interests held in such trust
or restricted lands (25 U.S.C. 1407-1408). This exclusion does not include proceeds
of gaming operations regulated by the Commission (25 U.S.C. 1407–1408).
(m) Payments received from programs funded under Title V of the Older Americans Act
of 1965 (42 U.S.C. 3056(f)).
(n) Payments received on or after January 1, 1989, from the Agent Orange Settlement
Fund or any other fund established pursuant to the settlement in In Re Agent
Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.). This exclusion also
applies to assets.
(o) Payments received under 38 U.S.C. 1833(c) to children of Vietnam veterans born
with spinal bifida, children of women Vietnam veterans born with certain birth
defects, and children of certain Korean and Thailand service veterans born with
spinal bifida (42 U.S.C. 12637(d)).
(p) Payments received under the Maine Indian Claims Settlement Act of 1980 (25 U.S.C.
1721). This exclusion also applies to assets.
(q) The value of any childcare provided or arranged (or any amount received as
payment for such care or reimbursement for costs incurred for such care) under
the Childcare and Development Block Grant Act of 1990 (42 U.S.C. 9858q).
(r) Earned income tax credit (EITC) refund payments received on or after
January 1, 1991 (26 U.S.C. 32(j)). This exclusion also applies to assets.
(s) Payments by the Indian Claims Commission to the Confederated Tribes and Bands
of Yakima Indian Nation or the Apache Tribe of Mescalero Reservation (Pub. L. 95-
433). This exclusion also applies to assets.
(t)
Amounts of student financial assistance funded under Title IV of the Higher
Education Act of 1965j, including awards under federal work-study programs or
under the Bureau of Indian Affairs student assistance programs (20 U.S.C. 1087uu).
Page 6-37
For Section 8 programs only, any financial assistance in excess of amounts received
by an individual for tuition and any other required fees and charges under the
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or an
institution of higher education (as defined under the Higher Education Act of 1965
(20 U.S.C. 1002)), shall be considered income if the individual is over the age of 23
with dependent children (Pub. L. 109–115, section 327 (as amended)).
(u) Allowances, earnings, and payments to AmeriCorps participants under the National
and Community Service Act of 1990 (42 U.S.C. 12637(d)).
(v) Any amount of crime victim compensation that provides medical or other
assistance (or payment or reimbursement of the cost of such assistance) under the
Victims of Crime Act of 1984 received through a crime victim assistance program,
unless the total amount of assistance that the applicant receives from all such
programs is sufficient to fully compensate the applicant for losses suffered as a
result of the crime (34 U.S.C. 20102(c)).
(w) Any amounts in an “individual development account” are excluded from assets and
any assistance, benefit, or amounts earned by or provided to the individual
development account are excluded from income, as provided by the Assets for
Independence Act, as amended (42 U.S.C. 604(h)(4)).
(x) Major disaster and emergency assistance received under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act and comparable disaster assistance
provided by states, local governments, and disaster assistance organizations. This
exclusion also applies to assets.
(y) Distributions from an ABLE account, distributions from and certain contributions to
an ABLE account established under the ABLE Act of 2014 (Pub. L. 113–295.), as
described in Notice PIH 2019–09 or subsequent or superseding notice is excluded
from income and assets.
(z) The amount of any refund (or advance payment with respect to a refundable
credit) issued under the Internal Revenue Code is excluded from income and assets
for a period of 12 months from receipt (26 U.S.C. 6409).
(aa) Assistance received by a household under the Emergency Rental Assistance
Program pursuant to the Consolidated Appropriations Act, 2021 (Pub. L. 116–260,
section 501(j)), and the American Rescue Plan Act of 2021.
(ab) Per capita payments made from the proceeds of Indian Tribal Trust Settlements
listed in IRS Notice 2013-1 and 2013-55 must be excluded from annual income
unless the per capita payments exceed the amount of the original Tribal Trust
Settlement proceeds and are made from a Tribe’s private bank account in which
Page 6-38
the Tribe has deposited the settlement proceeds. Such amounts received in excess
of the Tribal Trust Settlement are included in the gross income of the members of
the Tribe receiving the per capita payments as described in IRS Notice 2013-1. The
first $2,000 of per capita payments are also excluded from assets unless the per
capita payments exceed the amount of the original Tribal Trust Settlement
proceeds and are made from a Tribe’s private bank account in which the Tribe has
deposited the settlement proceeds (25 U.S.C. 117b(a), 25 U.S.C. 1407).
(ac) Any amounts (i) not actually received by the family, (ii) that would be eligible for
exclusion under 42 U.S.C. 1382b(a)(7), and (iii) received for service-connected
disability under 38 U.S.C. Chapter 11 or dependency and indemnity compensation
under 38 U.S.C. Chapter 13 (25 U.S.C. 4103(9)(C)) as provided by an amendment by
the Indian Veterans Housing Opportunity Act of 2010 (Pub. L. 111–269 section 2) to
the definition of income applicable to programs under the Native American
Housing Assistance and Self-Determination Act (NAHASDA) (25 U.S.C. 4101 et seq.).
6-I.M. ASSETS [24 CFR 5.609(b)(3) and 24 CFR 5.603(b)]
Overview
There is no asset limitation for participation in the public housing program. However, HUD
requires that the PHA include in annual income the anticipated “interest, dividends, and
other net income of any kind from real or personal property” [24 CFR 5.609(b)(3)]. This
section discusses how the income from various types of assets is determined. For most
types of assets, the PHA must determine the value of the asset in order to compute income
from the asset. Therefore, for each asset type, this section discusses:
•
How the value of the asset will be determined
•
How income from the asset will be calculated
Exhibit 6-1 provides the regulatory requirements for calculating income from assets [24
CFR 5.609(b)(3)] and Exhibit 6-3 provides the regulatory definition of net family assets. This
section begins with a discussion of general policies related to assets and then provides
HUD rules and PHA policies related to each type of asset.
Optional policies for family self-certification of assets are found in Chapter 7.
General Policies
Income from Assets
The PHA generally will use current circumstances to determine both the value of an asset
and the anticipated income from the asset. As is true for all sources of income, HUD
authorizes the PHA to use other than current circumstances to anticipate income when (1)
an imminent change in circumstances is expected (2) it is not feasible to anticipate a level
Page 6-39
of income over 12 months or (3) the PHA believes that past income is the best indicator of
anticipated income. For example, if a family member owns real property that typically
receives rental income but the property is currently vacant, the PHA can take into
consideration past rental income along with the prospects of obtaining a new tenant.
PHA Policy
Any time current circumstances are not used to determine asset income, a clear
rationale for the decision will be documented in the file. In such cases the family
may present information and documentation to the PHA to show why the asset
income determination does not represent the family’s anticipated asset income.
Valuing Assets
The calculation of asset income sometimes requires the PHA to make a distinction between
an asset’s market value and its cash value.
•
The market value of an asset is its worth in the market (e.g., the amount a buyer would
pay for real estate or the total value of an investment account).
•
The cash value of an asset is its market value less all reasonable amounts that would be
incurred when converting the asset to cash.
PHA Policy
Reasonable costs that would be incurred when disposing of an asset include, but
are not limited to, penalties for premature withdrawal, broker and legal fees, and
settlement costs incurred in real estate transactions [HCV GB, p. 5-28 and PH Occ
GB, p. 121].
Lump-Sum Additions to Net Family Assets [24 CFR 5.609(b)(24)(viii) as updated for HOTMA;
Notice PIH 2023-27]
The regulations exclude income from lump-sum additions to family assets, including lottery
or other contest winnings as a type of nonrecurring income.
In addition, lump sums from insurance payments, settlements for personal or property
losses, and recoveries from civil actions or settlements based on claims of malpractice,
negligence, or other breach of duty owed to a family member arising out of law that
resulted in a member of the family becoming a family member with a disability are
excluded from income.
Further, deferred periodic amounts from Supplemental Security Income (SSI) and Social
Security benefits that are received in a lump sum amount or in prospective monthly
amounts, or any deferred Department of Veterans Affairs disability benefits that are
Page 6-40
received in a lump sum amount or in prospective monthly amounts are also excluded from
income.
However, these amounts may count toward net family assets. The PHA must consider any
actual or imputed returns from assets as income at the next applicable income
examination. In the case where the lump sum addition to assets would lead to imputed
income, which is unearned income, that increases the family’s annual adjusted income by
10 percent or more, then the addition of the lump sum to the family’s assets will trigger an
immediate interim reexamination of income in accordance with Chapter 9. This
reexamination of income must take place as soon as the lump sum is added to the family’s
net family assets unless the addition takes place in the last three months of family’s income
certification period and the PHA chooses not to conduct the examination.
For a discussion of lump-sum payments that represent the delayed start of a periodic
payment, most of which are counted as income, see sections 6-I.H and 6-I.I.
PHA Policy
Any lump-sum receipts are only counted as assets if they are retained by a family in
a form recognizable as an asset. [RHIIP FAQs]. For example, if the family receives a
$1,000 lump sum for lottery winnings, and the family immediately spends the entire
amount, the lump sum will not be counted toward net family assets.
Imputing Income from Assets [24 CFR 5.609(b)(3), Notice PIH 2012-29]
When net family assets are $5,000 or less, the PHA will include in annual income the actual
income anticipated to be derived from the assets. When the family has net family assets in
excess of $5,000, the PHA will include in annual income the greater of (1) the actual income
derived from the assets or (2) the imputed income. Imputed income from assets is
calculated by multiplying the total cash value of all family assets by an average passbook
savings rate as determined by the PHA.
•
Note: The HUD field office no longer provides an interest rate for imputed asset
income. The “safe harbor” is now for the PHA to establish a passbook rate within 0.75
percent of a national average.
•
The PHA must review its passbook rate annually to ensure that it remains within 0.75
percent of the national average.
PHA Policy
The PHA initially set the imputed asset passbook rate at the national rate
established by the Federal Deposit Insurance Corporation (FDIC).
The PHA will review the passbook rate annually. The rate will not be adjusted
unless the current PHA rate is no longer within 0.75 percent of the national rate.
Page 6-41
If it is no longer within 0.75 percent of the national rate, the passbook rate will be
set at the current national rate.
The effective date of changes to the passbook rate will be determined at the time
of the review.
Determining Actual Anticipated Income from Assets
It may or may not be necessary for the PHA to use the value of an asset to compute the
actual anticipated income from the asset. When the value is required to compute the
anticipated income from an asset, the market value of the asset is used. For example, if the
asset is a property for which a family receives rental income, the anticipated income is
determined by annualizing the actual monthly rental amount received for the property; it is
not based on the property’s market value. However, if the asset is a savings account, the
anticipated income is determined by multiplying the market value of the account by the
interest rate on the account.
Withdrawal of Cash or Liquidation of Investments
Any withdrawal of cash or assets from an investment will be included in income except to
the extent that the withdrawal reimburses amounts invested by the family. For example,
when a family member retires, the amount received by the family from a retirement
investment plan is not counted as income until the family has received payments equal to
the amount the family member deposited into the retirement investment plan.
Jointly Owned Assets
The regulation at 24 CFR 5.609(a)(4) specifies that annual income includes “amounts
derived (during the 12-month period) from assets to which any member of the family has
access.”
PHA Policy
If an asset is owned by more than one person and any family member has
unrestricted access to the asset, the PHA will count the full value of the asset. A
family member has unrestricted access to an asset when they can legally dispose of
the asset without the consent of any of the other owners.
If an asset is owned by more than one person, including a family member, but the
family member does not have unrestricted access to the asset, the PHA will prorate
the asset according to the percentage of ownership. If no percentage is specified or
provided for by state or local law, the PHA will prorate the asset evenly among all
owners.
Page 6-42
Assets Disposed of for Less than Fair Market Value [24 CFR 5.603(b)]
HUD regulations require the PHA to count as a current asset any business or family asset
that was disposed of for less than fair market value during the two years prior to the
effective date of the examination/reexamination, except as noted below.
Minimum Threshold
The PHA may set a threshold below which assets disposed of for less than fair market value
will not be counted [HCV GB, p. 5-27].
PHA Policy
The PHA will not include the value of assets disposed of for less than fair market
value unless the cumulative fair market value of all assets disposed of during the
past two years exceeds the gross amount received for the assets by more than
$1,000.
When the two-year period expires, the income assigned to the disposed asset(s)
also expires. If the two-year period ends between annual recertifications, the family
may request an interim recertification to eliminate consideration of the asset(s).
Assets placed by the family in nonrevocable trusts are considered assets disposed
of for less than fair market value except when the assets placed in trust were
received through settlements or judgments.
Separation or Divorce
The regulation also specifies that assets are not considered disposed of for less than fair
market value if they are disposed of as part of a separation or divorce settlement and the
applicant or tenant receives important consideration not measurable in dollar terms.
PHA Policy
All assets disposed of as part of a separation or divorce settlement will be
considered assets for which important consideration not measurable in monetary
terms has been received. In order to qualify for this exemption, a family member
must be subject to a formal separation or divorce settlement agreement established
through arbitration, mediation, or court order.
Foreclosure or Bankruptcy
Assets are not considered disposed of for less than fair market value when the disposition
is the result of a foreclosure or bankruptcy sale.
Family Declaration
Page 6-43
PHA Policy
Families must sign a declaration form at initial certification and each annual
recertification identifying all assets that have been disposed of for less than fair
market value or declaring that no assets have been disposed of for less than fair
market value. The PHA may verify the value of the assets disposed of if other
information available to the PHA does not appear to agree with the information
reported by the family.
Types of Assets
Checking and Savings Accounts
For regular checking accounts and savings accounts, cash value has the same meaning as
market value. If a checking account does not bear interest, the anticipated income from the
account is zero.
PHA Policy
In determining the value of a checking account, the PHA will use the current
balance.
In determining the value of a savings account, the PHA will use the current balance.
In determining the anticipated income from an interest-bearing checking or savings
account, the PHA will multiply the value of the account by the current rate of
interest paid on the account.
ABLE Accounts [24 CFR 5.609(b)(10) as updated for HOTMA; Notice PIH 2019-09]
An Achieving a Better Life Experience (ABLE) account is a type of tax-advantaged savings
account that an eligible individual can use to pay for qualified disability expenses. Section
103 of the ABLE Act mandates that an individual’s ABLE account (specifically, its account
balance, contributions to the account, and distributions from the account) is excluded
when determining the designated beneficiary’s eligibility and continued occupancy under
certain federal means-tested programs. The PHA must exclude the entire value of the
individual’s ABLE account from the household’s assets. Distributions from the ABLE account
are also not considered income. However, all wage income received, regardless of which
account the money is paid to, is included as income.
Investment Accounts Such as Stocks, Bonds, Saving Certificates, and Money Market Funds
Interest or dividends earned by investment accounts are counted as actual income from
assets even when the earnings are reinvested. The cash value of such an asset is
Page 6-44
determined by deducting from the market value any broker fees, penalties for early
withdrawal, or other costs of converting the asset to cash.
PHA Policy
In determining the market value of an investment account, the PHA will use the
value of the account on the most recent investment report.
How anticipated income from an investment account will be calculated depends on
whether the rate of return is known.
For assets that are held in an investment account with a known rate of return
(e.g., savings certificates), asset income will be calculated based on that
known rate (market value multiplied by rate of earnings).
When the anticipated rate of return is not known (e.g., stocks), the PHA will
calculate asset income based on the earnings for the most recent reporting
period.
Equity in Real Property or Other Capital Investments
Equity (cash value) in a property or other capital asset is the estimated current market
value of the asset less the unpaid balance on all loans secured by the asset and reasonable
costs (such as broker fees) that would be incurred in selling the asset [HCV GB, p. 5-25 and
PH, p. 121].
PHA Policy
In determining the equity, the PHA will determine market value by examining recent
sales of at least three properties in the surrounding or similar neighborhood that
possess comparable factors that affect market value.
The PHA will first use the payoff amount for the loan (mortgage) as the unpaid
balance to calculate equity. If the payoff amount is not available, the PHA will use
the basic loan balance information to deduct from the market value in the equity
calculation.
Equity in real property and other capital investments is considered in the calculation of
asset income except for the following types of assets:
•
Equity accounts in HUD homeownership programs [24 CFR 5.603(b)]
•
Equity in real property when a family member’s main occupation is real estate [HCV GB,
p. 5-25]. This real estate is considered a business asset, and income related to this asset
will be calculated as described in section 6-I.F.
•
Interests in Indian Trust lands [24 CFR 5.603(b)]
Page 6-45
•
Real property and capital assets that are part of an active business or farming operation
[HCV GB, p. 5-25]
The PHA must also deduct from the equity the reasonable costs for converting the asset to
cash. Using the formula for calculating equity specified above, the net cash value of real
property is the market value of the loan (mortgage) minus the expenses to convert to cash
[Notice PIH 2012-3].
PHA Policy
For the purposes of calculating expenses to convert to cash for real property, the
PHA will use ten percent of the market value of the home.
A family may have real property as an asset in two ways: (1) owning the property itself and
(2) holding a mortgage or deed of trust on the property. In the case of a property owned by
a family member, the anticipated asset income generally will be in the form of rent or other
payment for the use of the property. If the property generates no income, actual
anticipated income from the asset will be zero.
In the case of a mortgage or deed of trust held by a family member, the outstanding
balance (unpaid principal) is the cash value of the asset. The interest portion only of
payments made to the family in accordance with the terms of the mortgage or deed of
trust is counted as anticipated asset income.
PHA Policy
In the case of capital investments owned jointly with others not living in a family’s
unit, a prorated share of the property’s cash value will be counted as an asset unless
the PHA determines that the family receives no income from the property and is
unable to sell or otherwise convert the asset to cash.
Page 6-46
Trusts [24 CFR 5.609(b)(2) as updated for HOTMA]
A trust is a legal arrangement generally regulated by state law in which one party (the
creator or grantor) transfers property to a second party (the trustee) who holds the
property for the benefit of one or more third parties (the beneficiaries).
The basis for determining how to treat trusts relies on information about who has access
to either the principal in the account or the income from the account. There are two types
of trusts, revocable and irrevocable.
When the creator sets up an irrevocable trust, the creator has no access to the funds in the
account. Typically, special needs trusts are considered irrevocable. Irrevocable trusts not
under the control of any member of the family are excluded from net family assets. The
value of the trust continues to be excluded from net family assets so long as the fund
continues to be held in a trust that is not revocable by, or under the control of, any
member of the family or household [24 CFR 5.603(b)(4) as updated for HOTMA]. Further,
where an irrevocable trust is excluded from net family assets, the PHA must not consider
actual income earned by the trust (e.g., interest earned, rental income if property is held in
the trust) for so long as the income from the trust is not distributed.
A revocable trust is a trust that the creator of the trust may amend or end (revoke). When
there is a revocable trust, the creator has access to the funds in the trust account.
•
A revocable trust that is under the control of the family is included in net family assets
when the grantor is a member of the assisted family. If a revocable trust is included in
the calculation of net family assets, then the actual income earned by the revocable
trust is also included in the family’s income. For example, interest earned or rental
income if the property is held in the trust. The PHA must calculate imputed income on
the revocable trust if net family assets are more than the HUD-published threshold
amount, which is adjusted annually and listed in HUD’s Inflation Adjusted Values tables
($50,000 for 2024, and $51,600 for 2025), and actual income from the trust cannot be
calculated (e.g., if the trust is comprised of farmland that is not in use).
•
A revocable trust that is not under the control of the family is excluded from net family
assets. This happens when a member of the assisted family is the beneficiary of a
revocable trust, but the grantor is not a member of the assisted family. In this case the
beneficiary does not “own” the revocable trust, and the value of the trust is excluded
from net family assets. For the revocable trust to be considered excluded from net
family assets, no family or household member may be the account’s trustee.
For both irrevocable and revocable trusts, if the value of the trust is not considered part of
net family assets, then distributions from the trust are treated as follows:
•
All distributions from the trust’s principal are excluded from income.
Page 6-47
•
Distributions of income earned by the trust (i.e., interest, dividends, realized gains, or
other earnings on the trust’s principal), are included as income unless the distribution is
used to pay for the health and medical expenses for a minor.
Retirement Accounts
Company Retirement/Pension Accounts
In order to correctly include or exclude as an asset any amount held in a company
retirement or pension account by an employed person, the PHA must know whether the
money is accessible before retirement [HCV GB, p. 5-26].
While a family member is employed, only the amount the family member can withdraw
without retiring or terminating employment is counted as an asset [HCV GB, p. 5-26].
After a family member retires or terminates employment, any amount distributed to the
family member is counted as a periodic payment or a lump-sum receipt, as appropriate
[HCV GB, p. 5-26], except to the extent that it represents funds invested in the account by
the family member. (For more on periodic payments, see section 6-I.H.) The balance in the
account is counted as an asset only if it remains accessible to the family member.
IRA, Keogh, and Similar Retirement Savings Accounts
IRA, Keogh, and similar retirement savings accounts are counted as assets even though
early withdrawal would result in a penalty [HCV GB, p. 5-25].
Personal Property
Personal property held as an investment, such as gems, jewelry, coin collections, antique
cars, etc., is considered an asset [HCV GB, p. 5-25].
PHA Policy
In determining the value of personal property held as an investment, the PHA will
use the family’s estimate of the value. The PHA may obtain an appraisal if there is
reason to believe that the family’s estimated value is off by $50 or more. The family
must cooperate with the appraiser but cannot be charged any costs related to the
appraisal.
Generally, personal property held as an investment generates no income until it is
disposed of. If regular income is generated (e.g., income from renting the personal
property), the amount that is expected to be earned in the coming year is counted
as actual income from the asset.
Necessary items of personal property are not considered assets [24 CFR 5.603(b)].
Page 6-48
PHA Policy
Necessary personal property consists of only those items not held as an investment.
It may include clothing, furniture, household furnishings, jewelry, and vehicles,
including those specially equipped for persons with disabilities.
Life Insurance
The cash value of a life insurance policy available to a family member before death, such as
a whole life or universal life policy, is included in the calculation of the value of the family’s
assets [HCV GB 5-25]. The cash value is the surrender value. If such a policy earns dividends
or interest that the family could elect to receive, the anticipated amount of dividends or
interest is counted as income from the asset whether or not the family actually receives it.
6-I.N. WELFARE ASSISTANCE
Overview
Welfare assistance is counted in annual income. Welfare assistance includes Temporary
Assistance for Needy Families (TANF) and any payments to individuals or families based on
need that are made under programs funded separately or jointly by federal, state, or local
governments [24 CFR 5.603(b)].
Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.615]
The PHA must make a special calculation of annual income when the welfare agency
imposes certain sanctions on certain families. The full text of the regulation at 24 CFR 5.615
is provided as Exhibit 6-5. The requirements are summarized below. This rule applies only
if a family was a public housing resident at the time the sanction was imposed.
Covered Families
The families covered by 24 CFR 5.615 are those “who receive welfare assistance or other
public assistance benefits (‘welfare benefits’) from a State or other public agency (’welfare
agency’) under a program for which Federal, State or local law requires that a member of
the family must participate in an economic self-sufficiency program as a condition for such
assistance” [24 CFR 5.615(b)]
Imputed Income
When a welfare agency imposes a sanction that reduces a family’s welfare income because
the family commits fraud or fails to comply with the agency’s economic self-sufficiency
program or work activities requirement, the PHA must include in annual income “imputed”
welfare income. The PHA must request that the welfare agency provide the reason for the
Page 6-49
reduction of benefits and the amount of the reduction of benefits. The imputed welfare
income is the amount that the benefits were reduced as a result of the sanction.
This requirement does not apply to reductions in welfare benefits: (1) at the expiration of
the lifetime or other time limit on the payment of welfare benefits, (2) if a family member is
unable to find employment even though the family member has complied with the welfare
agency economic self-sufficiency or work activities requirements, or (3) because a family
member has not complied with other welfare agency requirements [24 CFR 5.615(b)(2)].
For special procedures related to grievance hearings based upon the PHA’s denial of a
family’s request to lower rent when the family experiences a welfare benefit reduction, see
Chapter 14, Grievances and Appeals.
Offsets
The amount of the imputed welfare income is offset by the amount of additional income
the family begins to receive after the sanction is imposed. When the additional income
equals or exceeds the imputed welfare income, the imputed income is reduced to zero [24
CFR 5.615(c)(4)].
6-I.O. PERIODIC AND DETERMINABLE ALLOWANCES [24 CFR 5.609(b)(7)]
Annual income includes periodic and determinable allowances, such as alimony and child
support payments, and regular contributions or gifts received from organizations or from
persons not residing with a tenant family.
Alimony and Child Support
The PHA must count alimony or child support amounts awarded as part of a divorce or
separation agreement.
PHA Policy
The PHA will count court-awarded amounts for alimony and child support unless
the PHA verifies that (1) the payments are not being made and (2) the family has
made reasonable efforts to collect amounts due, including filing with courts or
agencies responsible for enforcing payments [HCV GB, pp. 5-23 and 5-47].
Families who do not have court-awarded alimony and child support awards are not
required to seek a court award and are not required to take independent legal
action to obtain collection.
Page 6-50
PART II: ADJUSTED INCOME
6-II.A. INTRODUCTION
Overview
HUD regulations require PHAs to deduct from annual income any of five mandatory
deductions for which a family qualifies. The resulting amount is the family’s adjusted
income. Mandatory deductions are found in 24 CFR 5.611.
5.611(a) Mandatory deductions. In determining adjusted income, the responsible entity
(PHA) must deduct the following amounts from annual income:
(1) $480 for each dependent;
(2) $400 for any elderly family or disabled family;
(3) The sum of the following, to the extent the sum exceeds three percent of annual
income:
(i) Unreimbursed health and medical care expenses of any elderly family or disabled family;
(ii) Unreimbursed reasonable attendant care and auxiliary apparatus expenses for each
member of the family who is a person with disabilities, to the extent necessary to enable
any member of the family (including the member who is a person with disabilities) to be
employed. This deduction may not exceed the earned income received by family members
who are 18 years of age or older and who are able to work because of such attendant care
or auxiliary apparatus; and
(4) Any reasonable childcare expenses necessary to enable a member of the family to be
employed or to further their education.
This part covers policies related to these mandatory deductions. Verification requirements
related to these deductions are found in Chapter 7, Verifications.
Anticipating Expenses
PHA Policy
Generally, the PHA will use current circumstances to anticipate expenses. When
possible, for costs that are expected to fluctuate during the year (e.g., childcare
during school and nonschool periods and cyclical medical expenses), the PHA will
estimate costs based on historic data and known future costs.
Page 6-51
If a family has an accumulated debt for medical or disability assistance expenses,
the PHA will include as an eligible expense the portion of the debt that the family
expects to pay during the period for which the income determination is being made.
However, amounts previously deducted will not be allowed even if the amounts
were not paid as expected in a preceding period. The PHA may require the family to
provide documentation of payments made in the preceding year.
6-II.B. DEPENDENT DEDUCTION
An allowance of $480 is deducted from annual income for each dependent [24 CFR
5.611(a)(1)]. Dependent is defined as any family member other than the head, spouse, or
cohead who is under the age of 18 or who is 18 or older and is a person with disabilities or
a full-time student. Foster children, foster adults, and live-in aides are never considered
dependents [24 CFR 5.603(b) as updated for HOTMA].
6-II.C. ELDERLY OR DISABLED FAMILY DEDUCTION
A single deduction of $400 is taken for any elderly or disabled family [24 CFR 5.611(a)(2)].
An elderly family is a family whose head, spouse, cohead, or sole member is 62 years of age
or older, and a disabled family is a family whose head, spouse, cohead, or sole member is a
person with disabilities [24 CFR 5.403].
6-II.D. HEALTH AND MEDICAL CARE EXPENSES DEDUCTION [24 CFR 5.611(a)(3)(i) and
5.603(b) as updated for HOTMA]
Unreimbursed health and medical care expenses may be deducted to the extent that, in
combination with any disability assistance expenses, they exceed three percent of annual
income.
The health and medical care expense deduction is permitted only for families in which the
head, spouse, or cohead is at least 62 or is a person with disabilities. If a family is eligible
for a health and medical care expense deduction, the medical expenses of all family
members are counted [VG, p. 28].
Definition of Medical Expenses
HUD regulations define health and medical care expenses at 24 CFR 5.603(b) (as updated for
HOTMA) to mean “any costs incurred in the diagnosis, cure, mitigation, treatment, or
prevention of disease or payments for treatments affecting any structure or function of the
body. Health and medical care expenses include medical insurance premiums and long-
term care premiums that are paid or anticipated during the period for which annual
income is computed.” Health and medical care expenses may be deducted from annual
income only if they are eligible under this definition and not otherwise reimbursed.
Page 6-52
Although HUD revised the definition of health and medical care expenses to reflect the
Internal Revenue Service (IRS) general definition of medical expenses, HUD is not
permitting PHAs to specifically align their policies to IRS Publication 502. PHAs must review
each expense to determine whether it is eligible in accordance with HUD’s definition. While
PHA policies may not specifically align with IRS Publication 502, HUD recommends PHAs
use it as a standard for determining allowable expenses, and the PHA may list examples of
allowable expenses in their policy provided they comply with HUD’s definition at 24 CFR
5.603 as updated for HOTMA. The PHA may not define health and medical care expenses
more narrowly than the regulation.
Page 6-53
PHA Policy
The PHA will use the most current IRS Publication 502 as a standard for determining
if expenses claimed by eligible families qualify as health and medical care expenses.
However, under no circumstances will the PHA deduct any expenses listed in IRS
Publication 502 that do not conform with HUD’s definition of health and medical care
expenses.
Summary of Typical Allowable Health and Medical Care Expenses
Services of medical professionals
Surgery and medical procedures that
are necessary, legal, and non-cosmetic
Services of medical facilities
Hospitalization, long-term care, and in-
home nursing services
Prescription medicines and insulin, but
not nonprescription medicines even if
recommended by a doctor
Improvements to housing directly
related to medical needs (e.g., ramps
for a wheelchair, handrails)
Medical insurance premiums or the
cost of a health maintenance
organization (HMO)
Medicare Part B and Part D premiums
Substance abuse treatment programs
Psychiatric treatment
Ambulance services and some costs
of transportation related to medical
expenses. The PHA will use the most
current medical mileage rate listed in
IRS Publication 502.
The cost and care of necessary
equipment related to a medical
condition (e.g., eyeglasses/lenses,
hearing aids, crutches, and artificial
teeth)
The costs of buying, training, and
maintaining a guide dog or other
service animal to assist a visually
impaired or hearing disabled person,
or a person with other physical
disabilities. In general, this includes
any costs, such as food, grooming,
and veterinary care, incurred in
maintaining the health and vitality of
the service animal so that it may
perform its duties.
Note: This chart provides a summary of eligible health and medical care
expenses only. In all cases, the PHA will consider whether health and medical
expenses care expenses claimed by the family are eligible under HUD’s
definition.
Families That Qualify for Both Health and Medical Care and Disability Assistance
Expenses
Page 6-54
PHA Policy
This policy applies only to families in which the head, spouse, or cohead is 62 or
older or is a person with disabilities.
When expenses anticipated by a family could be defined as either health and
medical care or disability assistance expenses, the PHA will consider them health
and medical care expenses unless it is clear that the expenses are incurred
exclusively to enable a person with disabilities to work.
6-II.E. DISABILITY ASSISTANCE EXPENSES DEDUCTION [24 CFR 5.603(b) and
24 CFR 5.611(a)(3)(ii)]
Reasonable expenses for attendant care and auxiliary apparatus for a disabled family
member may be deducted if they: (1) are necessary to enable a family member 18 years or
older to work, (2) are not paid to a family member or reimbursed by an outside source, (3)
in combination with any medical expenses, exceed three percent of annual income, and (4)
do not exceed the earned income received by the family member who is enabled to work.
Earned Income Limit on the Disability Assistance Expense Deduction
A family can qualify for the disability assistance expense deduction only if at least one
family member (who may be the person with disabilities) is enabled to work [24 CFR
5.603(b)].
The disability expense deduction is capped by the amount of “earned income received by
family members who are 18 years of age or older and who are able to work” because of the
expense [24 CFR 5.611(a)(3)(ii)]. The earned income used for this purpose is the amount
verified before any income exclusions are applied.
PHA Policy
The family must identify the family members enabled to work as a result of the
disability assistance expenses. In evaluating the family’s request, the PHA will
consider factors such as how the work schedule of the relevant family members
relates to the hours of care provided, the time required for transportation, the
relationship of the family members to the person with disabilities, and any special
needs of the person with disabilities that might determine which family members
are enabled to work.
When the PHA determines that the disability assistance expenses enable more than
one family member to work, the disability assistance expenses will be capped by the
sum of the family members’ incomes [PH Occ GB, p. 124].
Page 6-55
Eligible Disability Expenses
Examples of auxiliary apparatus are provided in the PH Occupancy Guidebook as follows:
“Auxiliary apparatus: Including wheelchairs, walkers, scooters, reading devices for persons
with visual disabilities, equipment added to cars and vans to permit their use by the family
member with a disability, or service animals” [PH Occ GB, p. 124], but only if these items
are directly related to permitting the disabled person or other family member to work [HCV
GB, p. 5-30].
HUD advises PHAs to further define and describe auxiliary apparatus [VG, p. 30].
Eligible Auxiliary Apparatus
PHA Policy
Expenses incurred for maintaining or repairing an auxiliary apparatus are eligible. In
the case of an apparatus that is specially adapted to accommodate a person with
disabilities (e.g., a vehicle or computer), the cost to maintain the special adaptations
(but not maintenance of the apparatus itself) is an eligible expense. The cost of
service animals trained to give assistance to persons with disabilities, including the
cost of acquiring the animal, veterinary care, food, grooming, and other continuing
costs of care, will be included.
Eligible Attendant Care
The family determines the type of attendant care that is appropriate for the person with
disabilities.
PHA Policy
Attendant care includes, but is not limited to, reasonable costs for home medical
care, nursing services, in-home or center-based care services, interpreters for
persons with hearing impairments, and readers for persons with visual disabilities.
Attendant care expenses will be included for the period that the person enabled to
work is employed plus reasonable transportation time. The cost of general
housekeeping and personal services is not an eligible attendant care expense.
However, if the person enabled to work is the person with disabilities, personal
services necessary to enable the person with disabilities to work are eligible.
If the care attendant also provides other services to the family, the PHA will prorate
the cost and allow only that portion of the expenses attributable to attendant care
that enables a family member to work. For example, if the care provider also cares
for a child who is not the person with disabilities, the cost of care must be prorated.
Page 6-56
Unless otherwise specified by the care provider, the calculation will be based upon
the number of hours spent in each activity and/or the number of persons under
care.
Payments to Family Members
No disability expenses may be deducted for payments to a member of a tenant family [23
CFR 5.603(b)]. However, expenses paid to a relative who is not a member of the tenant
family may be deducted if they are not reimbursed by an outside source.
Necessary and Reasonable Expenses
The family determines the type of care or auxiliary apparatus to be provided and must
describe how the expenses enable a family member to work. The family must certify that
the disability assistance expenses are necessary and are not paid or reimbursed by any
other source.
PHA Policy
The PHA determines the reasonableness of the expenses based on typical costs of
care or apparatus in the locality. To establish typical costs, the PHA will collect
information from organizations that provide services and support to persons with
disabilities. A family may present, and the PHA will consider, the family’s justification
for costs that exceed typical costs in the area.
Families That Qualify for Both Medical and Disability Assistance Expenses
PHA Policy
This policy applies only to families in which the head, spouse, or cohead is 62 or
older or is a person with disabilities.
When expenses anticipated by a family could be defined as either medical or
disability assistance expenses, the PHA will consider them medical expenses unless
it is clear that the expenses are incurred exclusively to enable a person with
disabilities to work.
Page 6-57
6-II.F. CHILDCARE EXPENSE DEDUCTION
HUD defines childcare expenses at 24 CFR 5.603(b) as “amounts anticipated to be paid by
the family for the care of children under 13 years of age during the period for which annual
income is computed, but only where such care is necessary to enable a family member to
actively seek employment, be gainfully employed, or to further their education and only to
the extent such amounts are not reimbursed. The amount deducted shall reflect
reasonable charges for 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.”
Childcare expenses do not include child support payments made to another on behalf of a
minor who is not living in an assisted family’s household [VG, p. 26]. However, childcare
expenses for foster children that are living in the assisted family’s household are included
when determining the family’s childcare expenses.
Qualifying for the Deduction
Determining Who Is Enabled to Pursue an Eligible Activity
PHA Policy
The family must identify the family member(s) enabled to pursue an eligible activity.
The term eligible activity in this section means any of the activities that may make the
family eligible for a childcare deduction (seeking work, pursuing an education, or
being gainfully employed).
In evaluating the family’s request, the PHA will consider factors such as how the
schedule for the claimed activity relates to the hours of care provided, the time
required for transportation, the relationship of the family member(s) to the child,
and any special needs of the child that might help determine which family member
is enabled to pursue an eligible activity.
Seeking Work
PHA Policy
If the childcare expense being claimed is to enable a family member to seek
employment, the family must provide evidence of the family member’s efforts to
obtain employment at each reexamination. The deduction may be reduced or
denied if the family member’s job search efforts are not commensurate with the
childcare expense being allowed by the PHA.
Page 6-58
Furthering Education
PHA Policy
If the childcare expense being claimed is to enable a family member to further their
education, the member must be enrolled in school (academic or vocational) or
participating in a formal training program. The family member is not required to be
a full-time student, but the time spent in educational activities must be
commensurate with the childcare claimed.
Being Gainfully Employed
PHA Policy
If the childcare expense being claimed is to enable a family member to be gainfully
employed, the family must provide evidence of the family member’s employment
during the time that childcare is being provided. Gainful employment is any legal
work activity (full- or part-time) for which a family member is compensated.
Earned Income Limit on Childcare Expense Deduction
When a family member looks for work or furthers their education, there is no cap on the
amount that may be deducted for childcare – although the care must still be necessary and
reasonable. However, when childcare enables a family member to work, the deduction is
capped by “the amount of employment income that is included in annual income” [24 CFR
5.603(b)].
The earned income used for this purpose is the amount of earned income verified after
any income exclusions are applied.
When the person who is enabled to work is a full-time student whose earned income
above $480 is excluded, childcare costs related to enabling a family member to work may
not exceed the portion of the person’s earned income that actually is included in annual
income.
The PHA must not limit the deduction to the least expensive type of childcare. If the care
allows the family to pursue more than one eligible activity, including work, the cap is
calculated in proportion to the amount of time spent working [HCV GB, p. 5-30].
PHA Policy
When the childcare expense being claimed is to enable a family member to work,
only one family member’s income will be considered for a given period of time.
When more than one family member works during a given period, the PHA
Page 6-59
generally will limit allowable childcare expenses to the earned income of the lowest-
paid member. The family may provide information that supports a request to
designate another family member as the person enabled to work.
Eligible Childcare Expenses
The type of care to be provided is determined by the tenant family. The PHA may not
refuse to give a family the childcare expense deduction because there is an adult family
member in the household that may be available to provide childcare [VG, p. 26].
Allowable Childcare Activities
PHA Policy
For school-age children, costs attributable to public or private school activities
during standard school hours are not considered. Expenses incurred for supervised
activities after school or during school holidays (e.g., summer day camp, after-school
sports league) are allowable forms of childcare.
The costs of general housekeeping and personal services are not eligible. Likewise,
childcare expenses paid to a family member who lives in the family’s unit are not
eligible; however, payments for childcare to relatives who do not live in the unit are
eligible.
If a childcare provider also renders other services to a family or childcare is used to
enable a family member to conduct activities that are not eligible for consideration,
the PHA will prorate the costs and allow only that portion of the expenses that is
attributable to childcare for eligible activities. For example, if the care provider also
cares for a child with disabilities who is 13 or older, the cost of care will be prorated.
Unless otherwise specified by the childcare provider, the calculation will be based
upon the number of hours spent in each activity and/or the number of persons
under care.
Necessary and Reasonable Costs
Childcare expenses will be considered necessary if: (1) a family adequately explains how
the care enables a family member to work, actively seek employment, or further their
education, and (2) the family certifies, and the childcare provider verifies, that the expenses
are not paid or reimbursed by any other source.
PHA Policy
Childcare expenses will be considered for the time required for the eligible activity
plus reasonable transportation time. For childcare that enables a family member to
Page 6-60
go to school, the time allowed may include not more than one study hour for each
hour spent in class.
To establish the reasonableness of childcare costs, the PHA will use the schedule of
childcare costs from a qualified local entity that either subsidizes childcare costs or
licenses childcare providers. Families may present, and the PHA will consider,
justification for costs that exceed typical costs in the area.
6-II.G. PERMISSIVE DEDUCTIONS [24 CFR 5.611(b)(1)]
Permissive deductions are additional, optional deductions that may be applied to annual
income. As with mandatory deductions, permissive deductions must be based on need or
family circumstance and deductions must be designed to encourage self-sufficiency or
other economic purpose. If the PHA offers permissive deductions, they must be granted to
all families that qualify for them and should complement existing income exclusions and
deductions [PH Occ GB, p. 128].
The Form HUD-50058 Instruction Booklet states that the maximum allowable amount for
total permissive deductions is less than $90,000 per year.
PHA Policy
The PHA has opted not to use permissive deductions.
PART III: CALCULATING RENT
6-III.A. OVERVIEW OF INCOME-BASED RENT CALCULATIONS
The first step in calculating income-based rent is to determine each family’s total tenant
payment (TTP). Then, if the family is occupying a unit that has tenant-paid utilities, the
utility allowance is subtracted from the TTP. The result of this calculation, if a positive
number, is the tenant rent. If the TTP is less than the utility allowance, the result of this
calculation is a negative number, and is called the utility reimbursement, which may be
paid to the family or directly to the utility company by the PHA.
TTP Formula [24 CFR 5.628]
HUD regulations specify the formula for calculating the total tenant payment (TTP) for a
tenant family. TTP is the highest of the following amounts, rounded to the nearest dollar:
30 percent of the family’s monthly adjusted income (adjusted income is defined in Part II)
10 percent of the family’s monthly gross income (annual income, as defined in Part I,
divided by 12)
The welfare rent (in as-paid states only)
Page 6-61
A minimum rent between $0 and $50 that is established by the PHA
The alternative non-public housing rent, as determined in accordance with 24 CFR 960.102
The PHA has authority to suspend and exempt families from minimum rent when a
financial hardship exists, as defined in section 6-III.B.
Welfare Rent [24 CFR 5.628]
PHA Policy
Welfare rent does not apply in this locality.
Minimum Rent [24 CFR 5.630]
PHA Policy
The minimum rent for this locality is $0.
Page 6-62
Optional Changes to Income-Based Rents [24 CFR 960.253(c)(2) and PH Occ GB,
pp. 131-134]
PHAs have been given very broad flexibility to establish their own, unique rent calculation
systems as long as the rent produced is not higher than that calculated using the TTP and
mandatory deductions. At the discretion of the PHA, rent policies may structure a system
that uses combinations of permissive deductions, escrow accounts, income-based rents,
and the required flat and minimum rents.
The PHA’s minimum rent and rent choice policies still apply to affected families. Utility
allowances are applied to PHA designed income-based rents in the same manner as they
are applied to the regulatory income-based rents.
The choices are limited only by the requirement that the method used not produce a TTP
or tenant rent greater than the TTP or tenant rent produced under the regulatory formula.
PHA Policy
The PHA chooses not to adopt optional changes to income-based rents.
Ceiling Rents [24 CFR 960.253 (c)(2) and (d)]
Ceiling rents are used to cap income-based rents. They are part of the income-based
formula. If the calculated TTP exceeds the ceiling rent for the unit, the ceiling rent is used to
calculate tenant rent (ceiling rent/TTP minus utility allowance). Increases in income do not
affect the family since the rent is capped. The use of ceiling rents fosters upward mobility
and income mixing.
Because of the mandatory use of flat rents, the primary function of ceiling rents now is to
assist families who cannot switch back to flat rent between annual reexaminations and
would otherwise be paying an income-based tenant rent that is higher than the flat rent.
Ceiling rents must be set to the level required for flat rents (which will require the addition
of the utility allowance to the flat rent for properties with tenant-paid utilities) [PH Occ GB,
p. 135].
PHA Policy
The PHA chooses not to use ceiling rents.
Page 6-63
Utility Reimbursement [24 CFR 960.253(c)(4)]
Utility reimbursement occurs when any applicable utility allowance for tenant-paid utilities
exceeds the TTP. HUD permits the PHA to pay the reimbursement to the family or directly
to the utility provider.
PHA Policy
The PHA will make utility reimbursements to the family.
The PHA may make all utility reimbursement payments to qualifying families on a monthly
basis or may make quarterly payments when the monthly reimbursement amount is
$15.00 or less. Reimbursements must be made once per calendar-year quarter, either
prospectively or retroactively, and must be prorated if the family leaves the program in
advance of its next quarterly reimbursement. The PHA must also adopt hardship policies
for families for whom receiving quarterly reimbursement would create a financial hardship.
The PHA must issue reimbursements that exceed $15.00 per month on a monthly basis.
PHA Policy
The PHA will issue all utility reimbursements monthly.
6-III.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT [24 CFR 5.630]
PHA Policy
The financial hardship rules described below do not apply in this jurisdiction
because the PHA has established a minimum rent of $0.
Overview
If the PHA establishes a minimum rent greater than zero, the PHA must grant an
exemption from the minimum rent if a family is unable to pay the minimum rent because
of financial hardship.
The financial hardship exemption applies only to families required to pay the minimum
rent. If a family’s TTP is higher than the minimum rent, the family is not eligible for a
hardship exemption. If the PHA determines that a hardship exists, the TTP is the highest of
the remaining components of the family’s calculated TTP.
HUD-Defined Financial Hardship
Financial hardship includes the following situations:
Page 6-64
(1) The family has lost eligibility for or is awaiting an eligibility determination for a federal,
state, or local assistance program. This includes a family member who is a noncitizen
lawfully admitted for permanent residence under the Immigration and Nationality Act
who would be entitled to public benefits but for Title IV of the Personal Responsibility
and Work Opportunity Act of 1996.
PHA Policy
A hardship will be considered to exist only if the loss of eligibility has an impact on
the family’s ability to pay the minimum rent.
For a family waiting for a determination of eligibility, the hardship period will end as
of the first of the month following (1) implementation of assistance, if approved, or
(2) the decision to deny assistance. A family whose request for assistance is denied
may request a hardship exemption based upon one of the other allowable hardship
circumstances.
(2) The family would be evicted because it is unable to pay the minimum rent.
PHA Policy
For a family to qualify under this provision, the cause of the potential eviction must
be the family’s failure to pay rent or tenant-paid utilities.
(3) Family income has decreased because of changed family circumstances, including the
loss of employment.
(4)
A death has occurred in the family.
PHA Policy
In order to qualify under this provision, a family must describe how the death has
created a financial hardship (e.g., because of funeral-related expenses or the loss of
the family member’s income).
(5) The family has experienced other circumstances determined by the PHA.
PHA Policy
The PHA has not established any additional hardship criteria.
Implementation of Hardship Exemption
Determination of Hardship
Page 6-65
When a family requests a financial hardship exemption, the PHA must suspend the
minimum rent requirement beginning the first of the month following the family’s request.
The PHA then determines whether the financial hardship exists and whether the hardship
is temporary or long-term.
PHA Policy
The PHA defines temporary hardship as a hardship expected to last 90 days or less.
Long term hardship is defined as a hardship expected to last more than 90 days.
The PHA may not evict the family for nonpayment of minimum rent during the 90-day
period beginning the month following the family’s request for a hardship exemption.
When the minimum rent is suspended, the TTP reverts to the highest of the remaining
components of the calculated TTP. The example below demonstrates the effect of the
minimum rent exemption.
Example: Impact of Minimum Rent Exemption
Assume the PHA has established a minimum rent of $50.
TTP – No Hardship
TTP – With Hardship
$0
$15
N/A
$50
30% of monthly adjusted
income
10% of monthly gross income
Welfare rent
Minimum rent
$0
$15
N/A
$50
30% of monthly adjusted
income
10% of monthly gross income
Welfare rent
Minimum rent
Minimum rent applies.
TTP = $50
Hardship exemption granted.
TTP = $15
PHA Policy
To qualify for a hardship exemption, a family must submit a request for a hardship
exemption in writing. The request must explain the nature of the hardship and how
the hardship has affected the family’s ability to pay the minimum rent.
The PHA will make the determination of hardship within 30 calendar days.
Page 6-66
No Financial Hardship
If the PHA determines there is no financial hardship, the PHA will reinstate the minimum
rent and require the family to repay the amounts suspended.
For procedures pertaining to grievance hearing requests based upon the PHA’s denial of a
hardship exemption, see Chapter 14, Grievances and Appeals.
PHA Policy
The PHA will require the family to repay the suspended amount within 30 calendar
days of the PHA’s notice that a hardship exemption has not been granted.
Temporary Hardship
If the PHA determines that a qualifying financial hardship is temporary, the PHA must
suspend the minimum rent for the 90-day period beginning the first of the month following
the date of the family’s request for a hardship exemption.
At the end of the 90-day suspension period, the family must resume payment of the
minimum rent and must repay the PHA the amounts suspended. HUD requires the PHA to
offer a reasonable repayment agreement, on terms and conditions established by the PHA.
The PHA also may determine that circumstances have changed and the hardship is now a
long-term hardship.
For procedures pertaining to grievance hearing requests based upon the PHA’s denial of a
hardship exemption, see Chapter 14, Grievances and Appeals.
PHA Policy
The PHA will enter into a repayment agreement in accordance with the PHA’s
repayment agreement policy (see Chapter 16).
Page 6-67
Long-Term Hardship
If the PHA determines that the financial hardship is long-term, the PHA must exempt the
family from the minimum rent requirement for so long as the hardship continues. The
exemption will apply from the first of the month following the family’s request until the end
of the qualifying hardship. When the financial hardship has been determined to be long-
term, the family is not required to repay the minimum rent.
PHA Policy
The hardship period ends when any of the following circumstances apply:
(1) At an interim or annual reexamination, the family’s calculated TTP is greater than
the minimum rent.
(2) For hardship conditions based on loss of income, the hardship condition will
continue to be recognized until new sources of income are received that are at
least equal to the amount lost. For example, if a hardship is approved because a
family no longer receives a $60/month child support payment, the hardship will
continue to exist until the family receives at least $60/month in income from
another source or once again begins to receive the child support.
(3) For hardship conditions based upon hardship-related expenses, the minimum
rent exemption will continue to be recognized until the cumulative amount
exempted is equal to the expense incurred.
Page 6-68
6-III.C. UTILITY ALLOWANCES [24 CFR 965, Subpart E]
Overview
Utility allowances are provided to families paying income-based rents when the cost of
utilities is not included in the rent. When determining a family’s income-based rent, the
PHA must use the utility allowance applicable to the type of dwelling unit leased by the
family.
For policies on establishing and updating utility allowances, see Chapter 16.
Reasonable Accommodation and Individual Relief
On request from a family, PHAs must approve a utility allowance that is higher than the
applicable amount for the dwelling unit if a higher utility allowance is needed as a
reasonable accommodation to make the program accessible to and usable by the family
with a disability [24 CFR 8 and 100, PH Occ GB, p. 172].
Likewise, residents with disabilities may not be charged for the use of certain resident-
supplied appliances if there is a verified need for special equipment because of the
disability [PH Occ GB, p. 172].
See Chapter 2 for policies related to reasonable accommodations.
Further, the PHA may grant requests for relief from charges in excess of the utility
allowance on reasonable grounds, such as special needs of the elderly, ill, or residents with
disabilities, or special factors not within control of the resident, as the PHA deems
appropriate. The family must request the higher allowance and provide the PHA with an
explanation about the additional allowance required.
PHAs should develop criteria for granting individual relief, notify residents about the
availability of individual relief, and notify participants about the availability of individual
relief programs (sometimes referred to as “Medical Baseline discounts”) offered by the
local utility company [Utility Allowance GB, p. 19; 24 CFR 965.508].
Page 6-69
PHA Policy
The family must request the higher allowance and provide the PHA with information
about the amount of additional allowance required.
The PHA will consider the following criteria as valid reasons for granting individual
relief:
The family’s consumption was mistakenly portrayed as excessive due to
defects in the meter or errors in the meter reading.
The excessive consumption is caused by a characteristic of the unit or owner-
supplied equipment that is beyond the family’s control, such as a particularly
inefficient refrigerator or inadequate insulation. The allowance should be
adjusted to reflect the higher consumption needs associated with the unit
until the situation is remedied. The resident should be granted individual
relief until the allowance is adjusted.
The excessive consumption is due to special needs of the family that are
beyond their control, such as the need for specialized equipment in the case
of a family member who is ill, elderly, or who has a disability.
In determining the amount of the reasonable accommodation or individual relief,
the PHA will allow a reasonable measure of additional usage as necessary. To arrive
at the amount of additional utility cost of specific equipment, the family may provide
information from the manufacturer of the equipment, or the family or PHA may
conduct an internet search for an estimate of usage or additional monthly cost.
Information on reasonable accommodation and individual relief for charges in
excess of the utility allowance will be provided to all residents at move-in and with
any notice of proposed allowances, schedule surcharges, and revisions. The PHA will
also provide information on utility relief programs or medical discounts (sometimes
referred to as “Medical Baseline discounts”) that may be available through local
utility providers.
The family must request the higher allowance and provide the PHA with information
about the amount of additional allowance required.
At its discretion, the PHA may reevaluate the need for the increased utility allowance
as a reasonable accommodation at any regular reexamination.
If the excessive consumption is caused by a characteristic of the unit or PHA-
supplied equipment that is beyond the family’s control, such as a particularly
Page 6-70
inefficient refrigerator or inadequate insulation, the individual relief to the resident
will cease when the situation is remedied.
Page 6-71
Utility Allowance Revisions [24 CFR 965.507]
The PHA must review at least annually the basis on which utility allowances have been
established and, if reasonably required in order to continue adherence to standards
described in 24 CFR 965.505, must establish revised allowances.
The PHA must revise the utility allowance schedule if there is a rate change that by itself or
together with prior rate changes not adjusted for, results in a change of 10 percent or more
from the rates on which such allowances were based.
Adjustments to resident payments as a result of such changes must be retroactive to the
first day of the month following the month in which the last rate change taken into account
in such revision became effective. Such rate changes are not subject to the 60-day notice
[24 CFR 965.507(b)].
The tenant rent calculations must reflect any changes in the PHA’s utility allowance
schedule [24 CFR 960.253(c)(3)].
PHA Policy
Between annual reviews of utility allowances, the PHA will only revise its utility
allowances due to a rate change, when required to by the regulation.
Page 6-72
6-III.D. PRORATED RENT FOR MIXED FAMILIES [24 CFR 5.520]
HUD regulations prohibit assistance to ineligible family members. A mixed family is one that
includes at least one U.S. citizen or eligible immigrant and any number of ineligible family
members. Except for non-public housing over income families, the PHA must prorate the
assistance provided to a mixed family. The PHA will first determine TTP as if all family
members were eligible and then prorate the rent based upon the number of family
members that actually are eligible. To do this, the PHA must:
(1) Subtract the TTP from the flat rent applicable to the unit. The result is the maximum
subsidy for which the family could qualify if all members were eligible.
(2) Divide the family maximum subsidy by the number of persons in the family to
determine the maximum subsidy per each family member who is eligible (member
maximum subsidy).
(3) Multiply the member maximum subsidy by the number of eligible family members.
(4) Subtract the subsidy calculated in the last step from the flat rent. This is the prorated
TTP.
(5) Subtract the utility allowance for the unit from the prorated TTP. This is the prorated
rent for the mixed family.
PHA Policy
Revised public housing flat rents will be applied to a mixed family’s rent calculation
at the first annual reexamination after the revision is adopted.
(6) When the mixed family’s TTP is greater than the applicable flat rent, use the TTP as the
prorated TTP. The prorated TTP minus the utility allowance is the prorated rent for the
mixed family.
Page 6-73
6-III.E. FLAT RENTS AND FAMILY CHOICE IN RENTS [24 CFR 960.253]
Flat Rents [24 CFR 960.253(b)]
The flat rent is designed to encourage self-sufficiency and to avoid creating disincentives
for continued residency by families who are attempting to become economically self-
sufficient.
Changes in family income, expenses, or composition will not affect the flat rent amount
because it is outside the income-based formula.
Policies related to the reexamination of families paying flat rent are contained in Chapter
9, and policies related to the establishment and review of flat rents are contained in
Chapter 16.
Family Choice in Rents [24 CFR 960.253(a) and (e)]
With the exception of non-public housing over income families, once each year, the PHA
must offer families the choice between a flat rent and an income-based rent. The family
may not be offered this choice more than once a year. The PHA must document that flat
rents were offered to families under the methods used to determine flat rents for the PHA.
PHA Policy
The annual PHA offer to a family of the choice between flat and income-based rent
will be conducted upon admission and upon each subsequent annual
reexamination.
The PHA will require families to submit their choice of flat or income-based rent in
writing and will maintain such requests in the tenant file as part of the admission or
annual reexamination process.
The PHA must provide sufficient information for families to make an informed choice. This
information must include the PHA’s policy on switching from flat rent to income-based
rent due to financial hardship and the dollar amount of the rent under each option.
However, if the family chose the flat rent for the previous year the PHA is required to
provide an income-based rent amount only in the year that a reexamination of income is
conducted or if the family specifically requests it and submits updated income
information.
Page 6-74
Switching from Flat Rent to Income-Based Rent Due to Hardship [24 CFR 960.253(f)]
With the exception of non-public housing over-income families, a family can opt to switch
from flat rent to income-based rent at any time if they are unable to pay the flat rent due to
financial hardship. If the PHA determines that a financial hardship exists, the PHA must
immediately allow the family to switch from flat rent to the income-based rent.
PHA Policy
Upon determination by the PHA that a financial hardship exists, the PHA will allow a
family to switch from flat rent to income-based rent effective the first of the month
following the family’s request.
Reasons for financial hardship include:
•
The family has experienced a decrease in income because of changed circumstances,
including loss or reduction of employment, death in the family, or reduction in or loss of
earnings or other assistance
•
The family has experienced an increase in expenses, because of changed
circumstances, for medical costs, childcare, transportation, education, or similar items
•
Such other situations determined by the PHA to be appropriate
PHA Policy
The PHA considers payment of flat rent to be a financial hardship whenever the
switch to income-based rent would be lower than the flat rent [PH Occ GB, p. 137].
Flat Rents and Earned Income Disallowance [A&O FAQs]
Because the EID is a function of income-based rents, a family paying flat rent cannot qualify
for the EID even if a family member experiences an event that would qualify the family for
the EID. If the family later chooses to pay income-based rent, they would only qualify for
the EID if a new qualifying event occurred.
Under the EID original calculation method, a family currently paying flat rent that
previously qualified for the EID while paying income-based rent and is currently within their
exclusion period would have the exclusion period continue while paying flat rent as long as
the employment that is the subject of the exclusion continues. A family paying flat rent
could therefore see a family member’s exclusion period expire while the family is paying
flat rent.
Under the EID revised calculation method, a family currently paying flat rent that previously
qualified for the EID while paying income-based rent and is currently within their exclusion
period would have the exclusion period continue while paying flat rent regardless whether
Page 6-75
the employment that is the subject of the exclusion continues. A family paying flat rent
could therefore see a family member’s exclusion period expire while the family is paying
flat rent.
EXHIBIT 6-1: ANNUAL INCOME INCLUSIONS
24 CFR 5.609
(a) Annual income means all amounts,
monetary or not, which:
(1) Go to, or on behalf of, the family head or
spouse (even if temporarily absent) or to
any other family member; or
(2) Are anticipated to be received from a
source outside the family during the 12-
month period following admission or
annual reexamination effective date; and
(3) Which are not specifically excluded in
paragraph (c) of this section.
(4) Annual income also means amounts
derived (during the 12-month period) from
assets to which any member of the family
has access.
(b) Annual income includes, but is not limited
to:
(1) The full amount, before any payroll
deductions, of wages and salaries, overtime
pay, commissions, fees, tips and bonuses,
and other compensation for personal
services;
(2) The net income from the operation of a
business or profession. Expenditures for
business expansion or amortization of
capital indebtedness shall not be used as
deductions in determining net income. An
allowance for depreciation of assets used in
a business or profession may be deducted,
based on straight line depreciation, as
provided in Internal Revenue Service
regulations. Any withdrawal of cash or
assets from the operation of a business or
profession will be included in income,
except to the extent the withdrawal is
reimbursement of cash or assets invested
in the operation by the family;
(3) Interest, dividends, and other net income
of any kind from real or personal property.
Expenditures for amortization of capital
indebtedness shall not be used as
deductions in determining net income. An
allowance for depreciation is permitted only
as authorized in paragraph (b)(2) of this
section. Any withdrawal of cash or assets
from an investment will be included in
income, except to the extent the withdrawal
is reimbursement of cash or assets invested
by the family. Where the family has net
family assets in excess of $5,000, annual
income shall include the greater of the
actual income derived from all net family
assets or a percentage of the value of such
assets based on the current passbook
savings rate, as determined by HUD;
(4) The full amount of periodic amounts
received from Social Security, annuities,
insurance policies, retirement funds,
pensions, disability or death benefits, and
other similar types of periodic receipts,
including a lump-sum amount or
prospective monthly amounts for the
delayed start of a periodic amount (except
as provided in paragraph (c)(14) of this
section);
(5) Payments in lieu of earnings, such as
unemployment and disability
compensation, worker's compensation and
Page 6-76
severance pay (except as provided in
paragraph (c)(3) of this section);
(6) Welfare assistance payments.
(i) Welfare assistance payments made
under the Temporary Assistance for Needy
Families (TANF) program are included in
annual income only to the extent such
payments:
(A) Qualify as assistance under the TANF
program definition at 45 CFR 260.311; and
(B) Are not otherwise excluded under
paragraph (c) of this section.
(ii) If the welfare assistance payment
includes an amount specifically designated
for shelter and utilities that is subject to
adjustment by the welfare assistance
agency in accordance with the actual cost of
shelter and utilities, the amount of welfare
assistance income to be included as income
shall consist of:
(A) The amount of the allowance or grant
exclusive of the amount specifically
designated for shelter or utilities; plus
(B) The maximum amount that the welfare
assistance agency could in fact allow the
family for shelter and utilities. If the family's
welfare assistance is ratably reduced from
the standard of need by applying a
percentage, the amount calculated under
this paragraph shall be the amount
resulting from one application of the
percentage.
(7) Periodic and determinable allowances,
such as alimony and child support
payments, and regular contributions or gifts
received from organizations or from
persons not residing in the dwelling;
(8) All regular pay, special pay and
allowances of a member of the Armed
1 Text of 45 CFR 260.31 follows (next page).
Forces (except as provided in paragraph
(c)(7) of this section)
(9) For section 8 programs only and as
provided in 24 CFR 5.612, any financial
assistance, in excess of amounts received
for tuition, that an individual receives under
the Higher Education Act of 1965 (20 U.S.C.
1001 et seq.), from private sources, or from
an institution of higher education (as
defined under the Higher Education Act of
1965 (20 U.S.C. 1002)), shall be considered
income to that individual, except that
financial assistance described in this
paragraph is not considered annual income
for persons over the age of 23 with
dependent children. For purposes of this
paragraph, “financial assistance” does not
include loan proceeds for the purpose of
determining income.
HHS DEFINITION OF "ASSISTANCE"
45 CFR: GENERAL TEMPORARY ASSISTANCE FOR
NEEDY FAMILIES
260.31 What does the term “assistance”
mean?
(a)(1) The term “assistance” includes cash,
payments, vouchers, and other forms of
benefits designed to meet a family’s
ongoing basic needs (i.e., for food, clothing,
shelter, utilities, household goods, personal
care items, and general incidental
expenses).
(2) It includes such benefits even when they
are:
(i) Provided in the form of payments by a
TANF agency, or other agency on its behalf,
to individual recipients; and
(ii) Conditioned on participation in work
experience or community service (or any
Page 6-77
other work activity under 261.30 of this
chapter).
(3) Except where excluded under paragraph
(b) of this section, it also includes supportive
services such as transportation and
childcare provided to families who are not
employed.
(b) [The definition of “assistance”] excludes:
(1) Nonrecurrent, short-term benefits that:
(i) Are designed to deal with a specific crisis
situation or episode of need;
(ii) Are not intended to meet recurrent or
ongoing needs; and
(iii) Will not extend beyond four months.
(2) Work subsidies (i.e., payments to
employers or third parties to help cover the
costs of employee wages, benefits,
supervision, and training);
(3) Supportive services such as childcare
and transportation provided to families who
are employed;
(4) Refundable earned income tax credits;
(5) Contributions to, and distributions from,
Individual Development Accounts;
(6) Services such as counseling, case
management, peer support, childcare
information and referral, transitional
services, job retention, job advancement,
and other employment-related services that
do not provide basic income support; and
(7) Transportation benefits provided under
a Job Access or Reverse Commute project,
pursuant to section 404(k) of [the Social
Security] Act, to an individual who is not
otherwise receiving assistance
Page 6-78
EXHIBIT 6-2: ANNUAL INCOME EXCLUSIONS
24 CFR 5.609(b) as updated for HOTMA
(b)Annual income does not include the
following:
(1) Any imputed return on an asset when
net family assets are less than or equal to
the HUD-published threshold amount
(which amount HUD will adjust annually in
accordance with the Consumer Price Index
for Urban Wage Earners and Clerical
Workers) and no actual income from the net
family assets can be determined.
(2) The following types of trust distributions:
(i) For an irrevocable trust or a revocable
trust outside the control of the family or
household excluded from the definition of
net family assets under § 5.603(b):
(A) Distributions of the principal or corpus
of the trust; and
(B) Distributions of income from the trust
when the distributions are used to pay the
costs of health and medical care expenses
for a minor.
(ii) For a revocable trust under the control of
the family or household, any distributions
from the trust; except that any actual
income earned by the trust, regardless of
whether it is distributed, shall be
considered income to the family at the time
it is received by the trust.
(3) Earned income of children under the 18
years of age.
(4) Payments received for the care of foster
children or foster adults, or State or Tribal
kinship or guardianship care payments.
(5) Insurance payments and settlements for
personal or property losses, including but
not limited to payments through health
insurance, motor vehicle insurance, and
workers’ compensation.
(6) Amounts received by the family that are
specifically for, or in reimbursement of, the
cost of health and medical care expenses
for any family member.
(7) Any amounts recovered in any civil
action or settlement based on a claim of
malpractice, negligence, or other breach of
duty owed to a family member arising out
of law, that resulted in a member of the
family becoming disabled.
(8) Income of a live-in aide, foster child, or
foster adult as defined in §§ 5.403 and
5.603, respectively.
(9)
(i) Any assistance that section 479B of the
Higher Education Act of 1965, as amended
(20 U.S.C. 1087uu), requires be excluded
from a family’s income; and
Page 6-79
(ii) Student financial assistance for tuition,
books, and supplies (including supplies and
equipment to support students with
learning disabilities or other disabilities),
room and board, and other fees required
and charged to a student by an institution
of higher education (as defined under
Section 102 of the Higher Education Act of
1965 (20 U.S.C. 1002)) and, for a student
who is not the head of household or
spouse, the reasonable and actual costs of
housing while attending the institution of
higher education and not residing in an
assisted unit.
(A) Student financial assistance, for
purposes of this paragraph (9)(ii), means a
grant or scholarship received from— (
1) The Federal government;
(2) A State, Tribe, or local government;
(3) A private foundation registered as a
nonprofit under 26 U.S.C. 501(c)(3);
(4) A business entity (such as corporation,
general partnership, limited liability
company, limited partnership, joint venture,
business trust, public benefit corporation,
or nonprofit entity); or
(5) An institution of higher education.
(B) Student financial assistance, for
purposes of this paragraph (9)(ii), does not
include—
(1) Any assistance that is excluded pursuant
to paragraph (b)(9)(i) of this section;
(2) Financial support provided to the
student in the form of a fee for services
performed (e.g., a work study or teaching
fellowship that is not excluded pursuant to
paragraph (b)(9)(i) of this section); (
3) Gifts, including gifts from family or
friends; or
(4) Any amount of the scholarship or grant
that, either by itself or in combination with
assistance excluded under this paragraph
or paragraph (b)(9)(i), exceeds the actual
covered costs of the student. The actual
covered costs of the student are the actual
costs of tuition, books and supplies
(including supplies and equipment to
support students with learning disabilities
or other disabilities), room and board, or
other fees required and charged to a
student by the education institution, and,
for a student who is not the head of
household or spouse, the reasonable and
actual costs of housing while attending the
institution of higher education and not
residing in an assisted unit. This calculation
is described further in paragraph (b)(9)(ii)€
of this section.
(C) Student financial assistance, for
purposes of this paragraph (b)(9)(ii) must
be:
(1) Expressly for tuition, books, room and
board, or other fees required and charged
to a student by the education institution;
(2) Expressly to assist a student with the
costs of higher education; or
(3) Expressly to assist a student who is not
the head of household or spouse with the
reasonable and actual costs of housing
while attending the education institution
and not residing in an assisted unit.
(D) Student financial assistance, for
purposes of this paragraph (b)(9)(ii), may be
paid directly to the student or to the
educational institution on the student’s
behalf. Student financial assistance paid to
the student must be verified by the
responsible entity as student financial
assistance consistent with this paragraph
(b)(9)(ii).
Page 6-80
(E) When the student is also receiving
assistance excluded under paragraph
(b)(9)(i) of this section, the amount of
student financial assistance under this
paragraph (b)(9)(ii) is determined as follows:
(1) If the amount of assistance excluded
under paragraph (b)(9)(i) of this section is
equal to or exceeds the actual covered costs
under paragraph (b)(9)(ii)(B)(4) of this
section, none of the assistance described in
this paragraph (b)(9)(ii) of this section is
considered student financial assistance
excluded from income under this paragraph
(b)(9)(ii)(E).
(2) If the amount of assistance excluded
under paragraph (b)(9)(i) of this section is
less than the actual covered costs under
paragraph (b)(9)(ii)(B)(4) of this section, the
amount of assistance described in
paragraph (b)(9)(ii) of this section that is
considered student financial assistance
excluded under this paragraph is the lower
of:
(i) the total amount of student financial
assistance received under this paragraph
(b)(9)(ii) of this section, or
(ii) the amount by which the actual covered
costs under paragraph (b)(9)(ii)(B)(4) of this
section exceeds the assistance excluded
under paragraph (b)(9)(i) of this section.
(10) Income and distributions from any
Coverdell education savings account under
section 530 of the Internal Revenue Code of
1986 or any qualified tuition program under
section 529 of such Code; and income
earned by government contributions to,
and distributions from, “baby bond”
accounts created, authorized, or funded by
Federal, State, or local government.
(11) The special pay to a family member
serving in the Armed Forces who is exposed
to hostile fire.
(12)
(i) Amounts received by a person with a
disability that are disregarded for a limited
time for purposes of Supplemental Security
Page 6-81
Income eligibility and benefits because they
are set aside for use under a Plan to Attain
Self-Sufficiency (PASS);
(ii) Amounts received by a participant in
other publicly assisted programs which are
specifically for or in reimbursement of out-
of-pocket expenses incurred (e.g., special
equipment, clothing, transportation,
childcare, etc.) and which are made solely to
allow participation in a specific program;
(iii) Amounts received under a resident
service stipend not to exceed $200 per
month. A resident service stipend is a
modest amount received by a resident for
performing a service for the PHA or owner,
on a part-time basis, that enhances the
quality of life in the development.
(iv) Incremental earnings and benefits
resulting to any family member from
participation in training programs funded
by HUD or in qualifying Federal, State,
Tribal, or local employment training
programs (including training programs not
affiliated with a local government) and
training of a family member as resident
management staff. Amounts excluded by
this provision must be received under
employment training programs with clearly
defined goals and objectives and are
excluded only for the period during which
the family member participates in the
employment training program unless those
amounts are excluded under paragraph
(b)(9)(i) of this section.
(13) Reparation payments paid by a foreign
government pursuant to claims filed under
the laws of that government by persons
who were persecuted during the Nazi era.
(14) Earned income of dependent fulltime
students in excess of the amount of the
deduction for a dependent in § 5.611.
(15) Adoption assistance payments for a
child in excess of the amount of the
deduction for a dependent in § 5.611.
Page 6-82
(16) Deferred periodic amounts from
Supplemental Security Income and Social
Security benefits that are received in a lump
sum amount or in prospective monthly
amounts, or any deferred Department of
Veterans Affairs disability benefits that are
received in a lump sum amount or in
prospective monthly amounts.
(17) Payments related to aid and attendance
under 38 U.S.C. 1521 to veterans in need of
regular aid and attendance.
(18) Amounts received by the family in the
form of refunds or rebates under State or
local law for property taxes paid on the
dwelling unit.
(19) Payments made by or authorized by a
State Medicaid agency (including through a
managed care entity) or other State or
Federal agency to a family to enable a
family member who has a disability to
reside in the family’s assisted unit.
Authorized payments may include
payments to a member of the assisted
family through the State Medicaid agency
(including through a managed care entity)
or other State or Federal agency for
caregiving services the family member
provides to enable a family member who
has a disability to reside in the family’s
assisted unit.
(20) Loan proceeds (the net amount
disbursed by a lender to or on behalf of a
borrower, under the terms of a loan
agreement) received by the family or a third
party (e.g., proceeds received by the family
from a private loan to enable attendance at
an educational institution or to finance the
purchase of a car).
(21) Payments received by Tribal members
as a result of claims relating to the
mismanagement of assets held in trust by
the United States, to the extent such
payments are also excluded from gross
income under the Internal Revenue Code or
other Federal law.
Page 6-83
(22) Amounts that HUD is required by
Federal statute to exclude from
consideration as income for purposes of
determining eligibility or benefits under a
category of assistance programs that
includes assistance under any program to
which the exclusions set forth in paragraph
(b) of this section apply. HUD will publish a
notice in the Federal Register to identify the
benefits that qualify for this exclusion.
Updates will be published when necessary.
(23) Replacement housing “gap” payments
made in accordance with 49 CFR part 24
that offset increased out of pocket costs of
displaced persons that move from one
federally subsidized housing unit to another
Federally subsidized housing unit. Such
replacement housing “gap” payments are
not excluded from annual income if the
increased cost of rent and utilities is
subsequently reduced or eliminated, and
the displaced person retains or continues to
receive the replacement housing “gap”
payments.
(24) Nonrecurring income, which is income
that will not be repeated in the coming year
based on information provided by the
family. Income received as an independent
contractor, day laborer, or seasonal worker
is not excluded from income under this
paragraph, even if the source, date, or
amount of the income varies. Nonrecurring
income includes:
(i) Payments from the U.S. Census Bureau
for employment (relating to decennial
census or the American Community Survey)
lasting no longer than 180 days and not
culminating in permanent employment.
(ii) Direct Federal or State payments
intended for economic stimulus or
recovery.
(iii) Amounts directly received by the family
as a result of State refundable tax credits or
State tax refunds at the time they are
received.
Page 6-84
(iv) Amounts directly received by the family
as a result of Federal refundable tax credits
and Federal tax refunds at the time they are
received.
(v) Gifts for holidays, birthdays, or other
significant life events or milestones (e.g.,
wedding gifts, baby showers, anniversaries).
(vi) Non-monetary, in-kind donations, such
as food, clothing, or toiletries, received from
a food bank or similar organization.
(vii) Lump-sum additions to net family
assets, including but not limited to lottery or
other contest winnings.
(25) Civil rights settlements or judgments,
including settlements or judgments for back
pay.
(26) Income received from any account
under a retirement plan recognized as such
by the Internal Revenue Service, including
individual retirement arrangements (IRAs),
employer retirement plans, and retirement
plans for self-employed individuals; except
that any distribution of periodic payments
from such accounts shall be income at the
time they are received by the family.
(27) Income earned on amounts placed in a
family’s Family Self Sufficiency Account.
(28) Gross income a family member
receives through self-employment or
operation of a business; except that the
following shall be considered income to a
family member:
(i) Net income from the operation of a
business or profession. Expenditures for
business expansion or amortization of
capital indebtedness shall not be used as
deductions in determining net income. An
allowance for depreciation of assets used in
a business or profession may be deducted,
based on straight line depreciation, as
provided in Internal Revenue Service
regulations; and
(ii) Any withdrawal of cash or assets from
the operation of a business or profession
will be included in income, except to the
extent the withdrawal is reimbursement of
cash or assets invested in the operation by
the family.
EXHIBIT 6-3: TREATMENT OF FAMILY ASSETS
24 CFR 5.603(b) Net Family Assets
(1) 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.
(2) In cases where a trust fund has been
established and the trust is not revocable
by, or under the control of, any member of
the family or household, the 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 under Sec. 5.609.
Page 6-85
(3) In determining net family assets, PHAs or
owners, as applicable, shall include the
value of any business or family assets
disposed of by an applicant or tenant for
less than fair market value (including a
disposition in trust, but not in a foreclosure
or bankruptcy sale) during the two years
preceding the date of application for the
program or reexamination, as applicable, in
excess of the consideration received
therefor. In the case of a disposition as part
of a separation or divorce settlement, the
disposition will not be considered to be for
less than fair market value if the applicant
or tenant receives important consideration
not measurable in dollar terms.
(4) For purposes of determining annual
income under Sec. 5.609, the term "net
family assets'' does not include the value of
a home currently being purchased with
assistance under part 982, subpart M of this
title. This exclusion is limited to the first 10
years after the purchase date of the home
EXHIBIT 6-4: THE EFFECT OF WELFARE BENEFIT REDUCTION
24 CFR 5.615
Public housing program and Section 8 tenant-based assistance program: How welfare
benefit reduction affects family income.
(a) Applicability. This section applies to
covered families who reside in public
housing (part 960 of this title) or receive
Section 8 tenant-based assistance (part 982
of this title).
(b) Definitions. The following definitions
apply for purposes of this section:
Covered families. Families who receive
welfare assistance or other public
assistance benefits ("welfare benefits'') from
a State or other public agency ("welfare
agency'') under a program for which
Federal, State, or local law requires that a
member of the family must participate in an
economic self-sufficiency program as a
condition for such assistance.
Economic self-sufficiency program. See
definition at Sec. 5.603.
Imputed welfare income. The amount of
annual income not actually received by a
family, as a result of a specified welfare
benefit reduction, that is nonetheless
included in the family's annual income for
purposes of determining rent.
Specified welfare benefit reduction.
(1) A reduction of welfare benefits by the
welfare agency, in whole or in part, for a
family member, as determined by the
welfare agency, because of fraud by a family
member in connection with the welfare
program; or because of welfare agency
sanction against a family member for
noncompliance with a welfare agency
requirement to participate in an economic
self-sufficiency program.
Page 6-86
(2) "Specified welfare benefit reduction''
does not include a reduction or termination
of welfare benefits by the welfare agency:
(i) at expiration of a lifetime or other time
limit on the payment of welfare benefits;
(ii) because a family member is not able to
obtain employment, even though the family
member has complied with welfare agency
economic self-sufficiency or work activities
requirements; or
(iii) because a family member has not
complied with other welfare agency
requirements.
(c) Imputed welfare income.
(1) A family's annual income includes the
amount of imputed welfare income
(because of a specified welfare benefits
reduction, as specified in notice to the PHA
by the welfare agency), plus the total
amount of other annual income as
determined in accordance with Sec. 5.609.
(2) At the request of the PHA, the welfare
agency will inform the PHA in writing of the
amount and term of any specified welfare
benefit reduction for a family member, and
the reason for such reduction, and will also
inform the PHA of any subsequent changes
in the term or amount of such specified
welfare benefit reduction. The PHA will use
this information to determine the amount
of imputed welfare income for a family.
(3) A family's annual income includes
imputed welfare income in family annual
income, as determined at the PHA's interim
or regular reexamination of family income
and composition, during the term of the
welfare benefits reduction (as specified in
information provided to the PHA by the
welfare agency).
Page 6-87
(4) The amount of the imputed welfare
income is offset by the amount of additional
income a family receives that commences
after the time the sanction was imposed.
When such additional income from other
sources is at least equal to the imputed
(5) The PHA may not include imputed
welfare income in annual income if the
family was not an assisted resident at the
time of sanction.
(d) Review of PHA decision.
(1) Public housing. If a public housing tenant
claims that the PHA has not correctly
calculated the amount of imputed welfare
income in accordance with HUD
requirements, and if the PHA denies the
family's request to modify such amount, the
PHA shall give the tenant written notice of
such denial, with a brief explanation of the
basis for the PHA determination of the
amount of imputed welfare income. The
PHA notice shall also state that if the tenant
does not agree with the PHA determination,
the tenant may request a grievance hearing
in accordance with part 966, subpart B of
this title to review the PHA determination.
The tenant is not required to pay an escrow
deposit pursuant to Sec. 966.55(e) for the
portion of tenant rent attributable to the
imputed welfare income in order to obtain a
grievance hearing on the PHA
determination.
(2) Section 8 participant. A participant in the
Section 8 tenant-based assistance program
may request an informal hearing, in
accordance with Sec. 982.555 of this title, to
review the PHA determination of the
amount of imputed welfare income that
must be included in the family's annual
income in accordance with this section. If
the family claims that such amount is not
correctly calculated in accordance with HUD
requirements, and if the PHA denies the
family's request to modify such amount, the
PHA shall give the family written notice of
such denial, with a brief explanation of the
basis for the PHA determination of the
amount of imputed welfare income. Such
notice shall also state that if the family does
not agree with the PHA determination, the
family may request an informal hearing on
the determination under the PHA hearing
procedure.
(e) PHA relation with welfare agency.
(1) The PHA must ask welfare agencies to
inform the PHA of any specified welfare
benefits reduction for a family member, the
reason for such reduction, the term of any
such reduction, and any subsequent
welfare agency determination affecting the
amount or term of a specified welfare
benefits reduction. If the welfare agency
determines a specified welfare benefits
reduction for a family member, and gives
the PHA written notice of such reduction,
the family's annual incomes shall include
the imputed welfare income because of the
specified welfare benefits reduction.
(2) The PHA is responsible for determining
the amount of imputed welfare income that
is included in the family's annual income as
a result of a specified welfare benefits
reduction as determined by the welfare
agency, and specified in the notice by the
welfare agency to the PHA. However, the
PHA is not responsible for determining
whether a reduction of welfare benefits by
the welfare agency was correctly
determined by the welfare agency in
accordance with welfare program
requirements and procedures, nor for
providing the opportunity for review or
hearing on such welfare agency
determinations.
Page 6-88
(3) Such welfare agency determinations are
the responsibility of the welfare agency, and
the family may seek appeal of such
determinations through the welfare
agency's normal due process procedures.
The PHA shall be entitled to rely on the
welfare agency notice to the PHA of the
welfare agency's determination of a
specified welfare benefits reduction.
6-1
Chapter 6.B
INCOME AND RENT DETERMINATIONS UNDER HOTMA 102/104
[24 CFR Part 5, Subparts E and F; 24 CFR 960, Subpart C]
INTRODUCTION This chapter is applicable upon the PHA’s HOTMA 102/104 compliance date. Prior to this
date, the PHA will follow policies as outlined in Chapter 6.A. of the model policy.
A family’s annual income is used to determine their income eligibility for the public housing program and
is also used to calculate the amount of the family’s rent payment. The PHA will use the policies and
methods described in this chapter to ensure that only eligible families receive assistance and that no
family pays more or less rent than is required under the regulations. This chapter describes HUD
regulations and PHA policies related to these topics in four parts as follows:
Part I: Annual Income. HUD regulations specify the sources of income which are excluded from
the family’s annual income. These requirements and PHA policies for calculating annual income
are found in Part I.
Part II: Assets. HUD regulations specify the types of assets which are excluded from a family’s
annual income. These requirements and PHA policies for calculating income from assets are
found in Part II.
Part III: Adjusted Income. Once annual income has been established HUD regulations require
the PHA to subtract from annual income any of five mandatory deductions for which a family
qualifies and allow the PHA to adopt additional permissive deductions. These requirements and
PHA policies for calculating adjusted income are found in Part III.
Part IV: Calculating Rent. This part describes the statutory formula for calculating total tenant
payment (TTP), the use of utility allowances, and the methodology for determining family rent
payment. Also included here are flat rents and the family’s choice of rent.
6-2
PART I: ANNUAL INCOME
6-I.A. OVERVIEW [24 CFR 5.609]
Annual income includes:
•
All amounts, not specifically excluded in 24 CFR 5.609(b);
•
All amounts received from all sources (other than those specifically excluded in 24 CFR 5.609(b)) by
each member of the family who is 18 years of age or older or is the head of household or spouse;
•
Unearned income (other than those sources specifically excluded in 24 CFR 5.609(b)) by or on behalf
of each dependent who is under 18 years of age; and
•
Imputed returns of an asset based on the current passbook savings rate, as determined by HUD,
when the value of net family assets exceeds the HUD-published threshold amount (adjusted annually
and published in HUD’s Inflation-Adjusted Values tables) and the actual returns from a given asset
cannot be calculated.
In addition to this general definition, the regulations at 24 CFR 5.609(b) provide a comprehensive listing of
all sources of income that are excluded from annual income. Note, unlike in previous version of the
regulations, the current regulations governing annual income do not list sources of income that are to be
included. Instead, HUD relies on the definition of excluded income under 24 CFR 5.609(b) to provide the
scope of what is included. To that end, generally, all income is included unless it is specifically excluded
by regulation.
Annual income includes “all amounts received,” not the amount that a family may be legally entitled to
receive but did not receive. For example, a family’s child support or alimony income must be based on
payments received, not the amounts to which the family is entitled by court or agency orders However,
when a family member’s wages or benefits are garnished, levied, or withheld to pay restitution, child
support, tax debt, student loan debt, or other applicable debts, the PHA must use the gross amount of
the income, prior to the reduction, to determine a family’s annual income[Notice PIH 2023-27].
Annual income also includes all actual anticipated income from assets (provided the income is not
otherwise excluded) even if the asset itself is excluded from net family assets [Notice PIH 2023-27]. 24
CFR 5.603(b)(1) describes HUD regulations for treating specific types of assets.
The full texts of those portions of the regulations are provided in exhibits at the end of this chapter as
follows:
•
Annual Income Full Definition (Exhibit 6-1)
•
Treatment of Family Assets (Exhibit 6-2)
•
The Effect of Welfare Benefit Reduction (Exhibit 6-3)
Sections 6-I.B and 6-I.C discuss general requirements and methods for calculating annual income. The
rest of this section describes how each source of income is treated for the purposes of determining
annual income. Verification requirements for annual income are discussed in Chapter 7.
6-3
6-I.B. HOUSEHOLD COMPOSITION AND INCOME
Overview
Income received by all family members must be counted unless specifically excluded by the regulations.
It is the responsibility of the head of household to report changes in family composition in accordance
with HUD regulations and PHA policies in Chapter 9. The rules on which sources of income are counted
vary somewhat by family member. The chart below summarizes how family composition affects income
determinations.
Summary of Income Included and Excluded by Person
Live-in aides
Income from all sources (both earned and unearned) is
excluded [24 CFR §5.609(b)(8)].
Foster child or foster adult
Income from all sources (both earned and unearned) is
excluded [24 CFR §5.609(b)(8)].
Head, spouse, or cohead
Other adult family members
All sources of income not specifically excluded by the
regulations are included [24 CFR 5.609(a)].
Minors
Earned income of children under 18 years of age is
excluded [24 CFR §5.609(b)(3)].
All sources of unearned income, except those
specifically excluded by the regulations, are included.
Full-time students 18 years
of age or older (not head,
spouse, or cohead)
Earned income in excess of the dependent deduction is
excluded [24 CFR §5.609(b)(14)].
All sources of unearned income, except those
specifically excluded by the regulations, are included.
Temporarily Absent Family Members
The current regulations governing annual income do not specifically address temporarily absent family
members. The regulations also do not define “temporarily” or “permanently” absent or specify a
timeframe associated with a temporary versus a permanent absence.
PHA Policy
Unless specifically excluded by the regulations, the income of all family members approved to live
in the unit will be counted, even if the family member is temporarily absent from the unit.
Generally, an individual who is or is expected to be absent from the assisted unit for30
consecutive days or less is considered temporarily absent and continues to be considered a family
member. Generally, an individual who is or is expected to be absent from the assisted unit for
6-4
more than 180 consecutive days is considered permanently absent and no longer a family
member. Exceptions to this general policy are discussed below.
Absent Students
PHA Policy
When someone who has been considered a family member attends school away from home, the
person will continue to be considered a family member unless information becomes available to
the PHA indicating that the student has established a separate household, or the family declares
that the student has established a separate household.
Absences Due to Placement in Foster Care
Children temporarily absent from the home as a result of placement in foster care (as confirmed by the
state child welfare agency) are considered members of the family [24 CFR §5.403].
PHA Policy
If a child has been placed in foster care, the PHA will verify with the appropriate agency whether
and when the child is expected to be returned to the home. Unless the agency confirms that the
child has been permanently removed from the home, the child will continue to be counted as a
family member.
Absent Head, Spouse, or Cohead
PHA Policy
An employed head, spouse, or cohead absent from the unit more than 180 consecutive days due
to employment will continue to be considered a family member.
Family Members Confined for Medical Reasons
If a family member is confined to a nursing home or hospital on a permanent basis, PHAs may
determine that that person is no longer a member of the assisted household, and the income of
that person is not counted [New PH OCC GB, Income Determinations, p. 12].
PHA Policy
The PHA will request verification from a responsible medical professional and will use this
determination. If the responsible medical professional cannot provide a determination, the
person generally will be considered temporarily absent. The family may present evidence that the
family member is confined on a permanent basis and request that the person not be considered a
family member.
When an individual who has been counted as a family member is determined permanently absent, the
family is eligible for the medical expense deduction only if the remaining head, spouse, or cohead
qualifies as an elderly person or a person with disabilities.
6-5
Joint Custody of Children
PHA Policy
Dependents that are subject to a joint custody arrangement will be considered a member of the
family, if they live with the applicant or resident family 50 percent or more of the time.
When more than one applicant or assisted family (regardless of program) are claiming the same
dependents as family members, the family with primary custody at the time of the initial
examination or reexamination will be able to claim the dependents. If there is a dispute about
which family should claim them, the PHA will make the determination based on available
documents such as court orders, an IRS income tax return showing which family has claimed the
child for income tax purposes, school records, or other credible documentation.
Caretakers for a Child
PHA Policy
The approval of a caretaker is at the PHA’s discretion and subject to the PHA’s screening criteria. If
neither a parent nor a designated guardian remains in a household, the PHA will take the
following actions.
•
If a responsible agency has determined that another adult is to be brought into the unit to
care for a child for an indefinite period, the designated caretaker will not be considered a
family member until a determination of custody or legal guardianship is made.
•
If a caretaker has assumed responsibility for a child without the involvement of a
responsible agency or formal assignment of custody or legal guardianship, the caretaker
will be treated as a visitor for 90 days. After the 90 days has elapsed, the caretaker will be
considered a family member unless information is provided that would confirm that the
caretaker’s role is temporary. In such cases the PHA will extend the caretaker’s status as an
eligible visitor.
•
At any time that custody or guardianship has legally been awarded to a caretaker, the lease
will be transferred to the caretaker, as head of household.
•
During any period that a caretaker is considered a visitor, the income of the caretaker is
not counted in annual income and the caretaker does not qualify the family for any
deductions from income.
6-I.C. CALCULATING ANNUAL INCOME
The methodology used for calculating income differs depending on whether income is being calculated at
initial occupancy, interim reexamination, or at annual reexamination. However, income from assets is
always anticipated regardless of certification type.
6-6
Anticipating Annual Income [24 CFR 5.609(c)(1)]
At initial occupancy and for an interim reexamination of family income, the PHA is required to use
anticipated income (current income) for the upcoming 12-month period following the new admission or
interim reexamination effective date. Policies related to verifying income are found in Chapter 7.
PHA Policy
When the PHA cannot readily anticipate income based upon current circumstances (e.g., in the
case of temporary, sporadic, or variable employment, seasonal employment, unstable working
hours, or suspected fraud), the PHA will review and analyze historical data for patterns of
employment, paid benefits, and receipt of other income and use the results of this analysis to
establish annual income.
Any time current circumstances are not used to project annual income, a clear rationale for the
decision will be documented in the file. In all such cases the family may present information and
documentation to the PHA to show why the historic pattern does not represent the family’s
anticipated income.
In all cases, the family file will be documented with a clear record of the reason for the decision,
and a clear audit trail will be left as to how the PHA annualized projected income.
Known Changes in Income
If the PHA verifies an upcoming increase or decrease in income at admission or interim reexamination,
annual income will be projected by applying each income amount to the appropriate part of the 12-
month period.
The family may present information that demonstrates that implementing a change before its effective
date would create a hardship for the family. In such cases the PHA will calculate annual income using
current circumstances and then, should the change in income require the PHA to conduct an interim
reexamination, conduct an interim reexamination in accordance with PHA policy in Chapter 9.
Calculating Annual Income at Annual Reexamination [24 CFR.609(c)(2); Notice PIH 2023-27]
At annual reexamination, except where the PHA uses a streamlined income determination, PHAs must
first determine the family’s income for the previous 12-month period and use this amount as the family
income for annual reexaminations; however, adjustments to reflect current income must be made. Any
change of income since the family’s last annual reexamination, including those that did not meet the
threshold to process an interim reexamination of family income in accordance with PHA policies in
Example: An employer reports that a full-time employee who has been
receiving $8/hour will begin to receive $8.25/hour in the eighth week
after the effective date of the new admission or interim reexamination. In
such a case the PHA would calculate annual income as follows:
($8/hour × 40 hours × 7 weeks) + ($8.25 × 40 hours × 45 weeks).
6-7
Chapter 9 and HUD regulations, must be considered. If, however, there have been no changes to income,
then the amount of income calculated for the previous 12-month period is the amount that will be used
to determine the family’s rent. Income from assets is always anticipated, irrespective of the income
examination type. Policies related to conducting annual reexaminations are located in Chapter 9.
6-I.D. EARNED INCOME
Wages and Related Compensation [24 CFR 5.609(a; Notice PIH 2023-27]
The earned income of each member of the family who is 18 years of age or older, or who is the head of
household or spouse/cohead regardless of age, is included in annual income. Income received as a day
laborer or seasonal worker is also included in annual income, even if the source, date, or amount of the
income varies [24 CFR 5.609 (b)(24)].
Earned income means income or earnings from wages, tips, salaries, other employee compensation, and
net income from self-employment. Earned income does not include any pension or annuity, transfer
payments (meaning payments made or income received in which no goods or services are being paid for,
such as welfare, social security, and governmental subsidies for certain benefits), or any cash or in-kind
benefits [24 CFR 5.100].
A day laborer is defined as an individual hired and paid one day at a time without an agreement that the
individual will be hired or work again in the future [24 CFR 5.603(b)]. Income earned as a day laborer is
not considered nonrecurring income.
A seasonal worker is defined as an individual who is hired into a short-term position (e.g., for which the
customary employment period for the position is six months or fewer) and the employment begins about
the same time each year (such as summer or winter). Typically, the individual is hired to address seasonal
demands that arise for the particular employer or industry [24 CFR 5.603(b)]. Some examples of seasonal
work include employment limited to holidays or agricultural seasons. Seasonal work may include but is
not limited to employment as a lifeguard, ballpark vendor, or snowplow driver [Notice PIH 2023-27].
Income earned as a seasonal worker is not considered nonrecurring income.
PHA Policy
The PHA will include in annual income the full amount, before any payroll deductions, of wages
and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation.
Military Pay
All regular pay, special pay, and allowances of a member of the Armed Forces are counted except for the
special pay to a family member serving in the Armed Forces who is exposed to hostile fire [24 CFR
5.609(b)(11)].
6-8
Earnings of a Minor [24 CFR 5.609(b)(3)]
A minor is a member of the family, other than the head of household or spouse, who is under 18 years of
age. Employment income earned by minors is not included in annual income. All other sources of
unearned income, except those specifically excluded by the regulations, are included.
Earned Income of Full-Time Students [24 CFR 5.609(b)(14)]
The earned income of a dependent full-time student in excess of the amount of the dependent deduction
is excluded from annual income. All sources of unearned income, except those specifically excluded by
the regulations, are included.
A family member other than the head of household or spouse/cohead is considered a full-time student if
they are attending school or vocational training on a full-time basis [24 CFR 5.603(b)]. Full-time status is
defined by the educational or vocational institution the student is attending [New PH OCC GB, Lease
Requirements, p. 5].
6-I.E. EARNED INCOME DISALLOWANCE [24 CFR 960.255; Streamlining Final Rule (SFR) Federal
Register 3/8/16; Notice PIH 2023-27]
HOTMA removed the statutory authority for the EID. The EID is available only to families that are eligible
for and participating on the program as of December 31, 2023, or before; no new families may be added
on or after January 1, 2024. If a family is receiving the EID prior to or on the effective date of December
31, 2023, they are entitled to the full amount of the benefit for a full 24-month period. The policies below
are applicable only to such families. No family will still be receiving the EID after December 31, 2025. The
EID will sunset on January 1, 2026, and the PHA policies below will no longer be applicable as of that date
or when the last qualifying family exhausts their exclusion period, whichever is sooner.
Calculation of the Disallowance
Calculation of the earned income disallowance for an eligible member of a qualified family begins with a
comparison of the member’s current income with their “baseline income.” The family member’s baseline
income is their income immediately prior to qualifying for the EID. The family member’s baseline income
remains constant throughout the period that they are participating in the EID.
Calculation Method
Initial 12-Month Exclusion
During the initial exclusion period of 12 consecutive months, the full amount (100 percent) of any
increase in income attributable to new employment or increased earnings is excluded.
PHA Policy
6-9
The initial EID exclusion period will begin on the first of the month following the date an eligible
member of a qualified family is first employed or first experiences an increase in earnings.
Second 12-Month Exclusion
During the second exclusion period of 12 consecutive months, the PHA must exclude at least 50 percent
of any increase in income attributable to employment or increased earnings.
PHA Policy
During the second 12-month exclusion period, the PHA will exclude 100 percent of any increase in
income attributable to new employment or increased earnings.
Lifetime Limitation
The EID has a two-year (24-month) lifetime maximum. The two-year eligibility period begins at the same
time that the initial exclusion period begins and ends 24 months later. During the 24-month period, an
individual remains eligible for EID even if they begin to receive assistance from a different housing
agency, move between public housing and Section 8 assistance, or have breaks in assistance. The EID will
sunset on January 1, 2026. In no circumstances will a family member’s exclusion period continue past
January 1, 2026.
Individual Savings Accounts [24 CFR 960.255(d)]
The PHA may, but is not required to, establish a policy to offer a qualified family paying income-based
rent an ISA instead of being given the EID.
PHA Policy
The PHA chooses not to establish a system of individual savings accounts (ISAs) for families who
qualify for the EID.
6-I.F. BUSINESS AND SELF-EMPLOYMENT INCOME [24 CFR 5.609(B)(28);NOTICE PIH 2023-27]
Annual income includes “net income from the operation of a business or profession. Net income is gross
income minus business expenses that allows the business to operate. Gross income is all income amounts
received into the business, prior to the deduction of business expenses.
Expenditures for business expansion or amortization of capital indebtedness may not be used as
deductions in determining net income. An allowance for depreciation of assets used in a business or
profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service
regulations. Any withdrawal of cash or assets from the operation of a business or profession will be
included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in
the operation by the family”
PHA Policy
6-10
To determine business expenses that may be deducted from gross income, the PHA will use
current applicable Internal Revenue Service (IRS) rules for determining allowable business
expenses [see IRS Publication 535], unless a topic is addressed by HUD regulations or guidance as
described herein.
Independent Contractors
Income received as an independent contractor is included in annual income, even if the source, date, or
amount of the income varies [24 CFR 2.609 (b)(24)].
An independent contractor is defined as an individual who qualifies as an independent contractor instead
of an employee in accordance with the Internal Revenue Code Federal income tax requirements and
whose earnings are consequently subject to the Self-Employment Tax. In general, an individual is an
independent contractor if the payer has the right to control or direct only the result of the work and not
what will be done and how it will be done [24 CFR 5.603(b)]. This may include individuals such as third-
party delivery and transportation service providers and “gig workers” like babysitters, landscapers,
rideshare drivers, and house cleaners. Income earned as an independent contractor is not considered
nonrecurring income.
Business Expansion
HUD regulations do not permit the PHA to deduct from gross income expenses for business expansion.
PHA Policy
Business expansion is defined as any capital expenditures made to add new business activities, to
expand current facilities, or to operate the business in additional locations.
For example, purchase of a street sweeper by a construction business for the purpose of adding
street cleaning to the services offered by the business would be considered a business expansion.
Similarly, the purchase of a property by a hair care business to open at a second location would be
considered a business expansion.
Capital Indebtedness
HUD regulations do not permit the PHA to deduct from gross income the amortization of capital
indebtedness.
PHA Policy
Capital indebtedness is defined as the principal portion of the payment on a capital asset such as
land, buildings, and machinery. This means the PHA will allow as a business expense interest, but
not principal, paid on capital indebtedness.
6-11
Negative Business Income
If the net income from a business is negative, no business income will be included in annual income; a
negative amount will not be used to offset other family income.
Withdrawal of Cash or Assets from a Business
HUD regulations require the PHA to include in annual income the withdrawal of cash or assets from the
operation of a business or profession unless the withdrawal reimburses a family member for cash or
assets invested in the business by the family.
PHA Policy
Acceptable investments in a business include cash loans and contributions of assets or
equipment. For example, if a member of a tenant family provided an up-front loan of $2,000 to
help a business get started, the PHA will not count as income any withdrawals from the business
up to the amount of this loan until the loan has been repaid.
Investments do not include the value of labor contributed to the business without compensation.
Co-owned Businesses
PHA Policy
If a business is co-owned with someone outside the family, the family must document the share of
the business it owns. If the family’s share of the income is lower than its share of ownership, the
family must document the reasons for the difference.
Assets Owned by a Business Entity
If a business entity (e.g., limited liability company or limited partnership) owns the asset, then the family’s
asset is their ownership stake in the business, not some portion of the business’s assets. However, if the
family holds the assets in their own name (e.g., they own one-third of a restaurant) rather than in the
name of a business entity, then the percentage value of the asset owned by the family is what is counted
toward net family assets (e.g., one-third of the value of the restaurant) [Notice PIH 2023-27].
6-12
6-I.G. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(B)(9)
The regulations distinguish between two categories of student financial assistance paid to both full-time
and part-time students. The first category is any
assistance to students under section 479B of the Higher Education Act of 1965 (Tile IV of the HEA), which
must be excluded from the family’s annual income [24 CFR 5.609(b)(9)(i)].
Examples of assistance under title IV of the HEA include:
•
Federal Pell Grants;
•
Teach Grants;
•
Federal Work Study Programs;
•
Federal Perkins Loans;
•
Income earned in employment and training programs under section 134 of the Workforce Innovation
and Opportunity Act (WIOA); or
•
Bureau of Indian Affairs/Education student assistance programs
-
The Higher Education Tribal Grant
-
The Tribally Controlled Colleges or Universities Grant Program
The second category is any other grant-in-aid, scholarship, or other assistance amounts an individual
receives for the actual covered costs charged by the institute of higher education (not otherwise excluded
by the Federally mandated income exclusions) [24 CFR 5.609(b)(9)(ii)]. Other student financial assistance
received by the student that, either by itself or in combination with HEA assistance, exceeds the actual
covered costs is included in income.
Actual covered costs are defined as the actual costs of:
•
Tuition, books, and supplies;
-
Including supplies and equipment to support students with learning disabilities or other
disabilities
•
Room and board; and
•
Other fees required and charged to a student by the educational institution.
For a student who is not the head of household or spouse/cohead, actual covered costs also include the
reasonable and actual costs of housing while attending the institution of higher education and not
residing in an assisted unit.
Further, to qualify, other student financial assistance must be expressly:
•
For tuition, book, supplies, room and board, or other fees required and charged to the student by the
educational institution;
•
To assist a student with the costs of higher education; or
6-13
•
To assist a student who is not the head of household or spouse with the reasonable and actual costs
of housing while attending the educational institution and not residing in an assisted unit.
The student financial assistance may be paid directly to the student or to the educational institution on
the student’s behalf. However, any student financial assistance paid to the student must be verified by
the PHA.
The financial assistance must be a grant or scholarship received from:
•
The Federal government;
•
A state, tribal, or local government;
•
A private foundation registered as a nonprofit;
•
A business entity (such as corporation, general partnership, limited liability company, limited
partnership, joint venture, business trust, public benefit corporation, or nonprofit entity); or
•
An institution of higher education.
Student financial assistance, does not include:
•
Financial support provided to the student in the form of a fee for services performed (e.g., a work
study or teaching fellowship that is not excluded under section 479B of the Higher Education Act
HEA);
•
Gifts, including gifts from family or friends; or
•
Any amount of the scholarship or grant that, either by itself or in combination with assistance
excluded under the HEA, exceeds the actual covered costs of the student.
Calculating Income from Student Financial Assistance [HOTMA Student Financial Assistance
Resource Sheet; Notice PIH 2023-27]
The formula for calculating the amount of other student financial assistance that is excluded from
income always begins with deducting the assistance received under 479B of the HEA from the total actual
covered costs, because the 479B assistance is intended to pay the student’s actual covered costs. When a
student receives assistance from both Title IV of the HEA and from other sources, the assistance received
under Title IV of the HEA must be applied to the student’s actual covered costs first and then other
student financial assistance is applied to any remaining actual covered costs. Once actual costs are
covered, any remaining student financial assistance is considered income.
PHA Policy
If a student only receives financial assistance under Title IV of the HEA and does not receive any
other student financial assistance, the PHA will exclude the full amount of the assistance received
under Title IV from the family’s annual income. The PHA will not calculate actual covered costs in
this case.
If the student does not receive any assistance under Title IV of the HEA but does receive assistance
from another source, the PHA will first calculate the actual covered costs to the student in
accordance with 24 CFR 5.609(b)(ii). The PHA will then subtract the total amount of the student’s
6-14
financial assistance from the student’s actual covered costs. The PHA will include any amount of
financial assistance in excess of the student’s actual covered costs in the family’s annual income.
Example 1
•
Actual covered costs: $20,000
•
Other student financial assistance: $25,000
•
Excluded income: $20,000 ($25,000 in financial assistance -
$20,000 in actual covered costs)
•
Included income: $5,000
When a student receives assistance from both Title IV of the HEA and from other sources, the PHA
will first calculate the actual covered costs to the student in accordance with 24 CFR 5.609(b)(ii).
The assistance received under Title IV of the HEA will be applied to the student’s actual covered
costs first and then the other student financial assistance will be applied to any remaining actual
covered costs.
If the amount of assistance excluded under Title IV of the HEA equals or exceeds the actual
covered costs, none of the assistance included under other student financial assistance” would be
excluded from income.
Example 2
•
Actual covered costs: $25,000
•
Title IV HEA assistance: $26,000
•
Title IV HEA assistance covers the students entire actual
covered costs.
•
Other Student Financial Assistance: $5,000
•
Excluded income: The entire Title IV HEA assistance of $26,000
•
Included income: All other financial assistance of $5,000
6-15
If the amount of assistance excluded under Title IV of the HEA is less than the actual covered
costs, the PHA will exclude the amount of other student financial assistance up to the amount of
the remaining actual covered costs.
Example 3
•
Actual covered costs: $22,000
•
Title IV HEA assistance: $15,000
•
The remaining amount not covered by Title IV HEA assistance
is $7,000 ($22,000 in actual covered costs - $15,000 in Title IV
HEA assistance).
•
Other Student Financial Assistance: $5,000
•
$7,000 in remaining actual covered costs - $5,000 in other
financial assistance
•
Excluded income: $15,000 entire amount of the Title IV
HEA Assistance + $5,000 in other financial assistance
•
Included income: $0
Example 4
•
Actual covered costs: $18,000
•
Title IV HEA Assistance: $15,000
•
The remaining amount not covered by Title IV HEA assistance is
$3,000 ($18,000 in actual covered costs - $15,000 in Title IV
HEA Assistance)
•
Other student Financial Assistance: $5,000
•
When other student financial assistance is applied, financial
assistance exceeds actual covered costs by $2,000 ($3,000 in
actual covered costs - $5,000 in other financial assistance).
•
Included income: $2,000 (the amount by which the financial aid
exceeds the student's actual covered costs).
6-16
6-I.H. PERIODIC PAYMENTS [NOTICE PIH 2023-27]
Periodic payments are forms of income received on a regular basis.
Income that will not be repeated beyond the coming year(i.e., the 12 months following the effective date
of the certification), based on information provided by the family, is considered nonrecurring income and
is excluded from annual income. Income that has a discrete end date and will not be repeated beyond
the coming year is excluded from a family’s annual income because it is nonrecurring income. For
example, a family receives income from a guaranteed income program in their city that has a discrete
beginning and end date. While the guaranteed income will be repeated in the coming year, it will end
before the family’s next annual reexamination. This income is fully excluded from annual income.
However, this does not include unemployment income and other types of periodic payments that are
received at regular intervals (such as weekly, monthly, or yearly). Unemployment income and other types
of periodic payments are not considered nonrecurring income, unless explicitly excluded from income
under 25 CFR 5.609(b), and thus they are included in annual income.
Insurance payments and settlements for personal or property losses, including but not limited to
payments under health insurance, motor vehicle insurance, and workers’ compensation, are excluded
from annual income. However, periodic payments paid at regular intervals (such as weekly, monthly, or
yearly) for a period of greater than one year that are received in lieu of wages for workers’ compensation
are included in annual income. Payments received in lieu of wages for worker’s compensation are
excluded, even if paid in periodic payments, if the income will last for a period of less than one year.
Lump-Sum Payments for the Delayed Start of a Periodic Payment [24 CFR 5.609(b)(16)]
Deferred periodic amounts from Supplemental Security Income (SSI) and Social Security benefits that are
received in a lump sum amount or in prospective monthly amounts, or any deferred Department of
Veterans Affairs (VA) disability benefits that are received in a lump sum amount or in prospective monthly
amounts are excluded from annual income.
PHA Policy
The PHA will include in annual income lump sums received as a result of delays in processing
periodic payments (other than those specifically excluded by the regulation), such as
unemployment or welfare assistance.
When a delayed-start payment is received that is to be included and the family reports this during
the period in which the PHA is processing an annual reexamination, the PHA will adjust the
family’s rent retroactively for the period the payment was intended to cover.
If the delayed-start payment is received outside of the time the PHA is processing an annual
reexamination, then the PHA will consider whether the amount meets the threshold to conduct an
interim reexamination. If so, the PHA will conduct an interim in accordance with PHA policies in
Chapter 9. If not, the PHA will consider the amount when processing the family’s next annual
recertification.
6-17
Retirement Accounts [24 CFR 5.609(b)(26); Notice PIH 2023-27]
Income received from any account under a retirement plan recognized as such by the IRS, including
individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self-
employed individuals is not considered actual income from assets.
However, any distribution of periodic payments from such accounts is included in annual income at the
time they are received by the family.
An asset moved to a retirement account held by a member of the family is not considered to be an asset
disposed of for less than fair market value.
Social Security Benefits [Notice PIH 2023-27]
The PHA is required to use the gross benefit amount to calculate annual income from Social Security
benefits.
Annually in October, the Social Security Administration (SSA) announces the cost-of-living adjustment
(COLA) by which federal Social Security and SSI benefits are adjusted to reflect the increase, if any, in the
cost of living. The federal COLA does not apply to state-paid disability benefits. Effective the day after the
SSA has announced the COLA, PHAs are required to factor in the COLA when determining Social Security
and SSI annual income for all annual reexaminations and interim reexaminations of family income that
have not yet been completed and will be effective January 1 or later of the upcoming year [Notice PIH
2023-27]. When a family member’s benefits are garnished, levied, or withheld to pay restitution, child
support, tax debt, student loan debt, or other debts, the PHA must use the gross amount of the income,
prior to the reduction, to determine a family’s annual income.
PHA Policy
Annual income includes “all amounts received,” not the amount that a family may be legally
entitled to receive but which they do not receive. When the SSA overpays an individual, resulting in
a withholding or deduction from their benefit amount until the overpayment is paid in full, the
PHA must use the reduced benefit amount after deducting only the amount of the overpayment
withholding from the gross benefit amount.
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Alimony and Child Support
Annual income includes “all amounts received,” not the amount that a family may be legally entitled to
receive but which they do not receive. For example, a family’s child-support or alimony income must be
based on payments received, not the amounts to which the family is entitled by court or agency orders
[Notice PIH 2023-27].
PHA Policy
The PHA will count all regular payments of alimony or child support awarded as part of a divorce
or separation agreement-
unless the family certifies and the PHA verifies that the payments are not being made.
In order to verify that payments are not being made, the PHA will review child support payments
over the last 12 months. If no payments have been made in the past three months and there are
no lump sums, the PHA will not include alimony or child support in annual income.
If payments are being made regularly, the PHA will use the amount received during the last
12 months (excluding any lump sums received). If payments have been made for a period
less than 12 months, the PHA will average all payments that have been made.
At new admission or interim recertification, if any lump sum payments were made in the
past 12 months, the PHA will determine the likelihood of the family receiving another
similar payment within the next 12 months before deciding whether or not this amount will
be included in the calculation of annual income.
If the PHA determines and can appropriately verify that the family in all likelihood
will not receive a similar payment, then the amount will not be considered when
projecting annual income.
If the PHA determines that it is likely that the family will receive a similar payment
and can appropriately verify it, the amount will be included when projecting annual
income.
6-I.I. NONRECURRING INCOME [24 CFR 5.609(b)(24) and Notice PIH 2023-27]
Nonrecurring income, which is income that will not be repeated beyond the coming year (e.g., 12 months
following the effective date of the certification) based on information provided by the family, is excluded
from annual income. The PHA may accept a self-certification from the family stating that the income will
not be repeated in the coming year. See Chapter 7 for PHA policies related to verification of nonrecurring
income.
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Income received as an independent contractor, day laborer, or seasonal worker is not excluded from
income as nonrecurring income, even if the source, date, or amount of the income varies.
Income that has a discrete end date and will not be repeated beyond the coming year during the family’s
upcoming annual reexamination period will be excluded from a family’s annual income as nonrecurring
income. This exclusion does not include unemployment income and other types of periodic payments
that are received at regular intervals (such as weekly, monthly, or yearly).
Income amounts excluded under this category may include, but are not limited to:
•
Nonrecurring payments made to the family or to a third party on behalf of the family to assist with
utilities;
•
Payments for eviction prevention;
•
Security deposits to secure housing;
•
Payments for participation in research studies (depending on the duration); and
•
General one-time payments received by or on behalf of the family.
Nonrecurring income that is excluded under the regulations includes:
•
Payments from the U.S. Census Bureau for employment (relating to decennial census or the American
Community Survey) lasting no longer than 180 days and not culminating in permanent employment
[24 CFR 5.609(b)(24)(i)].
•
Direct federal or state payments intended for economic stimulus or recovery [24 CFR 5.609(b)(24)(ii)].
•
Amounts directly received by the family as a result of state refundable tax credits or state or federal
tax refunds at the time they are received [24 CFR 5.609(b)(24)(iii) and (iv)].
•
Gifts for holidays, birthdays, or other significant life events or milestones (e.g., wedding gifts, baby
showers, anniversaries) [24 CFR 5.609(b)(24)(v)].
•
Non-monetary, in-kind donations, such as food, clothing, or toiletries, received from a food bank or
similar organization [24 CFR 5.609(b)(24)(vi)]. When calculating annual income, PHAs are prohibited
from assigning monetary value to such non-monetary in-kind donations received by the family
[Notice PIH 2023-27]. Non-recurring, non-monetary in-kind donations from friends and family are
excluded as non-recurring income. However, the value of regular in-kind donations (such as the value
of groceries) received by friends and family are included.
•
Lump-sum additions to net family assets, including but not limited to lottery or other contest
winnings [24 CFR 5.609(b)(24)(vii)].
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6-I.J. WELFARE ASSISTANCE
Overview
Welfare assistance is counted in annual income. Welfare assistance includes Temporary Assistance for
Needy Families (TANF) and any payments to individuals or families based on need that are made under
programs funded separately or jointly by federal, state, or local governments.
Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.615]
The PHA must make a special calculation of annual income when the welfare agency imposes certain
sanctions on certain families. The full text of the regulation at 24 CFR §5.615 is provided as Exhibit 6-3.
The requirements are summarized below. This rule applies only if a family was a public housing resident
at the time the sanction was imposed.
Covered Families
The families covered by 24 CFR 5.615 are those “who receive welfare assistance or other public assistance
benefits (‘welfare benefits’) from a State or other public agency (’welfare agency’) under a program for
which Federal, State or local law requires that a member of the family must participate in an economic
self-sufficiency program as a condition for such assistance.” [24 CFR 5.615(b)]
Imputed Income
When a welfare agency imposes a sanction that reduces a family’s welfare income because the family
commits fraud or fails to comply with the agency’s economic self-sufficiency program or work activities
requirement, the PHA must include in annual income “imputed” welfare income. The PHA must request
that the welfare agency provide the reason for the reduction of benefits and the amount of the reduction
of benefits. The imputed welfare income is the amount that the benefits were reduced as a result of the
sanction.
This requirement does not apply to reductions in welfare benefits: (1) at the expiration of the lifetime or
other time limit on the payment of welfare benefits, (2) if a family member is unable to find employment
even though the family member has complied with the welfare agency economic self-sufficiency or work
activities requirements, or (3) because a family member has not complied with other welfare agency
requirements [24 CFR 5.615(b)(2)].
Offsets
The amount of the imputed welfare income is offset by the amount of additional income the family
begins to receive after the sanction is imposed. When the additional income equals or exceeds the
imputed welfare income, the imputed income is reduced to zero [24 CFR 5.615(c)(4)].
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6-I.K. STATE PAYMENTS TO ALLOW INDIVIDUALS WITH DISABILITIES TO LIVE AT HOME [24 CFR
5.609(b)(19)]
Payments made by or authorized by a state Medicaid agency (including through a managed care entity)
or other state or federal agency to an assisted family to enable a member of the assisted family who has
a disability to reside in the family’s assisted unit are excluded.
Authorized payments may include payments to a member of the assisted family through state Medicaid-
managed care systems, other state agencies, federal agencies or other authorized entities.
The payments must be received for caregiving services a family member provides to enable another
member of the assisted family who has a disability to reside in the family’s assisted unit. Payments to a
family member for caregiving services for someone who is not a member of the assisted family (such as
for a relative that resides elsewhere) are not excluded from income.
Furthermore, if the agency is making payments for caregiving services to the family member for an
assisted family member and for a person outside of the assisted family, only the payments attributable to
the caregiving services for the caregiver’s assisted family member would be excluded from income.
6-I.L. CIVIL RIGHTS SETTLEMENTS [24 CFR 5.609(b)(25); FR Notice 2/14/23]
Regardless of how the settlement or judgment is structured, civil rights settlements or judgments,
including settlements or judgments for back pay, are excluded from annual income. This may include
amounts received because of litigation or other actions, such as conciliation agreements, voluntary
compliance agreements, consent orders, other forms of settlement agreements, or administrative or
judicial orders under the Fair Housing Act, Title VI of the Civil Rights Act, Section 504 of the Rehabilitation
Act (Section 504), the Americans with Disabilities Act, or any other civil rights or fair housing statute or
requirement.
While these civil rights settlement or judgment amounts are excluded from income, the settlement or
judgment amounts will generally be counted toward the family’s net family assets (e.g., if the funds are
deposited into the family’s savings account or a revocable trust under the control of the family or some
other asset that is not excluded from the definition of net family assets). Income generated on the
settlement or judgment amount after it has become a net family asset is not excluded from income. For
example, if the family received a settlement or back pay and deposited the money in an interest-bearing
savings account, the interest from that account would be income at the time the interest is received.
Furthermore, if a civil rights settlement or judgment increases the family’s net family assets such that
they exceed the HUD-published threshold amount ($1,600 for 2025), then income will be imputed on the
net family assets pursuant to 24 CFR 5.609(a)(2). If the imputed income, which HUD considers unearned
income, increases the family’s annual adjusted income by 10 percent or more, then an interim
reexamination of income will be required unless the addition to the family’s net family assets occurs
within the last three months of the family’s income certification period and the PHA or owner chooses
not to conduct the examination.
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6-I.M. ADDITIONAL EXCLUSIONS FROM ANNUAL INCOME [24CFR 5.609(B); FR NOTICE 1/31/2024]
Other exclusions contained in 24 CFR 5.609(b) and FR Notice 1/31/2024 that have not been discussed
earlier in this chapter include the following:
•
Payments received for the care of foster children or foster adults or state or tribal kinship or
guardianship care payments [24 CFR 5.609(b)(4)].
•
Insurance payments and settlements for personal or property losses, including but not limited to
payments through health insurance, motor vehicle insurance, and workers’ compensation [24 CFR
5.609(b)(5)] However, periodic payments paid at regular intervals (such as weekly, monthly, or
yearly) for a period of greater than one year that are received in lieu of wages are included in
annual income [Notice PIH 2023-27].
•
Amounts received by the family that are specifically for, or in reimbursement of, the cost of health
and medical care expenses for any family member [24 CFR 5.609(b)(6)].
•
Any amounts recovered in any civil action or settlement based on a claim of malpractice,
negligence, or other breach of duty owed to a family member arising out of law, that resulted in a
member of the family becoming disabled [24 CFR 5.609(b)(7)].
•
Income and distributions from any Coverdell education savings account under Section 530 of the
Internal Revenue Code of 1986 or any qualified tuition program under Section 529 of such Code
[24 CFR 5.609(b)(10)].
•
Income earned by government contributions to, and distributions from, “baby bond” accounts
created, authorized, or funded by federal, state, or local government [24 CFR 5.609(b)(10)].
•
The special pay to a family member serving in the Armed Forces who is exposed to hostile fire [24
CFR 5.609(b)(11)].
•
Payments related to aid and attendance under 38 U.S.C. 1521 to veterans in need of regular aid
and attendance [24 CFR 5.609(b)(17)]. This income exclusion applies only to veterans in need of
regular aid and attendance and not to other beneficiaries of the payments, such as a surviving
spouse [Notice PIH 2023-27].
•
Loan proceeds (the net amount disbursed by a lender to or on behalf of a borrower, under the
terms of a loan agreement) received by the family or a third party (e.g., proceeds received by the
family from a private loan to enable attendance at an educational institution or to finance the
purchase of a car) [24 CFR 5.609(b)(20)]. The loan borrower or co-borrower must be a member of
the family for this income exclusion to be applicable [Notice PIH 2023-27].
•
Payments received by tribal members as a result of claims relating to the mismanagement of
assets held in trust by the United States, to the extent such payments are also excluded from
gross income under the Internal Revenue Code or other federal law [24 CFR 5.609(b)(21)].
Generally, payments received by tribal members in excess of the first $2,000 of per capita shares
are included in a family’s annual income for purposes of determining eligibility. However, as
explained in Notice PIH 2023-27, payments made under the Cobell Settlement, and certain per
capita payments under the recent Tribal Trust Settlements, must be excluded from annual
income.
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•
Replacement housing “gap” payments made in accordance with 49 CFR Part 24 that offset
increased out of pocket costs of displaced persons that move from one federally subsidized
housing unit to another federally subsidized housing unit. Such replacement housing “gap”
payments are not excluded from annual income if the increased cost of rent and utilities is
subsequently reduced or eliminated, and the displaced person retains or continues to receive the
replacement housing “gap” payments [24 CFR 5.609(b)(23)].
•
Income earned on amounts placed in a family’s Family Self-Sufficiency account
[24 CFR 5.609(b)(27)].
•
Amounts received by participants in other publicly assisted programs which are specifically for or in
reimbursement of out-of-pocket expenses incurred (e.g., special equipment, clothing,
transportation, child care, etc.) and which are made solely to allow participation in a specific
program [24 CFR 5.609(c)(12)(ii)].
•
Amounts received by a person with a disability that are disregarded for a limited time for purposes
of Supplemental Security Income eligibility and benefits because they are set aside for use under a
Plan to Attain Self-Sufficiency (PASS) [(24 CFR 5.609(b)12)(i)].
•
Amounts received under a resident service stipend not to exceed $200 per month. A resident
service stipend is a modest amount received by a resident for performing a service for the PHA or
owner, on a part-time basis, that enhances the quality of life in the development [24 CFR
5.600(b)(12)(iii).
•
Incremental earnings and benefits to any family member resulting from participation in qualifying
training program funded by HUD or in qualifying federal, state, tribal, or local employment training
programs (including training programs not affiliated with a local government) and training of a family
member as resident management staff are excluded from annual income. Amounts excluded by this
provision must be received under employment training programs with clearly defined goals and
objectives and are excluded only for the period during which the family member participates in the
training program unless those amounts are excluded under 24 CFR 5.609(b)(9)(i) [24 CFR
5.609(b)(12)(iv)].
PHA Policy
The PHA defines training program as “a learning process with goals and objectives, generally
having a variety of components, and taking place in a series of sessions over a period of time.
It is designed to lead to a higher level of proficiency, and it enhances the individual’s ability to
obtain employment. It may have performance standards to measure proficiency. Training may
include but is not limited to: (1) classroom training in a specific occupational skill, (2) on-the-job
training with wages subsidized by the program, or (3) basic education” [expired Notice PIH 98-
2, p. 3].
The PHA defines incremental earnings and benefits as the difference between (1) the total
amount of welfare assistance and earnings of a family member prior to enrollment in a
training program and (2) the total amount of welfare assistance and earnings of the family
member after enrollment in the program [expired Notice PIH 98-2, pp. 3–4].
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In calculating the incremental difference, the PHA will use as the pre-enrollment income the
total annualized amount of the family member’s welfare assistance and earnings reported on
the family’s most recently completed HUD-50058.
End of participation in a training program must be reported in accordance with the PHA’s
interim reporting requirements (see Chapter 11).
•
Reparation payments paid by a foreign government pursuant to claims filed under the laws of that
government by persons who were persecuted during the Nazi era [24 CFR 5.609(b)(13)].
•
Adoption assistance payments for a child in excess of the amount of the dependent deduction per
adopted child [24 CFR 5.609(b)(15)].
•
Refunds or rebates on property taxes paid on the dwelling unit [24 CFR 5.609(b)(20)].
•
Amounts that HUD is required by federal statute to exclude from consideration as income for
purposes of determining eligibility or benefits under a category of assistance programs that
includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(b) apply.
HUD will publish a notice in the Federal Register to identify the benefits that qualify for this
exclusion. Updates will be published when necessary [24 CFR 5.609(b)(22)].
•
HUD publishes an updated list of these exclusions periodically. The most recent list of exclusions
was published in the Federal Register on January 31,2024, it includes:
(a) The value of the allotment provided to an eligible household under the Food Stamp Act of
1977 (7 U.S.C. 2017 (b)). This exclusion also applies to assets.
(b) Benefits under Section 1780 of the Richard B. Russell School Lunch Act and Child Nutrition Act
of 1966, including WIC and reduced-price lunches.
(c) Payments, including for supportive services and reimbursement of out-of-pocket expenses, to
Volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C. 5044(g), 5058). The
exclusion also applies to assets.
-Except, the exclusion does not apply when the Chief Executive Officer of the Corporation for
National and Community Service determines that the value of all such payments, adjusted to
reflect the number of hours such volunteers are serving, is equivalent to or graeter than the
minimum wage then in effect under the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et
seq.) or the minimum wage, under the laws of the State where such volunteers are serving,
whichever is greater (42 U.S.C. 5044(f)(1)).
(d) Certain payments received under the Alaska Native Claims Settlement Act (43 U.S.C. 1626(c))
(e) Income derived from certain sub-marginal land of the United States that is held in trust for
certain Indian tribes (25 U.S.C.5506)
(f) Payments or allowances made under the Department of Health and Human Services’ Low-
Income Home Energy Assistance Program (42 U.S.C. 8624(f)(1))
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(g) Allowances, earnings, and payments to individuals participating in programs under the
Workforce Investment Act of 1998 which was reauthorized as the Workforce Innovation and
Opportunity Acty of 2014 (29U.S.C.3241(a)(2)).
(h) Deferred disability benefits from the Department of Veterans Affairs, whether received as a
lump sum or in monthly prospective amounts.
(i) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians (Pub.
L. 94-540,90S4section6)
(j) Payments, funds, or distributions authorized, established, or directed by the Seneca Nation
Settlement Act of 1990 (25 U.S.C. 1774f(b))
(k) A lump sum or periodic payment received by an individual Indian pursuant to the Class Action
Settlement Agreement in the United States District Court case entitled Elouise Cobell et al. v Ken
Salazar et al., for a period of one year from the time of receipt of that payment in the Claims
Resolution Act of 2010
(l) The first $2,000 of per capita shares received from judgment funds awarded by the Indian
Claims Commission or the U. S. Claims Court, the interests of individual Indians in trust or
restricted lands, including the first $2,000 per year of income received by individual Indians
from funds derived from interests held in such trust or restricted lands (25 U.S.C. 1407-1408).
This exclusion does ot include proceeds of gaming operations regulated by the Commission
(25 U.S.C. 1407-1408).
(m) Payments received from programs funded under Title V of the Older Americans Act of 1965 (42
U.S.C. 3056(f))
(n) Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund or any
other fund established pursuant to the settlement in In Re Agent Orange-product liability
litigation, M.D.L. No. 381 (E.D.N.Y.). This exclusion also applies to assets.
(o) Payments received under 38 U.S.C. 18339(c) to children of Vietnam veterans born with spinal
bifida, children of women Vietnam veterans born with certain defects, and children of certain
Korean and Thailand service veterans born with spinal bifida (42 U.S.C. 12637(d)).
(p) Payments received under the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721). This
exclusion also applies to assets.
(q) The value of any childcare provided or arranged (or any amount received as payment for such
care or reimbursement for costs incurred for such care) under the Childcare and Development
Block Grant Act of 1990 (42 U.S.C. 9858q)
(r) Earned income tax credit (EITC) refund payments received on or after January 1, 1991 (26
U.S.C. 32(j)). This exclusion also applies to assets.
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(s) Payments by the Indian Claims Commission to the Confederated Tribes and Bands of Yakima
Indian Nation or the Apache Tribe of Mescalero Reservation (Pub. L. 95-433). This exclusion
also applies to assets.
(t) Amounts of student financial assistance funded under Title IV of the Higher Education Act of
1965, including awards under federal work-study programs or under the Bureau of Indian
Affairs student assistance programs (20 U.S.C.108.7uu).
For Section 8 programs only, any financial assistance in excess of amounts received by an
individual for tuition and any other required fees and charges under the Higher Education Act
of 1965 (20 U.S.C. 1001 et seq.), from private sources, or an institution of higher education (as
defined under the Higher Education Act of 1965 ( 20 U.S.C. 1002)), shall be considered income
if the individual is over the age of 23 with dependent children (Pub.L. 109-115, section 327 (as
amended)).
(u) Allowances, earnings, and payments to AmeriCorps participants under the National and
Community Service Act of 1990 (42 U.S.C. 12637(d))
(v) Any amount of crime victim compensation that provides medical or other assistance (or
payment or reimbursement of the cost of such assistance) under the Victims of Crime Act of
1984 received through a crime victim assistance program, unless the total amount of
assistance that the applicant receives from all such programs is sufficient to fully compensate
the applicant for losses suffered as a result of the crime (34 U.S.C. 20102(c )).
(w) Any amounts in an “individual development account” -are excluded from assets and any
assistance, benefit, or amounts earned by or provided to the individual development account
are excluded from income, as provided by the Assets for Independence Act, as amended (42
U.S.C. 604(h)(4))
(x) Major disaster and emergency assistance received under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act and comparable disaster assistance provided by states, local
governments, and disaster assistance organizations. This exclusion also applies to assets.
(y) Distributions from an ABLE account, distributions from and certain contributions to an ABLE
account established under the ABLE Act of 2014 (Pub.L. 113-295), as described in Notice PIH
2019-09 or subsequent or superseding notice is excluded from income and assets.
(z) The amount of any refund (or advance payment with respect to a refundable credit) issued
under the Internal Revenue Code is excluded from income and assets for a period of 12
months from receipt (26 U.S.C. 6409).
(aa) Assistance received by a household under the Emergency Rental Assistance Program pursuant to
the Consolidated Appropriations Act, 2021 (Pub.L. 116-260, section 501(i)), and the American
Rescue Plan Act of 2021.
(ab)
Per capita payments made from the proceeds of Indian Tribal Trust Settlements listed in
IRS Notice 2013-1 and 2013-55 must be excluded from annual income unless the per capita
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payments exceed the amount of the original Tribal Trust Settlement proceeds and are made from
a Tribe’s private bank account in which the Tribe has deposited the settlement proceeds. Such
amounts received in excess of the Tribal Trust Settlement are included in the gross income of the
members of the Tribe receiving the per capita payments as described in IRS Notice 2013-1. The
first $2,000 of per capita payments are also excluded from assets unless the per capita payments
exceed the amount of the original Tribal Trust Settlement proceeds and are made from a Tribe’s
private bank account in which the Tribe has deposited the settlement proceeds (25 U.S.C. 117b(a),
25 U.S.C. 1407).
(ac)
Any amounts (i) not actually received by the family, (ii) that would be eligible for exclusion
under 42 U.S.C. 1382b(a)(7), and (iii) received for service-connected disability under 38 U.S.C.
Chapter 11 or dependency and indemnity compensation under 38 U.S.C. Chapter 13 (25 U.S.C.
4103(9)(C)) as provided by an amendment by the Indian Veterans Housing Opportunity Act of 2010
(Pub. L. 111–269 section 2) to the definition of income applicable to programs under the Native
American Housing Assistance and Self-Determination Act (NAHASDA) (25 U.S.C. 4101 et seq.).
PART II: ASSETS
6-II.A. OVERVIEW
Annual income includes all actual anticipated income from assets (unless otherwise excluded by the
regulations) even if the asset itself is excluded from net family assets [Notice PIH 2023-27].
The regulation at 24 CFR 5.603(b)(3) provides a list of items that are excluded from the calculation of net
family assets. Note, unlike previous versions of the regulations, the current regulations do not list types
of assets that are included in annual income. Instead, HUD relies on the definition of items excluded from
assets to provide the scope of what is included. Exhibit 6-2 provides the regulatory definition of net family
assets.
Optional policies for family self-certification of assets are found in Chapter 7. Policies related to the asset
limitation may be found in Chapter 3.
Income from assets is always anticipated, irrespective of the income examination type.
PHA Policy
The PHA generally will use current circumstances to determine both the value of an asset and the
anticipated income from the asset. The PHA will use other than current circumstances to
anticipate income when (1) an imminent change in circumstances is expected, (2) it is not feasible
to anticipate a level of income over 12 months, or (3) the PHA believes that past income is the best
indicator of anticipated income. For example, if a family member owns real property that typically
receives rental income, but the property is currently vacant, the PHA can take into consideration
past rental income along with the prospects of obtaining a new tenant.
Any time current circumstances are not used to determine asset income, a clear rationale for the
decision will be documented in the file. In such cases, the family may present information and
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documentation to the PHA to show why the asset income determination does not represent the
family’s anticipated asset income.
6-II.B. ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUE [24 CFR 5.603(b)(2)]
PHAs must include the value of any business or family assets disposed of by an applicant or participant
for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy
sale) during the two years preceding the date of application or reexamination, as applicable, in excess of
the consideration received for the asset.
An asset moved to a retirement account held by a member of the family is not considered to be an asset
disposed of for less than fair market value. [Notice PIH 2023-27].
The family must certify whether any assets have been disposed of for less than fair market value in the
preceding two years.
Minimum Threshold
HUD does not specify a minimum threshold for counting assets disposed of for less than fair market
value. A PHA may establish a policy to ignore small amounts such as charitable contributions [New PH
OCC GB, Income Determinations, p. 24].
PHA Policy
The PHA will not include the value of assets disposed of for less than fair market value unless the
cumulative fair market value of all assets disposed of during the past two years exceeds the gross
amount received for the assets by more than $1,000.
Separation or Divorce
The regulation also specifies that assets are not considered disposed of for less than fair market value if
they are disposed of as part of a separation or divorce settlement and the applicant or tenant receives
important consideration not measurable in dollar terms.
PHA Policy
All assets disposed of as part of a separation or divorce settlement will be considered assets for
which important consideration not measurable in monetary terms has been received. In order to
qualify for this exemption, a family member must be subject to a formal separation or divorce
settlement agreement established through arbitration, mediation, or court order.
Foreclosure or Bankruptcy
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Assets are not considered disposed of for less than fair market value when the disposition is the result of
a foreclosure or bankruptcy sale. Negative equity in real property or other investments does not prohibit
the owner from selling the property or other investments, so negative equity alone would not justify
excluding the property or other investments from family assets.
Family Declaration
PHA Policy
Families must sign a declaration form at initial certification and each annual recertification
identifying all assets that have been disposed of for less than fair market value or declaring that
no assets have been disposed of for less than fair market value. The PHA may verify the value of
the assets disposed of if other information available to the PHA does not appear to agree with the
information reported by the family.
6-II.C. ASSET INCLUSIONS AND EXCLUSIONS
Necessary and Non-Necessary Personal Property [24 CFR 5.603(b)(3)(i)]
All assets are categorized as either real property (e.g., land, a home) or personal property.
Personal property includes tangible items, like boats, as well as intangible items, like bank accounts.
The value of necessary items of personal property is excluded from the calculation of net family assets.
Necessary items of personal property include a car used for commuting or medical devices.
HUD defines necessary personal property as items essential to the family for the maintenance, use, and
occupancy of the premises as a home; or they are necessary for employment, education, or health and
wellness. Necessary personal property includes more than merely items that are indispensable to the
bare existence of the family. It may include personal effects (such as items that are ordinarily worn or
utilized by the individual), items that are convenient or useful to a reasonable existence, and items that
support and facilitate daily life within the family’s home. Necessary personal property also includes items
that assist a household member with a disability, including any items related to disability-related needs,
or that may be required for a reasonable accommodation for a person with a disability. Necessary
personal property does not include bank accounts, other financial investments, or luxury items. Items of
personal property that do not qualify as necessary personal property are classified as non-necessary
personal property.
The combined value of all non-necessary items of personal property is only included in annual income
when the combined total value exceeds the HUD-published threshold amount (adjusted annually and
published in HUD’s current year Inflation-Adjusted Values tables). When the combined value of all non-
necessary personal property does not exceed the HUD-published threshold amount, all non-necessary
personal property is excluded from net family assets.
•
The threshold amount is $50,000 for 2024, and $51,600 for 2025.
While not an exhaustive list, the following table from Notice PIH 2023-27 provides examples of necessary
and non-necessary personal property.
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6-31
Necessary Personal Property
Non-Necessary Personal Property
Car(s)/vehicle(s) that a family relies on for
transportation for personal or business use
(e.g., bike, motorcycle, skateboard, scooter)
Furniture, carpets, linens, kitchenware
Common appliances
Common electronics (e.g., radio, television,
DVD player, gaming system)
Clothing
Personal effects that are not luxury items
(e.g., toys, books)
Wedding and engagement rings
Jewelry used in religious/cultural
celebrations and ceremonies
Religious and cultural items
Medical equipment and supplies
Health care–related supplies
Musical instruments used by the family
Personal computers, phones, tablets, and
related equipment
Professional tools of trade of the family, for
example professional books
Educational materials and equipment used
by the family, including equipment to
accommodate persons with disabilities
Equipment used for exercising (e.g.,
treadmill, stationary bike, kayak,
paddleboard, ski equipment)
Recreational car/vehicle not needed for day-
to-day transportation for personal or
business use (campers, motorhomes,
traveling trailers, all-terrain vehicles (ATVs))
Bank accounts or other financial
investments (e.g., checking account, savings
account, stocks/bonds)
Recreational boat/watercraft
Expensive jewelry without religious or
cultural value, or which does not hold family
significance
Collectibles (e.g., coins/stamps)
Equipment/machinery that is not used to
generate income for a business
Items such as gems/precious metals,
antique cars, artwork, etc.
PHA Policy
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In determining the value of non-necessary, non-financial personal property, the PHA will use the
family’s estimate of the value. The PHA may obtain an appraisal if there is reason to believe that
the family’s estimated value is off by $50 or more. The family must cooperate with the appraiser
but cannot be charged any costs related to the appraisal.
Checking and Savings Accounts [Notice PIH 2023-27]
HUD considers bank accounts as non-necessary items of personal property. Whether or not non-
necessary personal property is counted toward net family assets depends on the combined value of all of
the family’s assets.
•
When the combined value of net family assets is greater than the HUD-published threshold amount,
which is adjusted annualy and listed in HUD’s current year Inflation Adjusted Values tables ($51,600
for 20250), checking and/or savings accounts would be counted toward net family assets.
•
When the combined value of al non-necessary personal property does not exceed the HUD-published
threshold amount, all non-necessary personal property is excluded from net family assets. In this
case, the value of the family’s checking and/or savings accounts would not be considered when
calculating net family assets.
However, actual income from checking and savings accounts is always included in a family’s annual
income, regardless of the total value of net family assets or whether the asset itself is included or
excluded from net family assets, unless that income is specifically excluded.
ABLE Accounts [24 CFR 5.609(b)(10); Notice PIH 2019-09]
An Achieving a Better Life Experience (ABLE) account is a type of tax-advantaged savings account that an
eligible individual can use to pay for qualified disability expenses. Section 103 of the ABLE Act mandates
that an individual’s ABLE account (specifically, its account balance, contributions to the account, and
distributions from the account) is excluded when determining the designated beneficiary’s eligibility and
continued occupancy under certain federal means-tested programs. The PHA must exclude the entire
value of the individual’s ABLE account from the household’s assets. Distributions from the ABLE account
are also not considered income. However, all wage income received, regardless of which account the
money is paid to, is included as income.
Investment Accounts Such as Stocks, Bonds, Saving Certificates, and Money Market Funds [24 CFR
5.603(b)(1)]
HUD considers financial investments such as stocks and bonds non-necessary items of personal
property. Whether non-necessary personal property is counted toward asset depends on the combined
value of all of the family’s assets.
•
When combined value of net family assets is greater than the HUD-published threshold amount,
which is adjusted annualy and listed in HUD’s Inflation Adjusted Values tables ($51,600 for 2025),
financial investmets such as stocks and bonds are considered part of net family assets. In this case,
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the value of the family’s financial investments such as stocks and bonds would be counted toward net
family assets.
•
When the combined value of all non-necessary personal property does not exceed $50,000, as
adjusted by inflation, all non-necessary personal property is excluded from net family assets. In this
case, the value of the family’s financial investments such as stocks and bonds would not be
considered when calculating net family assets.
However, actual income from financial accounts is always included in a family’s annual income,
regardless of the total value of net family assets or whether the asset itself is included or excluded from
net family assets, unless that income is specifically excluded. When a stock issues dividends in some
years but not others (e.g., due to market performance), the dividend is counted as the actual return when
it is issued, but when no dividend is issued, the actual return is $0. When the stock never issues
dividends, the actual return is $0.
PHA Policy
The PHA will include interest or dividends earned by investment accounts as actual income from
assets even when the earnings are reinvested.
The cash value of such an asset is determined by deducting from the market value any broker
fees, penalties for early withdrawal, or other costs of converting the asset to cash.
In determining the market value of an investment account, the PHA will use the value of the
account on the most recent investment report.
Necessary and Non-Necessary Personal Property [24 CFR 5.603(b)(3)(i)]
All assets are categorized as either real property (e.g., land, a home) or personal property.
Personal property includes tangible items, like boats, as well as intangible items, like bank accounts.
The value of necessary items of personal property is excluded from the calculation of net family assets.
Necessary items of personal property include a car used for commuting or medical devices.
HUD defines necessary personal property as items essential to the family for the maintenance, use, and
occupancy of the premises as a home; or they are necessary for employment, education, or health and
wellness. Necessary personal property includes more than merely items that are indispensable to the
bare existence of the family. It may include personal effects (such as items that are ordinarily worn or
utilized by the individual), items that are convenient or useful to a reasonable existence, and items that
support and facilitate daily life within the family’s home. Necessary personal property also includes items
that assist a household member with a disability, including any items related to disability-related needs,
or that may be required for a reasonable accommodation for a person with a disability. Necessary
personal property does not include bank accounts, other financial investments, or luxury items. Items of
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personal property that do not qualify as necessary personal property are classified as non-necessary
personal property.
The combined value of all non-necessary items of personal property is only included in annual income
when the combined total value exceeds $50,000 (adjusted annually). When the combined value of all
non-necessary personal property does not exceed $50,000, as adjusted by inflation, all non-necessary
personal property is excluded from net family assets.
While not an exhaustive list, the following table from Notice PIH 2023-27 provides examples of necessary
and non-necessary personal property.
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Lump-Sum Additions to Net Family Assets [24 CFR 5.609(b)(24(viii); Notice PIH 2023-27]
The regulations exclude income from lump-sum additions to family assets, including lottery or other
contest winnings as a type of nonrecurring income.
In addition, lump sums from insurance payments, settlements for personal or property losses, and
recoveries from civil actions or settlements based on claims of malpractice, negligence, or other breach
of duty owed to a family member arising out of law that resulted in a member of the family becoming a
family member with a disability are excluded from income.
Further, deferred periodic amounts from Supplemental Security Income (SSI) and Social Security benefits
that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department
of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly
amounts are also excluded from income.
However, these amounts may count toward net family assets. The PHA must consider any actual or
imputed returns from assets as income at the next applicable income examination. In the case where the
lump sum addition to assets would lead to imputed income, which is unearned income, that increases
the family’s annual adjusted income by 10 percent or more, then the addition of the lump sum to the
family’s assets will trigger an immediate interim reexamination of income in accordance with Chapter 9.
This reexamination of income must take place as soon as the lump sum is added to the family’s net
family assets unless the addition takes place in the last three months of family’s income certification
period and the PHA chooses not to conduct the examination.
For a discussion of lump-sum payments that represent the delayed start of a periodic payment, most of
which are counted as income, see sections 6-I.H and 6-I.I.
PHA Policy
Any lump-sum receipts are only counted as assets if they are retained by a family in a form
recognizable as an asset. [RHIIP FAQs]. For example, if the family receives a $1,000 lump sum for
lottery winnings, and the family immediately spends the entire amount, the lump sum will not be
counted toward net family assets.
Jointly Owned Assets [Notice PIH 2023-27]
For assets owned jointly by the family and one or more individuals outside of the assisted family, the PHA
must include the total value of the asset in the calculation of net family assets, unless:
•
The asset is otherwise excluded;
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•
The family can demonstrate that the asset is inaccessible to them; or
•
The family cannot dispose of any portion of the asset without the consent of another owner who
refuses to comply.
If the family demonstrates that they can only access a portion of an asset, then only that portion’s value is
included in the calculation of net family assets for the family.
Any income from a jointly owned asset must be included in annual income, unless:
•
The income is specifically excluded;
•
The family demonstrates that they do not have access to the income from that asset; or
•
The family only has access to a portion of the income from that asset.
PHA Policy
If the family demonstrates that they can only access a portion of the income from an asset, then
only that portion’s value is included in the calculation of income from assets.
If an individual is a beneficiary who is entitled to access the account’s funds only upon the death of the
account’s owner, and may not otherwise withdraw funds from an account, then the account is not an
asset to the assisted family, and the family should provide proper documentation demonstrating that
they are only a beneficiary on the account.
Trusts [24 CFR 5.609(b)(2) and 5.603(b)(4)]
A trust is a legal arrangement generally regulated by state law in which one party (the creator or grantor)
transfers property to a second party (the trustee) who holds the property for the benefit of one or more
third parties (the beneficiaries).
The basis for determining how to treat trusts relies on information about who has access to either the
principal in the account or the income from the account. There are two types of trusts, revocable and
irrevocable.
When the creator sets up an irrevocable trust, the creator has no access to the funds in the account.
Typically, special needs trusts are considered irrevocable. Irrevocable trusts not under the control of any
member of the family are excluded from net family assets. The value of the trust continues to be
excluded from net family assets, so long as the fund continues to be held in a trust that is not revocable
by, or under the control of, any member of the family or household [24 CFR 5.603(b)(4)]. Further, where
an irrevocable trust is excluded from net family assets, the PHA must not consider actual income earned
by the trust (e.g., interest earned, rental income if property is held in the trust) for so long as the income
from the trust is not distributed.
A revocable trust is a trust that the creator of the trust may amend or end (revoke). When there is a
revocable trust, the creator has access to the funds in the trust account.
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•
A revocable trust that is under the control of the family is included in net family assets when the
grantor is a member of the assisted family. If a revocable trust is included in the calculation of net
family assets, the actual income earned by the revocable trust is also included in the family’s
income. For example, interest earned or rental income if the property is held in the trust. The PHA
must calculate imputed income on the revocable trust if net family assets are more than the HUD-
published threshold amount, which is adjusted annually and listed in HUD’s Inflaction Adjusted
Values tables ($51,600 for 2025), and actual income from the trust cannot be caluated (e.g., if the
trust is comprised of farmland that is not in use).
•
A revocable trusts that is not under the control of the family is excluded from net family assets.
This happends when a member of the assisted family is the beneficiary of a revocable trust, but
the grantor is not a member of the assisted family. In this case the beneficiary does not “own” the
revocable trust, and te value of the trust is excuded frm net family assets. For the revocable trust
to be considered excludued from net family assets, no family or household member may be the
account’s trustee.
For bot irrevocable and revocable trusts, if the value of the trust is not considered part of net family
assets, the distribributions from the trust are treated as follows:
•
All distributions from the trust’s principal are excluded from income.
•
Distributions of income earned by the trust (i.e., interest, dividends, realized gains, or other
earnings on the trust’s principal), are included as income unless the distribution is used to pay for
the health and medical expenses for a minor.
Life Insurance [FR Notice 2/14/23 and Notice PIH 2023-27]
Net family assets do not include the value of term life insurance, which has no cash value to the
individual before death.
The cash value of a life insurance policy available to a family member before death, such as a whole life
or universal life policy, is included in the calculation of the value of the family’s assets. The cash value is
the surrender value. While the cash value of an insurance policy is considered an asset, the face value of
any policy is not. If such a policy earns dividends or interest that the family could elect to receive, the
amount of dividends or interest is counted as income from the asset whether or not the family actually
receives it.
Tax Refunds [24 CFR 5.603(b)(3)(xi) and Notice PIH 2023-27]
All amounts received by a family in the form of federal tax refunds or refundable tax credits are excluded
from a family’s net family assets for a period of 12 months after receipt by the family.
At the time of an annual or interim reexamination of income, if the federal tax refund was received
during the 12 months preceding the effective date of the reexamination, then the amount of the refund
that was received by the family is subtracted from the total value of net family assets. When the
subtraction results in a negative number, then the net family assets are considered $0.
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Asset Exclusions [24 CFR 5.603(b)]
The following are excluded from the calculations of net family assets:
•
The value of any account under a retirement plan recognized as such by the IRS, including individual
retirement arrangements (IRAs), employer retirement plans, and retirement plans for self-employed
individuals [24 CFR 5.603(b)(3)(iii)].
•
The value of real property that the family does not have the effective legal authority to sell in the
jurisdiction in which the property is located [24 CFR 5.603(b)(3)(iv)].
-
Real property as used in this part has the same meaning as that provided under the law of the
state in which the property is located [24 CFR 5.100].
-
Examples of this include but are not limited to co-ownership situations (including situations where
one owner is a victim of domestic violence), where one party cannot unilaterally sell the real
property; property that is tied up in litigation; and inherited property in dispute [Notice PIH 2023-
27].
•
Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence,
or other breach of duty owed to a family member arising out of law, that resulted in a family member
being a person with a disability [24 CFR 5.603(b)(3)(v)];
•
The value of any Coverdell education savings account under section 530 of the Internal Revenue Code
of 1986 [24 CFR 5.603(b)(3)(vi)];
•
The value of any qualified tuition program under Section 529 of such Code [24 CFR 5.603(b)(3)(vi)];
•
The value of any “baby bond” account created, authorized, or funded by federal, state, or local
government [24 CFR 5.603(b)(3)(vi)];
•
Interests in Indian trust land [24 CFR 5.603(b)(3)(vii)];
•
Equity in a manufactured home where the family receives assistance under 24 CFR part 982 [24 CFR
5.603(b)(3)(viii)];
•
Equity in property under the Homeownership Option for which a family receives assistance under 24
CFR part 982 [24 CFR 5.603(b)(3)(ix)];
•
Family Self-Sufficiency accounts [24 CFR 5.603(b)(3)(x)];
•
Federal tax refunds or refundable tax credits for a period of 12 months after receipt by the family [24
CFR 5.603(b)(3)(xi)].
•
The full amount of assets held in an irrevocable trust [Notice PIH 2023-27]; and
•
The full amount of assets held in a revocable trust where a member of the family is the beneficiary,
but the grantor/owner and trustee of the trust is not a member of the participant family or household
[Notice PIH 2023-27].
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6-II.D. DETERMINING INCOME FROM ASSETS
In some cases, amounts that are excluded from net family assets may be included as annual income
when disbursements are made to a family from an asset. In other cases, amounts are excluded from
annual income as a lump-sum addition to net family assets, but those funds are then considered a net
family asset if held in an account or other investment that is considered part of net family assets [Notice
PIH 2023-27].
Net Family Assets
Net family assets are defined as the net cash value of all assets owned by the family, after deducting
reasonable costs that would be incurred in disposing real property, savings, stocks, bonds, and other
forms of capital investment.
PHA Policy
Reasonable costs that would be incurred when disposing of an asset include, but are not limited
to, penalties for premature withdrawal, broker and legal fees, and settlement costs incurred in
real estate transactions such as settlement costs and transfer taxes [New PH OCC GB, Income
Determinations, p. 24].
The calculation of asset income sometimes requires the PHA to make a distinction between an asset’s
market value and its cash value.
•
The market value of an asset is its worth in the market (e.g., the amount a buyer would pay for real
estate or the total value of an investment account).
•
The cash value of an asset is its market value less all reasonable amounts that would be incurred
when converting the asset to cash.
The cash value of real property or other assets with negative equity would be considered $0 for the
purposes of calculating net family assets. Negative equity in real property or other investments does not
prohibit the family from selling the property or other investments, so negative equity alone would not
justify excluding the property or other investments from family assets [Notice PIH 2023-27].
Actual Income from Assets
Income from assets must be included on the Form HUD-50058 regardless of the amount of income.
Actual income from assets is always included in a family’s annual income, regardless of the total value of
net family assets or whether the asset itself is included or excluded from net family assets, unless that
income is specifically excluded by 24 CFR 5.609(b).
Income or returns from assets are generally considered to be interest, dividend payments, and other
actual income earned on the asset, and not the increase in market value of the asset. The increase in
market value is relevant to the cash value of the asset for the purpose of determining total net family
assets and imputing income.
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The PHA may determine the net assets of a family based on a self-certification by the family that the net
family assets do not exceed the HUD-published threshold amount, which is adjusted annualy and listed
in HUD’s Inflation Adjusted Values table, without taking additional steps to verify the accuracy of the
declaration [24 CFR 5.618(b)]. Policies related to verification of assets are found in Chapter 7 of this
policy.
•
The threshold amount is $51,600 for 2025.
The PHA may not calculate or include any imputed income from assets when net family assets are less
than or equal to the HUD-published threshold amount [24 CFR 5.609(b)(1)]. The actual income from
assets must be included on the Form HUD-50058.
Imputed Income from Assets
When net family assets exceed the HUD-published threshold amount, which is adjusted annualy and
listed in HUD’s Inflation Adjusted Values table, the PHA may not rely on self-certification. If actual returns
can be calculated, the PHA must include actual income from the asset on the Form HUD-50058 (for
example, a savings account or CD where the rate of return is known). If actual returns cannot be
calculated, the PHA must calculate imputed returns using the HUD-determined passbook rate (for
example, real property or a non-necessary item of personal property such as a recreational boat).
Imputed income is calculated by multiplying the net cash value of the asset (found by deducting
reasonable costs that would be incurred in disposing of the asset from the merkay value) by HUD-
published passbook rates. If the PHA can compute actual income from some but not all assets, the PHA
must compute actual returns where possible and use the HUD-determined passbook rate for assets
where actual income cannot be calculated [24 CFR 5.609(a)(2)].
An asset with an actual return of $0 (such as a non-interest-bearing checking account), is not the same as
an asset for which an actual return cannot be computed (such as non-necessary personal property). If the
asset is a financial asset and there is no income generated (for example, a bank account with a zero
percent interest rate or a stock that does not issue cash dividends), then the asset generates zero actual
asset income, and imputed income is not calculated. When a stock issues dividends in some years but
not others (e.g., due to market performance), the dividend is counted as the actual return when it is
issued, and when no dividend is issued, the actual return is $0. When the stock never issues dividends,
the actual return is consistently $0.
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PART III: ADJUSTED INCOME
6-III.A. INTRODUCTION
Overview
HUD regulations require PHAs to deduct from annual income any of five mandatory deductions for which
a family qualifies and allow the PHA to deduct other permissive deductions in accordance with PHA
policy. The resulting amount is the family’s adjusted income. Mandatory deductions are found in 24 CFR
5.611.
This part covers policies related to these mandatory deductions. Verification requirements related to
these deductions are found in Chapter 7.
Anticipating Expenses
PHA Policy
Generally, the PHA will use current circumstances to anticipate expenses. When possible, for costs
that are expected to fluctuate during the year (e.g., childcare during school and non-school
periods and cyclical medical expenses), the PHA will estimate costs based on historic data and
known future costs.
If a family has an accumulated debt for medical or disability assistance expenses, the PHA will
include as an eligible expense the portion of the debt that the family expects to pay during the
period for which the income determination is being made. However, amounts previously
deducted will not be allowed even if the amounts were not paid as expected in a preceding
period. The PHA may require the family to provide documentation of payments made in the
preceding year.
When calculating health and medical care expenses, the PHA will include those expenses
anticipated to be incurred during the 12 months following the certification date reexam which are
not covered by an outside source, such as insurance. The allowance is not intended to give a
family an allowance equal to last year’s expenses, but to anticipate regular ongoing and
anticipated expenses during the coming year. Since these expenses are anticipated, the PH
Occupancy Guidebook states “it is likely that actual expenses will not match what was anticipated.
Typically, this would not be considered an underpayment as long as at the time of the annual
reexamination, the expenses were calculated based on the appropriate verification” [New PH OCC
GB, Income Determinations, p. 30]. For annual reexaminations, the PHA will use information for the
previous 12-month period.
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6-III.B. DEPENDENT DEDUCTION
An allowance of $480 is deducted from annual income for each dependent (which amount will be
adjusted by HUD annually in accordance with the Consumer Price Index for Urban Wage Earners and
Clerical Workers, rounded to the next lowest multiple of $25) [24 CFR 5.611(a)(1)]. Dependent is defined as
any family member other than the head, spouse, or cohead who is under the age of 18 or who is 18 or
older and is a person with disabilities or a full-time student. Foster children, foster adults, and live-in
aides are never considered dependents [24 CFR 5.603(b)].
6-III.C. ELDERLY OR DISABLED FAMILY DEDUCTION
A single deduction of $525 is taken for any elderly or disabled family (which amount will be adjusted by
HUD annually in accordance with the Consumer Price Index for Urbab Wage Earners and Clerical
Workers, rounded to the next lowest multiple of $25) [24 CFR 5.611(a)(2).
An elderly family is a family whose head, spouse, cohead, or sole member is 62 years of age or older, and
a disabled family is a family whose head, spouse, cohead, or sole member is a person with disabilities [24
CFR 5.403].
6-III.D. HEALTH AND MEDICAL CARE EXPENSES DEDUCTION [24 CFR 5.611(A)(3)(I)]
Unreimbursed health and medical care expenses may be deducted to the extent that, in combination
with any disability assistance expenses, they exceed ten percent of annual income.
This deduction is permitted only for families in which the head, spouse, or cohead is at least 62 or is a
person with disabilities. If a family is eligible for a health and medical care expense deduction, the
unreimbursed health and medical care expenses of all family members areincluded The PHA calculates
health and medical care expenses based on the family’s past expenses, but accounting for any
anticipated changes in expenses during the certification period.
Definition of Medical Expenses
HUD regulations define health and medical care expenses at 24 CFR 5.603(b) to mean “any costs incurred in
the diagnosis, cure, mitigation, treatment, or prevention of disease or payments for treatments affecting
any structure or function of the body. Health and medical care expenses include medical insurance
premiums and long-term care premiums that are paid or anticipated during the period for which annual
income is computed.”
Health and medical care expenses may be deducted from annual income only if they are eligible under
this definition and not otherwise reimbursed.
Although HUD revised the definition of health and medical care expenses to reflect the Internal Revenue
Service (IRS) general definition of medical expenses, HUD is not permitting PHAs to specifically align their
policies to IRS Publication 502. PHAs must review each expense to determine whether it is eligible in
accordance with HUD’s definition While PHA policies may not specifically align with IRS Publication 502,
6-43
HUD recommends PHAs use it as a standard for determining allowable expenses, and the PHA may list
examples of allowable expenses in their policy provided they comply with HUD’s definition at 24 CFR
5.603. The PHA may not define health and medical care expenses more narrowly than the regulation.
PHA Policy
The PHA will use the most current IRS Publication 502 as a standard for determining if expenses
claimed by eligible families qualify as health and medical care expenses. However, under no
circumstances will the PHA deduct any expenses listed in IRS Publication 502 that do not conform
with HUD’s definition of health and medical care expenses.
Summary of Typical Allowable Health and Medical Care Expenses
Services of medical professionals
Surgery and medical procedures that
are necessary, legal, and non-cosmetic
Services of medical facilities
Hospitalization, long-term care, and in-
home nursing services
Prescription medicines and insulin, but
not nonprescription medicines even if
recommended by a doctor
Improvements to housing directly
related to medical needs (e.g., ramps
for a wheelchair, handrails)
Medical insurance premiums or the
cost of a health maintenance
organization (HMO)
Medicare Part B and Part D premiums
Substance abuse treatment programs
Psychiatric treatment
Ambulance services and some costs
of transportation related to medical
expenses. The PHA will use the most
current medical mileage rate listed in
IRS Publication 502.
The cost and care of necessary
equipment related to a medical
condition (e.g., eyeglasses/lenses,
hearing aids, crutches, and artificial
teeth)
The costs of buying, training, and
maintaining a guide dog or other
service animal to assist a visually
impaired or hearing disabled person,
or a person with other physical
disabilities. In general, this includes
any costs, such as food, grooming,
and veterinary care, incurred in
maintaining the health and vitality of
the service animal so that it may
perform its duties.
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Note: This chart provides a summary of eligible health and medical care
expenses only. In all cases, the PHA will consider whether health and medical
expenses care expenses claimed by the family are eligible under HUD’s
definition.
Families that Qualify for Both Health and Medical and Disability Assistance Expenses
PHA Policy
This policy applies only to families in which the head, spouse, or cohead is 62 or older or is a
person with disabilities.
When expenses anticipated by a family could be defined as either a health and medical care or
disability assistance expenses, the PHA will consider them health and medical care expenses
unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to
work.
6-III.E. DISABILITY ASSISTANCE EXPENSES DEDUCTION [24 CFR 5.603(B) AND 24 CFR 5.611(A)(3)(II)]
Unreimbursed reasonable expenses for attendant care and auxiliary apparatus for each member of the
family who is a person with disabilities may be deducted if they: (1) are necessary to enable a family
member 18 years or older to work, (2) are not paid to a family member or reimbursed by an outside
source, (3) in combination with any medical expenses, exceed ten percent of annual income, and (4) do
not exceed the earned income received by the family member who is enabled to work.
Earned Income Limit on the Disability Assistance Expense Deduction
A family can qualify for the disability assistance expense deduction only if at least one family member
(who may be the person with disabilities) is enabled to work [24 CFR 5.603(b)].
The disability expense deduction is capped by the amount of “earned income received by family
members who are 18 years of age or older and who are able to work” because of the expense [24 CFR
5.611(a)(3)(ii)]. The earned income used for this purpose is the amount verified before any earned income
disallowances or income exclusions are applied.
PHA Policy
The family must identify the family members enabled to work as a result of the disability
assistance expenses. In evaluating the family’s request, the PHA will consider factors such as how
the work schedule of the relevant family members relates to the hours of care provided, the time
required for transportation, the relationship of the family members to the person with disabilities,
and any special needs of the person with disabilities that might determine which family members
are enabled to work.
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When the PHA determines that the disability assistance expenses enable more than one family
member to work, the disability assistance expenses will be capped by the sum of the family
members’ incomes [New PH Occ GB, Income Determination, p. 28]
Eligible Auxiliary Apparatus [Notice PIH 2023-27]
Auxiliary apparatus items may include expenses for wheelchairs, ramps, adaptations to vehicles, guide
dogs, assistance animals, or special equipment to enable a person who is blind or has low vision to read
or type, or special equipment to assist a person who is deaf or hard of hearing.
Eligible Attendant Care [Notice PIH 2023-27]
Examples of attendant care expenses can include teaching a person with disabilities how to perform day-
to-day tasks independently like cleaning, bathing, doing laundry, and cooking. Attendant care can be 24-
hour care, or care during sporadic periods throughout the day. The family determines the type of
attendant care that is appropriate for the person with disabilities.
PHA Policy
Attendant care expenses will be included for the period that the person enabled to work is
employed plus reasonable transportation time. The cost of general housekeeping and personal
services is not an eligible attendant care expense. However, if the person enabled to work is the
person with disabilities, personal services necessary to enable the person with disabilities to work
are eligible.
If the care attendant also provides other services to the family, the PHA will prorate the cost and
allow only that portion of the expenses attributable to attendant care that enables a family
member to work. For example, if the care provider also cares for a child who is not the person
with disabilities, the cost of care must be prorated. Unless otherwise specified by the care
provider, the calculation will be based upon the number of hours spent in each activity and/or the
number of persons under care.
Payments to Family Members
No disability expenses may be deducted for payments to a member of a tenant family [23 CFR 5.603(b)].
However, expenses paid to a relative who is not a member of the tenant family may be deducted if they
are not reimbursed by an outside source.
Necessary and Reasonable Expenses
The family determines the type of care or auxiliary apparatus to be provided and must describe how the
expenses enable a family member to work. The family must certify that the disability assistance expenses
are necessary and are not paid or reimbursed by any other source.
PHA Policy
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The PHA determines the reasonableness of the expenses based on typical costs of care or
apparatus in the locality. To establish typical costs, the PHA will collect information from
organizations that provide services and support to persons with disabilities. A family may present,
and the PHA will consider, the family’s justification for costs that exceed typical costs in the area.
Families that Qualify for Both Health and Medical and Disability Assistance Expenses
PHA Policy
This policy applies only to families in which the head or spouse is 62 or older or is a person with
disabilities.
When expenses anticipated by a family could be defined as either health and medical care or
disability assistance expenses, the PHA will consider them health and medical care expenses
unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to
work.
6-III.F. CHILDCARE EXPENSE DEDUCTION
HUD defines childcare expenses at 24 CFR 5.603(b) as “amounts anticipated to be paid by the family for
the care of children under 13 years of age (age 12 and younger) (including foster children) during the
period for which annual income is computed, but only where such care is necessary to enable a family
member to actively seek employment, be gainfully employed, or to further their education and only to
the extent such amounts are not reimbursed. The amount deducted shall reflect reasonable charges for
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.”
Clarifying the Meaning of Child for This Deduction
Childcare expenses do not include child support payments made to another on behalf of a minor who is
not living in an assisted family’s household [VG, p. 26]. However, childcare expenses for foster children
that are living in the assisted family’s household are included when determining the family’s childcare
expenses [HCV GB, p. 5-29].
Qualifying for the Deduction
Determining Who is Enabled to Pursue an Eligible Activity
PHA Policy
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The family must identify the family member(s) enabled to pursue an eligible activity. The term
eligible activity in this section means any of the activities that may make the family eligible for a
childcare deduction (seeking work, pursuing an education, or being gainfully employed).
In evaluating the family’s request, the PHA will consider factors such as how the schedule for the
claimed activity relates to the hours of care provided, the time required for transportation, the
relationship of the family member(s) to the child, and any special needs of the child that might
help determine which family member is enabled to pursue an eligible activity.
Seeking Work
PHA Policy
If the childcare expense being claimed is to enable a family member to seek employment, the
family must provide evidence of the family member’s efforts to obtain employment at each
reexamination. The deduction may be reduced or denied if the family member’s job search efforts
are not commensurate with the childcare expense being allowed by the PHA.
Furthering Education
PHA Policy
If the childcare expense being claimed is to enable a family member to further their education, the
member must be enrolled in school (academic or vocational) or participating in a formal training
program. The family member is not required to be a full-time student, but the time spent in
educational activities must be commensurate with the childcare claimed.
Being Gainfully Employed
PHA Policy
If the childcare expense being claimed is to enable a family member to be gainfully employed, the
family must provide evidence of the family member’s employment during the time that childcare
is being provided. Gainful employment is any legal work activity (full- or part-time) for which a
family member is compensated.
Earned Income Limit on Childcare Expense Deduction
When a family member looks for work or furthers their education, there is no cap on the amount that
may be deducted for childcare – although the care must still be necessary and reasonable. However,
when childcare enables a family member to work, the deduction is capped by “the amount of
employment income that is included in annual income” [24 CFR 5.603(b)].
The earned income used for this purpose is the amount of earned income verified after any earned
income disallowances or income exclusions are applied.
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The PHA must not limit the deduction to the least expensive type of childcare. If the care allows the family
to pursue more than one eligible activity, including work, the cap is calculated in proportion to the
amount of time spent working [HCV GB, p. 5-30].
PHA Policy
When the childcare expense being claimed is to enable a family member to work, only one family
member’s income will be considered for a given period of time. When more than one family
member works during a given period, the PHA generally will limit allowable childcare expenses to
the earned income of the lowest-paid member. The family may provide information that supports
a request to designate another family member as the person enabled to work.
Eligible Childcare Expense
The type of care to be provided is determined by the tenant family. The PHA may not refuse to give a
family the childcare expense deduction because there is an adult family member in the household that
may be available to provide childcare [VG, p. 26].
Allowable Childcare Activities
PHA Policy
For school-age children, costs attributable to public or private school activities during standard
school hours are not considered. Expenses incurred for supervised activities after school or during
school holidays (e.g., summer day camp, after-school sports league) are allowable forms of
childcare.
The costs of general housekeeping and personal services are not eligible. Likewise, childcare
expenses paid to a family member who lives in the family’s unit are not eligible; however,
payments for childcare to relatives who do not live in the unit are eligible.
If a childcare provider also renders other services to a family or childcare is used to enable a
family member to conduct activities that are not eligible for consideration, the PHA will prorate the
costs and allow only that portion of the expenses that is attributable to childcare for eligible
activities. For example, if the care provider also cares for a child with disabilities who is 13 or older,
the cost of care will be prorated. Unless otherwise specified by the childcare provider, the
calculation will be based upon the number of hours spent in each activity and/or the number of
persons under care.
Necessary and Reasonable Costs
Childcare expenses will be considered necessary if: (1) a family adequately explains how the care enables
a family member to work, actively seek employment, or further their education, and (2) the family
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certifies, and the childcare provider verifies, that the expenses are not paid or reimbursed by any other
source.
PHA Policy
Childcare expenses will be considered for the time required for the eligible activity plus
reasonable transportation time. For childcare that enables a family member to go to school, the
time allowed may include not more than one study hour for each hour spent in class.
To establish the reasonableness of childcare costs, the PHA will use the schedule of childcare costs
from a qualified local entity that either subsidizes childcare costs or licenses childcare providers.
Families may present, and the PHA will consider, justification for costs that exceed typical costs in
the area.
6-III.G. HARDSHIP EXEMPTIONS [24 CFR 5.611(c), (d), and (e)]
Health and Medical Care and Disability Assistance Expenses [24 CFR 5.611(c); Notice PIH 2023-27]
The regulations provide for two types of hardship exemption categories for families that qualify for
unreimbursed health and medical care expenses and/or disability assistance expenses. A family will
benefit from this hardship exemption only if the family has eligible expenses that can be deducted in
excess of five percent of annual income. In order to claim unreimbursed health and medical care
expenses, the family must have a head, cohead, or spouse that is elderly or a person with a disability. In
order to claim unreimbursed reasonable attendant care and auxiliary apparatus expenses, the family
must include a person with a disability, and the expenses must enable any member of the family
(including the member who is a person with a disability) to be employed.
Families may be eligible for relief under one of two categories; phased-in relief or general relief, as
defined below.
Phased-In Relief
The first category is applicable to all families who received a deduction for unreimbursed health and
medical care and/or reasonable attendant care or auxiliary apparatus expenses based on their most
recent income review prior to January 1, 2024. These families will begin receiving a 24-month phased-in
relief at their next annual or interim reexamination, whichever occurs first after the date on which the
PHA implements phased-in-relief.
For these families, the threshold amount is phased-in as follows:
•
The family is eligible for a deduction totaling the sum of expenses that exceeds 5 percent of annual
income for the first 12 months.
•
At the conclusion of 12 months, the family is eligible for a deduction totaling the sum of their
expenses that exceed 7.5 percent of annual income for another 12 months.
•
At the conclusion of 24 months, the standard threshold amount of 10 percent would be used, unless
the family qualifies for relief under the general hardship relief category.
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-
When an eligible family’s phased-in relief begins at an interim reexamination, the PHA will need to
process another transaction one year later to move the family along to the next phase. The
transaction can be either an interim reexamination if triggered, or a non-interim reexamination
transaction.
When an eligible family’s phased-in relief begins at an interim reexamination, the PHA must process
another transaction (either an interim reexamination or non-interim transaction, as applicable) one year
later to move the family to the next phase.
Prior to the end of the 24-month period, the family may request a hardship exemption under the second
category as described below. If the family is found eligible under the second category, the hardship
exemption under the first category ends, and the family’s hardship is administered in accordance with
the requirements listed below. Once a family requests general relief, the family may no longer receive
phased-in relief.
PHAs must track the 24-month phase-period for each eligible family, even if a family’s expenses go below
the appropriate phase-in percentage, during the first or second 12-month phase-in period. The phase-in
must continue for families who move to another public housing unit at the same PHA. When the family is
treated as a new admission under a different property/program (e.g., the family moves from public
housing to the HCV program), unless the PHA has a written policy to continue the phased-in relief upon
admission, the family’s expense deduction will be calculated using the 10-percent threshold unless
request for general relief is approved by the PHA.
PHA Policy
The PHA will not continue the phased-in relief for families who move from the HCV program to
public housing. These families will be treated as new admissions and the sum of expenses that
exceeds 10 percent of annual income will be used to calculate their adjusted income.
General Relief
The second category is for families that can demonstrate:
•
Their health and medical and/or disability assistance expenses increased (other than the transition to
the higher threshold); or
•
The family’s financial hardship is a result of a change in circumstances (as defined in PHA policy) that
would not otherwise trigger an interim reexamination.
The family may request a hardship exemption under the second category regardless of whether the
family previously received the health and medical and/or disability assistance deductions or are currently
or were previously receiving relief under the phased-in relief category above. HUD requires that PHAs
develop policies defining what constitutes a hardship for purposes of this exemption.
The PHA must obtain third-party verification of the hardship or must document in the file the reason
third-party verification was not available. PHAs must attempt to obtain third-party verification prior to the
end of the 90-day hardship exemption period.
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PHA Policy
To qualify for a hardship exemption, a family must submit a request in writing. The request must
show that the family’s health and medical and/or disability assistance expenses have increased
(other than the transition to the higher threshold) or that the family’s financial hardship is a result
of a change in circumstances. The PHA defines a change in circumstances as a decrease in income
or increase in other expenses that has resulted in the family’s financial hardship but does not, on
its own, trigger an interim reexamination in accordance with PHA policies.
Examples of circumstances constituting a financial hardship may include the following situations:
The family is awaiting an eligibility determination for a federal, state, or local assistance
program, such as a determination for unemployment compensation or disability benefits;
The family’s income decreased because of a loss of employment, death of a family
member, or due to a natural or federal/state declared disaster; or
Other circumstances as determined by the PHA.
The family must provide third-party verification of the hardship with the request. If third-party
verification is not available, the PHA will document the file with the reason and will attempt to
obtain third-party verification prior to the end of the 90-day hardship exemption period.
The PHA must promptly notify the family in writing of the change in the determination of adjusted
income and the family’s rent resulting from hardship exemptions. The notice must inform the family of
when the hardship exemption will begin and expire [24 CFR 5.611(e)(2)].
PHA Policy
The PHA will make a determination of whether the family qualifies within 30 calendar days and
will notify the family in writing of the result within 10 business days of the determination.
If the PHA denies the hardship exemption request, the PHA notice will also state that if the
family does not agree with the PHA determination, the family may request a hearing.
If the family qualifies for an exemption, the PHA will include the date the hardship
exemption will begin and the date it will expire as well as information on how to request a
90-day extension based on family circumstances.
If the family qualifies, the family will receive a deduction for the sum of eligible expenses that exceed five
percent of annual income.
The family’s hardship relief ends when the circumstances that made the family eligible for the relief are
no longer applicable or after 90 days, whichever is earlier. However, the PHA may, at its discretion,
extend the relief for one or more additional 90-day periods while the family’s hardship condition
continues. PHAs must establish written policies regarding the types of circumstances that will allow a
family to qualify for a financial hardship and when such deductions may be eligible for additional 90-day
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extensions. PHAs must develop policies requiring families to report if the circumstances that made the
family eligible for the hardship exemption are no longer applicable.
PHA Policy
The family may request an extension either orally or in writing prior to the end of the hardship
exemption period. The PHA will extend relief for an additional 90-days if the family demonstrates
to the PHA’s satisfaction that the family continues to qualify for the hardship exemption based on
circumstances described above. The PHA will require updated verification based on the family’s
current circumstances. Additional extension(s) may be granted on a case-by-case basis provided
the family continues to request extensions prior to the end of each hardship exemption period.
Families must report if the circumstances that made the family eligible for the hardship exemption
are no longer applicable. At any time, the PHA may terminate the hardship exemption if the PHA
determines that the family no longer qualifies for the exemption.
Childcare Expense Hardship Exemption [24 CFR 5.611(d) and Notice PIH 2023-27]
A family whose eligibility for the childcare expense deduction is ending may request a financial hardship
exemption to continue receiving the deduction. If the family demonstrates to the PHA’s satisfaction that
the family is unable to pay their rent because of the loss of the childcare expense deduction, and that the
childcare expense is still necessary even though the family member is not working, looking for work, or
seeking to further their education, the PHA must recalculate the family’s adjusted income and continue
the childcare deduction.
The PHA must develop a policy to define what constitutes a hardship, which includes the family’s inability
to pay rent. The PHA must obtain third-party verification of the hardship or must document in the file the
reason third-party verification was not available. PHAs must attempt to obtain third-party verification
prior to the end of the 90-day hardship exemption period.
PHA Policy
For a family to qualify, they must demonstrate that their inability to pay rent would be as a result
of the loss of this deduction. The PHA defines this hardship as a potential decrease in income or
increase in other expenses that would result from the loss of the childcare expense and such loss
would impact the family’s ability to pay their rent.
Some factors to consider when determining if the family is unable to pay rent may include
determining that the rent, utility payment, and applicable expenses (childcare expenses or health
and medical expenses) are more than 40 percent of the family’s adjusted income, or verifying
whether the family has experienced unanticipated expenses, such as large medical bills, that have
affected their ability to pay their rent.
The family must also demonstrate that the childcare expense is still necessary even though the
family member is no longer employed or furthering their education. The PHA will consider
qualification under this criterion on a case-by case basis (for example, if the family member who
was employed has left their job in order to provide uncompensated care to an elderly friend or
family member who is severely ill and lives across town).
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The family must provide third-party verification of the hardship with the request. If third-party
verification is not available, the PHA will document the file with the reason and will attempt to
obtain third-party verification prior to the end of the 90-day hardship exemption period.
The PHA must promptly notify the family in writing of the change in the determination of adjusted
income and the family’s rent resulting from hardship exemptions.
If the PHA denies the request, the notice must specifically state the reason for the denial. PHAs must
provide families 30 days’ notice of any increase in rent.
If the PHA approves the request, the notice must inform the family of when the hardship exemption will
begin and expire [24 CFR 5.611(e)(2)]. The notice must also state the requirement for the family to report
to the PHA if the circumstances that made the family eligible for relief are no longer applicable and that
the family’s adjusted income and tenant rent will be recalculated upon expiration of the hardship
exemption [Notice PIH 2023-27].
PHA Policy
The PHA will make a determination of whether the family qualifies within 30 calendar days and
will notify the family in writing of the result within 10 business days of the determination.
If the PHA denies the hardship exemption request, the PHA notice will also state that if the
family does not agree with the PHA determination, the family may request a grievance
hearing.
If the family qualifies for an exemption, the PHA will include all required information listed
above as well as information on how to request a 90-day extension based on family
circumstances.
If the family qualifies, the hardship exemption and the resulting alternative adjusted income calculation
must remain in place for a period of up to 90 days.
The PHA may, at its discretion, extend the hardship exemptions for additional 90-day periods based on
family circumstances and as stated in PHA policies. PHAs are not limited to a maximum number of 90-day
extensions. PHAs must develop policies requiring families to report if the circumstances that made the
family eligible for the hardship exemption are no longer applicable.
PHAs must promptly notify families in writing if they are denied either an initial hardship exemption or an
additional 90-day extension of the exemption. If the PHA denies the request, the notice must specifically
state the reason for the denial.
PHAs must notify the family if the hardship exemption is no longer necessary, and the hardship
exemption will be terminated because the circumstances that made the family eligible for the exemption
are no longer applicable. The notice must state the termination date and provide 30 days’ notice of rent
increase, if applicable.
PHA Policy
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The family may request an extension either orally or in writing prior to the end of the hardship
exemption period. The PHA will extend relief for an additional 90-days if the family demonstrates
to the PHA’s satisfaction that the family continues to qualify for the hardship exemption. The PHA
will require updated verification based on the family’s current circumstances. Additional
extensions may be granted on a case-by-case basis provided the family continues to request
extensions prior to the end of each hardship exemption period. Families must report if the
circumstances that made the family eligible for the hardship exemption are no longer applicable.
At any time, the PHA may terminate the hardship exemption if the PHA determines that the family
no longer qualifies for the exemption.
6-III.H. PERMISSIVE DEDUCTIONS [24 CFR 5.611(b)(1)(i)]
The PHA may adopt additional permissive deductions from annual income if they establish a policy in the
ACOP. Permissive deductions are additional, optional deductions that may be applied to annual income.
As with mandatory deductions, permissive deductions must be based on need or family circumstance
and deductions must be designed to encourage self-sufficiency or other economic purpose. If the PHA
offers permissive deductions, they must be granted to all families that qualify for them and should
complement existing income exclusions and deductions [PH Occ GB, p. 128]. Permissive deductions may
be used to incentivize or encourage self-sufficiency and economic mobility.
If the PHA chooses to adopt permissive deductions, the PHA is not eligible for an increase in Capital Fund
and Operating Fund formula grants based on the application of those deductions. The PHA must
establish a written policy for such deductions.
The Form HUD-50058 Instruction Booklet states that the maximum allowable amount for total permissive
deductions is less than $90,000 per year.
PHA Policy
The PHA has opted not to use permissive deductions.
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PART IV: CALCULATING RENT
6-IV.A. OVERVIEW OF INCOME-BASED RENT CALCULATIONS
The first step in calculating income-based rent is to determine each family’s total tenant payment (TTP).
Then, if the family is occupying a unit that has tenant-paid utilities, the utility allowance is subtracted
from the TTP. The result of this calculation, if a positive number, is the tenant rent. If the TTP is less than
the utility allowance, the result of this calculation is a negative number, and is called the utility
reimbursement, which may be paid to the family or directly to the utility company by the PHA.
TTP Formula [24 CFR 5.628]
HUD regulations specify the formula for calculating the total tenant payment (TTP) for a tenant family.
TTP is the highest of the following amounts, rounded to the nearest dollar:
•
30 percent of the family’s monthly adjusted income (adjusted income is defined in Part II)
•
10 percent of the family’s monthly gross income (annual income, as defined in Part I, divided by
12)
•
The welfare rent (in as-paid states only)
•
A minimum rent between $0 and $50 that is established by the PHA
The PHA has authority to suspend and exempt families from minimum rent when a financial hardship
exists, as defined in Section 6-IV.B.
Welfare Rent [24 CFR 5.628]
PHA Policy
Welfare rent does not apply in this locality.
Minimum Rent [24 CFR 5.630]
PHA Policy
The minimum rent for this locality is $50.
Optional Changes to Income-Based Rents [24 CFR 960.253(c)(2) and PH Occ GB, pp. 131-134]
PHAs have been given very broad flexibility to establish their own, unique rent calculation systems as
long as the rent produced is not higher than that calculated using the TTP and mandatory deductions. At
the discretion of the PHA, rent policies may structure a system that uses combinations of permissive
deductions, escrow accounts, income-based rents, and the required flat and minimum rents.
The PHA’s minimum rent and rent choice policies still apply to affected families. Utility allowances are
applied to PHA designed income-based rents in the same manner as they are applied to the regulatory
income-based rents.
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The choices are limited only by the requirement that the method used not produce a TTP or tenant rent
greater than the TTP or tenant rent produced under the regulatory formula.
PHA Policy
The PHA chooses not to adopt optional changes to income-based rents.
Ceiling Rents / Flat Rents [24 CFR 960.253(c)(2) and (d)]
Ceiling rents are used to cap income-based rents. They are part of the income-based formula. If the
calculated TTP exceeds the ceiling rent for the unit, the ceiling rent is used to calculate tenant rent (ceiling
rent/TTP minus utility allowance). Increases in income do not affect the family since the rent is capped.
The use of ceiling rents fosters upward mobility and income mixing.
Because of the mandatory use of flat rents, the primary function of ceiling rents now is to assist families
who cannot switch back to flat rent between annual reexaminations and would otherwise be paying an
income-based tenant rent that is higher than the flat rent.
Ceiling rents must be set to the level required for flat rents (which will require the addition of the utility
allowance to the flat rent for properties with tenant-paid utilities) [PH Occ GB, p. 135].
PHA Policy
The PHA chooses not to use ceiling rents.
Utility Reimbursement [24 CFR 982.514(b); 982.514]
Utility reimbursement occurs when any applicable utility allowance for tenant-paid utilities exceeds the
TTP. HUD permits the PHA to pay the reimbursement to the family or directly to the utility provider.
PHA Policy
The PHA will make all utility reimbursement payments to qualifying families to the electric utility
company(s) of their choice.
The PHA may make all utility reimbursement payments to qualifying families on a monthly basis or may
make quarterly payments when the monthly reimbursement amount is $15.00 or less. Reimbursements
must be made once per calendar-year quarter, either prospectively or retroactively, and must be
prorated if the family leaves the program in advance of its next quarterly reimbursement. The PHA must
also adopt hardship policies for families for whom receiving quarterly reimbursement would create a
financial hardship. The PHA must issue reimbursements that exceed $15.00 per month on a monthly
basis.
PHA Policy
The PHA will issue all utility reimbursements monthly.
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6-IV.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT [24 CFR 5.630]
Overview
If the PHA establishes a minimum rent greater than zero, the PHA must grant an exemption from the
minimum rent if a family is unable to pay the minimum rent because of financial hardship.
The financial hardship exemption applies only to families required to pay the minimum rent. If a family’s
TTP is higher than the minimum rent, the family is not eligible for a hardship exemption. If the PHA
determines that a hardship exists, the TTP is the highest of the remaining components of the family’s
calculated TTP.
HUD-Defined Financial Hardship
Financial hardship includes the following situations:
(1) The family has lost eligibility for or is awaiting an eligibility determination for a federal, state, or
local assistance program. This includes a family member who is a noncitizen lawfully admitted for
permanent residence under the Immigration and Nationality Act who would be entitled to public
benefits but for Title IV of the Personal Responsibility and Work Opportunity Act of 1996.
PHA Policy
A hardship will be considered to exist only if the loss of eligibility has an impact on the family’s
ability to pay the minimum rent.
For a family waiting for a determination of eligibility, the hardship period will end as of the first
of the month following (1) implementation of assistance, if approved, or (2) the decision to deny
assistance. A family whose request for assistance is denied may request a hardship exemption
based upon one of the other allowable hardship circumstances.
(2) The family would be evicted because it is unable to pay the minimum rent.
PHA Policy
For a family to qualify under this provision, the cause of the potential eviction must be the family’s
failure to pay rent or tenant-paid utilities.
(3) Family income has decreased because of changed family circumstances, including the loss of
employment.
(4) A death has occurred in the family.
PHA Policy
In order to qualify under this provision, a family must describe how the death has created a
financial hardship (e.g., because of funeral-related expenses or the loss of the family member’s
income).
(5) The family has experienced other circumstances determined by the PHA.
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PHA Policy
The PHA has not established any additional hardship criteria.
Implementation of Hardship Exemption
Determination of Hardship
When a family requests a financial hardship exemption, the PHA must suspend the minimum rent
requirement beginning the first of the month following the family’s request.
The PHA then determines whether the financial hardship exists and whether the hardship is temporary
or long-term.
PHA Policy
The PHA defines temporary hardship as a hardship expected to last 90 days or less. Long term
hardship is defined as a hardship expected to last more than 90 days.
When the minimum rent is suspended, the family share reverts to the highest of the remaining
components of the calculated TTP. The example below demonstrates the effect of the minimum rent
exemption.
Example: Impact of Minimum Rent Exemption
Assume the PHA has established a minimum rent of $50.
TTP – No Hardship
TTP – With Hardship
$0
$15
30% of monthly adjusted income
10% of monthly gross income
$0
$15
30% of monthly adjusted income
10$ of monthly gross income
N/A
$50
Welfare rent
Minimum rent
N/A
$50
Welfare rent
Minimum rent
Minimum rent applies
TTP = $50
Hardship exemption granted
TTP = $15
PHA Policy
To qualify for a hardship exemption, a family must submit a request for a hardship exemption in
writing. The request must explain the nature of the hardship and how the hardship has affected
the family’s ability to pay the minimum rent.
The PHA will make the determination of hardship within 30 calendar days.
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No Financial Hardship
If the PHA determines there is no financial hardship, the PHA will reinstate the minimum rent and require
the family to repay the amounts suspended.
For procedures pertaining to grievance hearing requests based upon the PHA’s denial of a hardship
exemption, see Chapter 14, Grievances and Appeals.
PHA Policy
The PHA will require the family to repay the suspended amount within 30 calendar days of the
PHA’s notice that a hardship exemption has not been granted.
Temporary Hardship
If the PHA determines that a qualifying financial hardship is temporary, the PHA must suspend the
minimum rent for the 90-day period beginning the first of the month following the date of the family’s
request for a hardship exemption.
At the end of the 90-day suspension period, the family must resume payment of the minimum rent and
must repay the PHA the amounts suspended. HUD requires the PHA to offer a reasonable repayment
agreement, on terms and conditions established by the PHA. The PHA also may determine that
circumstances have changed, and the hardship is now a long-term hardship.
For procedures pertaining to grievance hearing requests based upon the PHA’s denial of a hardship
exemption, see Chapter 14, Grievances and Appeals.
PHA Policy
The PHA will enter into a repayment agreement in accordance with the PHA's repayment
agreement policy (see Chapter 16).
Long-Term Hardship
If the PHA determines that the financial hardship is long-term, the PHA must exempt the family from the
minimum rent requirement for so long as the hardship continues. The exemption will apply from the first
of the month following the family’s request until the end of the qualifying hardship. When the financial
hardship has been determined to be long-term, the family is not required to repay the minimum rent.
PHA Policy
The hardship period ends when any of the following circumstances apply:
(1) At an interim or annual reexamination, the family’s calculated TTP is greater than the
minimum rent.
(2) For hardship conditions based on loss of income, the hardship condition will continue to be
recognized until new sources of income are received that are at least equal to the amount
lost. For example, if a hardship is approved because a family no longer receives a $60/month
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child support payment, the hardship will continue to exist until the family receives at least
$60/month in income from another source or once again begins to receive the child support.
(3) For hardship conditions based upon hardship-related expenses, the minimum rent
exemption will continue to be recognized until the cumulative amount exempted is equal to
the expense incurred.
6-IV.C. UTILITY ALLOWANCES [24 CFR 965, SUBPART E]
Overview
Utility allowances are provided to families paying income-based rents when the cost of utilities is not
included in the rent. When determining a family’s income-based rent, the PHA must use the utility
allowance applicable to the type of dwelling unit leased by the family.
For policies on establishing and updating utility allowances, see Chapter 16.
Reasonable Accommodation and Individual Relief
On request from a family, PHAs must approve a utility allowance that is higher than the applicable
amount for the dwelling unit if a higher utility allowance is needed as a reasonable accommodation to
make the program accessible to and usable by the family with a disability [24 CFR 8 and 100, PH Occ GB,
p. 172].
Likewise, residents with disabilities may not be charged for the use of certain resident-supplied
appliances if there is a verified need for special equipment because of the disability [PH Occ GB, p. 172].
See Chapter 2 for policies related to reasonable accommodations.
Further, the PHA may grant requests for relief from charges in excess of the utility allowance on
reasonable grounds, such as special needs of the elderly, ill, or residents with disabilities, or special
factors not within control of the resident, as the PHA deems appropriate. The family must request the
higher allowance and provide the PHA with an explanation about the additional allowance required.
PHAs should develop criteria for granting individual relief, notify residents about the availability of
individual relief, and notify participants about the availability of individual relief programs (sometimes
referred to as “Medical Baseline discounts”) offered by the local utility company [Utility Allowance GB, p.
19; 24 CFR 965.508].
PHA Policy
The family must request the higher allowance and provide the PHA with information about the
amount of additional allowance required.
The PHA will consider the following criteria as valid reasons for granting individual relief:
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The family’s consumption was mistakenly portrayed as excessive due to defects in the
meter or errors in the meter reading.
The excessive consumption is caused by a characteristic of the unit or owner-supplied
equipment that is beyond the family’s control, such as a particularly inefficient refrigerator
or inadequate insulation. The allowance should be adjusted to reflect the higher
consumption needs associated with the unit until the situation is remedied. The resident
should be granted individual relief until the allowance is adjusted.
The excessive consumption is due to special needs of the family that are beyond their
control, such as the need for specialized equipment in the case of a family member who is
ill, elderly, or who has a disability.
In determining the amount of the reasonable accommodation or individual relief, the PHA will
allow a reasonable measure of additional usage as necessary. To arrive at the amount of
additional utility cost of specific equipment, the family may provide information from the
manufacturer of the equipment, or the family or PHA may conduct an internet search for an
estimate of usage or additional monthly cost.
Information on reasonable accommodation and individual relief for charges in excess of the utility
allowance will be provided to all residents at move-in and with any notice of proposed allowances,
schedule surcharges, and revisions. The PHA will also provide information on utility relief
programs or medical discounts (sometimes referred to as “Medical Baseline discounts”) that may
be available through local utility providers.
The family must request the higher allowance and provide the PHA with information about the
amount of additional allowance required.
At its discretion, the PHA may reevaluate the need for the increased utility allowance as a
reasonable accommodation at any regular reexamination.
If the excessive consumption is caused by a characteristic of the unit or PHA-supplied equipment
that is beyond the family’s control, such as a particularly inefficient refrigerator or inadequate
insulation, the individual relief to the resident will cease when the situation is remedied.
Utility Allowance Revisions [24 CFR 965.507]
The PHA must review at least annually the basis on which utility allowances have been established and, if
reasonably required in order to continue adherence to standards described in 24 CFR 965.505, must
establish revised allowances.
The PHA must revise the utility allowance schedule if there is a rate change that by itself or together with
prior rate changes not adjusted for, results in a change of 10 percent or more from the rates on which
such allowances were based.
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Adjustments to resident payments as a result of such changes must be retroactive to the first day of the
month following the month in which the last rate change taken into account in such revision became
effective. Such rate changes are not subject to the 60-day notice [24 CFR 965.507(b)].
The tenant rent calculations must reflect any changes in the PHA’s utility allowance schedule [24 CFR
960.253(c)(3)].
PHA Policy
Between annual reviews of utility allowances, the PHA will only revise its utility allowances due to a
rate change, when required to by the regulation.
6-IV.D. PRORATED RENT FOR MIXED FAMILIES [24 CFR 5.520]
HUD regulations prohibit assistance to ineligible family members. A mixed family is one that includes at
least one U.S. citizen or eligible immigrant and any number of ineligible family members. Except for non-
public housing over income families, the PHA must prorate the assistance provided to a mixed family.
The PHA will first determine TTP as if all family members were eligible and then prorate the rent based
upon the number of family members that actually are eligible. To do this, the PHA must:
(1) Subtract the TTP from the flat rent applicable to the unit. The result is the maximum subsidy for
which the family could qualify if all members were eligible.
(2) Divide the family maximum subsidy by the number of persons in the family to determine the
maximum subsidy per each family member who is eligible (member maximum subsidy).
(3) Multiply the member maximum subsidy by the number of eligible family members.
(4) Subtract the subsidy calculated in the last step from the flat rent. This is the prorated TTP.
(5) Subtract the utility allowance for the unit from the prorated TTP. This is the prorated rent for the
mixed family.
PHA Policy
Revised public housing flat rents will be applied to a mixed family’s rent calculation at the
first annual reexamination after the revision is adopted.
(6) When the mixed family’s TTP is greater than the applicable flat rent, use the TTP as the prorated
TTP. The prorated TTP minus the utility allowance is the prorated rent for the mixed family.
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6-IV.E. FLAT RENTS AND FAMILY CHOICE IN RENTS [24 CFR 960.253]
Flat Rents [24 CFR 960.253(b)]
The flat rent is designed to encourage self-sufficiency and to avoid creating disincentives for continued
residency by families who are attempting to become economically self-sufficient.
Changes in family income, expenses, or composition will not affect the flat rent amount because it is
outside the income-based formula.
Policies related to the reexamination of families paying flat rent are contained in Chapter 9, and policies
related to the establishment and review of flat rents are contained in Chapter 16.
Family Choice in Rents [24 CFR 960.253(a) and (e)]
With the exception of non-public housing over income families, once each year, the PHA must offer
families the choice between a flat rent and an income-based rent. The family may not be offered this
choice more than once a year. The PHA must document that flat rents were offered to families under the
methods used to determine flat rents for the PHA.
PHA Policy
The annual PHA offer to a family of the choice between flat and income-based rent will be
conducted upon admission and upon each subsequent annual reexamination.
The PHA will require families to submit their choice of flat or income-based rent in writing and will
maintain such requests in the tenant file as part of the admission or annual reexamination
process.
The PHA must provide sufficient information for families to make an informed choice. This information
must include the PHA’s policy on switching from flat rent to income-based rent due to financial hardship
and the dollar amount of the rent under each option. However, if the family chose the flat rent for the
previous year the PHA is required to provide an income-based rent amount only in the year that a
reexamination of income is conducted or if the family specifically requests it and submits updated
income information.
Switching from Flat Rent to Income-Based Rent Due to Hardship [24 CFR 960.253(f)]
With the exception of non-public housing over-income families, a family can opt to switch from flat rent
to income-based rent at any time if they are unable to pay the flat rent due to financial hardship. If the
PHA determines that a financial hardship exists, the PHA must immediately allow the family to switch
from flat rent to the income-based rent.
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PHA Policy
Upon determination by the PHA that a financial hardship exists, the PHA will allow a family to
switch from flat rent to income-based rent effective the first of the month following the family’s
request.
Reasons for financial hardship include:
•
The family has experienced a decrease in income because of changed circumstances, including
loss or reduction of employment, death in the family, or reduction in or loss of earnings or other
assistance
•
The family has experienced an increase in expenses, because of changed circumstances, for
medical costs, childcare, transportation, education, or similar items
•
Such other situations determined by the PHA to be appropriate
PHA Policy
The PHA considers payment of flat rent to be a financial hardship whenever the switch to income-
based rent would be lower than the flat rent [PH Occ GB, p. 137].
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EXHIBIT 6-1: ANNUAL INCOME FULL DEFINITION
24 CFR 5.609
(a) Annual income includes, with respect to the
family:
(1) All amounts, not specifically excluded in
paragraph (b) of this section, received from all
sources by each member of the family who is 18
years of age or older or is the head of household
or spouse of the head of household, plus
unearned income by or on behalf of each
dependent who is under 18 years of age, and
(2) When the value of net family assets exceeds
the HUD-published threshold amount (which
amount HUD will adjust annually in accordance
with the Consumer Price Index for Urban Wage
Earners and Clerical Workers) and the actual
returns from a given asset cannot be calculated,
imputed returns on the asset based on the current
passbook savings rate, as determined by HUD.
(b)Annual income does not include the following:
(1) Any imputed return on an asset when net
family assets are less than or equal to the HUD-
published threshold amount(which amount HUD
will adjust annually in accordance with the
Consumer Price Index for Urban Wage Earners
and Clerical Workers) and no actual income from
the net family assets can be determined.
(2) The following types of trust distributions:
(i) For an irrevocable trust or a revocable trust
outside the control of the family or household
excluded from the definition of net family assets
under § 5.603(b):
(A) Distributions of the principal or corpus of the
trust; and
(B) Distributions of income from the trust when
the distributions are used to pay the costs of
health and medical care expenses for a minor.
(ii) For a revocable trust under the control of the
family or household, any distributions from the
trust; except that any actual income earned by the
trust, regardless of whether it is distributed, shall
be considered income to the family at the time it is
received by the trust.
(3) Earned income of children under the 18 years
of age.
(4) Payments received for the care of foster
children or foster adults, or State or Tribal kinship
or guardianship care payments.
(5) Insurance payments and settlements for
personal or property losses, including but not
limited to payments through health insurance,
motor vehicle insurance, and workers’
compensation.
(6) Amounts received by the family that are
specifically for, or in reimbursement of, the cost of
health and medical care expenses for any family
member.
(7) Any amounts recovered in any civil action or
settlement based on a claim of malpractice,
negligence, or other breach of duty owed to a
family member arising out of law, that resulted in
a member of the family becoming disabled.
(8) Income of a live-in aide, foster child, or foster
adult as defined in §§ 5.403 and 5.603,
respectively.
(9)
(i) Any assistance that section 479B of the Higher
Education Act of 1965, as amended (20 U.S.C.
1087uu), requires be excluded from a family’s
income; and
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(ii) Student financial assistance for tuition, books,
and supplies (including supplies and equipment to
support students with learning disabilities or other
disabilities), room and board, and other fees
required and charged to a student by an
institution of higher education (as defined under
Section 102 of the Higher Education Act of 1965
(20 U.S.C. 1002)) and, for a student who is not the
head of household or spouse, the reasonable and
actual costs of housing while attending the
institution of higher education and not residing in
an assisted unit.
(A) Student financial assistance, for purposes of
this paragraph (9)(ii), means a grant or scholarship
received from— (
1) The Federal government;
(2) A State, Tribe, or local government;
(3) A private foundation registered as a nonprofit
under 26 U.S.C. 501(c)(3);
(4) A business entity (such as corporation, general
partnership, limited liability company, limited
partnership, joint venture, business trust, public
benefit corporation, or nonprofit entity); or
(5) An institution of higher education.
(B) Student financial assistance, for purposes of
this paragraph (9)(ii), does not include—
(1) Any assistance that is excluded pursuant to
paragraph (b)(9)(i) of this section;
(2) Financial support provided to the student in the
form of a fee for services performed (e.g., a work
study or teaching fellowship that is not excluded
pursuant to paragraph (b)(9)(i) of this section); (
3) Gifts, including gifts from family or friends; or
(4) Any amount of the scholarship or grant that,
either by itself or in combination with assistance
excluded under this paragraph or paragraph
(b)(9)(i), exceeds the actual covered costs of the
student. The actual covered costs of the student
are the actual costs of tuition, books and supplies
(including supplies and equipment to support
students with learning disabilities or other
disabilities), room and board, or other fees
required and charged to a student by the
education institution, and, for a student who is not
the head of household or spouse, the reasonable
and actual costs of housing while attending the
institution of higher education and not residing in
an assisted unit. This calculation is described
further in paragraph (b)(9)(ii)€ of this section.
(C) Student financial assistance, for purposes of
this paragraph (b)(9)(ii) must be:
(1) Expressly for tuition, books, room and board, or
other fees required and charged to a student by
the education institution;
(2) Expressly to assist a student with the costs of
higher education; or
(3) Expressly to assist a student who is not the
head of household or spouse with the reasonable
and actual costs of housing while attending the
education institution and not residing in an
assisted unit.
(D) Student financial assistance, for purposes of
this paragraph (b)(9)(ii), may be paid directly to the
student or to the educational institution on the
student’s behalf. Student financial assistance paid
to the student must be verified by the responsible
entity as student financial assistance consistent
with this paragraph (b)(9)(ii).
(E) When the student is also receiving assistance
excluded under paragraph (b)(9)(i) of this section,
the amount of student financial assistance under
this paragraph (b)(9)(ii) is determined as follows:
(1) If the amount of assistance excluded under
paragraph (b)(9)(i) of this section is equal to or
exceeds the actual covered costs under paragraph
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(b)(9)(ii)(B)(4) of this section, none of the assistance
described in this paragraph (b)(9)(ii) of this section
is considered student financial assistance excluded
from income under this paragraph (b)(9)(ii)(E).
(2) If the amount of assistance excluded under
paragraph (b)(9)(i) of this section is less than the
actual covered costs under paragraph
(b)(9)(ii)(B)(4) of this section, the amount of
assistance described in paragraph (b)(9)(ii) of this
section that is considered student financial
assistance excluded under this paragraph is the
lower of:
(i) the total amount of student financial assistance
received under this paragraph (b)(9)(ii) of this
section, or
(ii) the amount by which the actual covered costs
under paragraph (b)(9)(ii)(B)(4) of this section
exceeds the assistance excluded under paragraph
(b)(9)(i) of this section.
(10) Income and distributions from any Coverdell
education savings account under section 530 of
the Internal Revenue Code of 1986 or any qualified
tuition program under section 529 of such Code;
and income earned by government contributions
to, and distributions from, “baby bond” accounts
created, authorized, or funded by Federal, State, or
local government.
(11) The special pay to a family member serving in
the Armed Forces who is exposed to hostile fire.
(12)
(i) Amounts received by a person with a disability
that are disregarded for a limited time for
purposes of Supplemental Security Income
eligibility and benefits because they are set aside
for use under a Plan to Attain Self-Sufficiency
(PASS);
(ii) Amounts received by a participant in other
publicly assisted programs which are specifically
for or in reimbursement of out-of-pocket expenses
incurred (e.g., special equipment, clothing,
transportation, childcare, etc.) and which are made
solely to allow participation in a specific program;
(iii) Amounts received under a resident service
stipend not to exceed $200 per month. A resident
service stipend is a modest amount received by a
resident for performing a service for the PHA or
owner, on a part-time basis, that enhances the
quality of life in the development.
(iv) Incremental earnings and benefits resulting to
any family member from participation in training
programs funded by HUD or in qualifying Federal,
State, Tribal, or local employment training
programs (including training programs not
affiliated with a local government) and training of a
family member as resident management staff.
Amounts excluded by this provision must be
received under employment training programs
with clearly defined goals and objectives and are
excluded only for the period during which the
family member participates in the employment
training program unless those amounts are
excluded under paragraph (b)(9)(i) of this section.
(13) Reparation payments paid by a foreign
government pursuant to claims filed under the
laws of that government by persons who were
persecuted during the Nazi era.
(14) Earned income of dependent fulltime students
in excess of the amount of the deduction for a
dependent in § 5.611.
(15) Adoption assistance payments for a child in
excess of the amount of the deduction for a
dependent in § 5.611.
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(16) Deferred periodic amounts from
Supplemental Security Income and Social Security
benefits that are received in a lump sum amount
or in prospective monthly amounts, or any
deferred Department of Veterans Affairs disability
benefits that are received in a lump sum amount
or in prospective monthly amounts.
(17) Payments related to aid and attendance under
38 U.S.C. 1521 to veterans in need of regular aid
and attendance.
(18) Amounts received by the family in the form of
refunds or rebates under State or local law for
property taxes paid on the dwelling unit.
(19) Payments made by or authorized by a State
Medicaid agency (including through a managed
care entity) or other State or Federal agency to a
family to enable a family member who has a
disability to reside in the family’s assisted unit.
Authorized payments may include payments to a
member of the assisted family through the State
Medicaid agency (including through a managed
care entity) or other State or Federal agency for
caregiving services the family member provides to
enable a family member who has a disability to
reside in the family’s assisted unit.
(20) Loan proceeds (the net amount disbursed by
a lender to or on behalf of a borrower, under the
terms of a loan agreement) received by the family
or a third party (e.g., proceeds received by the
family from a private loan to enable attendance at
an educational institution or to finance the
purchase of a car).
(21) Payments received by Tribal members as a
result of claims relating to the mismanagement of
assets held in trust by the United States, to the
extent such payments are also excluded from
gross income under the Internal Revenue Code or
other Federal law.
(22) Amounts that HUD is required by Federal
statute to exclude from consideration as income
for purposes of determining eligibility or benefits
under a category of assistance programs that
includes assistance under any program to which
the exclusions set forth in paragraph (b) of this
section apply. HUD will publish a notice in the
Federal Register to identify the benefits that
qualify for this exclusion. Updates will be
published when necessary.
(23) Replacement housing “gap” payments made in
accordance with 49 CFR part 24 that offset
increased out of pocket costs of displaced persons
that move from one federally subsidized housing
unit to another Federally subsidized housing unit.
Such replacement housing “gap” payments are not
excluded from annual income if the increased cost
of rent and utilities is subsequently reduced or
eliminated, and the displaced person retains or
continues to receive the replacement housing
“gap” payments.
(24) Nonrecurring income, which is income that
will not be repeated in the coming year based on
information provided by the family. Income
received as an independent contractor, day
laborer, or seasonal worker is not excluded from
income under this paragraph, even if the source,
date, or amount of the income varies.
Nonrecurring income includes:
(i) Payments from the U.S. Census Bureau for
employment (relating to decennial census or the
American Community Survey) lasting no longer
than 180 days and not culminating in permanent
employment.
(ii) Direct Federal or State payments intended for
economic stimulus or recovery.
(iii) Amounts directly received by the family as a
result of State refundable tax credits or State tax
refunds at the time they are received.
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(iv) Amounts directly received by the family as a
result of Federal refundable tax credits and
Federal tax refunds at the time they are received.
(v) Gifts for holidays, birthdays, or other significant
life events or milestones (e.g., wedding gifts, baby
showers, anniversaries).
(vi) Non-monetary, in-kind donations, such as food,
clothing, or toiletries, received from a food bank or
similar organization.
(vii) Lump-sum additions to net family assets,
including but not limited to lottery or other contest
winnings.
(25) Civil rights settlements or judgments,
including settlements or judgments for back pay.
(26) Income received from any account under a
retirement plan recognized as such by the Internal
Revenue Service, including individual retirement
arrangements (IRAs), employer retirement plans,
and retirement plans for self-employed
individuals; except that any distribution of periodic
payments from such accounts shall be income at
the time they are received by the family.
(27) Income earned on amounts placed in a
family’s Family Self Sufficiency Account.
(28) Gross income a family member receives
through self-employment or operation of a
business; except that the following shall be
considered income to a family member:
(i) Net income from the operation of a business or
profession. Expenditures for business expansion
or amortization of capital indebtedness shall not
be used as deductions in determining net income.
An allowance for depreciation of assets used in a
business or profession may be deducted, based on
straight line depreciation, as provided in Internal
Revenue Service regulations; and
(ii) Any withdrawal of cash or assets from the
operation of a business or profession will be
included in income, except to the extent the
withdrawal is reimbursement of cash or assets
invested in the operation by the family.
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EXHIBIT 6-2: Treatment of Family Assets
24 CFR 5.603(b) Net Family Assets
(1) Net family assets is the net cash value of all
assets owned by the family, after deducting
reasonable costs that would be incurred in
disposing real property, savings, stocks, bonds,
and other forms of capital investment.
(2) In determining net family assets, PHAs or
owners, as applicable, must include the value of
any business or family assets disposed of by an
applicant or tenant for less than fair market value
(including a disposition in trust, but not in a
foreclosure or bankruptcy sale) during the two
years preceding the date of application for the
program or reexamination, as applicable, in excess
of the consideration received therefor. In the case
of a disposition as part of a separation or divorce
settlement, the disposition will not be considered
to be for less than fair market value if the
applicant or tenant receives consideration not
measurable in dollar terms. Negative equity in real
property or other investments does not prohibit
the owner from selling the property or other
investments, so negative equity alone would not
justify excluding the property or other investments
from family assets.
(3) Excluded from the calculation of net family
assets are: (i) The value of necessary items of
personal property; (ii) The combined value of all
nonnecessary items of personal property if the
combined total value does not exceed $50,000
(which amount will be adjusted by HUD in
accordance with the Consumer Price Index for
Urban Wage Earners and Clerical Workers); (iii) The
value of any account under a retirement plan
recognized as such by the Internal Revenue
Service, including individual retirement
arrangements (IRAs), employer retirement plans,
and retirement plans for self-employed
individuals; (iv) The value of real property that the
family does not have the effective legal authority
to sell in the jurisdiction in which the property is
located; (v) Any amounts recovered in any civil
action or settlement based on a claim of
malpractice, negligence, or other breach of duty
owed to a family member arising out of law, that
resulted in a family member being a person with a
disability; (vi) The value of any Coverdell education
savings account under section 530 of the Internal
Revenue Code of 1986, the value of any qualified
tuition program under section 529 of such Code,
the value of any Achieving a Better Life Experience
(ABLE) account authorized under Section 529A of
such Code, and the value of any “baby bond”
account created, authorized, or funded by Federal,
State, or local government. (vii) Interests in Indian
trust land; (viii) Equity in a manufactured home
where the family receives assistance under 24 CFR
part 982; (ix) Equity in property under the
Homeownership Option for which a family
receives assistance under 24 CFR part 982; (x)
Family Self-Sufficiency Accounts; and (xi) Federal
tax refunds or refundable tax credits for a period
of 12 months after receipt by the family.
(4) In cases where a trust fund has been
established and the trust is not revocable by, or
under the control of, any member of the family or
household, the trust fund is not a family asset and
the value of the trust is not included in the
calculation of net family assets, so long as the fund
continues to be held in a trust that is not revocable
by, or under the control of, any member of the
family or household.
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EXHIBIT 6-3: The Effect of Welfare Benefit Reduction
24 CFR 5.615 - Public housing program and
Section 8 tenant-based assistance program:
How welfare benefit reduction affects family
income.
(a) Applicability. This section applies to covered
families who reside in public housing (part 960 of
this title) or receive Section 8 tenant-based
assistance (part 982 of this title).
(b) Definitions. The following definitions apply for
purposes of this section:
Covered families. Families who receive welfare
assistance or other public assistance benefits
("welfare benefits'') from a State or other public
agency ("welfare agency'') under a program for
which Federal, State, or local law requires that a
member of the family must participate in an
economic self-sufficiency program as a condition
for such assistance.
Economic self-sufficiency program. See definition at
Sec. 5.603.
Imputed welfare income. The amount of annual
income not actually received by a family, as a
result of a specified welfare benefit reduction, that
is nonetheless included in the family's annual
income for purposes of determining rent.
Specified welfare benefit reduction.
(1) A reduction of welfare benefits by the welfare
agency, in whole or in part, for a family member,
as determined by the welfare agency, because of
fraud by a family member in connection with the
welfare program; or because of welfare agency
sanction against a family member for
noncompliance with a welfare agency requirement
to participate in an economic self-sufficiency
program.
(2) "Specified welfare benefit reduction'' does not
include a reduction or termination of welfare
benefits by the welfare agency:
(i) at expiration of a lifetime or other time limit on
the payment of welfare benefits;
(ii) because a family member is not able to obtain
employment, even though the family member has
complied with welfare agency economic self-
sufficiency or work activities requirements; or
(iii) because a family member has not complied
with other welfare agency requirements.
(c) Imputed welfare income.
(1) A family's annual income includes the amount
of imputed welfare income (because of a specified
welfare benefits reduction, as specified in notice to
the PHA by the welfare agency), plus the total
amount of other annual income as determined in
accordance with Sec. 5.609.
(2) At the request of the PHA, the welfare agency
will inform the PHA in writing of the amount and
term of any specified welfare benefit reduction for
a family member, and the reason for such
reduction, and will also inform the PHA of any
subsequent changes in the term or amount of
such specified welfare benefit reduction. The PHA
will use this information to determine the amount
of imputed welfare income for a family.
(3) A family's annual income includes imputed
welfare income in family annual income, as
determined at the PHA's interim or regular
reexamination of family income and composition,
during the term of the welfare benefits reduction
(as specified in information provided to the PHA by
the welfare agency).
(4) The amount of the imputed welfare income is
offset by the amount of additional income a family
receives that commences after the time the
sanction was imposed. When such additional
income from other sources is at least equal to the
imputed
(5) The PHA may not include imputed welfare
income in annual income if the family was not an
assisted resident at the time of sanction.
(d) Review of PHA decision.
(1) Public housing. If a public housing tenant
claims that the PHA has not correctly calculated
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the amount of imputed welfare income in
accordance with HUD requirements, and if the
PHA denies the family's request to modify such
amount, the PHA shall give the tenant written
notice of such denial, with a brief explanation of
the basis for the PHA determination of the amount
of imputed welfare income. The PHA notice shall
also state that if the tenant does not agree with
the PHA determination, the tenant may request a
grievance hearing in accordance with part 966,
subpart B of this title to review the PHA
determination. The tenant is not required to pay
an escrow deposit pursuant to Sec. 966.55(e) for
the portion of tenant rent attributable to the
imputed welfare income in order to obtain a
grievance hearing on the PHA determination.
(e) PHA relation with welfare agency.
(1) The PHA must ask welfare agencies to inform
the PHA of any specified welfare benefits
reduction for a family member, the reason for
such reduction, the term of any such reduction,
and any subsequent welfare agency determination
affecting the amount or term of a specified welfare
benefits reduction. If the welfare agency
determines a specified welfare benefits reduction
for a family member, and gives the PHA written
notice of such reduction, the family's annual
incomes shall include the imputed welfare income
because of the specified welfare benefits
reduction.
(2) The PHA is responsible for determining the
amount of imputed welfare income that is
included in the family's annual income as a result
of a specified welfare benefits reduction as
determined by the welfare agency and specified in
the notice by the welfare agency to the PHA.
However, the PHA is not responsible for
determining whether a reduction of welfare
benefits by the welfare agency was correctly
determined by the welfare agency in accordance
with welfare program requirements and
procedures, nor for providing the opportunity for
review or hearing on such welfare agency
determinations.
(3) Such welfare agency determinations are the
responsibility of the welfare agency, and the family
may seek appeal of such determinations through
the welfare agency's normal due process
procedures. The PHA shall be entitled to rely on
the welfare agency notice to the PHA of the
welfare agency's determination of a specified
welfare benefits reduction.
.
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Chapter 7.A.
VERIFICATION
[24 CFR 960.259, 24 CFR 5.230, Notice PIH 2018-18]
INTRODUCTION
Prior to the PHA’s HOTMA compliance date, the PHA will follow policies as outlined in this chapter. Upon
the PHA’s HOTMA compliance date, the PHA will follow policies as outlined in Chapter 7.B.
The PHA must verify all information that is used to establish the family’s eligibility and level of assistance
and is required to obtain written authorization from the family in order to collect the information.
Applicants and program participants must cooperate with the verification process as a condition of
receiving assistance. The PHA must not pass on the cost of verification to the family.
The PHA will follow the verification guidance provided by HUD in Notice PIH 2018-18 and any subsequent
guidance issued by HUD. This chapter summarizes those requirements and provides supplementary PHA
policies.
Part I describes the general verification process. Part II provides more detailed requirements related to
family information. Part III provides information on income and assets, and Part IV covers mandatory
deductions.
Verification policies, rules and procedures will be modified as needed to accommodate persons with
disabilities. All information obtained through the verification process will be handled in accordance with
the records management policies established by the PHA.
PART I: GENERAL VERIFICATION REQUIREMENTS
7-I.A. FAMILY CONSENT TO RELEASE OF INFORMATION
[24 CFR 960.259, 24 CFR 5.230; and Notice PIH 2023-27]
Consent Forms
The family must supply any information that the PHA or HUD determines is necessary to the
administration of the program and must consent to PHA verification of that information [24 CFR
960.259(a)(1)]. All adult family members must sign consent forms as needed to collect information
relevant to the family’s eligibility and level of assistance. While PHAs must use form HUD-9886-A, this
form does not release all the information necessary to the administration of the program. The PHA must
also develop its own release forms to cover all other necessary information.
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Form HUD-9886-A [24 CFR 5.230(b)(1), (b)(2), (c)(4), and (c)(5); Notice PIH 2023-27]
All adult applicants and tenants must sign form HUD-9886-A, Authorization for Release of Information. All
adult family members (and the head and spouse/cohead regardless of age) are required to sign the Form
HUD-9886-A at admission. Participants, prior to January 1, 2024, signed and submitted Form HUD-9886 at
each annual reexamination. HOTMA eliminated this requirement and instead required that the Form
HUD-9886-A be signed only once. On or after January 1, 2024 (regardless of the PHA’s HOTMA compliance
date), current program participants must sign and submit a new Form HUD-9886-A at their next interim
or annual reexamination. This form will only be signed once. Another Form HUD-9886-A will not be
submitted to the PHA except under the following circumstances:
•
When any person 18 years or older becomes a member of the family;
•
When a current member of the family turns 18; or
•
As required by HUD or the PHA in administrative instructions.
The PHA has the discretion to establish policies around when family members must sign consent forms
when they turn 18. PHAs must establish these policies stating when family members will be required to
sign consent forms at intervals other than at reexamination.
PHA Policy
Family members turning 18 years of age between annual recertifications will be notified in writing
that they are required to sign the required Consent to the Release of Information Form HUD-9886-
A within 10 business days of turning 18 years of age.
The purpose of form HUD-9886-A is to facilitate automated data collection and computer matching from
specific sources and provides the family's consent only for the specific purposes listed on the form. HUD
and the PHA may collect information from State Wage Information Collection Agencies (SWICAs) and
current and former employers of adult family members. Only HUD is authorized to collect information
directly from the Internal Revenue Service (IRS) and the Social Security Administration (SSA).
The PHA may obtain any financial record from any financial institution, as the terms financial record and
financial institution are defined in the Right to Financial Privacy Act (12 U.S.C. 3401), whenever the PHA
determines the record is needed to determine an applicant’s or participant’s eligibility for assistance or
level of benefits [24 CFR 5.230(c)(4)].
The executed form will remain effective until the family is denied assistance, assistance is terminated, or
the family provides written notification to the PHA to revoke consent.
Penalties for Failing to Consent [24 CFR 5.232]
If any family member who is required to sign a consent form fails to do so, the PHA will deny admission
to applicants and terminate the lease of tenants. The family may request a hearing in accordance with
the PHA's grievance procedures.
7-3
7-I.B. OVERVIEW OF VERIFICATION REQUIREMENTS
Use of Other Programs’ Income Determinations [24 CFR 5.609(c)(3) and Notice PIH 2023-27]
PHAs may, but are not required to, determine a family’s annual income, including income from assets,
prior to the application of any deductions, based on income determinations made within the previous 12-
month period, using income determinations from means-tested federal public assistance programs.
PHAs are not required to accept or use determinations of income from other federal means-tested forms
of assistance. If the PHA adopts a policy to accept this type of verification, the PHA must establish in
policy when they will accept Safe Harbor income determinations and from which programs. PHAs must
also create policies that outline the course of action when families present multiple verifications from the
same or different acceptable Safe Harbor programs. Means-tested federal public assistance programs
include:
•
Temporary Assistance for Needy Families (TANF) (42 U.S.C. 601, et seq.);
•
Medicaid (42 U.S.C. 1396 et seq.);
•
Supplemental Nutrition Assistance Program (SNAP) (42 U.S.C. 2011 et seq.);
•
Earned Income Tax Credit (EITC) (26 U.S.C. 32);
•
Low-Income Housing Tax Credit (LIHTC) program (26 U.S.C. 42);
•
Special Supplemental Nutrition Program for Woman, Infants, and Children (WIC) (42 U.S.C. 1786);
•
Supplemental Security Income (SSI) (42 U.S.C. 1381 et seq.);
•
Other programs administered by the HUD Secretary;
•
Other means-tested forms of federal public assistance for which HUD has established a
memorandum of understanding; and
•
Other federal benefit determinations made in other forms of means-tested federal public assistance
that the Secretary determines to have comparable reliability and announces through the Federal
Register.
7-4
If the PHA elects to use the annual income determination from one of the above-listed forms of means-
tested federal public assistance, then they must obtain the income information by means of a third-party
verification. The third-party verification must state the family size, must be for the entire family, and must
state the amount of the family’s annual income. The annual income need not be broken down by family
member or income type. Annual income includes income earned from assets, therefore when using Safe
Harbor to verify a family’s income, PHAs will neither further inquire about a family’s net family assets, nor
about the income earned from those assets, except with respect to whether or not the family owns
assets that exceed the asset limitation in 24 CFR 5.618. The Safe Harbor documentation will be
considered acceptable if any of the following dates fall into the 12-month period prior to the receipt of
the documentation by the PHA:
•
Income determination effective date;
•
Program administrator’s signature date;
•
Family’s signature date;
•
Report effective date; or
•
Other report-specific dates that verify the income determination date.
The only information that PHAs are permitted to use to determine income under this method is the total
income determination made by the federal means-tested program administrator. Other federal
programs may provide additional information about income inclusions and exclusions in their award
letters; however, these determinations and any other information must not be considered by the PHA.
PHAs are not permitted to mix and match Safe Harbor income determinations and other income
verifications.
If the PHA is unable to obtain Safe Harbor documentation or if the family disputes the other program’s
income determination, the PHA must calculate the family’s annual income using traditional methods as
outlined in Notice PIH 2023-27 and this chapter.
If the PHA uses a Safe Harbor determination to determine the family’s income, the family is obligated to
report changes in income that meet the PHA’s reporting requirement and occur after the effective date of
the transaction.
7-5
The amounts of unreimbursed reasonable attendant care expenses and child-care expenses deducted
from a family’s annual income, except for when a family is approved for a child-care expense hardship
exemption, must still be capped by the amount earned by any family member who is enabled to work as
a result of the expense. PHAs are therefore required to obtain third-party verification of the applicable
employment income and cap the respective expense deductions accordingly.
PHA Policy
When available and applicable, the PHA will accept other programs’ Safe Harbor determinations of
income at annual reexamination to determine the family’s total annual income. The PHA will still
require third-party verification of all deductions such as the health and medical care expense or
childcare expense deductions. Further, if the family is eligible for and claims the disability
assistance expense or childcare expense deductions, where applicable, the PHA will obtain third-
party verification of the amount of employment income of the individual(s) enabled to work in
order to cap the respective expenses as required.
Prior to using any Safe Harbor determination from another program, the PHA will ask the family if
they agree with the income amounts listed. If the family disputes the income amounts on the Safe
Harbor determination, the PHA will obtain third-party verification of all sources of income and
assets (as applicable).
The PHA will not accept other programs’ determinations of income for any new admission or
interim reexamination.
With the exception of income determinations made under the Low-Income Housing Tax Credit
(LIHTC) program, the PHA will accept Safe Harbor determinations from any of the programs listed
above.
In order to be acceptable, the income determination must:
Be dated within 12 months of the dates listed above;
State the family size;
Be for the entire family (i.e., the family members listed in the documentation must match
the family’s composition in the assisted unit, except for household members); and
Must state the amount of the family’s annual income.
The determination need not list each source of income individually. If the PHA does not receive
any acceptable income determination documentation or is unable to obtain documentation, then
the PHA will revert to third-party verification of income for the family.
7-6
When families present multiple verifications from the same or different acceptable Safe Harbor
programs, the PHA will use the most recent income determination, unless the family presents
acceptable evidence that the PHA should consider an alternative verification from a different Safe
Harbor source.
When the PHA uses a Safe Harbor income determination from another program, and the family’s
income subsequently changes, the family is required to report the change to the PHA. Depending
on when the change occurred, the change may or may not impact the PHA’s calculation of the
family’s total annual income. Changes that occur between the time the PHA receives the Safe
Harbor documentation and the effective date of the family’s annual reexamination will not be
considered. If the family has a change in income that occurs after the annual reexamination
effective date, the PHA will conduct an interim reexamination if the change meets the
requirements for performing an interim reexamination as outlined in Chapter 9. In this case, the
PHA will use third-party verification to verify the change.
HUD’s Verification Hierarchy [Notice PIH 2018-18]
HUD mandates the use of the EIV system and offers administrative guidance on the use of other
methods to verify family information and specifies the circumstances in which each method will be used.
In general, HUD requires the PHA to use the most reliable form of verification that is available and to
document the reasons when the PHA uses a lesser form of verification.
In order of priority, the forms of verification that the PHA will use are:
-
Up-front Income Verification (UIV) using HUD’s Enterprise Income Verification (EIV) system
-
Up-front Income Verification (UIV) using a non-HUD system
-
Written Third Party Verification (may be provided by applicant or resident)
-
Written Third-party Verification Form
-
Oral Third-party Verification
-
Self-Certification
Each of the verification methods is discussed in subsequent sections below.
Requirements for Acceptable Documents
PHA Policy
Any documents used for verification must be the original (not photocopies) and generally must be
dated within 120 days of receipt by the PHA. Statements dated within the appropriate benefit year
are acceptable for fixed sources of income. The documents must not be damaged, altered or in
any way illegible.
Print-outs from web pages are considered original documents.
The PHA staff member who views the original document must make a photocopy
7-7
Any family self-certifications must be made in a format acceptable to the PHA and must be signed
by the family member whose information or status is being verified.
7-8
File Documentation
The PHA must document in the file how the figures used in income and rent calculations were
determined. All verification attempts, information obtained, and decisions reached during the verification
process will be recorded in the family’s file in sufficient detail to demonstrate that the PHA has followed
all of the verification policies set forth in this ACOP. The record should be sufficient to enable a staff
member or HUD reviewer to understand the process followed and conclusions reached.
PHA Policy
The PHA will document, in the family file, the following:
Reported family annual income
Value of assets
Expenses related to deductions from annual income
Other factors influencing the adjusted income or income-based rent determination
When the PHA is unable to obtain third-party verification, the PHA will document in the family file the
reason that third-party verification was not available [24 CFR 960.259(c)(1); Notice PIH 2018-18].
7-9
7-I.C. STREAMLINED INCOME DETERMINATIONS [24 CFR 960.257(c) and Notice PIH 2023-27]
HUD permits PHAs to streamline the income determination process for family members with fixed
sources of income. While third-party verification of all income sources must be obtained during the
intake process and every three years thereafter, in the intervening years, the PHA may determine income
from fixed sources by applying a verified cost of living adjustment (COLA) or other inflationary
adjustment factor. Streamlining policies are optional. The PHA may, however, obtain third-party
verification of all income, regardless of the source. Further, upon request of the family, the PHA must
perform third-party verification of all income sources.
Fixed sources of income include Social Security and SSI benefits, pensions, annuities, disability or death
benefits, and other sources of income subject to a COLA or rate of interest. The determination of fixed
income may be streamlined even if the family also receives income from other non-fixed sources.
Two streamlining options are available, depending upon the percentage of the family’s income that is
received from fixed sources.
When 90 percent or more of a family’s unadjusted income is from fixed sources, the PHA may apply the
inflationary adjustment factor to the family’s fixed-income sources, provided that the family certifies both
that 90 percent or more of their unadjusted income is fixed and that their sources of fixed income have
not changed from the previous year. Sources of non-fixed income are not required to be adjusted and
must not be adjusted by a COLA, but PHAs may choose to adjust sources of non-fixed income based on
third-party verification. PHAs have the discretion to either adjust the non-fixed income or carry over the
calculation of non-fixed income from the first year to years two and three.
7-10
When less than 90 percent of a family’s unadjusted income consists of fixed income, PHAs may apply a
COLA to each of the family’s sources of fixed income. PHAs must determine all other income using
standard verification requirements as outlined in Notice PIH 2023-27.
PHA Policy
When the PHA does not use a Safe Harbor income determination from a federal assistance
program to determine the family’s annual income as outlined above, then PHA will use a
streamlined income determinations where applicable.
Regardless of the percent of a family’s unadjusted income from fixed income sources:
The PHA will streamline the annual reexamination process by applying the verified
COLA/inflationary adjustment factor to fixed-income sources.
The family will be required to sign a self-certification stating that their sources of fixed
income have not changed from the previous year.
The PHA will document in the file how the determination that a source of income was fixed
was made.
If the family’s sources of fixed income have changed from the previous year, the PHA will
obtain third-party verification of any new sources of fixed income.
All other income will be verified using third-party verification as outlined in Notice PIH
2023-27 and Chapter 7 of this policy.
In the following circumstances, regardless of the percentage of income received from fixed
sources, the PHA will obtain third-party verification as outlined in Notice PIH 2023-27 and Chapter
7 of this policy:
Of all assets when net family assets exceed the HUD-published threshold ($50,000 for
2024, and $51,600 for 2025);
Of all deductions and allowances from annual income;
If a family member with a fixed source of income is added;
If verification of the COLA or rate of interest is not available;
During the intake process and at least once every three years thereafter.
7-11
7-I.D. UP-FRONT INCOME VERIFICATION (UIV)
Up-front income verification (UIV) refers to the PHA’s use of the verification tools available from
independent sources that maintain computerized information about earnings and benefits. UIV will be
used to the extent that these systems are available to the PHA.
There may be legitimate differences between the information provided by the family and UIV-generated
information. If the family disputes the accuracy of UIV data, no adverse action can be taken until the PHA
has independently verified the UIV information and the family has been granted the opportunity to
contest any adverse findings through the PHA's informal review/hearing processes. (For more on UIV and
income projection, see section 6-I.C.)
Upfront Income Verification Using HUD’s Enterprise Income Verification (EIV) System (Mandatory)
PHAs must use HUD’s EIV system in its entirety as a third-party source to verify tenant employment and
income information during mandatory reexaminations or recertifications of family composition and
income in accordance with 24 CFR 5.236 and administrative guidance issued by HUD. However, the PHA
is not required to verify income information in EIV at annual reexam when Safe Harbor verification is
used to determine a family’s income [Notice PIH 2023-27]. HUD’s EIV system contains data showing
earned income, unemployment benefits, social security benefits, and SSI benefits for participant families.
The following policies apply to the use of HUD’s EIV system.
EIV Income and IVT Reports
The data shown on income and income validation tool (IVT) reports is updated quarterly. Data may be
between three and six months old at the time reports are generated.
PHA Policy
The PHA will obtain income and IVT reports for annual reexaminations on a monthly basis.
Reports will be generated as part of the regular reexamination process.
Income and IVT reports will be compared to family-provided information as part of the annual
reexamination process. Income reports may be used in the calculation of annual income, as
described in Chapter 6.I.C. Income reports may also be used to meet the regulatory requirement
for third party verification, as described above. Policies for resolving discrepancies between
income and IVT reports and family-provided information will be resolved as described in Chapter
6.I.C. and in this chapter.
Income and IVT reports will be used in interim reexaminations to identify any discrepancies
between reported income and income shown in the EIV system, and as necessary to verify earned
income, and to verify and calculate unemployment benefits, Social Security and/or SSI benefits.
EIV will also be used to verify that families claiming zero income are not receiving income from any
of these sources.
7-12
Income and IVT reports will be retained in resident files with the applicable annual or interim
reexamination documents for the duration of the tenancy.
7-13
When the PHA determines through EIV reports and third-party verification that a family has
concealed or under-reported income, corrective action will be taken pursuant to the policies in
Chapter 15, Program Integrity.
However, the PHA will not use income information in EIV at annual reexamination when Safe
Harbor verification is used to determine a family’s income.
EIV Identity Verification
The EIV system verifies resident identities against Social Security Administration (SSA) records. These
records are compared to Public and Indian Housing Information Center (PIC) data for a match on social
security number, name, and date of birth.
PHAs are required to use EIV’s Identity Verification Report on a monthly basis to improve the availability of
income information in EIV [Notice PIH 2018-18].
When identity verification for a resident fails, a message will be displayed within the EIV system and no
income information will be displayed.
PHA Policy
The PHA will identify residents whose identity verification has failed by reviewing EIV’s Identity
Verification Report on a monthly basis. The PHA will attempt to resolve PIC/SSA discrepancies by
obtaining appropriate documentation from the tenant. When the PHA determines that
discrepancies exist as a result of PHA errors, such as spelling errors or incorrect birth dates, it will
correct the errors promptly.
Upfront Income Verification Using Non-HUD Systems (Optional)
In addition to mandatory use of the EIV system, HUD encourages PHAs to utilize other upfront
verification sources.
PHA Policy
The PHA will inform all applicants and residents of its use of the following UIV resources during
the admission and reexamination process:
HUD’s EIV system
[Insert any additional UIV sources used by the PHA]
7-14
7-I.E. THIRD-PARTY WRITTEN AND ORAL VERIFICATION
HUD’s current verification hierarchy defines two types of written third-party verification. The more
preferable form, “written third-party verification,” consists of an original document generated by a third-
party source, which may be received directly from a third-party source or provided to the PHA by the
family. If written third-party verification is not available, the PHA must attempt to obtain a “written third-
party verification form.” This is a standardized form used to collect information from a third party.
Written Third-Party Verification [Notice PIH 2018-18]
Written third-party verification documents must be original and authentic and may be supplied by the
family or received from a third-party source.
Examples of acceptable tenant-provided documents include, but are not limited to: pay stubs, payroll
summary reports, employer notice or letters of hire and termination, SSA benefit verification letters, bank
statements, child support payment stubs, welfare benefit letters and/or printouts, and unemployment
monetary benefit notices.
The PHA is required to obtain, at minimum, two current and consecutive pay stubs for determining
annual income from wages.
The PHA may reject documentation provided by the family if the document is not an original, if the
document appears to be forged, or if the document is altered, mutilated, or illegible.
Written, third-party verification includes an original or authentic document generated by a third-party
source dated within 120 days of the date received by the PHA [Notice PIH 2023-27].
PHAs may accept a statement dated within the appropriate benefit year for fixed income sources [Notice
PIH 2023-27].
PHA Policy
Third-party documents provided by the family must be dated within 120 days of the PHA request
date. The PHA will accept a statement dated within the appropriate benefit year for fixed income
sources.
If the PHA determines that third-party documents provided by the family are not acceptable, the
PHA will explain the reason to the family and request additional documentation.
As verification of earned income, the PHA will require the family to provide the two most current,
consecutive pay stubs. At the PHA’s discretion, if additional paystubs are needed due to the
family’s circumstances (e.g., sporadic income, fluctuating schedule, etc.), the PHA may request
additional paystubs or a payroll record.
7-15
Written Third-Party Verification Form
When upfront verification is not available and the family is unable to provide written third-party
documents, the PHA must request a written third-party verification form. HUD’s position is that this
traditional third-party verification method presents administrative burdens and risks which may be
reduced through the use of family-provided third-party documents.
PHAs may mail or email third-party written verification form requests to third-party sources.
PHA Policy
The PHA will send third-party verification forms directly to the third party.
Third-party verification forms will be sent when third-party verification documents are unavailable
or are rejected by the PHA.
Oral Third-Party Verification [Notice PIH 2018-18]
For third-party oral verification, PHAs contact sources, identified by UIV techniques or by the family, by
telephone or in person.
Oral third-party verification is mandatory if neither form of written third-party verification is available.
Third-party oral verification may be used when requests for written third-party verification forms have
not been returned within a reasonable time—e.g., 10 business days.
PHAs should document in the file the date and time of the telephone call or visit, the name of the person
contacted, the telephone number, as well as the information confirmed.
PHA Policy
In collecting third-party oral verification, PHA staff will record in the family’s file the name and title
of the person contacted, the date and time of the conversation (or attempt), the telephone
number used, and the facts provided.
When any source responds verbally to the initial written request for verification the PHA will
accept the verbal response as oral verification but will also request that the source complete and
return any verification forms that were provided.
7-16
When Third-Party Verification is Not Required [Notice PIH 2018-18]
Third-party verification may not be available in all situations. HUD has acknowledged that it may not be
cost-effective or reasonable to obtain third-party verification of income, assets, or expenses when these
items would have a minimal impact on the family’s total tenant payment.
PHA Policy
If the family cannot provide original documents, the PHA will pay the service charge required to
obtain third-party verification, unless it is not cost effective in which case a self-certification will be
acceptable as the only means of verification. The cost of verification will not be passed on to the
family.
The cost of postage and envelopes to obtain third-party verification of income, assets, and
expenses is not an unreasonable cost [VG, p. 18].
Primary Documents
Third-party verification is not required when legal documents are the primary source, such as a birth
certificate or other legal documentation of birth.
Imputed Assets
The PHA may accept a self-certification from the family as verification of assets disposed of for less than
fair market value [HCV GB, p. 5-28].
PHA Policy
The PHA will accept a self-certification from a family as verification of assets disposed of for less
than fair market value [HCV GB, p. 5-28].
Value of Assets and Asset Income [24 CFR 960.259]
For families with net assets totaling $5,000 or less, the PHA may accept the family’s declaration of asset
value and anticipated asset income. However, the PHA is required to obtain third-party verification of all
assets regardless of the amount during the intake process, whenever a family member is added, and at
least every three years thereafter.
PHA Policy
For families with net assets totaling $5,000 or less, the PHA will accept the family’s self-certification
of the value of family assets and anticipated asset income when applicable. The family’s
declaration must show each asset and the amount of income expected from that asset. All family
members 18 years of age and older must sign the family’s declaration.
The PHA will use third-party documentation for assets as part of the intake process, whenever a
family member is added to verify the individual’s assets, and every three years thereafter.
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7-I.F. SELF-CERTIFICATION
When HUD requires third-party verification, self-certification, or “tenant declaration,” is used as a last
resort when the PHA is unable to obtain third-party verification.
Self-certification, however, is an acceptable form of verification when:
•
A source of income is fully excluded
•
Net family assets total $5,000 or less and the PHA has adopted a policy to accept self certification at
annual recertification, when applicable
•
The PHA has adopted a policy to implement streamlined annual recertifications for fixed sources of
income (See Chapter 9)
When the PHA was required to obtain third-party verification but instead relies on a tenant declaration
for verification of income, assets, or expenses, the family’s file must be documented to explain why third-
party verification was not available.
PHA Policy
When information cannot be verified by a third party or by review of documents, family members
will be required to submit self-certifications attesting to the accuracy of the information they have
provided to the PHA.
The PHA may require a family to certify that a family member does not receive a particular type of
income or benefit.
The self-certification must be made in a format acceptable to the PHA and must be signed by the
family member whose information or status is being verified.
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PART II: VERIFYING FAMILY INFORMATION
7-II.A. VERIFICATION OF LEGAL IDENTITY
PHA Policy
The PHA will require families to furnish verification of legal identity for each household member.
Verification of Legal Identity for
Adults
Verification of Legal Identity for
Children
Certificate of birth, naturalization
papers
Church issued baptismal certificate
Current, valid driver's license or
Department of Motor Vehicle
identification card
U.S. military discharge (DD 214)
Current U.S. passport
Current government employer
identification card with picture
Certificate of birth
Adoption papers
Custody agreement
Health and Human Services ID
Certified school records
If a document submitted by a family is illegible for any reason or otherwise questionable, more
than one of these documents may be required.
If none of these documents can be provided and at the PHA’s discretion, a third party who knows
the person may attest to the person’s identity. The certification must be provided in a format
acceptable to the PHA and be signed by the family member whose information or status is being
verified.
Legal identity will be verified for all applicants at the time of eligibility determination and in cases
where the PHA has reason to doubt the identity of a person representing themselves to be a
tenant or a member of a tenant family.
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7-II.B. SOCIAL SECURITY NUMBERS [24 CFR 5.216 and Notice PIH 2018-24]
The family must provide documentation of a valid social security number (SSN) for each member of the
household, with the exception of individuals who do not contend eligible immigration status. Exemptions
also include, existing residents who were at least 62 years of age as of January 31, 2010, and had not
previously disclosed an SSN.
The PHA must accept the following documentation as acceptable evidence of the social security number:
•
An original SSN card issued by the Social Security Administration (SSA)
•
An original SSA-issued document, which contains the name and SSN of the individual
•
An original document issued by a federal, state, or local government agency, which contains the name
and SSN of the individual
While PHAs must attempt to gather third-party verification of SSNs prior to admission as listed above,
PHAs also have the option of accepting a self-certification and a third-party document (such as a bank
statement, utility or cell phone bill, or benefit letter) with the applicant’s name printed on it to satisfy the
SSN disclosure requirement if the PHA has exhausted all other attempts to obtain the required
documentation. If verifying an individual’s SSN using this method, the PHA must document why the other
SSN documentation was not available [Notice PIH 2023-27].
PHA Policy
The PHA will verify an individual’s SSN in the situations described above using the method
described above as a last resort when no other forms of verification of the individual’s SSN are
available.
The PHA may only reject documentation of an SSN provided by an applicant or resident if the document
is not an original document, if the original document has been altered, mutilated, is illegible, or if the
document appears to be forged.
PHA Policy
The PHA will explain to the applicant or resident the reasons the document is not acceptable and
request that the individual obtain and submit acceptable documentation of the SSN to the PHA
within 90 days.
If an applicant family includes a child under 6 years of age who joined the household within the 6 months
prior to the date of program admission, an otherwise eligible family may be admitted and must provide
documentation of the child’s SSN within 90 days. A 90-day extension will be granted if the PHA
determines that the resident’s failure to comply was due to unforeseen circumstances and was outside of
the resident’s control.
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PHA Policy
The PHA will grant one additional 90-day extension if needed for reasons beyond the applicant’s
control, such as delayed processing of the SSN application by the SSA, natural disaster, fire, death
in the family, or other emergency.
When a resident requests to add a new household member who is at least 6 years of age, or who is
under the age of 6 and has an SSN, the resident must provide the complete and accurate SSN assigned to
each new member at the time of reexamination or recertification, in addition to the documentation
required to verify it. The PHA may not add the new household member until such documentation is
provided.
When a resident requests to add a new household member who is under the age of 6 and has not been
assigned an SSN, the resident must provide the SSN assigned to each new child and the required
documentation within 90 calendar days of the child being added to the household. A 90-day extension
will be granted if the PHA determines that the resident’s failure to comply was due to unforeseen
circumstances and was outside of the resident’s control. During the period the PHA is awaiting
documentation of the SSN, the child will be counted as part of the assisted household.
PHA Policy
The PHA will grant one additional 90-day extension if needed for reasons beyond the resident’s
control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death
in the family, or other emergency.
Social security numbers must be verified only once during continuously-assisted occupancy.
PHA Policy
The PHA will verify each disclosed SSN by:
Obtaining documentation from applicants and residents that is acceptable as evidence of
social security numbers
Making a copy of the original documentation submitted, returning it to the individual, and
retaining a copy in the file folder
Once the individual’s verification status is classified as “verified,” the PHA may, at its discretion, remove
and destroy copies of documentation accepted as evidence of social security numbers. The retention of
the EIV Summary Report or Income Report is adequate documentation of an individual’s SSN.
PHA Policy
Once an individual’s status is classified as “verified” in HUD’s EIV system, the PHA will not remove
and destroy copies of documentation accepted as evidence of social security numbers.
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7-II.C. DOCUMENTATION OF AGE
A birth certificate or other official record of birth is the preferred form of age verification for all family
members. For elderly family members an original document that provides evidence of the receipt of
social security retirement benefits is acceptable.
PHA Policy
If an official record of birth or evidence of social security retirement benefits cannot be provided,
the PHA will require the family to submit other documents that support the reported age of the
family member (e.g., school records, driver's license if birth year is recorded) and to provide a self-
certification.
Age must be verified only once during continuously assisted occupancy.
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7-II.D. FAMILY RELATIONSHIPS
Applicants and tenants are required to identify the relationship of each household member to the head
of household. Definitions of the primary household relationships are provided in the Eligibility chapter.
PHA Policy
Family relationships are verified only to the extent necessary to determine a family’s eligibility and
level of assistance. Certification by the head of household normally is sufficient verification of
family relationships.
Marriage
PHA Policy
Certification by the head of household is normally sufficient verification. If the PHA has reasonable
doubts about a marital relationship, the PHA will require the family to document the marriage
with a marriage certificate or other documentation to verify that the couple is married.
In the case of a common law marriage, the couple must demonstrate that they hold themselves to
be married (e.g., by telling the community they are married, calling each other husband and wife,
using the same last name, filing joint income tax returns).
Separation or Divorce
PHA Policy
Certification by the head of household is normally sufficient verification. If the PHA has reasonable
doubts about a divorce or separation, the PHA will require the family to provide documentation of
the divorce or separation with a certified copy of a divorce decree, signed by a court officer; a copy
of a court-ordered maintenance or other court record; or other documentation that shows a
couple is divorced or separated.
If no court document is available, documentation from a community-based agency will be
accepted.
Absence of Adult Member
PHA Policy
If an adult member who was formerly a member of the household is reported to be permanently
absent, the family must provide evidence to support that the person is no longer a member of the
family (e.g., documentation of another address at which the person resides such as a lease or
utility bill), if the PHA so requests.
Foster Children and Foster Adults
PHA Policy
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Third-party verification from the state or local government agency responsible for the placement
of the individual with the family is required.
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7-II.E. VERIFICATION OF STUDENT STATUS
PHA Policy
The PHA requires families to provide information about the student status of all students who are
18 years of age or older. This information will be verified only if:
The family claims full-time student status for an adult other than the head, spouse, or
cohead, or
The family claims a childcare deduction to enable a family member to further their
education.
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7-II.F. DOCUMENTATION OF DISABILITY
The PHA must verify the existence of a disability in order to allow certain income disallowances and
deductions from income. The PHA is not permitted to inquire about the nature or extent of a person’s
disability [24 CFR 100.202(c)]. The PHA may not inquire about a person’s diagnosis or details of treatment
for a disability or medical condition. If the PHA receives a verification document that provides such
information, the PHA will not place this information in the tenant file. Under no circumstances will the
PHA request a resident’s medical record(s). For more information on health care privacy laws, see the
Department of Health and Human Services’ Web site at www.os.dhhs.gov.
The PHA may make the following inquiries, provided it makes them of all applicants, whether or not they
are persons with disabilities [VG, p. 24]:
Inquiry into an applicant’s ability to meet the requirements of ownership or tenancy
Inquiry to determine whether an applicant is qualified for a dwelling available only to persons with
disabilities or to persons with a particular type of disability
Inquiry to determine whether an applicant for a dwelling is qualified for a priority available to persons
with disabilities or to persons with a particular type of disability
Inquiry about whether an applicant for a dwelling is a current illegal abuser or addict of a controlled
substance
Inquiry about whether an applicant has been convicted of the illegal manufacture or distribution of a
controlled substance
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Family Members Receiving SSA Disability Benefits
Verification of receipt of disability benefits from the Social Security Administration (SSA) is sufficient for
verification of disability for the purpose of qualification for waiting list preferences or certain income
disallowances and deductions [VG, p. 23].
PHA Policy
For family members claiming disability who receive disability payments from the SSA, the PHA will
attempt to obtain information about disability benefits through HUD’s Enterprise Income
Verification (EIV) system. If documentation is not available through HUD’s EIV system, the PHA will
request a current (dated within the appropriate benefit year) SSA benefit verification letter from
each family member claiming disability status. If a family member is unable to provide the
document, the PHA will ask the family to obtain a benefit verification letter either by calling SSA at
1-800-772-1213 or by requesting one from www.ssa.gov. Once the family receives the benefit
verification letter, they will be required to provide the letter to the PHA.
Family Members Not Receiving SSA Disability Benefits
Receipt of veteran’s disability benefits, worker’s compensation, or other non-SSA benefits based on the
individual’s claimed disability are not sufficient verification that the individual meets HUD’s definition of
disability in 24 CFR 5.403, necessary to qualify for waiting list preferences or certain income disallowances
and deductions.
PHA Policy
For family members claiming disability who do not receive SSI or other disability payments from
the SSA, a knowledgeable professional must provide third-party verification that the family
member meets the HUD definition of disability. See the Eligibility chapter for the HUD definition of
disability. The knowledgeable professional will verify whether the family member does or does not
meet the HUD definition.
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7-II.G. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5.508]
Overview
Housing assistance is not available to persons who are not citizens, nationals, or eligible immigrants.
Prorated assistance is provided for "mixed families" containing both eligible and ineligible persons. See
the Eligibility chapter for detailed discussion of eligibility requirements. This chapter (7) discusses HUD
and PHA verification requirements related to citizenship status.
The family must provide a certification that identifies each family member as a U.S. citizen, a U.S.
national, an eligible noncitizen or an ineligible noncitizen and submit the documents discussed below for
each family member. Once eligibility to receive assistance has been verified for an individual it need not
be collected or verified again during continuously assisted occupancy [24 CFR 5.508(g)(5)]
U.S. Citizens and Nationals
HUD requires a declaration for each family member who claims to be a U.S. citizen or national. The
declaration must be signed personally by any family member 18 or older and by a guardian for minors.
The PHA may request verification of the declaration by requiring presentation of a birth certificate,
United States passport or other appropriate documentation.
PHA Policy
Family members who claim U.S. citizenship or national status will not be required to provide
additional documentation unless the PHA receives information indicating that an individual’s
declaration may not be accurate.
Eligible Immigrants
Documents Required
All family members claiming eligible immigration status must declare their status in the same manner as
U.S. citizens and nationals.
The documentation required for eligible noncitizens varies depending upon factors such as the date the
person entered the U.S., the conditions under which eligible immigration status has been granted, age,
and the date on which the family began receiving HUD-funded assistance. Exhibit 7-1 at the end of this
chapter summarizes documents family members must provide.
PHA Verification [HCV GB, pp 5-3 and 5-7]
For family members age 62 or older who claim to be eligible immigrants, proof of age is required in the
manner described in 7-II.C. of this ACOP. No further verification of eligible immigration status is required.
For family members under the age of 62 who claim to be eligible immigrants, the PHA must verify
immigration status with the U.S. Citizenship and Immigration Services (USCIS).
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The PHA will follow all USCIS protocols for verification of eligible immigration status.
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7-II.H. VERIFICATION OF PREFERENCE STATUS
The PHA must verify any preferences claimed by an applicant that determined their placement on the
waiting list.
PHA Policy
The PHA offers a preference for working families, described in Section 4-III.B.
The PHA may verify that the family qualifies for the working family preference based on the
family’s submission of the working member’s most recent paycheck stub indicating that the
working member works at least 20 hours per week. The paycheck stub must have been issued to
the working member within the last thirty days.
The PHA may also seek third party verification from the employer of the head, spouse, cohead or
sole member of a family requesting a preference as a working family.
The PHA also offers a preference for victims of domestic violence, dating violence, sexual assault,
stalking, or human trafficking as described in Section 4-III.B. To verify that applicants qualify for
the preference, the PHA will follow documentation requirements outlined in Section 16-VII.D.
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PART III: VERIFYING INCOME AND ASSETS
Chapter 6, Part I of this ACOP describes in detail the types of income that are included and excluded and
how assets and income from assets are handled. Any assets and income reported by the family must be
verified. This part provides PHA policies that supplement the general verification procedures specified in
Part I of this chapter.
7-III.A. EARNED INCOME
Tips
PHA Policy
Unless tip income is included in a family member’s W-2 by the employer, persons who work in
industries where tips are standard will be required to sign a certified estimate of tips received for
the prior year and tips anticipated to be received in the coming year.
Wages
PHA Policy
For wages other than tips, the family must provide originals of the two most current, consecutive
pay stubs.
7-III.B. BUSINESS AND SELF EMPLOYMENT INCOME
PHA Policy
Business owners and self-employed persons will be required to provide:
An audited financial statement for the previous fiscal year if an audit was conducted. If an
audit was not conducted, a statement of income and expenses must be submitted and the
business owner or self-employed person must certify to its accuracy.
All schedules completed for filing federal and local taxes in the preceding year.
If accelerated depreciation was used on the tax return or financial statement, an
accountant's calculation of depreciation expense, computed using straight-line
depreciation rules.
The PHA will provide a format for any person who is unable to provide such a statement to record
income and expenses for the coming year. The business owner/self-employed person will be
required to submit the information requested and to certify to its accuracy at all future
reexaminations.
At any reexamination the PHA may request documents that support submitted financial
statements such as manifests, appointment books, cash books, or bank statements.
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If a family member has been self-employed less than three (3) months, the PHA will accept the
family member's certified estimate of income and schedule an interim reexamination in three (3)
months. If the family member has been self-employed for three (3) to twelve (12) months the PHA
will require the family to provide documentation of income and expenses for this period and use
that information to project income.
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7-III.C. PERIODIC PAYMENTS AND PAYMENTS IN LIEU OF EARNINGS
For policies governing streamlined income determinations for fixed sources of income, please see
Chapter 9.
Social Security/SSI Benefits
Verification requirements for Social Security (SS) and Supplemental Security Income (SSI) benefits differ
for applicants and participants.
For applicants, since EIV does not contain SS or SSI benefit information, the PHA must ask applicants to
provide a copy of their current SS and/or SSI benefit letter (dated within the appropriate benefit year) for
each family member that receives SS and/or SSI benefits. If the family is unable to provide the document
or documents, the PHA should help the applicant request a benefit verification letter from SSA’s website
at www.ssa.gov or ask the family to request one by calling SSA at 1-800-772-1213. The PHA must obtain
the original benefit letter from the applicant, make a photocopy of the document for the file, and return
the original to the family.
For participants, the PHA must obtain information through the HUD EIV system and confirm with the
participants that the current listed benefit amount is correct.
If the participant agrees with the amount reported in EIV, the PHA must use the EIV-reported gross
benefit amount to calculate annual income from Social Security. PHAs are required to use the EIV-
reported SS and SSI benefit amounts when calculating income unless the tenant disputes the EIV-
reported amount. For example, an SSA benefit letter may list the monthly benefit amount as $450.80
and EIV displays the amount as $450.00. The PHA must use the EIV-reported amount unless the
participant disputes the amount.
If the participant disputes the EIV-reported benefit amount, or if benefit information is not available in
EIV, the PHA must request a current SSA benefit verification letter (dated within the appropriate
benefit year) from each family member that receives SS and/or SSI benefits. If the family is unable to
provide the document or documents, the PHA should help the participant request a benefit
verification letter from SSA’s website at www.ssa.gov or ask the family to request one by calling SSA at
1-800-772-1213. The PHA must obtain the original benefit letter from the participant, make a
photocopy of the document for the file, and return the original to the family.
Photocopies of social security checks or bank statements are not acceptable forms of verification for
SS/SSI benefits.
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7-III.D. ALIMONY OR CHILD SUPPORT
PHA Policy
The methods the PHA will use to verify alimony and child support payments differ depending on
whether the family declares that it receives regular payments.
If the family declares that it receives regular payments, verification will be obtained in the
following order of priority:
Copies of the receipts and/or payment stubs for the 60 days prior to PHA request
Third-party verification form from the state or local child support enforcement agency
Third-party verification form from the person paying the support
Family's self-certification of amount received
If the family declares that it receives irregular or no payments, in addition to the
verification process listed above, the family must provide evidence that it has taken all
reasonable efforts to collect amounts due. This may include:
A statement from any agency responsible for enforcing payment that shows the family
has requested enforcement and is cooperating with all enforcement efforts
If the family has made independent efforts at collection, a written statement from the
attorney or other collection entity that has assisted the family in these efforts
Note: Families are not required to undertake independent enforcement action.
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7-III.E. ASSETS AND INCOME FROM ASSETS
Assets Disposed of for Less than Fair Market Value
The family must certify whether any assets have been disposed of for less than fair market value in the
preceding two years. The PHA needs to verify only those certifications that warrant documentation [HCV
GB, p. 5-28].
PHA Policy
The PHA will verify the value of assets disposed of only if:
The PHA does not already have a reasonable estimation of its value from previously
collected information, or
The amount reported by the family in the certification appears obviously in error.
Example 1: An elderly resident reported a $10,000 certificate of deposit at the last annual
reexamination and the PHA verified this amount. Now the person reports that she has given this
$10,000 to her son. The PHA has a reasonable estimate of the value of the asset; therefore,
reverification of the value of the asset is not necessary.
Example 2: A family member has disposed of its 1/4 share of real property located in a desirable
area and has valued her share at approximately $5,000. Based upon market conditions, this
declaration does not seem realistic. Therefore, the PHA will verify the value of this asset.
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7-III.F. NET INCOME FROM RENTAL PROPERTY
PHA Policy
The family must provide:
A current executed lease for the property that shows the rental amount or certification
from the current tenant
A self-certification from the family members engaged in the rental of property providing an
estimate of expenses for the coming year and the most recent IRS Form 1040 with
Schedule E (Rental Income).
If schedule E was not prepared, the PHA will require the family members involved in the
rental of property to provide a self-certification of income and expenses for the previous
year and may request documentation to support the statement including: tax statements,
insurance invoices, bills for reasonable maintenance and utilities, and bank statements or
amortization schedules showing monthly interest expense.
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7-III.G. RETIREMENT ACCOUNTS
PHA Policy
The PHA will accept written third-party documents supplied by the family as evidence of the status
of retirement accounts.
The type of original document that will be accepted depends upon the family member’s
retirement status.
Before retirement, the PHA will accept an original document from the entity holding the
account with a date that shows it is the most recently scheduled statement for the account
but in no case earlier than 6 months from the effective date of the examination.
Upon retirement, the PHA will accept an original document from the entity holding the
account that reflects any distributions of the account balance, any lump sums taken and
any regular payments.
After retirement, the PHA will accept an original document from the entity holding the
account dated no earlier than 12 months before that reflects any distributions of the
account balance, any lump sums taken and any regular payments.
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7-III.H. INCOME FROM EXCLUDED SOURCES
A detailed discussion of excluded income is provided in Chapter 6, Part I.
HUD guidance on verification of excluded income draws a distinction between income which is fully
excluded and income which is only partially excluded.
For fully excluded income, the PHA is not required to follow the verification hierarchy, document why
third-party verification is not available, or report the income on the 50058. Fully excluded income is
defined as income that is entirely excluded from the annual income determination (for example, food
stamps, earned income of a minor, or foster care funds) [Notice PIH 2013-04].
PHAs may accept a family’s signed application or reexamination form as self-certification of fully excluded
income. They do not have to require additional documentation. However, if there is any doubt that a
source of income qualifies for full exclusion, PHAs have the option of requiring additional verification.
For partially excluded income, the PHA is required to follow the verification hierarchy and all applicable
regulations, and to report the income on the 50058. Partially excluded income is defined as income
where only a certain portion of what is reported by the family qualifies to be excluded and the remainder
is included in annual income (for example, the income of an adult full-time student).
PHA Policy
The PHA will accept the family’s self-certification as verification of fully excluded income. The PHA
may request additional documentation if necessary to document the income source.
The PHA will verify the source and amount of partially excluded income as described in Part 1 of
this chapter.
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7-III.I. ZERO INCOME FAMILIES [Notice PIH 2023-27]
PHAs have discretion to establish reasonable procedures to manage the risk of unreported income, such
as asking families to complete a zero-income worksheet at admission or periodically after admission to
determine if they have any sources of unreported income or searching any UIV sources for unreported
income.
In calculating annual income, PHAs must not assign monetary value to nonmonetary in-kind donations
from a food bank or similar organization received by the family [24 CFR 5.609(b)(24)(vi)].
PHAs may accept a self-certification of zero income from the family without taking any additional steps to
verify zero reported income. HUD does not require such self-certifications be notarized.
PHAs that perform zero income reviews must update local discretionary policies, procedures, and forms.
Families who begin receiving income which does not trigger an interim reexamination should no longer
be considered zero income even though the family’s income is not reflected on the Form HUD-50058.
PHA Policy
The PHA will check UIV sources and/or may request information from third-party sources to verify
that certain forms of income such as unemployment benefits, TANF, SS, SSI, earned income, child
support, etc., are not being received by families claiming to have zero annual income.
The PHA will also require that each family member who claims zero income status complete a
zero-income form. If any sources of income are identified on the form, the PHA will verify the
income in accordance with the policies in this chapter prior to including the income in the family’s
annual income. The PHA will conduct interims in accordance with PHA policy in Chapter 11.
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PART IV: VERIFYING MANDATORY DEDUCTIONS
7-IV.A. DEPENDENT AND ELDERLY/DISABLED HOUSEHOLD DEDUCTIONS
The dependent and elderly/disabled family deductions require only that the PHA verify that the family
members identified as dependents or elderly/disabled persons meet the statutory definitions. No further
verifications are required.
Dependent Deduction
See Chapter 6 (6-II.B.) for a full discussion of this deduction. The PHA will verify that:
•
Any person under the age of 18 for whom the dependent deduction is claimed is not the head,
spouse or cohead of the family and is not a foster child
•
Any person age 18 or older for whom the dependent deduction is claimed is not a foster adult or live-
in aide, and is a person with a disability or a full time student
Elderly/Disabled Family Deduction
See the Eligibility chapter for a definition of elderly and disabled families and Chapter 6 (6-II.C.) for a
discussion of the deduction. The PHA will verify that the head, spouse, or cohead is 62 years of age or
older or a person with disabilities.
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7-IV.B. HEALTH AND MEDICAL CARE EXPENSE DEDUCTION
Policies related to health and medical care expenses are found in 6-II.D. The amount of the deduction will
be verified following the standard verification procedures described in Part I.
Amount of Expense
PHA Policy
Health and medical care expenses will be verified through:
Written third-party documents provided by the family, such as pharmacy printouts or
receipts.
The PHA will make a best effort to determine what expenses from the past are likely to
continue to occur in the future. The PHA will also accept evidence of monthly payments or
total payments that will be due for health and medical care expenses during the upcoming
12 months.
Written third-party verification forms, if the family is unable to provide acceptable
documentation.
If third-party or document review is not possible, written family certification as to costs
anticipated to be incurred during the upcoming 12 months.
In addition, the PHA must verify that:
•
The household is eligible for the deduction.
•
The costs to be deducted are qualified medical expenses.
•
The expenses are not paid for or reimbursed by any other source.
•
Costs incurred in past years are counted only once.
Eligible Household
The health and medical care expense deduction is permitted only for households in which the head,
spouse, or cohead is at least 62 or a person with disabilities. The PHA will verify that the family meets the
definition of an elderly or disabled family provided in the Eligibility chapter, and as described in Chapter 7
(7-IV.A) of this plan.
Qualified Expenses
To be eligible for the health and medical care expense deduction, the costs must qualify as health and
medical care expenses. See Chapter 6 (6-II.D.) for the PHA’s policy on what counts as a health and medical
care expense.
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Unreimbursed Expenses
To be eligible for the health and medical care expense deduction, the costs must not be reimbursed by
another source.
PHA Policy
The family will be required to certify that the health and medical care expenses are not paid or
reimbursed to the family from any source. If expenses are verified through a third party, the third
party must certify that the expenses are not paid or reimbursed from any other source.
Expenses Incurred in Past Years
PHA Policy
When anticipated costs are related to on-going payment of medical bills incurred in past years, the
PHA will verify:
The anticipated repayment schedule
The amounts paid in the past, and
Whether the amounts to be repaid have been deducted from the family’s annual income in
past years
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7-IV.C. DISABILITY ASSISTANCE EXPENSES
Policies related to disability assistance expenses are found in 6-II.E. The amount of the deduction will be
verified following the standard verification procedures described in Part I.
Amount of Expense
Attendant Care
PHA Policy
Expenses for attendant care will be verified through:
Written third-party documents provided by the family, such as receipts or cancelled checks.
Third-party verification form signed by the provider, if family-provided documents are not
available.
If third-party verification is not possible, written family certification as to costs anticipated
to be incurred for the upcoming 12 months.
Auxiliary Apparatus
PHA Policy
Expenses for auxiliary apparatus will be verified through:
Written third-party documents provided by the family, such as billing statements for
purchase of auxiliary apparatus, or other evidence of monthly payments or total payments
that will be due for the apparatus during the upcoming 12 months.
Third-party verification form signed by the provider, if family-provided documents are not
available.
If third-party or document review is not possible, written family certification of estimated
apparatus costs for the upcoming 12 months.
In addition, the PHA must verify that:
•
The family member for whom the expense is incurred is a person with disabilities (as described in 7-
II.F above).
•
The expense permits a family member, or members, to work (as described in 6-II.E.).
•
The expense is not reimbursed from another source (as described in 6-II.E.).
Family Member is a Person with Disabilities
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To be eligible for the disability assistance expense deduction, the costs must be incurred for attendant
care or auxiliary apparatus expense associated with a person with disabilities. The PHA will verify that the
expense is incurred for a person with disabilities (See 7-II.F.).
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Family Member(s) Permitted to Work
The PHA must verify that the expenses claimed actually enable a family member, or members, (including
the person with disabilities) to work.
PHA Policy
The PHA will request third-party verification from a rehabilitation agency or knowledgeable
medical professional indicating that the person with disabilities requires attendant care or an
auxiliary apparatus to be employed, or that the attendant care or auxiliary apparatus enables
another family member, or members, to work (See 6-II.E.). This documentation may be provided
by the family.
If third-party verification has been attempted and is either unavailable or proves unsuccessful, the
family must certify that the disability assistance expense frees a family member, or members
(possibly including the family member receiving the assistance), to work.
Unreimbursed Expenses
To be eligible for the disability expenses deduction, the costs must not be reimbursed by another source.
PHA Policy
The family will be required to certify that attendant care or auxiliary apparatus expenses are not
paid by or reimbursed to the family from any source.
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7-IV.D. CHILDCARE EXPENSES
Policies related to childcare expenses are found in Chapter 6 (6-II.F). The amount of the deduction will be
verified following the standard verification procedures described in Part I. In addition, the PHA must
verify that:
•
The child is eligible for care (12 or younger).
•
The costs claimed are not reimbursed.
•
The costs enable a family member to work, actively seek work, or further their education.
•
The costs are for an allowable type of childcare.
•
The costs are reasonable.
Eligible Child
To be eligible for the childcare deduction, the costs must be incurred for the care of a child under the age
of 13. The PHA will verify that the child being cared for (including foster children) is under the age of 13
(See 7-II.C.).
Unreimbursed Expense
To be eligible for the childcare deduction, the costs must not be reimbursed by another source.
PHA Policy
The family and the care provider will be required to certify that the childcare expenses are not
paid by or reimbursed to the family from any source.
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Pursuing an Eligible Activity
The PHA must verify that the family member(s) that the family has identified as being enabled to seek
work, pursue education, or be gainfully employed, are actually pursuing those activities.
PHA Policy
Information to be Gathered
The PHA will verify information about how the schedule for the claimed activity relates to the
hours of care provided, the time required for transportation, the time required for study (for
students), the relationship of the family member(s) to the child, and any special needs of the child
that might help determine which family member is enabled to pursue an eligible activity.
Seeking Work
Whenever possible the PHA will use documentation from a state or local agency that monitors
work-related requirements (e.g., welfare or unemployment). In such cases the PHA will request
family-provided verification from the agency of the member’s job seeking efforts to date and
require the family to submit to the PHA any reports provided to the other agency.
In the event third-party verification is not available, the PHA will provide the family with a form on
which the family member must record job search efforts. The PHA will review this information at
each subsequent reexamination for which this deduction is claimed.
Furthering Education
The PHA will request third-party documentation to verify that the person permitted to further
their education by the childcare is enrolled and provide information about the timing of classes
for which the person is registered. The documentation may be provided by the family.
Gainful Employment
The PHA will seek third-party verification of the work schedule of the person who is permitted to
work by the childcare. In cases in which two or more family members could be permitted to work,
the work schedules for all relevant family members may be verified. The documentation may be
provided by the family.
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Allowable Type of Childcare
The type of care to be provided is determined by the family, but must fall within certain guidelines, as
discussed in Chapter 6.
PHA Policy
The PHA will verify that the type of childcare selected by the family is allowable, as described in
Chapter 6 (6-II.F).
The PHA will verify that the fees paid to the childcare provider cover only childcare costs (e.g., no
housekeeping services or personal services) and are paid only for the care of an eligible child (e.g.,
prorate costs if some of the care is provided for ineligible family members).
The PHA will verify that the childcare provider is not an assisted family member. Verification will
be made through the head of household’s declaration of family members who are expected to
reside in the unit.
Reasonableness of Expenses
Only reasonable childcare costs can be deducted.
PHA Policy
The actual costs the family incurs will be compared with the PHA’s established standards of
reasonableness for the type of care in the locality to ensure that the costs are reasonable.
If the family presents a justification for costs that exceed typical costs in the area, the PHA will
request additional documentation, as required, to support a determination that the higher cost is
appropriate.
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Exhibit 7-1: Summary of Documentation Requirements for Noncitizens
[HCV GB, pp. 5-9 and 5-10)
•
All noncitizens claiming eligible status must sign a declaration of eligible immigrant
status on a form acceptable to the PHA.
•
Except for persons 62 or older, all noncitizens must sign a verification consent form
•
Additional documents are required based upon the person's status.
Elderly Noncitizens
•
A person 62 years of age or older who claims eligible immigration status also must
provide proof of age such as birth certificate, passport, or documents showing receipt
of SS old-age benefits.
All other Noncitizens
•
Noncitizens that claim eligible immigration status also must present the applicable
USCIS document. Acceptable USCIS documents are listed below.
•
Form I-551 Alien Registration Receipt
Card (for permanent resident aliens)
•
Form I-94 Arrival-Departure Record
annotated with one of the following:
•
“Admitted as a Refugee Pursuant to
Section 207”
•
“Section 208” or “Asylum”
•
“Section 243(h)” or “Deportation
stayed by Attorney General”
•
“Paroled Pursuant to Section 221
(d)(5) of the USCIS”
•
Form I-94 Arrival-Departure Record with
no annotation accompanied by:
•
A final court decision granting asylum
(but only if no appeal is taken);
•
A letter from a USCIS asylum officer
granting asylum (if application is filed
on or after 10/1/90) or from a USCIS
district director granting asylum
(application filed before 10/1/90);
•
A court decision granting withholding
of deportation; or
•
A letter from an asylum officer
granting withholding or deportation
(if application filed on or after
10/1/90).
•
Form I-688 Temporary Resident Card
annotated “Section 245A” or Section
210”.
Form I-688B Employment Authorization
Card annotated “Provision of Law 274a.
12(11)” or “Provision of Law 274a.12”.
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•
A receipt issued by the USCIS indicating that an application for issuance of a
replacement document in one of the above listed categories has been made and the
applicant’s entitlement to the document has been verified; or
•
Other acceptable evidence. If other documents are determined by the USCIS to
constitute acceptable evidence of eligible immigration status, they will be announced by
notice published in the Federal Register
Chapter 7.B.
VERIFICATION UNDER HOTMA 102/104
[24 CFR §960.259, 24 CFR §5.230 Notice PIH 2023-27]
INTRODUCTION
This chapter is applicable upon the PHA’s HOTMA 102/104 compliance date. Prior to this date, the PHA
will follow policies as outlined in Chapter 7.A. of the model policy.
The PHA must verify all information that is used to establish the family’s eligibility and level of assistance
and is required to obtain written authorization from the family in order to collect the information.
Applicants and program participants must cooperate with the verification process as a condition of
receiving assistance. The PHA must not pass on the cost of verification to the family.
The PHA must follow the verification guidance provided by HUD in Notice PIH 2023-27 and any
subsequent guidance issued by HUD. This chapter summarizes those requirements and provides
supplementary PHA policies.
Part I describes the general verification process. Part II provides more detailed requirements related to
family information. Part III provides information on income and assets, and Part IV covers mandatory
deductions.
Verification policies, rules and procedures will be modified as needed to accommodate persons with
disabilities. All information obtained through the verification process will be handled in accordance with
the records management policies established by the PHA.
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PART I: GENERAL VERIFICATION REQUIREMENTS
7-I.A. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 960.259, 24 CFR 5.230; AND NOTICE
PIH 2023-27]
Consent Forms
The family must supply any information that the PHA or HUD determines is necessary to the
administration of the program and must consent to PHA verification of that information
[24 CFR 960.259(a)(1)]. All adult family members must sign consent forms as needed to collect
information relevant to the family’s eligibility and level of assistance. While PHAs must use form HUD-
9886-A, this form does not release all the information necessary to the administration of the program.
The PHA must also develop its own release forms to cover all other necessary information.
Form HUD-9886-A [24 CFR 5.230(b)(1), (b)(2), (c)(4), and (c)(5); Notice PIH 2023-27]
All adult applicants and tenants must sign form HUD-9886-A, Authorization for Release of Information. All
adult family members (and the head and spouse/cohead regardless of age) are required to sign the Form
HUD-9886-A at admission. Participants, prior to January 1, 2024, signed and submitted Form HUD-9886-A
at each annual reexamination. HOTMA eliminated this requirement and instead required that the Form
HUD-9886-A be signed only once. On or after January 1, 2024 (regardless of the PHA’s HOTMA compliance
date), current program participants must sign and submit a new Form HUD-9886-A at their next interim
or annual reexamination. This form will only be signed once. Another Form HUD-9886-A will not be
submitted to the PHA except under the following circumstances:
•
When any person 18 years or older becomes a member of the family;
•
When a current member of the family turns 18; or
•
As required by HUD or the PHA in administrative instructions.
The PHA has the discretion to establish policies around when family members must sign consent forms
when they turn 18. PHAs must establish these policies stating when family members will be required to
sign consent forms at intervals other than at reexamination.
PHA Policy
Family members turning 18 years of age between annual recertifications will be notified in writing
that they are required to sign the required Consent to the Release of Information Form HUD-9886-
Awithin 10 business days of turning 18 years of age.
The purpose of form HUD-9886-A is to facilitate automated data collection and computer matching from
specific sources and provides the family's consent only for the specific purposes listed on the form. HUD
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and the PHA may collect information from State Wage Information Collection Agencies (SWICAs) and
current and former employers of adult family members. Only HUD is authorized to collect information
directly from the Internal Revenue Service (IRS) and the Social Security Administration (SSA).
The PHA may obtain any financial record from any financial institution, as the terms financial record and
financial institution are defined in the Right to Financial Privacy Act (12 U.S.C. 3401), whenever the PHA
determines the record is needed to determine an applicant’s or participant’s eligibility for assistance or
level of benefits [24 CFR 5.230(c)(4)].
The executed form will remain effective until the family is denied assistance, assistance is terminated, or
the family provides written notification to the PHA to revoke consent.
Penalties for Failing to Consent [24 CFR 5.232]
If any family member who is required to sign a consent form fails to do so, the PHA will deny admission
to applicants and terminate the lease of tenants [24 CFR 5.232(a)]. The family may request a hearing in
accordance with the PHA's grievance procedures.
However, this does not apply if the applicant, participant, or any member of their family, revokes their
consent with respect to the ability of the PHA to access financial records from financial institutions,
unless the PHA establishes a policy that revocation of consent to access financial records will result in
denial of admission or termination of assistance [24 CFR 5.232(c)]. PHAs may not process interim or
annual reexaminations of income without the family’s executed consent forms.
PHA Policy
The PHA has established a policy that revocation of consent to access financial records will result
in denial of admission or termination of assistance in accordance with PHA policy.
In order for a family to revoke their consent, the family must provide written notice to the PHA.
Within 10 business days of the date the family provides written notice, the PHA will send the
family a notice acknowledging receipt of the request and explaining that revocation of consent will
result in denial or termination of assistance, as applicable. At the same time, the PHA will notify
the local HUD office.
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7-I.B. USE OF OTHER PROGRAMS’ INCOME DETERMINATIONS [24 CFR 5.609(c)(3) and notice PIH 2023-
27]
PHAs may, but are not required to, determine a family’s annual income, including income from assets,
prior to the application of any deductions, based on income determinations made within the previous 12-
month period, using income determinations from means-tested federal public assistance programs.
PHAs are not required to accept or use determinations of income from other federal means-tested forms
of assistance. If the PHA adopts a policy to accept this type of verification, the PHA must establish in
policy when they will accept Safe Harbor income determinations and from which programs. PHAs must
also create policies that outline the course of action when families present multiple verifications from the
same or different acceptable Safe Harbor programs. Means-tested federal public assistance programs
include:
•
Temporary Assistance for Needy Families (TANF) (42 U.S.C. 601, et seq.);
•
Medicaid (42 U.S.C. 1396 et seq.);
•
Supplemental Nutrition Assistance Program (SNAP) (42 U.S.C. 2011 et seq.);
•
Earned Income Tax Credit (EITC) (26 U.S.C. 32);
•
Low-Income Housing Tax Credit (LIHTC) program (26 U.S.C. 42);
•
Special Supplemental Nutrition Program for Woman, Infants, and Children (WIC) (42 U.S.C. 1786);
•
Supplemental Security Income (SSI) (42 U.S.C. 1381 et seq.);
•
Other programs administered by the HUD Secretary;
•
Other means-tested forms of federal public assistance for which HUD has established a
memorandum of understanding; and
•
Other federal benefit determinations made in other forms of means-tested federal public assistance
that the Secretary determines to have comparable reliability and announces through the Federal
Register.
If the PHA elects to use the annual income determination from one of the above-listed forms of means-
tested federal public assistance, then they must obtain the income information by means of a third-party
verification. The third-party verification must state the family size, must be for the entire family, and must
state the amount of the family’s annual income. The annual income need not be broken down by family
member or income type. Annual income includes income earned from assets, therefore when using Safe
Harbor to verify a family’s income, PHAs will neither further inquire about a family’s net family assets, nor
about the income earned from those assets, except with respect to whether or not the family owns
assets that exceed the asset limitation in 24 CFR 5.618. The Safe Harbor documentation will be
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considered acceptable if any of the following dates fall into the 12-month period prior to the receipt of
the documentation by the PHA:
•
Income determination effective date;
•
Program administrator’s signature date;
•
Family’s signature date;
•
Report effective date; or
•
Other report-specific dates that verify the income determination date.
The only information that PHAs are permitted to use to determine income under this method is the total
income determination made by the federal means-tested program administrator. Other federal
programs may provide additional information about income inclusions and exclusions in their award
letters; however, these determinations and any other information must not be considered by the PHA.
PHAs are not permitted to mix and match Safe Harbor income determinations and other income
verifications.
If the PHA is unable to obtain Safe Harbor documentation or if the family disputes the other program’s
income determination, the PHA must calculate the family’s annual income using traditional methods as
outlined in Notice PIH 2023-27 and this chapter.
If the PHA uses a Safe Harbor determination to determine the family’s income, the family is obligated to
report changes in income that meet the PHA’s reporting requirement and occur after the effective date of
the transaction.
The amounts of unreimbursed reasonable attendant care expenses and child-care expenses deducted
from a family’s annual income, except for when a family is approved for a child-care expense hardship
exemption, must still be capped by the amount earned by any family member who is enabled to work as
a result of the expense. PHAs are therefore required to obtain third-party verification of the applicable
employment income and cap the respective expense deductions accordingly.
PHA Policy
When available and applicable, the PHA will accept other programs’ Safe Harbor determinations of
income at annual reexamination to determine the family’s total annual income. The PHA will still
require third-party verification of all deductions such as the health and medical care expense or
childcare expense deductions. Further, if the family is eligible for and claims the disability
assistance expense or childcare expense deductions, where applicable, the PHA will obtain third-
party verification of the amount of employment income of the individual(s) enabled to work in
order to cap the respective expenses as required.
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Prior to using any Safe Harbor determination from another program, the PHA will ask the family if
they agree with the income amounts listed. If the family disputes the income amounts on the Safe
Harbor determination, the PHA will obtain third-party verification of all sources of income and
assets (as applicable).
The PHA will not accept other programs’ determinations of income for any new admission or
interim reexamination.
With the exception of income determinations made under the Low-Income Housing Tax Credit
(LIHTC) program, the PHA will accept Safe Harbor determinations from any of the programs listed
above.
In order to be acceptable, the income determination must:
Be dated within 12 months of the dates listed above;
State the family size;
Be for the entire family (i.e., the family members listed in the documentation must match
the family’s composition in the assisted unit, except for household members); and
Must state the amount of the family’s annual income.
The determination need not list each source of income individually. If the PHA does not receive
any acceptable income determination documentation or is unable to obtain documentation, then
the PHA will revert to third-party verification of income for the family.
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When families present multiple verifications from the same or different acceptable Safe Harbor
programs, the PHA will use the most recent income determination, unless the family presents
acceptable evidence that the PHA should consider an alternative verification from a different Safe
Harbor source.
When the PHA uses a Safe Harbor income determination from another program, and the family’s
income subsequently changes, the family is required to report the change to the PHA. Depending
on when the change occurred, the change may or may not impact the PHA’s calculation of the
family’s total annual income. Changes that occur between the time the PHA receives the Safe
Harbor documentation and the effective date of the family’s annual reexamination will not be
considered. If the family has a change in income that occurs after the annual reexamination
effective date, the PHA will conduct an interim reexamination if the change meets the
requirements for performing an interim reexamination as outlined in Chapter 9. In this case, the
PHA will use third-party verification to verify the change.
7-I.C. STREAMLINED INCOME DETERMINATIONS [24 CFR 960.257(c); Notice PIH 2023-27]
HUD permits PHAs to streamline the income determination process for family members with fixed
sources of income. While third-party verification of all income sources must be obtained during the
intake process and every three years thereafter, in the intervening years, the PHA may determine income
from fixed sources by applying a verified cost of living adjustment (COLA) or other inflationary
adjustment factor. Streamlining policies are optional. The PHA may, however, obtain third-party
verification of all income, regardless of the source. Further, upon request of the family, the PHA must
perform third-party verification of all income sources.
Fixed sources of income include Social Security and SSI benefits, pensions, annuities, disability or death
benefits, and other sources of income subject to a COLA or rate of interest. The determination of fixed
income may be streamlined even if the family also receives income from other non-fixed sources.
Two streamlining options are available, depending upon the percentage of the family’s income that is
received from fixed sources.
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When 90 percent or more of a family’s unadjusted income is from fixed sources, the PHA may apply the
inflationary adjustment factor to the family’s fixed-income sources, provided that the family certifies both
that 90 percent or more of their unadjusted income is fixed and that their sources of fixed income have
not changed from the previous year. Sources of non-fixed income are not required to be adjusted and
must not be adjusted by a COLA, but PHAs may choose to adjust sources of non-fixed income based on
third-party verification. PHAs have the discretion to either adjust the non-fixed income or carry over the
calculation of non-fixed income from the first year to years two and three.
When less than 90 percent of a family’s unadjusted income consists of fixed income, PHAs may apply a
COLA to each of the family’s sources of fixed income. PHAs must determine all other income using
standard verification requirements as outlined in Notice PIH 2023-27.
PHA Policy
When the PHA does not use a Safe Harbor income determination from a federal assistance
program to determine the family’s annual income as outlined above, then PHA will use a
streamlined income determinations where applicable.
Regardless of the percent of a family’s unadjusted income from fixed income sources:
The PHA will streamline the annual reexamination process by applying the verified
COLA/inflationary adjustment factor to fixed-income sources.
The family will be required to sign a self-certification stating that their sources of fixed income
have not changed from the previous year.
All other income will be verified using third-party verification as outlined in Notice PIH 2023-27 and
Chapter 7 of this policy.
In the following circumstances, regardless of the percentage of income received from fixed sources, the
PHA will obtain third-party verification as outlined in Notice PIH 2023-27 and Chapter 7 of this policy:
Of all assets when net family assets exceed the HUD-published threshold ($50,000 for 2024, and
$51,600 for 2025);
Of all deductions and allowances from annual income;
If a family member with a fixed source of income is added;
If verification of the COLA or rate of interest is not available;
During the intake process and at least once every three years thereafter.
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7-I.D. VERIFICATION HIERARCHY [NOTICE PIH 2023-27]
When the PHA does not use a streamlined determination of income or an income determination from a
means-tested federal assistance program, HUD requires the PHA to obtain third-party verification of:
•
Reported family annual income;
•
The value of net family assets when the net value exceeds the HUD-published threshold, as listed in
HUD’s Inflation-Adjusted Values tables ($50,000 for 2024, and $51,600 for 2025);
•
Expenses related to deductions from annual income; and
•
Other factors that affect the determination of adjusted income.
HUD mandates the use of the EIV system and offers administrative guidance on the use of other
methods to verify family information and specifies the circumstances in which each method will be used.
In general, HUD requires the PHA to use the most reliable form of verification that is available and to
document the reasons when the PHA uses a lesser form of verification.
HUD developed a hierarchy that described verification documentation from most acceptable to least
acceptable. The PHA must demonstrate efforts to obtain third party verification prior to accepting self-
certification except instances when self-certification is explicitly allowed.
In order of priority, the hierarchy is:
•
Highest: Level 6: Up-front Income Verification (UIV) using HUD’s Enterprise Income Verification (EIV)
system
•
Highest: Level 5: Up-front Income Verification (UIV) using a non-EIV system
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•
High: Level 4:
-
Written third-party verification from the source, also known as “tenant-provided verification”
-
Or EIV plus self-certification
•
Medium: Level 3: Written third-party verification form
•
Medium: Level 2: Oral third-party verification
•
Low: Level 1: Self-certification (not third-party verification)
Each of the verification methods is discussed in subsequent sections below.
File Documentation
The PHA must document in the file how the figures used in income and rent calculations were
determined. All verification attempts, information obtained, and decisions reached during the verification
process will be recorded in the family’s file in sufficient detail to demonstrate that the PHA has followed
all of the verification policies set forth in this ACOP. The record should be sufficient to enable a staff
member or HUD reviewer to understand the process followed and conclusions reached.
7-I.E. LEVEL 5 AND 6 VERIFICATIONS: UP-FRONT INCOME VERIFICATION (UIV)
Up-front income verification (UIV) refers to the PHA’s use of the verification tools available from
independent sources that maintain computerized information about earnings and benefits for a number
of individuals. PHAs may use UIV sources before or during a family reexamination.
UIV will be used to the extent that these systems are available to the PHA.
There may be legitimate differences between the information provided by the family and UIV-generated
information. If the family disputes the accuracy of UIV data, no adverse action can be taken until the PHA
has independently verified the UIV information and the family has been granted the opportunity to
contest any adverse findings through the PHA's informal review/hearing processes.
HUD’s Enterprise Income Verification (EIV) System
PHAs must use HUD’s EIV system in its entirety as a third-party source to verify tenant employment and
income information during annual and streamlined reexaminations of family composition and income in
accordance with 24 CFR 5.236 and Notice PIH 2023-27.
HUD’s EIV system contains data showing earned income, unemployment benefits, social security benefits,
and SSI benefits for participant families.
The income validation tool (IVT) in EIV provides projections of discrepant income for wages,
unemployment compensation, and SSA benefits pursuant to HUD’s data sharing agreements with other
departments.
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The following policies apply to the use of HUD’s EIV system.
EIV Income Report
PHAs are required to obtain an EIV Income Report for each family any time the PHA conducts an annual
reexamination. However, PHAs are not required to use the EIV Income and IVT reports:
•
At annual reexamination if the PHA used Safe Harbor verification from another means-tested federal
assistance program to determine the family’s income; or
•
During any interim reexaminations.
The EIV Income and IVT Report is also not available for program applicants at admission.
When required to use the EIV Income Report, in order for the report to be considered current, the PHA
must pull the report within 120 days of the effective date of the annual reexamination.
The EIV Income Report may be used to verify and calculate income at annual reexamination if the family
self-certifies that the amount is accurate and representative of current income. The family must be
provided with the information in EIV.
PHA Policy
Except for when Safe Harbor verification from another means-tested federal assistance program
is used to determine the family’s annual income, the PHA will obtain an EIV Income Report for all
annual reexaminations for all families on a monthly basis. Reports will be generated as part of the
regular reexamination process. The PHA will ensure that all EIV Income Reports are pulled within
120 days of the effective date of the annual reexamination.
Income and IVT reports will only be used for interim reexaminations as necessary. For example,
EIV may be used to verify that families claiming zero income are not receiving income from any
sources listed in EIV.
Income and IVT reports will be retained in resident files with the applicable annual documents or
interim reexamination documents (if applicable) for the duration of tenancy.
When the PHA determines through EIV reports and third-party verification that a family has
concealed or under-reported income, corrective action will be taken pursuant to the policies in
Chapter 15, Program Integrity.
New Hires Report [Notice PIH 2023-27]
The New Hires Report identifies participant families who have new employment within the last six
months. The report is updated monthly.
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PHAs must review this information at annual reexamination except when the PHA uses Safe Harbor
verification from another means-tested federal assistance program to determine the family’s income.
PHAs that do not require families to undergo interim reexaminations for earned income increases after
an interim decrease are not required to review this report between a family’s annual reexamination. If
the PHA requires an interim for increases in earned income after an interim decrease, then the PHA must
review the report quarterly after the family’s interim decrease.
PHA Policy
Interim reexaminations will be processed in accordance with PHA policy outlined in Chapter 9 of
this plan.
Except for instances in which the PHA uses Safe Harbor income determinations to determine a
family’s annual income, the PHA will only review the New Hires Report at annual reexamination.
No Income Reported by HHS or SSA Report
This report is a tool for PHAs to identify participants who passed the SSA identity test, but no income
information was reported by either HHS or SSA records. This scenario does not mean that they tenant
does not have any income. PHAs obtain written, third-party verification of any income reported by the
tenant. The PHA must identify in its policies and procedures when this report will be pulled [Notice PIH
2023-27].
PHA Policy
The PHA will generate the No Income Reported by HHS or SSA Report quarterly and will retain the
report.
The PHA will re-verify the status of tenants identified on the report. Based on the information
provided by the family and in EIV, the PHA may require that family members provide verifications
or sign release forms in order to obtain additional verification.
When the PHA determines through this report and third-party verification that a family has
concealed or under-reported income, corrective action will be taken pursuant to the policies in
Chapter 15, Program Integrity.
EIV Identity Verification Report
The EIV system verifies resident identities against Social Security Administration (SSA) records. These
records are compared to HUD data for a match on social security number, name, and date of birth.
PHAs are required to use EIV’s Identity Verification Report on a monthly basis to improve the availability of
income information in EIV [Notice PIH 2023-27].
When identity verification for a resident fails, a message will be displayed within the EIV system and no
income information will be displayed.
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PHA Policy
The PHA will identify residents whose identity verification has failed by reviewing EIV’s Identity
Verification Report on a monthly basis.
The PHA will attempt to resolve discrepancies by obtaining appropriate documentation from the
tenant. When the PHA determines that discrepancies exist as a result of PHA errors, such as
spelling errors or incorrect birth dates, it will correct the errors promptly.
Deceased Tenants Reports [Notice PIH 2012-4 and Notice PIH 2023-27]
The Deceased Tenant Report identifies residents that have been reported by the SSA as deceased. The
PHA is required to review the report at least quarterly.
PHA Policy
The PHA will review the Deceased Tenants Report monthly.
When the Deceased Tenants Report identifies an individual as being deceased, PHAs must immediately
send a letter to the head of household or emergency contact person (if the head of household is
deceased and there is no other adult household member) to confirm the death of the listed household
member. The PHA must conduct a home visit to determine if anyone is residing in the unit.
PHAs are required to list the move-out date for the family as of the date on which the family or designee
of the deceased tenant’s estate returned the keys and signed a vacate notice; the date the public housing
lease was terminated; or the date the PHA legally regained possession of the unit, whichever occurs first.
When the only remaining household member is the live-in aide, the live-in aide is not entitled or eligible
for continued occupancy. The PHA may not designate the live-in aide as the new head of household or
change the relation code on the Form HUD-50058.
Other EIV Reports [Notice PIH 2023-27]
The PHA is required to review the Multiple Subsidy Report at least quarterly and the Failed EIV Pre-
Screening and Failed Verification (Failed SSA Identity Test) reports at least monthly.
Upfront Income Verification Using Non-HUD Systems
HUD encourages PHAs to utilize other upfront verification sources such as the Work Number and web-
based state benefits systems.
PHA Policy
The PHA will inform all applicants and residents of its use of the following UIV resources:
The
Work Number
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7-I.F. LEVEL 4 VERIFICATION [Notice PIH 2023-27]
HUD identifies two types of Level 4 verification: written-third party verification from the source and EIV +
self-certification.
EIV + Self-Certification
EIV may be used as written third-party verification and may be used to calculate income if the family
agrees with the information in EIV and self-certifies that the amount is accurate and representative of
current income. This practice is known as EIV + self-certification. When calculating income using this
method, the PHA may use its discretion to determine which method of calculation is reasonable: the last
four quarters combined or an average of any number of quarters. The family must be provided with the
information from EIV.
PHA Policy
At annual reexamination, if the PHA is unable to use a determination of income from a means-
tested federal assistance program and if there are no reported changes to an income source, the
PHA will use EIV + self-certification as verification of employment income, provided the family
agrees with the amounts listed in EIV.
The PHA will use an average of the last two quarters of income listed in EIV to determine income
from employment. The PHA will provide the family with the information in EIV. The family will be
required to sign a self-certification stating that the amount listed in EIV is accurate and
representative of current income. If the family disagrees with using only the last two quarters of
income listed in EIV, because of the seasonal or otherwise fluctuating nature of a particular family
member’s employment, the PHA will permit the family to sign a self-certification stating that the
average of all four quarters of income listed in EIV is accurate and representative of current
annual income and use that amount for calculating annual income. If the family disagrees and
contends that the amount listed in EIV is not reflective of current income, or if less than two
quarters are available in EIV, the PHA will use written third-party verification from the source as
outlined below.The PHA will not use this method of verification at new admission since EIV is not
available for applicant families or at interim reexamination since the income information in EIV is
not current.
Written Third-Party Verification from the Source
Written, third-party verification from the source is also known as “tenant-provided verification.” In order
to qualify as written-third party verification from the source, the documents must be original or authentic
and (generally) dated within 120 days of the date received by the PHA. For fixed-income sources, a
statement dated within the appropriate benefit year is acceptable documentation. The PHA may use the
verification obtained during an interim reexamination for an annual reexamination if there have been no
other changes to annual income since the interim reexamination. Documents may be supplied by the
family or received from a third-party source.
Examples of acceptable tenant-provided documents include, but are not limited to pay stubs, payroll
summary reports, employer notice or letters of hire and termination, SSA benefit verification letters, bank
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statements, child support payment stubs, welfare benefit letters and/or printouts, and unemployment
monetary benefit notices. Income tax returns with corresponding official tax forms and schedules
attached and including third-party receipt of transmission for income tax return filed (i.e., tax preparer’s
transmittal receipt, summary of transmittal from online source, etc.) are an acceptable form of written,
third-party verification.
The PHA is required to obtain, at minimum, two current and consecutive pay stubs when calculating
income using third-party verification from the source. For new income sources or when two pay stubs are
not available, the PHA should determine income based on the information from a traditional written,
third-party verification form or the best available information.
When the family disputes EIV-reported employment income, the PHA uses written third-party verification.
When verification of assets is required, PHAs are required to obtain a minimum of one statement that
reflects the current balance of banking/financial accounts.
PHA Policy
In general, the PHA will use third-party verification from the source in the following circumstances:
At annual reexamination when EIV + self-certification is not used;
For all new admissions; and
For all interim reexaminations.
The PHA will not use this method if the PHA is able to use an income determination from a means-
tested federal assistance program or if the PHA uses EIV + self-certification as outlined above.
In general, third-party documents provided by the family or the source must be dated within 120
days of the date received by the PHA. However, for fixed-income sources, a statement dated
within the appropriate benefit year is acceptable documentation.
The PHA may reject documentation provided by the family if the document is not an original, if the
document appears to be forged, or if the document is altered, mutilated, or illegible. If the PHA
determines that third-party documents provided by the family are not acceptable, the PHA will
explain the reason to the family and request additional documentation from the family or will use
a lower form of verification such as a written third-party verification form.
When verification of assets held by a banking or financial institution is required, the PHA will
obtain one statement that reflects the current balance of the account.
When pay stubs are used, the PHA will require the family to provide the two most current,
consecutive pay stubs when pay is received bi-weekly or semi-monthly, four paystubs when
received weekly, and two paystubs when received monthly. At the PHA’s discretion, if additional
paystubs are needed due to the family’s circumstances (e.g., sporadic income, fluctuating
schedule, etc.), the PHA may request additional paystubs or a payroll record.
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7-I.G. LEVEL 3 VERIFICATION: WRITTEN, THIRD-PARTY FORM [Notice PIH 2023-27]
This type of verification is a form developed by the PHA and used uniformly for all families when needed
to collect information from a third-party source. This is known as “traditional third-party verification.”
PHAs send a PHA-developed form directly to the third-party source by mail, fax, or email and the source
completes the form by hand (in writing or typeset).
The PHA may use this method when higher forms are unavailable or are rejected by the PHA or when the
family is unable to provide acceptable verification. The PHA may skip this level of verification and may
instead substitute oral third-party verification before moving to self-certification.
PHA Policy
Typically, the PHA will attempt to send written third-party verification forms to the verification
source whenever higher forms of verification are unavailable.
However, on a case-by-case basis, the PHA may choose to obtain oral third-party verification
without first attempting, and in lieu of, a written-third party verification form.
7-I.H. LEVEL 2: ORAL THIRD-PARTY VERIFICATION [Notice PIH 2023-27]
For third-party oral verification, PHAs contact sources, identified by UIV techniques or by the family, by
telephone or in person.
Third-party oral verification may be used when requests for written third-party verification forms have
not been returned within a reasonable time—e.g., 10 business days.
PHAs must document in the file the date and time of the telephone call or visit, the name of the person
contacted, the telephone number, as well as the information confirmed.
The PHA may skip this level of verification if they attempted written third-party verification via a form and
the source did not respond and move directly to self-certification.
PHA Policy
In general, the PHA will attempt to obtain written third-party verification via a form from the
verification source. If written third-party verification forms are not returned within 10 business
days, the PHA will accept notarized self-certification from the family.
However, if the PHA chooses to obtain oral third-party verification, the PHA will document in the
file the date of the telephone call or visit, the name of the person contacted and the telephone
number, as well as the information confirmed.
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When Third-Party Verification is Not Required [Notice PIH 2023-27]
Third-party verification may not be available in all situations. HUD has acknowledged that it may not be
cost-effective or reasonable to obtain third-party verification of income, assets, or expenses when these
items would have a minimal impact on the family’s total tenant payment.
PHA Policy
If the family cannot provide original documents, the PHA will pay the service charge required to
obtain third-party verification, unless it is not cost effective in which case a notarized self-
certification will be acceptable as the only means of verification. The cost of verification will not be
passed on to the family.
Primary Documents
Third-party verification is not required when legal documents are the primary source, such as a birth
certificate or other legal documentation of birth.
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7-I.I. LEVEL 1: NON-THIRD-PARTY VERIFICATION TECHNIQUE: SELF-CERTIFICATION [Notice PIH 2023-
27]
Non-third-party verification consists of a signed statement of reported income and/or expenses. This
verification method should be used as a last resort when the PHA has not been successful in obtaining
information via all other required verification techniques.
Self-certification, however, is an acceptable form of verification when:
•
A source of income is fully excluded;
•
Net family assets are less than or equal to the HUD-published threshold ($50,000 for 2024, and
$51,600 for 2025) and the PHA has adopted a policy to accept self-certification;
•
The family declares that they do not have any present ownership in any real property;
•
A family reports zero income;
•
A family states that they have non-recurring income that will not be repeated in the coming year;
and/or
•
The PHA has adopted a policy to implement streamlined verificationfor fixed sources of income.
When the PHA was required to obtain third-party verification but instead relies on self-certification, the
family’s file must be documented to explain why third-party verification was not available.
HUD does not require that a self-certification be notarized; however, HUD recommends including
language on any self-certification to ensure the certifier understands the consequences of knowingly
providing false information.
PHA Policy
When information cannot be verified by a third party or by review of documents, family members
will be required to submit notarized self-certifications attesting to the accuracy of the information
they have provided to the PHA.
The PHA may require a family to certify that a family member does not receive a particular type of
income or benefit.
The notarized self-certification must be made in a format acceptable to the PHA and must be
signed by the family member whose information or status is being verified.
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PART II: VERIFYING FAMILY INFORMATION
7-II.A. VERIFICATION OF LEGAL IDENTITY
PHA Policy
The PHA will require families to furnish verification of legal identity for each household member.
Verification of Legal Identity for Adults
Verification of Legal Identity for Children
− Certificate of birth, naturalization papers
− Church issued baptismal certificate
− Current, valid driver's license or
Department of Motor Vehicle
identification card
− U.S. military discharge (DD 214)
− Current U.S. passport
− Current government employer
identification card, with photo
− Certificate of birth
− Adoption papers
− Custody agreement
− Health and Human Services ID
− Certified school records
If a document submitted by a family is illegible for any reason or otherwise questionable, more than one
of these documents may be required.
If none of these documents can be provided and at the PHA’s discretion, a third party who knows the
person may attest to the person’s identity. The certification must be provided in a format acceptable to
the PHA and be signed by the family member whose information or status is being verified.
Legal identity will be verified for all applicants at the time of eligibility determination and in cases where
the PHA has reason to doubt the identity of a person representing themselves to be a tenant or a
member of a tenant family.
7-II.B. SOCIAL SECURITY NUMBERS [24 CFR 5.216 AND NOTICE PIH 2023-27]
The family must provide documentation of a valid social security number (SSN) for each member of the
household, with the exception of individuals who do not contend eligible immigration status. Exemptions
also include existing residents who were at least 62 years of age as of January 31, 2010, and had not
previously disclosed an SSN.
The PHA must accept the following documentation as acceptable evidence of the social security number:
•
An original SSN card issued by the Social Security Administration (SSA)
•
An original SSA-issued document, which contains the name and SSN of the individual
•
An original document issued by a federal, state, or local government agency, which contains the
name and SSN of the individual
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While PHAs must attempt to gather third-party verification of SSNs prior to admission as listed above,
PHAs also have the option of accepting a self-certification and a third-party document (such as a bank
statement, utility or cell phone bill, or benefit letter) with the applicant’s name printed on it to satisfy the
SSN disclosure requirement if the PHA has exhausted all other attempts to obtain the required
documentation. If verifying an individual’s SSN using this method, the PHA must document why the other
SSN documentation was not available.
If the tenant’s SSN becomes verified in EIV, then no further verification is required. If the tenant’s SSN fails
the SSA identity match, then the PHA must obtain a valid SSN card issued by the SSA or an original
document issued by a federal or state government agency that contains the name of the individual and
the SSN of the individual, along with other identifying information of the individual. The tenant’s
assistance must be terminated if they fail to provide the required documentation.
PHA Policy
The PHA will verify an individual’s SSN in the situations described above using the method
described above as a last resort when no other forms of verification of the individual’s SSN are
available.
The PHA may only reject documentation of an SSN provided by an applicant or resident if the document
is not an original document, if the original document has been altered, mutilated, is illegible, or if the
document appears to be forged.
PHA Policy
The PHA will explain to the applicant or resident the reasons the document is not acceptable and
request that the individual obtain and submit acceptable documentation of the SSN to the PHA
within 90 days.
If an applicant family includes a child under 6 years of age who joined the household within the 6 months
prior to the date of program admission, an otherwise eligible family may be admitted and must provide
documentation of the child’s SSN within 90 days. A 90-day extension will be granted if the PHA
determines that the resident’s failure to comply was due to unforeseen circumstances and was outside of
the resident’s control.
PHA Policy
The PHA will grant one additional 90-day extension if needed for reasons beyond the applicant’s
control, such as delayed processing of the SSN application by the SSA, natural disaster, fire, death
in the family, or other emergency.
When the resident requests to add a new household member who is at least 6 years of age, or who is
under the age of 6 and has an SSN, the resident must provide the complete and accurate SSN assigned to
each new member at the time of reexamination or recertification, in addition to the documentation
required to verify it. The PHA may not add the new household member until such documentation is
provided.
When a resident requests to add a new household member who is under the age of 6 and has not been
assigned an SSN, the resident must provide the SSN assigned to each new child and the required
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documentation within 90 calendar days of the child being added to the household. A 90- day extension
will be granted if the PHA determines that the resident’s failure to comply was due to unforeseen
circumstances and was outside of the resident’s control. During the period the PHA is awaiting
documentation of the SSN, the child will be counted as part of the assisted household.
PHA Policy
The PHA will grant one additional 90-day extension if needed for reasons beyond the resident’s
control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death
in the family, or other emergency.
Social security numbers must be verified only once during continuously assisted occupancy.
PHA Policy
The PHA will verify each disclosed SSN by:
•
Obtaining documentation from applicants and residents that is acceptable as
evidence of social security numbers
•
Making a copy of the original documentation submitted, returning it to the
individual, and retaining a copy in the file folder
Once the individual’s verification status is classified as “verified,” the PHA may, at its discretion, remove
and destroy copies of documentation accepted as evidence of social security numbers. The retention of
the EIV Summary Report or Income Report is adequate documentation of an individual’s SSN.
PHA Policy
Once an individual’s status is classified as “verified” in HUD’s EIV system, the PHA will not remove
and destroy copies of documentation accepted as evidence of social security numbers.
7-II.C. DOCUMENTATION OF AGE
A birth certificate or other official record of birth is the preferred form of age verification for all family
members. For elderly family members an original document that provides evidence of the receipt of
social security retirement benefits is acceptable.
PHA Policy
If an official record of birth or evidence of social security retirement benefits cannot be provided,
the PHA will require the family to submit other documents that support the reported age of the
family member (e.g., school records, driver's license if birth year is recorded) and to provide a self-
certification.
Age must be verified only once during continuously assisted occupancy.
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7-II.D. FAMILY RELATIONSHIPS
Applicants and tenants are required to identify the relationship of each household member to the head
of household. Definitions of the primary household relationships are provided in the Eligibility chapter.
PHA Policy
Family relationships are verified only to the extent necessary to determine a family’s eligibility and
level of assistance. Certification by the head of household normally is sufficient verification of
family relationships.
Marriage
PHA Policy
Certification by the head of household is normally sufficient verification. If the PHA has reasonable
doubts about a marital relationship, the PHA will require the family to document the marriage
with a marriage certificate or other documentation to verify that the couple is married.
In the case of a common law marriage, the couple must demonstrate that they hold themselves to
be married (e.g., by telling the community they are married, calling each other husband and wife,
using the same last name, filing joint income tax returns).
Separation or Divorce
PHA Policy
Certification by the head of household is normally sufficient verification. If the PHA has reasonable
doubts about a divorce or separation, the PHA will require the family to provide documentation of
the divorce, or separation with a certified copy of a divorce decree, signed by a court officer; a
copy of a court-ordered maintenance or other court record; or other documentation that shows a
couple is divorced or separated.
Absence of Adult Member
PHA Policy
If an adult member who was formerly a member of the household is reported to be permanently
absent, the family must provide evidence to support that the person is no longer a member of the
family (e.g., documentation of another address at which the person resides such as a lease or
utility bill), if the PHA so requests.
Foster Children and Foster Adults
PHA Policy
Third-party verification from the state or local government agency responsible for the placement
of the individual with the family is required.
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7-II.E. VERIFICATION OF STUDENT STATUS
PHA Policy
The PHA requires families to provide information about the student status of all students who are
18 years of age or older. This information will be verified only if:
•
The family claims full-time student status for an adult other than the head, spouse, or
cohead, or
•
The family claims a childcare deduction to enable a family member to further their
education.
•
The family includes a student enrolled in an institution of higher education.
7-II.F. DOCUMENTATION OF DISABILITY
The PHA must verify the existence of a disability in order to allow certain income disallowances and
deductions from income. The PHA is not permitted to inquire about the nature or extent of a person’s
disability [24 CFR 100.202(c)]. The PHA may not inquire about a person’s diagnosis or details of treatment
for a disability or medical condition. If the PHA receives a verification document that provides such
information, the PHA will not place this information in the tenant file. Under no circumstances will the
PHA request a resident’s medical record(s). For more information on health care privacy laws, see the
Department of Health and Human Services’ website at www.os.dhhs.gov.
The PHA may make the following inquiries, provided it makes them of all applicants, whether or not they
are persons with disabilities [VG, p. 24]:
•
Inquiry into an applicant’s ability to meet the requirements of ownership or tenancy
•
Inquiry to determine whether an applicant is qualified for a dwelling available only to persons with
disabilities or to persons with a particular type of disability
•
Inquiry to determine whether an applicant for a dwelling is qualified for a priority available to
persons with disabilities or to persons with a particular type of disability
•
Inquiry about whether an applicant for a dwelling is a current illegal abuser or addict of a
controlled substance
•
Inquiry about whether an applicant has been convicted of the illegal manufacture or distribution
of a controlled substance
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Family Members Receiving SSA Disability Benefits
Verification of receipt of disability benefits from the Social Security Administration (SSA) is sufficient for
verification of disability for the purpose of qualification for waiting list preferences or certain income
disallowances and deductions [VG, p. 23].
PHA Policy
For family members claiming disability who receive disability payments from the SSA, the PHA will
attempt to obtain information about disability benefits through HUD’s Enterprise Income
Verification (EIV) system. If documentation is not available through HUD’s EIV system, the PHA will
request a current (dated within the last appropriate benefit year) SSA benefit verification letter
from each family member claiming disability status. If a family member is unable to provide the
document, the PHA will ask the family to obtain a benefit verification letter either by calling SSA at
1-800-772-1213 or by requesting one from www.ssa.gov. Once the family receives the benefit
verification letter, they will be required to provide the letter to the PHA.
Family Members Not Receiving SSA Disability Benefits
Receipt of veteran’s disability benefits, worker’s compensation, or other non-SSA benefits based on the
individual’s claimed disability are not sufficient verification that the individual meets HUD’s definition of
disability in 24 CFR 5.403, necessary to qualify for waiting list preferences or certain income disallowances
and deductions.
PHA Policy
For family members claiming disability who do not receive SSI or other disability payments from
the SSA, a knowledgeable professional must provide third-party verification that the family
member meets the HUD definition of disability. See the Eligibility chapter for the HUD definition of
disability. The knowledgeable professional will verify whether the family member does or does not
meet the HUD definition.
7-II.G. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR §5.508]
Overview
Housing assistance is not available to persons who are not citizens, nationals, or eligible immigrants.
Prorated assistance is provided for "mixed families" containing both eligible and ineligible persons. See
the Eligibility chapter for detailed discussion of eligibility requirements. This chapter (7) discusses HUD
and PHA verification requirements related to citizenship status.
The family must provide a certification that identifies each family member as a U.S. citizen, a U.S.
national, an eligible noncitizen or an ineligible noncitizen and submit the documents discussed below for
each family member. Once eligibility to receive assistance has been verified for an individual it need not
be collected or verified again during continuously assisted occupancy [24 CFR 5.508(g)(5)]
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U.S. Citizens and Nationals
HUD requires a declaration for each family member who claims to be a U.S. citizen or national. The
declaration must be signed personally by any family member 18 or older and by a guardian for minors.
The PHA may request verification of the declaration by requiring presentation of a birth certificate,
United States passport or other appropriate documentation.
PHA Policy
Family members who claim U.S. citizenship or national status will not be required to provide
additional documentation unless the PHA receives information indicating that an individual’s
declaration may not be accurate.
Eligible Immigrants
Documents Required
All family members claiming eligible immigration status must declare their status in the same manner as
U.S. citizens and nationals.
The documentation required for eligible noncitizens varies depending upon factors such as the date the
person entered the U.S., the conditions under which eligible immigration status has been granted, age,
and the date on which the family began receiving HUD-funded assistance. Exhibit 7-1 at the end of this
chapter summarizes documents family members must provide.
PHA Verification [HCV GB, pp 5-3 and 5-7]
For family members age 62 or older who claim to be eligible immigrants, proof of age is required in the
manner described in 7-II.C. of this ACOP. No further verification of eligible immigration status is required.
For family members under the age of 62 who claim to be eligible immigrants, the PHA must verify
immigration status with the U.S. Citizenship and Immigration Services (USCIS).
The PHA will follow all USCIS protocols for verification of eligible immigration status.
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7-II.H. VERIFICATION OF PREFERENCE STATUS
The PHA must verify any preferences claimed by an applicant that determined their placement on the
waiting list.
PHA Policy
The following preferences will determine the place of an applicant on the waitlist after the lottery:
A. Displaced person(s): Individuals or families who have/has been displaced by local
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. 24 CFR § 5.403(b). For purposes of redevelopment activities, a family may also be
displaced as defined in the Uniform Relocation Act. Such families have been displaced if they
have been required to permanently move from real property for the rehabilitation or
demolition of such property. These families may be entitled to specified benefits under the
Uniform Relocation Act. 49CFR § 24.2
B. Living in the City of Chandler: Applicant must physically live in the City of Chandler.
C. Working in the City of Chandler: Applicant must physically work or be hired to work in the
City of Chandler.
The PHA may verify that the family qualifies for the working family preference based on the
verification received from the employer. If the employment verification is not received from
the employer within a reasonable amount of time, the family’s submission of the working
member’s most recent paycheck stub will be sufficient verification. The paycheck stub must
have been issued to the working member within the last thirty days
D. Chronically Homeless: The following definition must be met:
A chronically homeless person as defined by the U.S. Department of HUD (24 CFR §578.3):
−
(1) A “homeless individual with a disability,” as defined in Section 401(9) of the McKinney–
Vento Homeless Assistance Act (42 U.S.C. 11360(9)), who:
−
(i) Lives in a place not meant for human habitation, a safe haven, or in an emergency
shelter; and
−
ii) Has been homeless and living as described in paragraph (1)(i) of this definition
continuously for at least 12 months or on at least 4 separate occasions in the last 3 years,
as long as the combined occasions equal at least 12 months and each break in
homelessness separating the occasions included at least 7 consecutive nights of not living
as described in paragraph (1)(i).
Stays in institutional care facilities for fewer than 90 days will not constitute as a break in
homelessness, but rather such stays are included in the 12–month total, as long as the
individual was living or residing in a place not meant for human habitation, a safe haven,
or an emergency shelter immediately before entering the institutional care facility;
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−
(2) An individual who has been residing in an institutional care facility, including a jail,
substance abuse or mental health treatment facility, hospital, or other similar facility, for
fewer than 90 days and met all of the criteria in paragraph (1) of this definition, before
entering that facility; or
−
(3) A family with an adult head of household (or if there is no adult in the family, a minor
head of household) who meets all of the criteria in paragraph (1) or (2) of this definition,
including a family whose composition has fluctuated while the head of household has been
homeless.
The PHA may verify that the family qualifies for Chronically Homeless based on:
1) referral letter from a non-profit organization in which the applicant is enrolled or verifying
their status as an unaccompanied homeless person with a disabling condition
2) printout from the Homeless Management Information System (HMIS).
E. Currently Employed/Employment Program: Families whose head, Spouse, or Sole Member
is employed. Applicants with an adult family member enrolled in an employment training
program or currently working (20) hours a week. Working hours must be attributed to only
one family member. Family cannot combined work hours.
a. The PHA may verify that the family qualifies for the working family preference based on the
verification received from the employer. If the employment verification is not received from
the employer within a reasonable amount of time, the family’s submission of the working
member’s most recent paycheck stub indicating that the working member works at least 20
hours per week is acceptable. The paycheck stub must have been issued to the working
member within the last thirty days.
The PHA may verify that the family qualifies for adult family member(s) enrolled in an
employment-training program preference based on the verification received from the
institution or agency that is providing the employment-training program.
F. Full-Time Student: Applicants with an adult family member enrolled in school on a full-time
basis.
G. Elderly families where the head of household or spouse is at least 62+ years of age.
a. Elderly status will be verified by a birth certificate or other form of valid identification
showing birth date (e.g., Social Security documents, passport, etc.).
H. Disabled families and families with a disabled household member.
a. Disabled status will be verified by a Social Security Administration letter/document showing
the person is disabled, or by a letter received from a disability or medical professional
willing to sign under oath that an individual is disabled.
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PART III: VERIFYING INCOME AND ASSETS
Chapter 6 of this ACOP describes in detail the types of income that are included and excluded and how
assets and income from assets are handled. Any income reported by the family must be verified. This
part provides PHA policies that supplement the general verification procedures specified in Part I of this
chapter.
PHA Policy
The following policies do not apply when the PHA uses a Safe Harbor income determination from
a means-tested federal assistance program.
7-III.A. EARNED INCOME
Tips
PHA Policy
Unless tip income is included in a family member’s W-2 by the employer or in the UIV verification
sources, persons who work in industries where tips are standard will be required to sign a
certified estimate of tips received for the prior year or tips anticipated to be received in the
coming year.
Wages
PHA Policy
When the PHA requires third-party verification of wages, the family must provide the most recent
and consecutive paystubs based on the frequency of pay indicated below:
•
Biweekly (every two weeks) or semi-monthly (twice a month) – 2 paystubs
•
Weekly – 4 paystubs
•
Monthly – 2 paystubs
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7-III.B. BUSINESS AND SELF EMPLOYMENT INCOME
The PHA must obtain written, third-party verification when the income type is not available in EIV.
This includes income from self-employment.
PHA Policy
Business owners and self-employed persons will be required to provide:
•
Schedule C from their tax return of the most recent year filed.
•
If accelerated depreciation was used on the tax return or financial statement, an
accountant's calculation of depreciation expense, computed using straight-line
depreciation rules.
For self-employed individuals who claim they do not have to file tax returns, the PHA will have the
participant self-certify they have not filed. In lieu of tax documents participants will complete the
notarized self-employment certification providing two calendar months of income and expense
information in accordance with the IRS.
The above verification process will be used for those employed in “gig employment” as listed
below. The PHA will also review the printed statements of monthly income from the applicable
app for all hours worked and pay received as well as the corresponding IRS Form 1099 or 1099k.
•
Examples of “gig employment” include but not limited to:
o Uber, Lyft, DoorDash/ Uber Eats
o Task-based gig work: assembling furniture, being a mover, cleaning, babysitting,
tending to yardwork, or tech services such as web. development, and animal
services (such as dog walking, pet sitting, or grooming services).
o On-demand roles that individuals can take as freelancers or independent
contractors (hair services, nail techs, food sales, content creation).
At any reexamination the PHA may request documents that support submitted financial
statements such as manifests, appointment books, cash books, or bank statements. Once proper
verification is provided and interim reexamination will be processed in accordance to PHA policy.
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7-III.C. PERIODIC PAYMENTS AND PAYMENTS IN LIEU OF EARNINGS
For policies governing streamlined income determinations for fixed sources of income, please see
Chapter 9.
Social Security/SSI Benefits
Verification requirements for Social Security (SS) and Supplemental Security Income (SSI) benefits differ
for applicants and participants.
For applicants, since EIV does not contain SS or SSI benefit information, the PHA must ask applicants to
provide a copy of their current SS and/or SSI benefit letter (dated within theappropriate benefit year)for
each family member that receives SS and/or SSI benefits. If the family is unable to provide the document
or documents, the PHA should help the applicant request a benefit verification letter from SSA’s website
at www.ssa.gov or ask the family to request one by calling SSA at 1-800-772-1213. The PHA must obtain
the original benefit letter from the applicant, make a photocopy of the document for the file, and return
the original to the family.
For participants, the PHA must obtain information through the HUD EIV system and confirm with the
participants that the current listed benefit amount is correct.
•
If the participant agrees with the amount reported in EIV, the PHA must use the EIV-
reported gross benefit amount to calculate annual income from Social Security. PHAs are
required to use the EIV-reported SS and SSI benefit amounts when calculating income
unless the tenant disputes the EIV-reported amount. For example, an SSA benefit letter
may list the monthly benefit amount as $450.80 and EIV displays the amount as $450.00.
The PHA must use the EIV-reported amount unless the participant disputes the amount.
•
If the participant disputes the EIV-reported benefit amount, or if benefit information is not
available in EIV, the PHA must request a current SSA benefit verification letter (dated within
the appropriate benefit year) from each family member that receives SS and/or SSI
benefits. If the family is unable to provide the document or documents, the PHA should
help the participant request a benefit verification letter from SSA’s website at www.ssa.gov
or ask the family to request one by calling SSA at 1-800-772-1213. The PHA must obtain the
original benefit letter from the participant, make a photocopy of the document for the file,
and return the original to the family.
•
Photocopies of social security checks or bank statements are not acceptable forms of
verification for SS/SSI benefits.
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7-III.D. ALIMONY OR CHILD SUPPORT [NOTICE PIH 2023-27]
Annual income includes “all amounts received,” not the amount that a family may be legally
entitled to receive but which they do not receive. For example, a family’s child support or alimony
income must be based on payments received, not the amounts to which the family is entitled by
court or agency orders. A copy of a court order or other written payment agreement alone may
not be sufficient verification of amounts received by a family.
PHA Policy
−
Verification will be obtained in the following order of priority:
1) Copies of the receipts and/or payment stubs for the 12 months prior to PHA request.
2) Third-party verification form from the state or local child support enforcement agency.
3) Third-party verification form from the person paying the support
4) Family's self-certification of amount received
If the family declares that it receives irregular or no payments, in addition to the verification
process listed above, the family must provide evidence that it has taken all reasonable efforts to
collect amounts due. This may include:
A statement from any agency responsible for enforcing payment that shows the family has
requested enforcement and is cooperating with all enforcement efforts.
If the family has made independent efforts at collection, a written statement from the attorney or
other collection entity that has assisted the family in these efforts
Note: Families are not required to undertake independent enforcement action.
7-III.E. NONRECURRING INCOME [Notice PIH 2023-27]
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Income that will not be repeated beyond the coming year (i.e., the 12 months following the effective date
of the certification), based on information provided by the family, is considered nonrecurring income and
is excluded from annual income. PHAs may accept a self-certification from the family stating that the
income will not be repeated in the coming year.
PHA Policy
The PHA will accept self-certification from the family stating that income will not be repeated in
the coming year. However, the PHA may choose, on a case-by-case basis, to require third-party
verification that income sources will not be repeated in the coming year.
7-III.F. ASSETS AND INCOME FROM ASSETS
Net Family Assets [24 CFR 5.603]
At admission and reexam, for families with net assets less than or equal to the HUD-published threshold
listed in HUD’s current year Inflation-Adjusted Values tables ($50,000 for 2024, $51,600 for 2025), the PHA
may, but is not required to, accept the family’s self-certification that the family’s assets do not exceed the
HUD-published thresholdwithout taking any additional steps to verify the accuracy of the declaration. The
declaration must include the amount of income the family expects to receive from assets which must be
included in the family’s income. This includes declaring income from checking and savings accounts
which, although excluded from the calculation of net family assets (because the combined value of non-
necessary personal property does not exceedthe HUD-published threshold), may generate asset income.
PHAs must clarify during the self-certification process which assets are included/excluded from net family
assets.
For PHAs that choose to accept self-certification, the PHA is required to obtain third-party verification of
all assets, regardless of the amount, at least once every three years.
PHAs who choose not to accept self-certifications of assets must verify all families’ assets on an annual
basis.
When net family assets have a total value overthe HUD-published threshold, the PHA may not rely on the
family’s self-certification. Third-party verification of assets is required when net family assets exceed the
HUD-published threshold.
When verification of assets is required, PHAs are required to obtain a minimum of one statement that
reflects the current balance of banking/financial accounts.
PHA Policy
For families with net assetsless than or equal to the HUD-published threshold listed in the current
year’s Inflation-Adjusted Values tables, the PHA will accept the family’s self-certification of the
value of family assets and anticipated asset income.The family’s declaration must show the total
amount of income expected from all assets. All family members 18 years of age and older must
sign the family’s declaration. The PHA reserves the right to require additional verification in
situations where the accuracy of the declaration is in question. Any income the family expects to
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receive from assets will be included in the family’s annual income. The family will be required to
provide third-party verification of net family assets every three years.
In determining the value of checking accounts, The PHA will use 3 months of consecutive bank
statements. In determining the value of savings accounts, the PHA will use the current balance.
In determining the anticipated income from an interest-bearing checking or savings account when
verification is required and the rate of return is known, the PHA will multiply the current balance
of the account by the current rate of interest paid on the account. If a checking account does not
bear interest, the anticipated income from the account is zero.
Self-Certification of Real Property Ownership [24 CFR 5.618(b)(2); Notice PIH 2023-27]
The PHA must determine whether a family has present ownership in real property that is suitable for
occupancy for purposes of determining whether the family is compliant with the asset limitation
described in Chapters 3. The PHA may accept a self-certification from the family stating that the family
does not have any present ownership in any real property . If the family certifies that they do not have
any present ownership interest in real property, the PHA may take that as sufficient to determine the
family is not out of compliance with the real property restriction.If the family declares they have present
ownership in real property, the PHA must obtain third-party verification of the family’s legal right to
reside in the property, the effective legal authority to sell the property, and whether the property is
suitable for occupancy by the family as a residence.
PHA Policy
The PHA will accept self-certification from the family that the family does not have any present
ownership in any real property. The certification will state that the family does not have any
present ownership interest in any real property and must be signed by all family members 18
years of age and older. The PHA reserves the right to require additional verification in situations
where the accuracy of the declaration is in question.
If the family declares they have a present ownership in real property, the PHA will obtain third-
party verification of the following factors: whether the family has the legal right to reside in the
property; whether the family has effective legal authority to sell the property; and whether the
property is suitable for occupancy by the family as a residence. However, in cases where a family
member is a victim of domestic violence, dating violence, sexual assault, stalking, or human
trafficking, the PHA will comply with confidentiality requirements under 24 CFR 5.2007 and will
accept a self-certification.
7-III.G. NET INCOME FROM RENTAL PROPERTY
PHA Policy
The family must provide:
•
A current executed lease for the property that shows the rental amount or certification
from the current tenant;
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•
A self-certification from the family members engaged in the rental of property providing an
estimate of expenses for the coming year and the most recent IRS Form 1040 with
Schedule E (Rental Income).
•
If schedule E was not prepared, the PHA will require the family members involved in the
rental of property to provide a self-certification of income and expenses for the previous
year and may request documentation to support the statement including tax statements,
insurance invoices, bills for reasonable maintenance and utilities, and bank statements or
amortization schedules showing monthly interest expense.
7-III.H. FEDERAL TAX REFUNDS OR REFUNDABLE TAX CREDITS [Notice PIH 2023-27]
PHAs are not required to verify the amount of the family’s federal tax refund or refundable tax credit(s) if
the family’s net assets are less than or equal to the HUD-published threshold listed in HUD’s current year
Inflation-Adjusted Values tables ($50,000 for 2024, $51,600 for 2025), even in years when full verification
of assets is required or if the PHA does not accept self-certification of assets. PHAs must verify the
amount of the family’s federal tax refund or refundable tax credits if the family’s net assets are greater
thanthe HUD-published threshold.
7-III.I. RETIREMENT ACCOUNTS
PHA Policy
The PHA will accept written third-party documents supplied by the family as evidence of the status
of retirement accounts.
The type of original document that will be accepted depends upon the family member’s
retirement status.
Before retirement, the PHA will accept an original document from the entity holding the account
dated within the appropriate benefit year.
Upon retirement, the PHA will accept an original document dated within the appropriate benefit
year from the entity holding the account that reflects any distributions of the account balance, any
lump sums taken and any regular payments.
After retirement, the PHA will accept an original document from the entity holding the account
dated within the appropriate benefit year that reflects any distributions of the account balance,
any lump sums taken and any regular payments.
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7-III.J. INCOME FROM EXCLUDED SOURCES [Notice PIH 2023-27]
A detailed discussion of excluded income is provided in Chapter 6, Part I. HUD guidance on verification of
excluded income draws a distinction between income which is fully excluded and income which is only
partially excluded.
For fully excluded income, the PHA is not required to verify the income using third-party verification,
document why third-party verification is not available, or report the income on the 50058. Fully excluded
income is defined as income where the entire amount qualifies to be excluded from the annual income
determination in accordance with 24 CFR 5.609(b) and any Federal Register notice on mandatory
exclusions issued by HUD (for example, food stamps, earned income of a minor, or foster care funds).
PHAs may accept a family’s signed application or reexamination form as self-certification of fully excluded
income. They do not have to require additional documentation. However, if there is any doubt that a
source of income qualifies for full exclusion, PHAs have the option of requiring additional verification.
For partially excluded income, the PHA is required to follow the verification hierarchy and all applicable
regulations, and to report the income on the 50058. Partially excluded income is defined as income
where only a certain portion of what is reported by the family qualifies to be excluded and the remainder
is included in annual income (for example, the income of an adult full-time student).
PHA Policy
The PHA will accept the family’s self-certification as verification of fully excluded income. The PHA
may request additional documentation if necessary to document the income source. The PHA will
verify the source and amount of partially excluded income as described in Part 1 of this chapter.
7-III.K. ZERO INCOME FAMILIES[Notice PIH 2023-27]
PHAs have discretion to establish reasonable procedures to manage the risk of unreported income, such
as asking families to complete a zero-income worksheet at admission or periodically after admission to
determine if they have any sources of unreported income or searching any UIV sources for unreported
income.
In calculating annual income, PHAs must not assign monetary value to nonmonetary in-kind donations
from a food bank or similar organization received by the family [24 CFR 5.609(b)(24)(vi)]. PHAs that
perform zero income reviews must update local discretionary policies, procedures, and forms. Families
who begin receiving income which does not trigger an interim reexamination should no longer be
considered zero income even though the family’s income is not reflected on the Form HUD-50058.
PHAs may accept a self-certification of zero income from the family without taking any additional steps to
verify zero reported income. HUD does not require such self-certifications be notarized.
PHAs that perform zero income reviews must update local discretionary policies, procedures, and forms.
Families who begin receiving income which does not trigger an interim reexamination should no longer
be considered zero income even though the family’s income is not reflected on the Form HUD-50058.
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PHA Policy
The PHA will check UIV sources and/or may request information from third-party sources to verify
that certain forms of income such as unemployment benefits, TANF, SS, SSI, earned income, child
support, etc. are not being received by families claiming to have zero annual income.
The PHA will also require that each family member who claims zero income status complete a
notarized zero-income form. If any sources of income are identified on the form, the PHA will
verify the income in accordance with the policies in this chapter prior to including the income in
the family’s annual income.
The PHA will only conduct interims in accordance with PHA policy in Chapter 9.
7-III.L. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b)(9)]
The regulations under HOTMA distinguish between two categories of student financial assistance paid to
both full-time and part-time students. Any other grant-in-aid, scholarship, or other assistance amounts
an individual receives for the actual covered costs charged by the institute of higher education not
otherwise excluded by the federally mandated income exclusions are included[24 CFR 5.609(b)(9)(ii)].
PHA Policy
For a student subject to having a portion of their student financial assistance included in annual
income in accordance with 24 CFR 5.609(b)(9), the PHA will request written third-party verification
of both the source and the amount. Family-provided documents from the educational institution
attended by the student will be requested, as well as documents generated by any other person
or entity providing such assistance, as reported by the student.
In addition, the PHA will request written verification of the student’s tuition, fees, and other
required charges.
If the PHA is unable to obtain third-party written verification of the requested information, the
PHA will pursue other forms of verification following the verification hierarchy in section 7-I.B.
PART IV: VERIFYING MANDATORY DEDUCTIONS
7-IV.A. DEPENDENT AND ELDERLY/DISABLED HOUSEHOLD DEDUCTIONS
The dependent and elderly/disabled family deductions require only that the PHA verify that the family
members identified as dependents or elderly/disabled persons meet the statutory definitions. No further
verifications are required.
Dependent Deduction
See Chapter 6 for a full discussion of this deduction. The PHA will verify that:
•
Any person under the age of 18 for whom the dependent deduction is claimed is not the head,
spouse or cohead of the family and is not a foster child;
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•
Any person age 18 or older for whom the dependent deduction is claimed is not a foster adult or
live-in aide and is a person with a disability or a full time student.
Elderly/Disabled Family Deduction
See the Eligibility chapter for a definition of elderly and disabled families and Chapter 6 for a discussion
of the deduction. The PHA will verify that the head, spouse, or cohead is 62 years of age or older or a
person with disabilities.
7-IV.B. HEALTH AND MEDICAL CARE EXPENSE DEDUCTION
Policies related to medical expenses are found in Chapter 6. The amount of the deduction will be verified
following the standard verification procedures described in Part I.
The PHA must comply with the Health Insurance Portability and Accountability Act (HIPAA) (Pub. L. 104-
191, 110 Stat. 1936) and the Privacy Act of 1974 (Pub. L. 93-579, 88 Stat. 1896) when requesting
documentation to determine unreimbursed health and medical care expenses. The PHA may not request
documentation beyond what is sufficient to determine anticipated health and medical care costs. Before
placing bills and documentation in the tenant file, the PHA must redact all personally identifiable
information [FR Notice 2/14/23].
Amount of Expense
PHA Policy
Medical expenses will be verified through:
Written third-party documents provided by the family, such as pharmacy printouts or
receipts.
When income is projected at new admission or interim, the PHA will make a best effort to
determine what expenses from the past are likely to continue to occur in the future. The
PHA will also accept evidence of monthly payments or total payments that will be due for
medical expenses during the upcoming 12 months. Written third-party verification forms if
the family is unable to provide acceptable documentation.
Before placing bills and documentation in the tenant file, the PHA will redact all personally
identifiable information.
If the PHA receives documentation from a verification source that contains the individual’s specific
diagnosis, information regarding the individual’s treatment, and/or information regarding the
nature or severity of the person’s disability, the PHA will immediately dispose of this confidential
information; this information will never be maintained in the individual’s file. If the information
needs to be disposed of, the PHA will note in the individual’s file that verification was received, the
date received, and the name and address of the person/organization that provided the
verification. Under no circumstances will PHA include an applicant’s or resident’s medical records
in the file [Notice PIH 2010-26].
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In addition, the PHA must verify that:
•
The household is eligible for the deduction.
•
The costs to be deducted are qualified health and medical care expenses.
•
The expenses are not paid for or reimbursed by any other source.
•
Costs incurred in past years are counted only once.
Eligible Household
The health and medical care expense deduction is permitted only for households in which the head,
spouse, or cohead is at least 62 or a person with disabilities. The PHA will verify that the family meets the
definition of an elderly or disabled family provided in the Eligibility chapter, and as described in Chapter 7
(7-IV.A) of this plan.
Qualified Expenses
To be eligible for the health and medical care expense deduction, the costs must qualify as medical
expenses. See Chapter 6 for the PHA’s policy on what counts as a medical expense.
Unreimbursed Expenses
To be eligible for the health and medical care expense deduction, the costs must not be reimbursed by
another source.
PHA Policy
The family will be required to certify that the medical expenses are not paid or reimbursed to the
family from any source. If expenses are verified through a third party, the third party must certify
that the expenses are not paid or reimbursed from any other source.
Expenses Incurred in Past Years
PHA Policy
When anticipated costs are related to on-going payment of medical bills incurred in past years, the
PHA will verify:
The anticipated repayment schedule
The amounts paid in the past, and
Whether the amounts to be repaid have been deducted from the family’s annual income in
past years
7-IV.C. DISABILITY ASSISTANCE EXPENSES
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Policies related to disability assistance expenses are found in 6-II.E. The amount of the deduction will be
verified following the standard verification procedures described in Part I.
The PHA must comply with the Health Insurance Portability and Accountability Act (HIPAA) (Pub. L. 104-
191, 110 Stat. 1936) and the Privacy Act of 1974 (Pub. L. 93-579, 88 Stat. 1896) when requesting
documentation to determine unreimbursed auxiliary apparatus or attendance care costs. The PHA may
not request documentation beyond what is sufficient to determine anticipated reasonable attendant care
and auxiliary apparatus costs. Before placing bills and documentation in the tenant file, the PHA must
redact all personally identifiable information [FR Notice 2/14/23].
Amount of Expense
Attendant Care
PHA Policy
Expenses for attendant care will be verified through:
•
Written third-party documents provided by the family, such as receipts or cancelled checks.
•
Third-party verification form signed by the provider, if family-provided documents are not
available.
•
If third-party verification is not possible, written family certification as to costs anticipated
to be incurred for the upcoming 12 months.
Before placing bills and documentation in the tenant file, the PHA will redact all personally identifiable
information.
If the PHA receives documentation from a verification source that contains the individual’s specific
diagnosis, information regarding the individual’s treatment, and/or information regarding the nature
or severity of the person’s disability, the PHA will immediately dispose of this confidential information;
this information will never be maintained in the individual’s file. If the information needs to be
disposed of, the PHA will note in the individual’s file that verification was received, the date received,
and the name and address of the person/organization that provided the verification. Under no
circumstances will PHA include an applicant’s or resident’s medical records in the file [Notice PIH 2010-26].
Auxiliary Apparatus
PHA Policy
Expenses for auxiliary apparatus will be verified through:
Written third-party documents provided by the family, such as billing statements for
purchase of auxiliary apparatus, or other evidence of monthly payments or total payments
that will be due for the apparatus during the upcoming 12 months.
Third-party verification form signed by the provider, if family-provided documents are not
available.
If third-party or document review is not possible, written family certification of estimated
apparatus costs for the upcoming 12 months.
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In addition, the PHA must verify that:
•
The family member for whom the expense is incurred is a person with disabilities (as described in 7-
II.F above).
•
The expense permits a family member, or members, to work (as described in Chapter 6.).
•
The expense is not reimbursed from another source (as described in Chapter 6.).
Family Member is a Person with Disabilities
To be eligible for the disability assistance expense deduction, the costs must be incurred for attendant
care or auxiliary apparatus expense associated with a person with disabilities. The PHA will verify that the
expense is incurred for a person with disabilities (See 7-II.F.).
Family Member(s) Permitted to Work
The PHA must verify that the expenses claimed actually enable a family member, or members, (including
the person with disabilities) to work.
PHA Policy
The PHA will require the family to follow the proper reasonable accommodation process verifying
the family member requires attendant care or an auxiliary apparatus to be employed, or that the
attendant care or auxiliary apparatus enables another family member, or members, to work. (See
6-II.E.).
Unreimbursed Expenses
To be eligible for the disability expenses deduction, the costs must not be reimbursed by another source.
PHA Policy
The family will be required to certify that attendant care or auxiliary apparatus expenses are not
paid by or reimbursed to the family from any source.
7-IV.D. CHILD CARE EXPENSES
Policies related to childcare expenses are found in Chapter 6. The amount of the deduction will be
verified following the standard verification procedures described in Part I. In addition, the PHA must
verify that:
•
The child is eligible for care. (12 or younger).
•
The costs claimed are not reimbursed.
•
The costs enable a family member to work, actively seek work, or further their education.
•
The costs are for an allowable type of childcare.
•
The costs are reasonable.
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Eligible Child
To be eligible for the childcare deduction, the costs must be incurred for the care of a child under the age
of 13. The PHA will verify that the child being cared for (including foster children) is under the age of 13
(See 7-II.C.).
Unreimbursed Expense
To be eligible for the childcare deduction, the costs must not be reimbursed by another source.
PHA Policy
The family and the care provider will be required to certify that the childcare expenses are not
paid by or reimbursed to the family from any source.
Pursuing an Eligible Activity
The PHA must verify that the family member(s) that the family has identified as being enabled to seek
work, pursue education, or be gainfully employed, are actually pursuing those activities.
PHA Policy
Information to be Gathered
•
The PHA will verify information about how the schedule for the claimed activity relates to
the hours of care provided, the relationship of the family member(s) to the child, and any
special needs of the child that might help determine which family member is enabled to
pursue an eligible activity.
Seeking Work
•
Whenever possible the PHA will use documentation from a state or local agency that
monitors work-related requirements (e.g., welfare or unemployment). In such cases the
PHA will request family-provided verification from the agency of the member’s job seeking
efforts to date and require the family to submit to the PHA any reports provided to the
other agency.
•
In the event third-party verification is not available, the PHA will provide the family with a
form on which the family member must record job search efforts. The PHA will review this
information at each subsequent reexamination for which this deduction is claimed.
Furthering Education
•
The PHA will request third-party documentation to verify that the person permitted to
further their education by the childcare is enrolled and provide information about the
timing of classes for which the person is registered. The documentation may be provided
by the family.
Gainful Employment
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•
The PHA will seek third-party verification of the work schedule of the person who is
permitted to work by the childcare. In cases in which two or more family members could be
permitted to work, the work schedules for all relevant family members may be verified.
The documentation may be provided by the family.
Allowable Type of Childcare
The type of care to be provided is determined by the family, but must fall within certain guidelines, as
discussed in Chapter 6.
PHA Policy
The PHA will verify that the type of childcare selected by the family is allowable, as described in
Chapter 6.
The PHA will verify that the fees paid to the childcare provider cover only childcare costs (e.g., no
housekeeping services or personal services) and are paid only for the care of an eligible child (e.g.,
prorate costs if some of the care is provided for ineligible family members).
The PHA will verify that the childcare provider is not an assisted family member. Verification will
be made through the head of household’s declaration of family members who are expected to
reside in the unit.
Reasonableness of Expenses
Only reasonable childcare costs can be deducted.
PHA Policy
The actual costs the family incurs will be compared with the PHA’s established standards of
reasonableness for the type of care in the locality to ensure that the costs are reasonable.
If the family presents a justification for costs that exceed typical costs in the area, the PHA will
request additional documentation, as required, to support a determination that the higher cost is
appropriate.
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EXHIBIT 7-1: Summary of Documentation Requirements for Noncitizens
[HCV GB, pp. 5-9 and 5-10]
• All noncitizens claiming eligible status must sign a declaration of eligible immigrant
status on a form acceptable to the PHA.
• Except for persons 62 or older, all noncitizens must sign a verification consent form
• Additional documents are required based upon the person's status.
Elderly Noncitizens
• A person 62 years of age or older who claims eligible immigration status also must
provide proof of age such as birth certificate, passport, or documents showing receipt of
SS old-age benefits.
All other Noncitizens
• Noncitizens that claim eligible immigration status also must present the applicable
USCIS document. Acceptable USCIS documents are listed below.
•
Form I-551 Alien Registration Receipt
Card (for permanent resident aliens)
•
Form I-94 Arrival-Departure Record
annotated with one of the following:
•
“Admitted as a Refugee Pursuant
to Section 207”
•
“Section 208” or “Asylum”
•
“Section 243(h)” or “Deportation
stayed by Attorney General”
•
“Paroled Pursuant to Section 221
(d)(5) of the USCIS”
• Form I-94 Arrival-Departure Record with
no annotation accompanied by:
•
A final court decision granting asylum
(but only if no appeal is taken);
•
A letter from a USCIS asylum officer
granting asylum (if application is filed
on or after 10/1/90) or from a USCIS
district director granting asylum
(application filed before 10/1/90);
•
A court decision granting withholding
of deportation; or
•
A letter from an asylum officer
granting withholding or deportation
(if application filed on or after
10/1/90).
Form I-688 Temporary Resident Card
annotated “Section 245A” or Section 210”
Form I-688B Employment Authorization
Card annotated “Provision of Law 274a.
12(11)” or “Provision of Law 274a.12”.
•
A receipt issued by the USCIS indicating that an application for issuance of a
replacement document in one of the above listed categories has been made and the
applicant’s entitlement to the document has been verified; or
•
Other acceptable evidence. If other documents are determined by the USCIS to
constitute acceptable evidence of eligible immigration status, they will be announced
by notice published in the Federal Register
8-1
CHAPTER 8
LEASING AND INSPECTIONS
[24 CFR 5, Subpart G; 24 CFR 966, Subpart A]
INTRODUCTION
Public housing leases are the contractual basis of the legal relationship between the PHA and the tenant.
All units must be occupied pursuant to a dwelling lease agreement that complies with HUD regulations.
HUD regulations require the PHA to inspect each dwelling unit prior to move-in, at move-out, and
annually during the period of occupancy. In addition, the PHA may conduct additional inspections in
accordance with PHA policy.
This chapter is divided into two parts as follows:
Part I: Leasing. This part describes pre-leasing activities and the PHA’s policies pertaining to lease
execution, lease modification, and payments under the lease.
Part II: Inspections. This part describes the PHA’s policies for inspecting dwelling units and
notifying families of HUD REAC NSPIRE inspections.
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PART I: LEASING
8-I.A. OVERVIEW
An eligible family may occupy a public housing dwelling unit under the terms of a lease. The lease must
meet all regulatory requirements and must also comply with applicable state and local laws and codes.
The term of the lease must be for a period of 12 months. The lease must be renewed automatically for
another 12-month term, except that the PHA may not renew the lease if the family has violated the
community service requirement and if the family is determined to be over income for 24 consecutive
months [24 CFR 966.4(a)(2)].
PHAs must adopt smoke-free policies, which HUD required to be implemented no later than July 30,
2018. The policy is attached as Exhibit 8-1.
Part I of this chapter contains regulatory information on leasing, where applicable, as well as the PHA’s
leasing policies.
For policies on lease requirements for families whose incomes have exceeded the over-income limit for
24 consecutive months, see 13-III.C., Over-Income Families.
8-3
8-I.B. LEASE ORIENTATION
PHA Policy
After unit acceptance but prior to occupancy, a PHA representative will conduct a lease orientation
with the family. The head of household or spouse is required to attend.
Orientation Agenda
PHA Policy
When families attend the lease orientation, they will be provided with the following copies:
•
The lease
•
The PHA’s grievance procedure
•
The house rules
•
The PHA’s schedule of maintenance charges
•
“Is Fraud Worth It?” (form HUD-1141-OIG), which explains the types of actions a family must avoid
and the penalties for program abuse
•
“What You Should Know about EIV,” a guide to the Enterprise Income Verification (EIV) system
published by HUD as an attachment to Notice PIH 2017-12
•
Form HUD-5380, VAWA Notice of Occupancy Rights
•
Form HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking
•
Smoke Free Policy
•
A notice that includes the procedures for requesting relief and the PHA’s criteria for granting
requests for relief for excess utility surcharges.
•
The HUD pamphlet on lead-based paint entitled, “Protect Your Family from Lead in Your Home.”
Topics to be discussed and explained to all families include:
•
Applicable deposits and all other charges
•
Review and explanation of lease provisions, including House Rules and unit maintenance requests
and work orders
•
The PHA’s interim reporting requirements
•
Review and explanation of occupancy forms
•
Community service requirements
•
Family choice of rent
•
VAWA protections
•
Smoke-free policies
8-4
8-I.C. EXECUTION OF LEASE
The lease must be executed by the tenant and the PHA, except for automatic renewals of a lease [24 CFR
966.4(a)(3)].
A lease is executed at the time of admission for all new residents. A new lease is also executed at the
time of transfer from one PHA unit to another.
The lease must state the composition of the household as approved by the PHA (family members and
any PHA-approved live-in aide) [24 CFR 966.4(a)(1)(v)]. See Section 8-I.D. for policies regarding changes in
family composition during the lease term.
PHA Policy
The head of household, spouse or cohead, and all other adult members of the household will be
required to sign the public housing lease prior to admission. An appointment will be scheduled for
the parties to execute the lease. The head of household will be provided a copy of the executed
lease and the PHA will retain a copy in the resident’s file.
Files for households that include a live-in aide will contain file documentation signed by the live-in
aide, that the live-in aide is not a party to the lease and is not entitled to PHA assistance. The live-
in aide is only approved to live in the unit while serving as the care attendant for the family
member who requires the care.
8-I.D. MODIFICATIONS TO THE LEASE
The lease may be modified at any time by written agreement of the tenant and the PHA [24 CFR
966.4(a)(3)].
Modifications to the Lease Form
The PHA may modify its lease from time to time. However, the PHA must give residents at least thirty (30)
days advance notice of the proposed changes and an opportunity to comment on the changes. The PHA
must also consider any comments before formally adopting the new lease [24 CFR 966.3].
After proposed changes have been incorporated into the lease and approved by the Board, each family
must be notified at least 60 days in advance of the effective date of the new lease or lease revision. A
resident's refusal to accept permissible and reasonable lease modifications that are made in accordance
with HUD requirements, or are required by HUD, is grounds for termination of tenancy [24 CFR
966.4(l)(2)(iii)(E)].
PHA Policy
The family will have 30 days to accept the revised lease. If the family does not accept the offer of
the revised lease within that 30-day timeframe, the family’s tenancy will be terminated for other
good cause in accordance with the policies in Chapter 13.
8-5
Schedules of special charges and rules and regulations are subject to modification or revision. Because
these schedules are incorporated into the lease by reference, residents and resident organizations must
be provided at least thirty days written notice of the reason(s) for any proposed modifications or
revisions and must be given an opportunity to present written comments. The notice must be delivered
directly or mailed to each tenant; or posted in at least three conspicuous places within each structure or
building in which the affected dwelling units are located, as well as in a conspicuous place at the project
office, if any, or if none, a similar central business location within the project. Comments must be taken
into consideration before any proposed modifications or revisions become effective [24 CFR §966.5].
After the proposed revisions become effective, they must be publicly posted in a conspicuous manner in
the project office and must be furnished to applicants and tenants on request [24 CFR 966.5].
PHA Policy
When the PHA proposes to modify or revise schedules of special charges or rules and regulations,
the PHA will post a copy of the notice in the central office, and mail or email a copy of the notice to
each resident family. Documentation of proper notice will be included in each resident file.
Other Modifications
PHA Policy
The lease will be amended to reflect all changes in family composition.
If, for any reason, any member of the household ceases to reside in the unit, the lease will be
amended by drawing a line through the person's name. The head of household and PHA will be
required to initial and date the change.
If a new household member is approved by the PHA to reside in the unit, the person’s name and
birth date will be added to the lease. The head of household and PHA will be required to initial
and date the change. If the new member of the household is an adult, they will also be required to
sign and date the lease.
Policies governing when and how changes in family composition must be reported are contained
in Chapter 9, Reexaminations.
8-I.E. SECURITY DEPOSITS [24 CFR 966.4(B)(5)]
At the option of the PHA, the lease may require security deposits. The amount of the security deposit
cannot exceed one month’s rent, or a reasonable fixed amount as determined by the PHA.
The PHA may allow for gradual accumulation of the security deposit by the family, or the family may be
required to pay the security deposit in full prior to occupancy. Subject to applicable laws, interest earned
on security deposits may be refunded to the tenant after vacating the unit or used for tenant services or
activities.
PHA Policy
Residents must pay a security deposit to the PHA at the time of admission. The amount of the
security deposit is as follows:
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Public Housing Development
Bedroom Size
Security Deposit Amount
1
$350
2
$400
3
$450
4
$500
5
$550
Public Housing Scattered Sites
Bedroom Size
Security Deposit Amount
2
$525
3
$550
4
$600
5
$675
The security deposit must be paid in full prior to occupancy.
The PHA will hold the security deposit for the period the family occupies the unit. The PHA will not use
the security deposit for rent or other charges while the resident is living in the unit.
Within 30 days of move-out, the PHA will refund to the resident the amount of the security deposit, less
any amount needed to pay the cost of unpaid rent, damages listed on the move-out inspection report
that exceed normal wear and tear, and other charges due under the lease.
The PHA will provide the resident with a written list of any charges against the security deposit within 14
business days of the move-out inspection. If the resident disagrees with the amount charged, the PHA
will provide a meeting to discuss the charges.
If the resident transfers to another unit, the PHA will transfer the security deposit to the new unit. The
tenant will be billed for any maintenance or other charges due for the “old” unit.
8-7
8-I.F. PAYMENTS UNDER THE LEASE
Rent Payments [24 CFR 966.4(b)(1)]
Families must pay the amount of the monthly tenant rent determined by the PHA in accordance with
HUD regulations and other requirements. The amount of the tenant rent is subject to change in
accordance with HUD requirements.
The lease must specify the initial amount of the tenant rent at the beginning of the initial lease term, and
the PHA must give written notice stating any change in the amount of tenant rent and when the change is
effective.
The lease must contain a provision or addendum that tenants will receive notification at least 30 days
before an eviction for nonpayment of rent is filed [24 CFR 966.4q)].
PHA Policy
The tenant rent is due and payable at the PHA-designated location on the first of every month. If
the first falls on a weekend or holiday, the rent is due and payable on the first business day
thereafter.
If a family’s tenant rent changes, the PHA will notify the family of the new amount and the
effective date by sending a “Notice of Rent Adjustment” which will become an attachment to the
lease.
Late Fees and Nonpayment [24 CFR 966.4(b)(3);24 CFR 966.4(q) and (r)]
At the option of the PHA, the lease may provide for payment of penalties when the family is late in paying
tenant rent [24 CFR 966.4(b)(3)].
The lease must provide that late payment fees are not due and collectible until two weeks after the PHA
gives written notice of the charges. The written notice is considered an adverse action and must meet the
requirements governing a notice of adverse action [24 CFR 966.4(b)(4)].
The least must also contain a provision or addendum that tenants will receive notification at least 30 days
before an eviction for nonpayment of rent is filed [24 CFR 966.4(q)]. The PHA must not provide tenants
with a termination notice prior to the day after the rent is due according to the lease. The PHA must not
proceed with filing an eviction if the tenant pays the alleged amount of rent owed within the 30-day
notification period [24 CFR 966.4 (r )].
The notice of proposed adverse action must identify the specific grounds for the action and inform the
family of their right for a hearing under the PHA grievance procedures. The PHA must not take the
proposed action until the time for the tenant to request a grievance hearing has expired, or (if a hearing
was requested within the required timeframe,) the grievance process has been completed [24 CFR
966.4(e)(8)]. See Chapter 13 for additional requirements for notices of lease termination.
PHA Policy
8-8
If the family fails to pay their rent by the fifth day of the month, and the PHA has not agreed to
accept payment at a later date, a 14-day Notice to Vacate will be issued to the resident for failure
to pay rent, demanding payment in full or the surrender of the premises. The PHA will not
proceed with filing an eviction if the tenant pays the alleged amount of rent owed within the 30-
day notification period.
In addition, if the resident fails to make payment by the end of office hours on the fifth day of the
month, a late fee of $25.00 will be charged. Notices of late fees will be in accordance with
requirements regarding notices of adverse action. Charges are due and payable 14 calendar days
after billing. If the family requests a grievance hearing within the required timeframe, the PHA
may not take action for nonpayment of the fee until the conclusion of the grievance process. If the
resident can document financial hardship, the late fee may be waived on a case-by-case basis.
If the PHA agrees to accept payment at a later date, a ‘Tenant Payment Agreement’ will be signed
by the resident, housing representative and the housing assistance senior program manager. The
payment amount will include late fees and will need to be collected in the month that the rent is
due. When a check is returned for insufficient funds or is written on a closed account, the rent will
be considered unpaid and a returned check fee of $25.00 will be charged to the family. The fee
will be due and payable 14 days after billing.
Any rent payment received will be applied to the oldest rent charges in the resident's account with
the exception of debts currently under a payment agreement.
Excess Utility Charges
If the PHA charges the tenant for consumption of excess utilities, the lease must state the basis for the
determination of such charges. The imposition of charges for consumption of excess utilities is
permissible only if the charges are determined by an individual check meter servicing the leased unit or
result from the use of major tenant-supplied appliances [24 CFR 966.4(b)(2)].
Schedules of special charges for utilities that are required to be incorporated in the lease by reference
must be publicly posted in a conspicuous manner in the development office and must be furnished to
applicants and tenants on request [24 CFR 966.5].
The lease must provide that charges for excess utility consumption are not due and collectible until two
weeks after the PHA gives written notice of the charges. The written notice is considered an adverse
action and must meet the requirements governing a notice of adverse action [24 CFR 966.4(b)(4)].
The notice of proposed adverse action must identify the specific grounds for the action and inform the
family of their right to a hearing under the PHA grievance procedures. The PHA must not take the
proposed action until the time for the tenant to request a grievance hearing has expired, or (if a hearing
was requested within the required timeframe,) the grievance process has been completed [24 CFR
966.4(e)(8)].
PHA Policy
8-9
When applicable, families will be charged for excess utility usage according to the PHA’s current
posted scheduled. Notices of excess utility charges will be mailed monthly and will be in
accordance with requirements regarding notices of adverse actions. Charges are due and payable
14 calendar days after billing. If the family requests a grievance hearing within the required
timeframe, the PHA may not take action for nonpayment of the charges until the conclusion of the
grievance process.
Nonpayment of excess utility charges is a violation of the lease and is grounds for eviction.
The PHA may grant requests for relief from surcharges from excess utility consumption of PHA-
furnished utilities as a reasonable accommodation where the PHA deems an exception is
appropriate to meet the needs of the elderly, ill, or disabled residents. In determining whether to
grant this request, the PHA will consider special factors affecting utility usage that are not within
the control of the resident, such as the need for medical equipment. Residents may request relief
in accordance with Section 2-II.C. of this ACOP. The PHA will process such requests in accordance
with Section 2-II.E. of this ACOP.
Notice of the availability of procedures for requesting relief (including the PHA representative with
whom initial contact may be made by the resident) and the PHA’s criteria for granting requests,
will be included in each notice to residents of changes in utility allowances or surcharges as well as
to new residents as part of the lease orientation.
Maintenance and Damage Charges
If the PHA charges the tenant for maintenance and repair beyond normal wear and tear, the lease must
state the basis for the determination of such charges [24 CFR 966.4(b)(2)].
Schedules of special charges for services and repairs which are required to be incorporated in the lease
by reference must be publicly posted in a conspicuous manner in the development office and must be
furnished to applicants and tenants on request [24 CFR 966.5].
The lease must provide that charges for maintenance and repair beyond normal wear and tear are not
due and collectible until two weeks after the PHA gives written notice of the charges. The written notice is
considered an adverse action and must meet the requirements governing a notice of adverse action [24
CFR 966.4(b)(4)].The notice of proposed adverse action must identify the specific grounds for the action
and inform the family of their right for a hearing under the PHA grievance procedures. The PHA must not
take the proposed action until the time for the tenant to request a grievance hearing has expired, or (if a
hearing was requested within the required timeframe,) the grievance process has been completed [24
CFR 966.4(e)(8)].
PHA Policy
When applicable, families will be charged for maintenance and/or damages according to the PHA’s
current schedule. Work that is not covered in the schedule will be charged based on the actual
cost of labor and materials to make needed repairs (including overtime, if applicable).
8-10
Notices of maintenance and damage charges will be mailed monthly and will be in accordance
with requirements regarding notices of adverse actions. Charges are due and payable 14 calendar
days after billing. If the family requests a grievance hearing within the required timeframe, the
PHA may not take action for nonpayment of the charges until the conclusion of the grievance
process. Nonpayment of maintenance and damage charges is a violation of the lease and is
grounds for eviction.
PART II: INSPECTIONS
8-II.A. OVERVIEW
The PHA is obligated to maintain safe and habitable dwelling units and to make necessary repairs to
dwelling units [24 CFR 966.4(e)]. The National Standards for the IPhysical Inspection of Real Estate
(NSPIRE) are the standard under which HUD housing units, including those under the public housing
program, are inspected. NSPIRE ensures that residents of public housing live in safe, habitable dwellings,
and the items and components located inside, outside, and within the units are functionally adequate,
operable, and free of health and safety hazards [24 CFR 5.703(a)]. Further, units must comply with state
and local code requirements (such as fire, mechanical, plumbing, carbon monoxide, property
maintenance, and residential code) [24 CFR 5.703(f)] as well as with all requirements related to the
evaluation and control of lead-based paint hazards [24 CFR 5.703(e)(2)].
Under NSPIRE, public housing units are subject to three types of inspections: annual self-inspections,
NSPIRE Inspections (which are used to assess and score the PHA under the Public Housing Assessment
System (PHAS)), and NSPIRE Plus Inspections (which are triggered by poor property conditions).HUD
regulations also require the PHA to inspect each public housing unit prior to move-in and at move-out,
The PHA may require additional inspections, in accordance with PHA policy. This part contains the PHA’s
policies governing inspections by the PHA and HUD, notification of unit entry, and inspection repair
timelines. This section discusses inspections conducted by the PHA (including annual self-inspections)
and inspections conducted by HUD REAC.
8-II.B. PHA-CONDUCTED INSPECTIONS
The PHA is obligated to maintain dwelling units and the project in safe and habitable condition and to
make necessary repairs to dwelling units [24 CFR 966.4(e)].
Types of PHA-Conducted Inspections
Move-In Inspections [24 CFR 966.4(i)]
The lease must require the PHA and the family to inspect the dwelling unit prior to occupancy in order to
determine the condition of the unit and equipment in the unit. A copy of the initial inspection, signed by
the PHA and the tenant, must be provided to the tenant and retained in the resident file.
PHA Policy
8-11
Any adult family member may attend the initial inspection and sign the inspection form for the
head of household.
Move-Out Inspections [24 CFR 966.4(i)]
The PHA must inspect the unit at the time the resident vacates the unit and must allow the resident to
participate in the inspection if they wish, unless the tenant vacates without notice to the PHA. The PHA
must provide to the tenant a statement of any charges to be made for maintenance and damage beyond
normal wear and tear.
The difference between the condition of the unit at move-in and move-out establishes the basis for any
charges against the security deposit so long as the work needed exceeds that for normal wear and tear.
PHA Policy
When applicable, the PHA will provide the tenant with a statement of charges to be made for
maintenance and damage beyond normal wear and tear, within 14 business days of conducting
the move-out inspection.
Self-Inspections [24 CFR 5.707]
Annually all PHAs are required to self-inspect their properties, including all units, to ensure units are
maintained in accordance with NSPIRE standards in 24 CFR 5.703. As part of the self-inspection process,
PHAs must ensure that deficiencies previously cited and repaired as a result of an NSPIRE inspection
have not subsequently failed.
The PHA must maintain the results of self-inspections for three years and must provide the results to
HUD upon request.
Quality Control Inspections
The purpose of quality control inspections is to assure that all defects were identified in the original
inspection, and that repairs were completed and within an acceptable time frame.
PHA Policy
The Maintenance Supervisor will conduct quality control inspections in accordance with the PHA’s
maintenance plan.
Special Inspections
PHA Policy
PHA staff may conduct a special inspection for any of the following reasons:
•
Housekeeping
•
Unit condition
•
Suspected lease violation
•
Preventive maintenance
8-12
•
Routine maintenance
•
There is reasonable cause to believe an emergency exists
Other Inspections
PHA Policy
Building exteriors, grounds, common areas and systems will be inspected according to the PHA’s
maintenance plan.
Notice of Entry
Non-emergency Entries [24 CFR 966.4(j)(1)]
The PHA may enter the unit, with reasonable advance notification to perform routine inspections and
maintenance, make improvements and repairs, or to show the unit for re-leasing. A written statement
specifying the purpose of the PHA entry delivered to the dwelling unit at least two days before such entry
is considered reasonable advance notification.
PHA Policy
The PHA will notify the resident in writing at least 48 hours prior to any non-emergency inspection.
For regular PHA annual self-inspections, the family will receive at least two weeks written notice of
the inspection to allow the family to prepare the unit for the inspection.
A “routine inspection” includes, without limitation, an annual inspection of the dwelling unit,
monthly pest control treatment and any required follow up inspection necessary to assure
compliance with the Housekeeping Standards and House Rules.
Entry for repairs requested by the family will not require prior notice. Resident-requested repairs
presume permission for the PHA to enter the unit.
Except for emergencies, management will not enter the dwelling unit to perform inspections
where a pet resides unless accompanied for the entire duration of the inspection by the pet
owner or responsible person designated by the pet owner in accordance with the pet policies in
Section 10-II.D.
Emergency Entries [24 CFR 966.4(j)(2)]
The PHA may enter the dwelling unit at any time without advance notice when there is reasonable cause
to believe that an emergency exists. If no adult household member is present at the time of an
emergency entry, the PHA must leave a written statement showing the date, time, and purpose of the
entry prior to leaving the dwelling unit.
8-13
Scheduling of PHA-Conducted Inspections
PHA Policy
Inspections will be conducted during business hours between 7:00 a.m. and 5:00 p.m. If a family
needs to reschedule an inspection, they must notify the PHA at least 24 hours prior to the
scheduled inspection. The PHA will reschedule the inspection no more than once unless the
resident has a verifiable good cause to delay the inspection. The PHA may request verification of
such cause.
Attendance at Inspections
Residents are required to be present for move-in inspections [24 CFR §966.4(i)]. There is no such
requirement for other types of inspections.
PHA Policy
While the resident is required to be present for move-in inspections, the resident is not required
to be present for other types of inspections. The resident may attend the inspection if they wish. If
no one is at home, the inspector will enter the unit, conduct the inspection, and leave a copy of
the inspection report in the unit.
Repairs
Correction timeframes differ depending on whether repairs are considered emergency or non-
emergency repairs.
Emergency Repairs [24 CFR 966.4(h)]
If the unit is damaged to the extent that conditions are created which are hazardous to the life, health, or
safety of the occupants, the tenant must immediately notify the PHA of the damage, and the PHA must
make repairs within a reasonable time frame. Under NSPIRE, the PHA must correct all Life-Threatening
and Severe deficiencies within 24 hours.
If the damage was caused by a household member or guest, the PHA must charge the family for the
reasonable cost of repairs. The PHA may also take lease enforcement action against the family.
If the PHA cannot make repairs quickly, the PHA must offer the family standard alternative
accommodations. If the PHA can neither repair the defect within a reasonable time frame nor offer
alternative housing, rent shall be abated in proportion to the seriousness of the damage and loss in value
as a dwelling. Rent shall not be abated if the damage was caused by a household member or guest, or if
the resident rejects the alternative accommodations.
8-14
Non-emergency Repairs
PHA Policy
The PHA will correct deficiencies resulting in a non-emergency work order identified during a PHA
conducted inspection within 15 business days of the inspection date. If the PHA is unable to make
repairs within that period due to circumstances beyond the PHA’s control (e.g., required parts or
services are not available, weather conditions, etc.) the PHA will notify the family of an estimated
date of completion.
The family must allow the PHA access to the unit to make repairs.
Except for emergencies, management will not enter the dwelling unit to perform repairs where a
pet resides unless accompanied for the entire duration of the repair by the pet owner or
responsible person designated by the pet owner in accordance with the pet policies in Section 10-
II.D.
Resident-Caused Damages
PHA Policy
Damages to the unit beyond wear and tear will be billed to the tenant in accordance with the
policies in 8-I.F., Maintenance and Damage Charges.
Repeated or excessive damages to the unit beyond normal wear and tear will be considered a
serious or repeated violation of the lease.
Notices of lease termination will also be issued to residents who purposely disengage the unit’s
smoke detector.
Utilities that are the resident’s responsibility and are found not in service will be cause for a 5 five-
day lease termination.
Housekeeping
PHA Policy
Residents whose housekeeping habits pose a non-emergency health or safety risk, encourage
insect or rodent infestation, or cause damage to the unit are in violation of the lease. In these
instances, the PHA will provide proper notice of a lease violation.
A reinspection will be conducted within 30 days to confirm that the resident has complied with the
requirement to abate the problem. Failure to abate the problem or allow for a reinspection is
considered a violation of the lease and may result in termination of tenancy in accordance with
Chapter 13.
8-15
Notices of lease violation will also be issued to residents who purposely disengage the unit’s
smoke detector and/or carbon monoxide alarm. Only one warning will be given. A second
incidence will result in lease termination.
8-II.C. NSPIRE INSPECTIONS [24 CFR 5.705(c); Notice PIH 2023-16]
During an NSPIRE inspection, REAC inspectors will inspect areas and associated items or components
that are listed in the regulations as affirmative requirements and those included within the NSPIRE
standards. For most properties, the frequency of NSPIRE inspections is determined by the date of the
prior inspection and the score received.
Notice to Residents [Notice PIH 2023-16]
The PHA must provide notice to all residents as described in 24 CFR 5.711(h) and the lease.
PHA Policy
The PHA will provide all residents with at least seven days’ notice of an NSPIRE inspection. Notice
will be provided through multiple communication methods, including by posted notice on each
resident’s door and through email where applicable. All materials, notices, and communications to
families regarding the inspection will be clearly communicated and provided in a manner that is
effective for persons with hearing, visual, and other communication-related disabilities consistent
with Section 504 of the Rehabilitation Act (Section 504) and HUD’s Section 504 regulation, and
Titles II or III of the Americans with Disabilities Act (ADA) and implementing regulations.
8-16
24-Hour Corrections [24 CFR 5.711(c); Notice PIH 2023-16]
At the conclusion of the NSPIRE inspection, or at the end of the day on multi-day inspections, HUD
provides the PHA with a list of Life-Threatening and Severe deficiencies. The PHA must correct all Life-
Threatening and Severe deficiencies within 24 hours, with certification of correction submitted to HUD
within two business days of receipt of notification of the deficiency.
If permanent repair will take longer than the allowable time in the relevant standard for the deficiency,
the PHA must provide HUD with a timeframe for completing permanent repairs and submit evidence that
the repair is in progress. Any extension to the allowable time for rectifying the deficiency is allowed only
upon HUD approval for good cause.
PHA Policy
The PHA will correct all Life-Threatening and Severe deficiencies within 24 hours. Correcting the
deficiency means the PHA will resolve or sufficiently address the deficiency in a manner that it no
longer poses a severe health or safety risk to residents, or the hazard is blocked until permanent
repairs can be completed. A correction could include controlling or blocking access to the hazard
by performing a temporary relocation of the resident while repairs are made.
While the PHA will complete all repairs expeditiously, if a permanent repair is not possible within
24-hours, the PHA will correct the deficiency by performing an interim repair to remove the health
and safety hazard. If the correction is temporary or professional services or materials are
unavailable within 24 hours, the PHA will provide a target date for permanent correction. Such
interim repairs will be fully completed within a reasonable timeframe approved by HUD.
The family must allow the PHA access to the unit to make repairs.
Non-emergency Repairs
Under NSPIRE, the PHA must correct Moderate deficiencies within 30 days and Low deficiencies within 60
days, or as otherwise provided in the NSPIRE standards. Repairs should be permanent fixes, unless
otherwise approved by HUD in writing. HUD may also prescribe timelines in Corrective Action Plans as
defined in 24 CFR 902.3 or Corrective Action Agreements as described in 24 CFR 902.105.
PHA Policy
If the PHA is unable to make repairs within the periods identified in the NSPIRE standards due to
circumstances beyond the PHA’s control (e.g., required parts or services are not available, weather
conditions, etc.), the PHA will provide HUD with a timeframe for completing permanent repairs
and obtain HUD approval. The PHA will also notify the family of an estimated date of completion.
The family must allow the PHA access to the unit to make repairs.
Except for emergencies, management will not enter the dwelling unit to perform repairs where a
pet resides unless accompanied for the entire duration of the repair by the pet owner or
responsible person designated by the pet owner in accordance with the pet policies in Section 10-
II.D.
8-17
EXHIBIT 8-1: Smoke-Free Policy
The City of Chandler Housing and Redevelopment (COCHRD) and the United States Department of
Housing and Urban Development (HUD) have become increasingly aware of the ill effects caused by
secondhand smoke. These ill effects include but are not limited to (1) health concerns raised by
other residents who experience secondhand smoke filtering into adjoining apartments, with
resulting increased potential for lung related illnesses and disorders; (2) additional costs for
maintenance such as cleaning, painting, replacing blinds and cleaning air conditioning coils; (3) safety
concerns resulting from smokers disconnecting the smoke alarms in their units. The PHA’s smoke-free
policy is applicable to all residents, household members, employees, guests, and services persons.
In response to these concerns and in order to provide a safe living environment for all Residents, on
February 3, 2017, HUD issued a federal rule requiring all Public Housing Authorities implement a
smoke-free policy. The COCHRD adopted the following Policy effective December 31, 2017:
−
Smoking is not permitted anywhere on public housing grounds, to include living units, interior and
exterior common areas, outdoor areas, and in or near public housing and administrative office
buildings.
−
The term “prohibited tobacco products” is defined as items that involve the ignition and burning of
tobacco leaves, such as: cigarettes, cigars, pipes, and water pipes (also known as hookahs).
−
The term “electronic delivery device” means any product that can be used to deliver aerosolized or
vaporized nicotine, lobelia, or any other substance to the person inhaling from the device,
including, but not limited to, an e-cigarette, e-cigar, e-pipe, or vape pen.
−
The term “interior common areas” include but are not limited to hallways, rental and
administrative offices, community rooms/centers, laundry rooms/centers and similar structures.
−
“Smoke” or “Smoking” means inhaling or exhaling smoke, aerosol, or vapor from any lighted or
heated cigar, cigarette, pipe, electronic delivery device, or any other natural or synthetic tobacco
or plant product. “Smoke” or “Smoking” also includes burning or possessing any lighted or heated
cigar, cigarette, pipe, electronic delivery device, or any other natural or synthetic tobacco or plant
product intended for inhalation.
−
The premises to be occupied by Resident and members of Resident’s household have been
designated as a smoke-free living environment. Resident, members of Resident’s household, and
guests shall not smoke anywhere in the unit leased by Resident, interior common areas
utilized by Residents and staff, and in or near the public housing buildings.
−
Residents are responsible for notifying their guests and invitees that the COCHRD has designed
the property as a smoke-free property. Residents are responsible for ensuring that their guests
and any and all visitors under their control fully comply with this policy.
−
Non-Smoking areas within the property include the following areas:
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−
Smoking is not permitted anywhere on public housing grounds, to include living units, interior and
exterior, common areas, outdoor areas, and in or near public housing, playgrounds, and
administrative office buildings.
−
Resident should promptly provide the COCHRD with a written statement of any incident where
tobacco smoke is migrating into Resident’s unit from sources outside Resident’s unit.
−
The COCHRD has posted No Smoking signs at entrances and exits, common areas, hallways and in
conspicuous places at Public Housing family sites.
−
The COCHRD will take reasonable steps to enforce this Smoke-Free Policy and to make the unit
smoke-free. The COCHRD is not required to take steps in response to smoking unless the COCHRD
knows of a violation of this Smoke-Free Policy or has been provided with written notice of any
violation of this Policy.
−
A material breach of this Policy shall be a material breach of the resident’s lease agreement
and the Rules and Regulations and grounds for termination of tenancy through a graduated
enforcement framework will include:
•
A lease amendment identifying the actions that constitutes a policy violation and encourage
residents to promptly provide a written statement of any incident where tobacco smoke is
migrating into the resident’s unit from sources outside the resident’s unit.
•
If a determination is made on objective facts supported by written statements, that a tenant
is in violation, the COCHRD may serve a written notice of lease violation(s) to the tenant to
meet with the housing specialist to discuss the violation(s). Documentation of
noncompliance, if there are repeated violations (more than two) or persistent non-
responsiveness will constitute a violation of the lease.
•
Eviction proceedings as a last resort.
As referenced in Section X of Resident’s lease and the Smoke-Free Policy Attachment restrictions.
1) Resident acknowledges that the COCHRD’s adoption of a Smoke-Free living environment and its
efforts to designate the unit as Smoke-Free do not make the COCHRD guarantor of Resident’s
health or of the smoke-free condition of Resident unit or the common areas. Resident
acknowledges that the COCHRD’S adoption of a smoke-free living environment and its efforts to
designate the unit as smoke-free do not in any way change the standard of care that the COCHRD
has to Resident’s household to render units designated as smoke-free any safer, more
habitable, or improved in terms of air quality standards than any other rental premises. The
COCHRD specifically disclaims any implied or express warranties that the Resident’s premises will
have any higher or improved air quality standards than any other rental units. The COCHRD
cannot and does not warranty or promise that the rental premises will be free from secondhand
smoke.
2) Resident acknowledges that the COCHRD’S ability to police, monitor, or enforce the restrictions
of this Policy is dependent in significant part on voluntary compliance by Resident and Resident’s
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guests and invitees. Residents with respiratory ailments, allergies, or any other physical or mental
condition relating to smoke are put on notice that the COCHRD does not assume any higher duty of
care to enforce this Policy than any other obligation imposed on them under the Lease or Rules and
Regulations.
3) To assist all residents with the Smoke-Free Policy transition and to accommodate resident
interest in smoking cessation, the COCHRD is committed to providing resources for cessation
education and outreach.
Please refer to the Lease Addendum and/or your Section X of the Lease for information regarding the
Smoke-Free Policy restrictions.
By signing below, the resident acknowledges receipt of the Smoke-Free Policy.
Resident
Date
Resident
Date
Resident
Date
Resident
Date
9-1
Chapter 9.A.
REEXAMINATIONS
[24 CFR 960.257, 960.259, 966.4]
INTRODUCTION
This chapter is applicable until the PHA’s HOTMA 102/104 compliance date. After this date, the PHA will
follow policies as outlined in Chapter 9.B of the model policy.
With the exception of non-public housing over income families, the PHA is required to reexamine each
family’s income and composition periodically, and to adjust the family’s rent accordingly. PHAs must
adopt policies for conducting annual and interim reexaminations that are consistent with regulatory
requirements and must conduct reexaminations in accordance with such policies [24 CFR 960.257(c)].
The frequency with which the PHA must reexamine the income and composition of a family depends on
whether the family pays income-based rent or flat rent. HUD requires the PHA to offer all families the
choice of paying income-based rent or flat rent at least annually. The PHA’s policies for offering families a
choice of rents are located in Chapter 6.
This chapter discusses both annual and interim reexaminations.
Part I: Annual Reexaminations for Families Paying Income Based Rents. This part discusses the
requirements for annual reexamination of income and family composition. Full reexaminations are
conducted at least once a year for families paying income-based rents.
Part II: Reexaminations for Families Paying Flat Rents. This part contains the PHA’s policies for conducting
full reexaminations of family income and composition for families paying flat rents. These full
reexaminations are conducted at least once every three years. This part also contains the PHA’s policies
for conducting annual updates of family composition for flat rent families.
Part III: Interim Reexaminations. This part includes HUD requirements and PHA policies related to when a
family may and must report changes that occur between annual reexaminations.
Part IV: Recalculating Tenant Rent. After gathering and verifying required information for an annual or
interim reexamination, the PHA must recalculate the tenant rent. While the basic policies that govern
these calculations are provided in Chapter 6, this part describes the policies that affect these calculations
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during a reexamination.
Policies governing reasonable accommodation, family privacy, required family cooperation, and program
abuse, as described elsewhere in this ACOP, apply to annual and interim reexaminations.
PART I: ANNUAL REEXAMINATIONS FOR FAMILIES PAYING INCOME-BASED RENTS [24 CFR 960.257]
9-I.A. OVERVIEW
For those families who choose to pay income-based rent, the PHA must conduct a reexamination of
income and family composition at least annually [24 CFR 960.257(a)(1)]. For families who choose flat
rents, the PHA must conduct a reexamination of family composition at least annually and must conduct a
reexamination of family income at least once every three years [24 CFR 960.257(a)(2)]. PHAs also have the
option of using a Safe Harbor income verification from another federal means-tested program to verify
gross annual income. Chapter 7 contains the PHA’s policies related to use of Safe Harbor income
verifications. For any non-public housing over income families, the PHA may not conduct an annual
reexamination of family income. Policies related to the reexamination process for families paying flat rent
are located in Part II of this chapter.
For all residents of public housing, whether those residents are paying income-based or flat rents, the
PHA must conduct an annual review of community service requirement compliance. This annual
reexamination is also a good time to have residents sign consent forms for criminal background checks
in case the criminal history of a resident is needed at some point for the purposes of lease enforcement
or eviction.
The PHA is required to obtain all of the information necessary to conduct reexaminations. How that
information will be collected is left to the discretion of the PHA. Families are required to provide current
and accurate information on income, assets, allowances and deductions, family composition and
community service compliance as part of the reexamination process [24 CFR 960.259].
This part contains the PHA’s policies for conducting annual reexaminations.
9-3
9-I.B STREAMLINED ANNUAL REEXAMINATIONS [24 CFR 960.257]
HUD permits PHAs to streamline the income determination process for family members with fixed
sources of income. While third-party verification of all income sources must be obtained during the
intake process and every three years thereafter, in the intervening years the PHA may determine income
from fixed sources by applying a verified cost of living adjustment (COLA) or rate of interest. The PHA
may, however, obtain third-party verification of all income, regardless of the source. Further, upon
request of the family, the PHA must perform third-party verification of all income sources.
Fixed sources of income include Social Security and SSI benefits, pensions, annuities, disability or death
benefits, and other sources of income subject to a COLA or rate of interest. The determination of fixed
income may be streamlined even if the family also receives income from other non-fixed sources.
Two streamlining options are available, depending upon the percentage of the family’s income that is
received from fixed sources. If at least 90 percent of the family’s income is from fixed sources, the PHA
may streamline the verification of fixed income but is not required to verify non-fixed income amounts. If
the family receives less than 90 percent of its income from fixed sources, the PHA may streamline the
verification of fixed income and must verify non-fixed income annually.
PHA Policy
The PHA will streamline the annual reexamination process by applying the verified COLA or interest rate
to fixed-income sources. The PHA will document in the file how the determination that a source of
income was fixed was made.
If a family member with a fixed source of income is added, the PHA will use third-party verification of all
income amounts for that family member.
If verification of the COLA or rate of interest is not available, the PHA will obtain third-party verification of
income amounts.
Third-party verification of fixed sources of income will be obtained during the intake process and at least
once every three years thereafter.
Third-party verification of non-fixed income will be obtained annually regardless of the percentage of
family income received from fixed sources.
9-4
9-I.C. SCHEDULING ANNUAL REEXAMINATIONS
The PHA must establish a policy to ensure that the annual reexamination for each family paying an
income-based rent is completed within a 12-month period [24 CFR 960.257(a)(1)].
PHA Policy
Generally, the PHA will schedule annual reexaminations to coincide with the family's anniversary date.
The PHA will begin the annual reexamination process approximately 120 days in advance of the
scheduled effective date.
Anniversary date is defined as 12 months from the effective date of the family’s last annual reexamination
or, during a family’s first year in the program, from the effective date of the family’s initial examination
(admission).
If the family transfers to a new unit, the PHA will perform a new annual reexamination, and the
anniversary date will be changed.
The PHA may also schedule an annual reexamination for completion prior to the anniversary date for
administrative purposes.
Notification of and Participation in the Annual Reexamination Process
The PHA is required to obtain information needed to conduct annual reexaminations. How that
information will be collected is left to the discretion of the PHA. However, PHAs should give tenants who
were not provided the opportunity to provide contact information at the time of admission the option to
complete Form HUD-92006 at this time. The PHA should provide the family with the opportunity to
update, change, or remove information from the HUD-92006 at the time of the annual reexamination
[Notice PIH 2009-36].
PHA Policy
Families generally are required to participate in an annual reexamination interview, which must be
attended by the head of household, spouse, or cohead. If participation in an in-person interview poses a
hardship because of a family member’s disability, the family should contact the PHA to request a
reasonable accommodation (See Chapter 2).
Notification of annual reexamination interviews will be sent by first-class mail and will contain the date,
9-5
time, and location of the interview. In addition, it will inform the family of the information and
documentation that must be brought to the interview.
If the family is unable to attend a scheduled interview, the family should contact the PHA in advance of
the interview to schedule a new appointment. In all circumstances, if a family does not attend the
scheduled interview the PHA will send a second notification with a new interview appointment time.
If a family fails to attend two scheduled interviews without PHA approval, the family will be in violation of
their lease and may be terminated in accordance with the policies in Chapter 13.
An advocate, interpreter, or other assistant may assist the family in the interview process.
9-6
9-I.D. CONDUCTING ANNUAL REEXAMINATIONS
The terms of the public housing lease require the family to furnish information regarding income and
family composition as may be necessary for the redetermination of rent, eligibility, and the
appropriateness of the housing unit [24 CFR 966.4(c)(2)].
PHA Policy
Families will be asked to bring all required information (as described in the reexamination notice) to the
reexamination appointment. The required information will include a PHA-designated reexamination
form, an Authorization for the Release of Information/Privacy Act Notice, as well as supporting
documentation related to the family’s income, expenses, and family composition.
Any required documents or information that the family is unable to provide at the time of the interview
or any stated deadline must be provided within 10 business days of the interview. If the family is unable
to obtain the information or materials within the required time frame, the family may request an
extension.
If the family does not provide the required documents or information within the required time frame
(plus any extensions), the family will be in violation of their lease and may be terminated in accordance
with the policies in Chapter 13.
The information provided by the family generally must be verified in accordance with the policies in
Chapter 7. Unless the family reports a change, or the agency has reason to believe a change has occurred
in information previously reported by the family, certain types of information that are verified at
admission typically do not need to be re-verified on an annual basis. These include:
•
Legal identity
•
Age
•
Social security numbers
•
A person’s disability status
•
Citizenship or immigration status
9-7
Change in Unit Size
Changes in family or household composition may make it appropriate to consider transferring the family
to comply with occupancy standards. The PHA may use the results of the annual reexamination to
require the family to move to an appropriate size unit [24 CFR 960.257(a)(4)]. Policies related to such
transfers are located in Chapter 12.
Criminal Background Checks
Information obtained through criminal background checks may be used for lease enforcement and
eviction [24 CFR 5.903(e)(1)(ii)]. Criminal background checks of residents will be conducted in accordance
with the policy in Section 13-IV.B.
PHA Policy
Each household member age 18 and over will be required to execute a consent form for a criminal
background check as part of the annual reexamination process.
Additionally, HUD recommends that at annual reexaminations PHAs ask whether the tenant, or any
member of the tenant’s household, is subject to a lifetime sex offender registration requirement in any
state [Notice PIH 2012-28].
PHA Policy
At the annual reexamination, the PHA will ask whether the tenant, or any member of the tenant’s
household, is subject to a lifetime sex offender registration requirement in any state. The PHA will use
the Dru Sjodin National Sex Offender database to verify the information provided by the tenant.
If the PHA proposes to terminate assistance based on lifetime sex offender registration information, the
PHA must notify the household of the proposed action and must provide the subject of the record and
the tenant a copy of the record and an opportunity to dispute the accuracy and relevance of the
information prior to termination. [24 CFR 5.903(f) and 5.905(d)]. (See Chapter 13.)
Compliance with Community Service
For families who include nonexempt individuals, the PHA must determine compliance with community
service requirements once each 12 months [24 CFR 960.257(a)(3)].
See Chapter 11 for the PHA’s policies governing compliance with the community service requirement.
9-8
9-I.E. EFFECTIVE DATES
As part of the annual reexamination process, the PHA must make appropriate adjustments in the rent
after consultation with the family and upon verification of the information [24 CFR 960.257(a)(1)].
PHA Policy
In general, an increase in the tenant rent that results from an annual reexamination will take effect on the
family’s anniversary date, and the family will be notified at least 30 days in advance.
If less than 30 days remain before the scheduled effective date, the increase will take effect on the first of
the month following the end of the 30-day notice period.
If the PHA chooses to schedule an annual reexamination for completion prior to the family’s anniversary
date for administrative purposes, the effective date will be determined by the PHA, but will always allow
for the 30-day notice period.
If the family causes a delay in processing the annual reexamination, increases in the tenant rent will be
applied retroactively, to the scheduled effective date of the annual reexamination. The family will be
responsible for any underpaid rent and may be offered a repayment agreement in accordance with the
policies in Chapter 16.
In general, a decrease in the tenant rent that results from an annual reexamination will take effect on the
family’s anniversary date.
If the PHA chooses to schedule an annual reexamination for completion prior to the family’s anniversary
date for administrative purposes, the effective date will be determined by the PHA.
If the family causes a delay in processing the annual reexamination, decreases in the tenant rent will be
applied prospectively, from the first day of the month following completion of the reexamination
processing.
Delays in reexamination processing are considered to be caused by the family if the family fails to
provide information requested by the PHA by the date specified, and this delay prevents the PHA from
completing the reexamination as scheduled.
9-9
PART II: REEXAMINATIONS FOR FAMILIES PAYING FLAT RENTS
[24 CFR 960.253(f)]
9-II.A. OVERVIEW
HUD requires that the PHA offer all families the choice of paying income-based rent or flat rent at least
annually. The PHA’s policies for offering families a choice of rents are located in Chapter 6.
For families who choose flat rents, the PHA must conduct a reexamination of family composition at least
annually and must conduct a reexamination of family income at least once every three years [24 CFR
960.253(f)The PHA is only required to provide the amount of income-based rent the family might pay in
those years that the PHA conducts a full reexamination of income and family composition, or upon
request of the family after the family submits updated income information [24 CFR 960.253(e)(2)].
However, these regulations are not applicable to over-income families. Once an over-income
determination is made, the PHA must conduct an interim reexamination at 12 and 24 months, as
applicable, to determine if the family remains over-income [Notice PIH 2023-03].
As it does for families that pay income-based rent, the PHA must also review compliance with the
community service requirement for families with nonexempt individuals.
This part contains the PHA’s policies for conducting reexaminations of families who choose to pay flat
rents.
9-II.B. FULL REEXAMINATION OF FAMILY INCOME AND COMPOSITION
Frequency of Reexamination
PHA Policy
For families paying flat rents, the PHA will conduct a full reexamination of family income and composition
once every three years.
However, for flat rent families who become over-income, this policy will not apply. The PHA will instead
conduct an interim reexamination at 12 and 24 months following the initial over-income determination
as needed to verify the family remains over-income. The family will continue to be given a choice
between income-based and flat rent at each annual reexamination during the over-income grace period.
If the family is subsequently determined to no longer be over-income:
9-10
If the determination is the result of an annual reexamination, the family will be given a choice between
income-based or flat rent at reexam. If the family selects flat rent, the PHA will resume reexamination of
family income and composition once every three years.
If the determination is as a result of an interim reexamination, the PHA will conduct an annual
reexamination for the family at their next scheduled annual date. If the family selects flat rent, the PHA
will resume reexamination of family income and composition once every three years. Families will only
be given the choice between income-based and flat rent at annual reexamination.
9-11
Reexamination Policies
PHA Policy
In conducting full reexaminations for families paying flat rents, the PHA will follow the policies used for
the annual reexamination of families paying income-based rent as set forth in Sections 9-I.B through 9-I.D
above.
9-12
9-II.C. REEXAMINATION OF FAMILY COMPOSITION (“ANNUAL UPDATE”)
As noted above, full reexaminations are conducted every three years for families paying flat rents. In the
years between full reexaminations, regulations require the PHA to conduct a reexamination of family
composition (“annual update”) [24 CFR 960.257(a)(2)].
The annual update process is similar to the annual reexamination process, except that the PHA does not
collect information about the family’s income and expenses, and the family’s rent is not recalculated
following an annual update.
Scheduling
The PHA must establish a policy to ensure that the reexamination of family composition for families
choosing to pay the flat rent is completed at least annually [24 CFR 960.257(a)(2)].
PHA Policy
For families paying flat rents, annual updates will be conducted in each of the 2 years following the full
reexamination.
In scheduling the annual update, the PHA will follow the policy used for scheduling the annual
reexamination of families paying income-based rent as set forth in Section 9-I.B. above.
Conducting Annual Updates
The terms of the public housing lease require the family to furnish information necessary for the
redetermination of rent and family composition [24 CFR 966.4(c)(2)].
PHA Policy
Generally, the family will not be required to attend an interview for an annual update. However, if the
PHA determines that an interview is warranted, the family may be required to attend.
Notification of the annual update will be sent by first-class mail and will inform the family of the
information and documentation that must be provided to the PHA. The family will have 10 business days
to submit the required information to the PHA. If the family is unable to obtain the information or
documents within the required time frame, the family may request an extension. The PHA will accept
required documentation by mail, by email, by fax, or in person.
9-13
If the family’s submission is incomplete, or the family does not submit the information in the required
time frame, the PHA will send a second written notice to the family. The family will have 10 business days
from the date of the second notice to provide the missing information or documentation to the PHA.
If the family does not provide the required documents or information within the required time frame
(plus any extensions), the family will be in violation of their lease and may be terminated in accordance
with the policies in Chapter 13.
9-14
Change in Unit Size
Changes in family or household composition may make it appropriate to consider transferring the family
to comply with occupancy standards. The PHA may use the results of the annual update to require the
family to move to an appropriate size unit [24 CFR 960.257(a)(4)]. Policies related to such transfers are
located in Chapter 12.
Criminal Background Checks
Information obtained through criminal background checks may be used for lease enforcement and
eviction [24 CFR 5.903(e)]. Criminal background checks of residents will be conducted in accordance with
the policy in Section 13-IV.B.
PHA Policy
Each household member age 18 and over will be required to execute a consent form for criminal
background check as part of the annual update process.
Compliance with Community Service
For families who include nonexempt individuals, the PHA must determine compliance with community
service requirements once each 12 months [24 CFR 960.257(a)(3)].
See Chapter 11 for the PHA’s policies governing compliance with the community service requirement.
9-15
PART III: INTERIM REEXAMINATIONS [24 CFR 960.257; 24 CFR 966.4]
9-III.A. OVERVIEW
Family circumstances may change during the period between annual reexaminations. HUD and PHA
policies define the types of information about changes in family circumstances that must be reported,
and under what circumstances the PHA must process interim reexaminations to reflect those changes.
HUD regulations also permit the PHA to conduct interim reexaminations of income or family composition
at any time.
In addition to specifying what information the family must report, HUD regulations permit the family to
request an interim determination if other aspects of the family’s income or composition change. The PHA
must complete the interim reexamination within a reasonable time after the family’s request.
This part includes HUD and PHA policies that describe the changes families are required to report, the
changes families may choose to report, and how the PHA will process both PHA- and family-initiated
interim reexaminations.
9-III.B. CHANGES IN FAMILY AND HOUSEHOLD COMPOSITION
The PHA must adopt policies prescribing when and under what conditions the family must report
changes in family composition. However, due to provisions of the public housing lease, the PHA has
limited discretion in this area.
Changes in family or household composition may make it appropriate to consider transferring the family
to comply with occupancy standards. Policies related to such transfers are located in Chapter 12.
PHA Policy
All families, those paying income-based rent as well as flat rent, must report all changes in family and
household composition that occur between annual reexaminations (or annual updates).
The PHA will conduct interim reexaminations to account for any changes in household composition that
occur between annual reexaminations.
New Family Members Not Requiring Approval
The addition of a family member as a result of birth, adoption, or court-awarded custody does not
require PHA approval. However, the family is required to promptly notify the PHA of the addition [24 CFR
9-16
966.4(a)(1)(v)].
PHA Policy
The family must inform the PHA of the birth, adoption, or court-awarded custody of a child within 10
business days.
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New Family and Household Members Requiring Approval
With the exception of children who join the family as a result of birth, adoption, or court-awarded
custody, a family must request PHA approval to add a new family member [24 CFR 966.4(a)(1)(v)] or other
household member (live-in aide or foster child) [24 CFR 966.4(d)(3)].
The PHA may adopt reasonable policies concerning residence by a foster child or a live-in aide and
defining the circumstances in which PHA consent will be given or denied. Under such policies, the factors
considered by the PHA may include [24 CFR 966.4(d)(3)(i)]:
•
Whether the addition of a new occupant may necessitate a transfer of the family to another unit,
and whether such units are available.
•
The PHA’s obligation to make reasonable accommodation for persons with disabilities.
PHA Policy
Families must request PHA approval to add a new family member, live-in aide, foster child, or foster
adult. This includes any person not on the lease who is expected to stay in the unit for more than 14
consecutive days or a total of 30 cumulative calendar days during any 12-month period and therefore no
longer qualifies as a “guest.” Requests must be made in writing and approved by the PHA prior to the
individual moving into the unit.
If adding a person to a household (other than a child by birth, adoption, or court-awarded custody) will
require a transfer to a larger size unit (under the transfer policy in Chapter 12), the PHA will approve the
addition only if the family can demonstrate that there are medical needs or other extenuating
circumstances, including reasonable accommodation, that should be considered by the PHA. Exceptions
will be made on a case-by-case basis.
The PHA will not approve the addition of a new family or household member unless the individual meets
the PHA’s eligibility criteria (see Chapter 3) and documentation requirements (See Chapter 7, Part II).
If the PHA determines that an individual does not meet the PHA’s eligibility criteria or documentation
requirements, the PHA will notify the family in writing of its decision to deny approval of the new family
or household member and the reasons for the denial.
The PHA will make its determination within 10 business days of receiving all information required to
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verify the individual’s eligibility.
Departure of a Family or Household Member
PHA Policy
If a family member ceases to reside in the unit, the family must inform the PHA within 10 business days.
This requirement also applies to family members who had been considered temporarily absent, who are
now permanently absent.
If a live-in aide, foster child, or foster adult ceases to reside in the unit, the family must inform the PHA
within 10 business days.
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9-III.C. CHANGES AFFECTING INCOME OR EXPENSES
Interim reexaminations can be scheduled either because the PHA has reason to believe that changes in
income or expenses may have occurred, or because the family reports a change. When a family reports a
change, the PHA may take different actions depending on whether the family reported the change
voluntarily, or because it was required to do so.
PHA Policy
This section only applies to families paying income-based rent. Families paying flat rent are not required
to report changes in income or expenses.
PHA-initiated Interim Reexaminations
PHA-initiated interim reexaminations are those that are scheduled based on circumstances or criteria
defined by the PHA. They are not scheduled because of changes reported by the family.
PHA Policy
The PHA will conduct interim reexaminations in each of the following instances:
For families receiving the Earned Income Disallowance (EID), the PHA will conduct an interim
reexamination at the conclusion of the 24-month eligibility period.
If the family has reported zero income, the PHA will conduct an interim reexamination every three
months as long as the family continues to report that they have no income.
If at the time of the annual reexamination, it is not feasible to anticipate a level of income for the next 12
months (e.g. seasonal or cyclic income), the PHA will schedule an interim reexamination to coincide with
the end of the period for which it is feasible to project income.
If at the time of the annual reexamination, tenant declarations were used on a provisional basis due to
the lack of third-party verification, and third-party verification becomes available, the PHA will conduct an
interim reexamination.
The PHA may conduct an interim reexamination at any time in order to correct an error in a previous
reexamination, or to investigate a tenant fraud complaint.
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Family-Initiated Interim Reexaminations
The PHA must adopt policies prescribing when and under what conditions the family must report
changes in family income or expenses [24 CFR 960.257(c)]. In addition, HUD regulations require that the
family be permitted to obtain an interim reexamination any time the family has experienced a change in
circumstances since the last determination [24 CFR 960.257(b)].
Required Reporting
HUD regulations give the PHA the discretion to determine the circumstances under which families will be
required to report changes affecting income.
PHA Policy
Families are required to report all increases in earned income, including new employment, within 10
business days of the date the change takes effect.
The PHA will note the information in the tenant file but will not conduct an interim reexamination.
Families are not required to report any other changes in income.
Optional Reporting
The family may request an interim reexamination any time the family has experienced a change in
circumstances since the last determination [24 CFR 960.257(b)]. The PHA must process the request if the
family reports a change that will result in a reduced family income [PH Occ GB, p. 159].
If a family reports a decrease in income from the loss of welfare benefits due to fraud or non-compliance
with a welfare agency requirement to participate in an economic self-sufficiency program, the family’s
share of the rent will not be reduced [24 CFR 5.615]. For more information regarding the requirement to
impute welfare income see Chapter 6.
PHA Policy
If a family reports a change that it was not required to report and that would result in an increase in the
tenant rent, the PHA will note the information in the tenant file, but will not conduct an interim
reexamination.
If a family reports a change that it was not required to report and that would result in a decrease in the
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tenant rent, the PHA will conduct an interim reexamination. See Section 9-III.D. for effective dates.
Families may report changes in income or expenses at any time.
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9-III.D. PROCESSING THE INTERIM REEXAMINATION
Method of Reporting
PHA Policy
The family may notify the PHA of changes either orally or in writing. If the family provides oral notice, the
PHA may also require the family to submit the changes in writing.
Generally, the family will not be required to attend an interview for an interim reexamination. However, if
the PHA determines that an interview is warranted, the family may be required to attend.
Based on the type of change reported, the PHA will determine the documentation the family will be
required to submit. The family must submit any required information or documents within 10 business
days of receiving a request from the PHA. This time frame may be extended for good cause with PHA
approval. The PHA will accept required documentation by mail, by email, or in person.
Effective Dates
The PHA must make the interim reexamination within a reasonable time after the family request [24 CFR
960.257(b)].
PHA Policy
If the tenant rent is to increase:
The increase generally will be effective on the first of the month following 30 days’ notice to the family.
If a family fails to report a change within the required time frames, or fails to provide all required
information within the required time frames, the increase will be applied retroactively, to the date it
would have been effective had the information been provided on a timely basis. The family will be
responsible for any underpaid rent and may be offered a repayment agreement in accordance with the
policies in Chapter 16.
If the tenants rent is to decrease:
The decrease will be effective on the first day of the month following the month in which the change was
reported. In cases where the change cannot be verified until after the date the change would have
become effective, the change will be made retroactively.
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PART IV: RECALCULATING TENANT RENT
9-IV.A. OVERVIEW
For those families paying income-based rent, the PHA must recalculate the rent amount based on the
income information received during the reexamination process and notify the family of the changes [24
CFR 966.4, 960.257]. While the basic policies that govern these calculations are provided in Chapter 6, this
part lays out policies that affect these calculations during a reexamination.
9-IV.B. CHANGES IN UTILITY ALLOWANCES [24 CFR 965.507, 24 CFR 966.4]
The tenant rent calculations must reflect any changes in the PHA’s utility allowance schedule [24 CFR
960.253(c)(3)]. Chapter 16 discusses how utility allowance schedules are established.
PHA Policy
Unless the PHA is required to revise utility allowances retroactively, revised utility allowances will be
applied to a family’s rent calculations at the first annual reexamination after the allowance is adopted.
9-IV.C. NOTIFICATION OF NEW TENANT RENT
The public housing lease requires the PHA to give the tenant written notice stating any change in the
amount of tenant rent, and when the change is effective [24 CFR 966.4(b)(1)(ii)].
When the PHA redetermines the amount of rent (Total Tenant Payment or Tenant Rent) payable by the
tenant, not including determination of the PHA’s schedule of Utility Allowances for families in the PHA’s
Public Housing Program, or determines that the tenant must transfer to another unit based on family
composition, the PHA must notify the tenant that the tenant may ask for an explanation stating the
specific grounds of the PHA determination, and that if the tenant does not agree with the determination,
the tenant shall have the right to request a hearing under the PHA’s grievance procedure [24 CFR
966.4(c)(4)].
PHA Policy
The notice to the family will include the annual and adjusted income amounts that were used to calculate
the tenant rent.
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9-IV.D. DISCREPANCIES
During an annual or interim reexamination, the PHA may discover that information previously reported
by the family was in error, or that the family intentionally misrepresented information. In addition, the
PHA may discover errors made by the PHA. When errors resulting in the overpayment or underpayment
of rent are discovered, corrections will be made in accordance with the policies in Chapter 15.
Chapter 9.B.
REEXAMINATIONS UNDER HOTMA 102/104
[24 CFR 960.257, 960.259, 966.4]
INTRODUCTION
This chapter is applicable until the PHA’s HOTMA 102/104 compliance date. After this date, the PHA will
follow policies as outlined in Chapter 9.B of the model policy.
With the exception of non-public housing over income families, the PHA is required to reexamine each
family’s income and composition periodically, and to adjust the family’s rent accordingly. PHAs must
adopt policies for conducting annual and interim reexaminations that are consistent with regulatory
requirements and must conduct reexaminations in accordance with such policies [24 CFR 960.257(c)].
The frequency with which the PHA must reexamine the income and composition of a family depends on
whether the family pays income-based or flat rent. HUD requires the PHA to offer all families the choice
of paying income-based rent or flat rent at least annually. The PHA’s policies for offering families a choice
of rents are located in Chapter 6.
This chapter discusses both annual and interim reexaminations.
Part I: Annual Reexaminations for Families Paying Income Based Rents. This part discusses
the requirements for annual reexamination of income and family composition. Full
reexaminations are conducted at least once a year for families paying income-based rents.
Part II: Reexaminations for Families Paying Flat Rents. This part contains the PHA’s policies for
conducting full reexaminations of family income and composition for families paying flat rents.
These full reexaminations are conducted at least once every 3 years. This part also contains the
PHA’s policies for conducting annual updates of family composition for flat rent families.
Part III: Interim Reexaminations. This part includes HUD requirements and PHA policies related
to when a family may and must report changes that occur between annual reexaminations.
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Part IV: Recalculating Tenant Rent. After gathering and verifying required information for an
annual or interim reexamination, the PHA must recalculate the tenant rent. While the basic
policies that govern these calculations are provided in Chapter 6, this part describes the policies
that affect these calculations during a reexamination.
Part V: Non-Interim Reexamination Transactions. This part describes transactions that do not
entail changes to the family’s adjusted income.
Policies governing reasonable accommodation, family privacy, required family cooperation and program
abuse, as described elsewhere in this ACOP, apply to annual and interim reexaminations.
PART I: ANNUAL REEXAMINATIONS FOR FAMILIES
PAYING INCOME-BASED RENTS; [24 CFR 960.257]
9-I.A. OVERVIEW
For those families who choose to pay income-based rent, the PHA must conduct a reexamination of
income and family composition at least annually [24 CFR 960.257(a)(1)]. With the exception of over-
income families, who must have their income reviewed at 12 and 24 months, for flat rent families, the
PHA must conduct a reexamination of family composition at least annually and must conduct a
reexamination of family income at least once every three years [24 CFR 960.257(a)(2)]. For any non-public
housing over income families, the PHA may not conduct an annual reexamination of family income.
Policies related to the reexamination process for families paying flat rent are located in Part II of this
chapter.
For all residents of public housing, whether those residents are paying income-based or flat rents, the
PHA must conduct an annual review of community service requirement compliance. This annual
reexamination is also a good time to have residents sign consent forms for criminal background checks
in case the criminal history of a resident is needed at some point for the purposes of lease enforcement
or eviction.
The PHA is required to obtain all the information necessary to conduct reexaminations. How that
information will be collected is left to the discretion of the PHA. Families are required to provide current
and accurate information on income, assets, allowances and deductions, family composition and
community service compliance as part of the reexamination process [24 CFR 960.259].
Unlike when performing an interim reexamination or at intake, at annual reexamination, the PHA must
determine the income of the family for the previous 12-month period, except where the PHA uses a
streamlined income determination. Income from assets, however, is always anticipated, irrespective of
the income examination type [Notice PIH 2023-27]. PHAs also have the option of using “Safe Harbor”
income verification from another federal means-tested program to verify gross annual income. Chapter 7
contains the PHA’s policies related to streamlined income determinations and the use of Safe Harbor
income verifications.
This part contains the PHA’s policies for conducting annual reexaminations.
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9-I.B. SCHEDULING ANNUAL REEXAMINATIONS
The PHA must establish a policy to ensure that the annual reexamination for each family paying an
income-based rent is completed within a 12-month period [24 CFR 960.257(a)(1)].
PHA Policy
Generally, the PHA will schedule annual reexaminations to coincide with the family's anniversary
date. The PHA will begin the annual reexamination process approximately 120 days in advance of
the scheduled effective date.
Anniversary date is defined as 12 months from the effective date of the family’s last annual
reexamination or, during a family’s first year in the program, from the effective date of the family’s
initial examination (admission).
If the family transfers to a new unit, the PHA will perform a new annual reexamination, and the
anniversary date will be changed.
The PHA may also schedule an annual reexamination for completion prior to the anniversary date
for administrative purposes.
Notification of and Participation in the Annual Reexamination Process
The PHA is required to obtain information needed to conduct annual reexaminations. How that
information will be collected is left to the discretion of the PHA. However, PHAs should give tenants who
were not provided the opportunity to provide contact information at the time of admission the option to
complete Form HUD-92006 at this time. The PHA should provide the family with the opportunity to
update, change, or remove information from the HUD-92006 at the time of the annual reexamination
[Notice PIH 2009-36].
PHA Policy
The PHA generally can require the participate to attend an annual reexamination interview, which
must be attended by the head of household, spouse, or cohead. If participation in an in-person
interview poses a hardship because of a family member’s disability, the family should contact the
PHA to request a reasonable accommodation. (See Chapter 2)
The PHA has the sole discretion to hold the annual reexamination via an online process, or an in-
person interview. Notification of annual reexamination interviews will be sent by first-class mail
and will contain method of the reexamination. If in-person, the notice will include the date, time,
and location of the interview. In addition, it will inform the family of the information and
documentation that must be brought to the interview.
If the family is unable to attend a scheduled interview, the family should contact the PHA in
advance of the interview to schedule a new appointment. In all circumstances, if a family does not
9-28
attend the scheduled interview the PHA will send a second notification with a new interview
appointment time.
If a family fails to attend two scheduled interviews without PHA approval, the family will be in
violation of their lease and may be terminated in accordance with the policies in Chapter 13.
An advocate, interpreter, or other assistant may assist the family in the interview process.
9-I.C. CONDUCTING ANNUAL REEXAMINATIONS
The terms of the public housing lease require the family to furnish information regarding income and
family composition as may be necessary for the redetermination of rent, eligibility, and the
appropriateness of the housing unit [24 CFR 966.4(c)(2)].
PHA Policy
The PHA has the sole discretion to require that documentation for annual reexaminations is sent
to the PHA via the housing authority’s online process.
Families will be asked to provide all required information (as described in the reexamination
notice) through the tenant’s online account. The PHA may also opt to complete the reexamination
appointment in person.
The required information will include a PHA-designated reexamination form, an Authorization for
the Release of Information/Privacy Act Notice, as well as supporting documents or forms related
to the family’s income, expenses, and family composition.
Any required documents or information that the family is unable to provide for the annual
reexamination process must be provided within 10 business days of the request. If the family is
unable to obtain the information or materials within the required time frame, the family may
request an extension.
If the family does not provide the required documents or information within the required time
frame (plus any extensions), the family will be in violation of their lease and may be terminated in
accordance with the policies in Chapter 13.
Families who have extenuating circumstances or are elderly will be permitted to complete their
reexamination by mail or by using their online account process. A request for an exception must
be submitted in writing and will be reviewed and approved by management on a case-by-case
basis.
The information provided by the family generally must be verified in accordance with the policies in
Chapter 7. Unless the family reports a change, or the agency has reason to believe a change has occurred
in information previously reported by the family, certain types of information that are verified at
admission typically do not need to be re-verified on an annual basis. These include:
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•
Legal Identity
•
Age
•
Social security numbers
•
A person’s disability status
•
Citizenship or immigration status
9-I.D. CALCULATING ANNUAL INCOME AT ANNUAL REEXAMINATION [24 CFR 5.609(c)(2) and Notice
PIH 2023-27]
The PHA must determine the income of the family for the previous 12-month period and use this amount
as the family income for annual reexaminations, except where the PHA uses a streamlined income
determination as indicated in Chapter 7 of this policy. The PHA may also use Safe Harbor income
determinations dated within the last 12 months from a means-tested federal public assistance program
at annual reexamination as outlined in Chapter 7 of this policy.
Except when using streamlined or Safe Harbor income determinations, in determining the income of the
family for the previous 12-month period, any change of income since the family’s last annual
reexamination, including those that did not meet the threshold to process an interim reexamination in
accordance with PHA policies and 24 CFR 5.657(c) or 960.257(b) must be considered.
Income from assets is always anticipated, irrespective of the income examination type.
A change in income may be a loss of income or the addition of a new source of income. Changing to a
different employer in the prior year does not necessarily constitute a change if the income earned from
either employer is substantially the same. The PHA should look at the entirety of the family’s unearned
income and earned income from the prior year in which earned income may have been one constant job
or many different jobs that start and stop.
Cost of Living Adjustments (COLA) to Social Security income and Social Security disability income are
always considered changes to income because the COLA is an adjustment that automatically occurs
annually by law. See Chapter 6 for PHA policies on when the COLA is applied and Chapter 7 on
streamlined determination of income for inflationary adjustments.
Notice PIH 2023-27 lists the following steps to calculate both earned and unearned income at annual
reexamination.
Step 1: The PHA determines annual income for the previous 12-month period by reviewing the following
information:
•
The EIV Income Report pulled within 120 days of the effective date of the annual reexamination;
•
The income reported on the most recent HUD-50058; and
•
The amount of prior-year income reported by the family on the PHA’s annual reexamination
paperwork.
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Step 2: The PHA takes into consideration any interim reexamination of family income completed since
the last annual reexamination.
•
If there was an interim reexamination performed within the last reexamination cycle and there are no
additional changes, the PHA must use the annual income from the interim to determine the family’s
total annual income. The PHA may use verification obtained from the interim for this step.
•
If the PHA did not perform an interim or there have been changes since the last reexamination, the
PHA moves to Step 3.
Step 3: If there were changes in annual income not processed by the PHA since the last reexamination,
the PHA must use current income. The family will be required to report their income for the prior year
and whether there have been permanent changes.
If there are no reported changes to an income source, the PHA may use documentation of prior-year
income to calculate the annual income. For example, the PHA may use the following documentation:
•
EIV + self-certification (wages, Supplemental Security Income (SSI), Social Security, and
unemployment)
•
Current written third-party verification from the source verifying prior-year income that is dated
within 120 days of receipt by the PHA, for example:
-
Year-end statements
-
Paystub with year-to-date amounts
-
Tax forms (Form 1040, W2, 1099, etc.)
If there are reported changes by the family or the PHA notes discrepancies between EIV and what the
family reports, the PHA must follow the verification hierarchy (described in Chapter 7) to document and
verify income. Exhibit 9-1 provides detailed examples of how the PHA calculates income from different
sources at annual reexamination using the above method.
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9-I.E. OTHER CONSIDERATIONS
Change in Unit Size
Changes in family or household composition may make it appropriate to consider transferring the family
to comply with occupancy standards. The PHA may use the results of the annual reexamination to
require the family to move to an appropriate size unit [24 CFR §960.257(a)(4)]. Policies related to such
transfers are located in Chapter 12.
Criminal Background Checks
Information obtained through criminal background checks may be used for lease enforcement and
eviction [24 CFR 5.903(e)(1)(ii)]. Criminal background checks of residents will be conducted in accordance
with the policy in Section 13-IV.B.
PHA Policy
Each household member age 18 and over will be required to execute a consent form for a criminal
background check as part of the annual reexamination process.
Additionally, HUD recommends that at annual reexaminations PHAs ask whether the tenant, or any
member of the tenant’s household, is subject to a lifetime sex offender registration requirement in any
state [Notice PIH 2012-28].
PHA Policy
At the annual reexamination, the PHA will ask whether the tenant, or any member of the tenant’s
household, is subject to a lifetime sex offender registration requirement in any state. The PHA will
perform criminal background checks through local law enforcement and will use the Dru Sjodin
National Sex Offender database to verify the information provided by the tenant.
If the PHA proposes to terminate assistance based on lifetime sex offender registration information, the
PHA must notify the household of the proposed action and must provide the subject of the record and
the tenant a copy of the record and an opportunity to dispute the accuracy and relevance of the
information prior to termination. [24 CFR 5.903(f) and 5.905(d)]. (See Chapter 13.)
Compliance with Community Service
For families who include nonexempt individuals, the PHA must determine compliance with community
service requirements once each 12 months [24 CFR §960.257(a)(3)].
See Chapter 11 for the PHA’s policies governing compliance with the community service requirement.
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9-I.F. EFFECTIVE DATES
As part of the annual reexamination process, the PHA must make appropriate adjustments in the rent
after consultation with the family and upon verification of the information [24 CFR 960.257(a)(1)].
PHA Policy
In general, an increase in the tenant rent that results from an annual reexamination will take effect
on the family’s anniversary date, and the family will be notified at least 30 days in advance.
−
If less than 30 days remain before the scheduled effective date, the increase will take effect
on the first of the month following the end of the 30-day notice period.
−
If the PHA chooses to schedule an annual reexamination for completion prior to the
family’s anniversary date for administrative purposes, the effective date will be determined
by the PHA, but will always allow for the 30-day notice period.
−
If the family causes a delay in processing the annual reexamination, increases in the tenant
rent will be applied retroactively to the scheduled effective date of the annual
reexamination. The family will be responsible for any underpaid rent and may be offered a
repayment agreement in accordance with the policies in Chapter 16.
In general, a decrease in the tenant rent that results from an annual reexamination will take effect
on the family’s anniversary date:
-If a family moves to a new unit the decrease will take effect on the effective date of the
new lease.
−
If the PHA chooses to schedule an annual reexamination for completion prior to the
family’s anniversary date for administrative purposes, the effective date will be determined
by the PHA.
−
If the family causes a delay in processing the annual reexamination, decreases in the tenant
rent will be applied prospectively, from the first day of the month following completion of
the reexamination processing.
Delays in reexamination processing are considered to be caused by the family if the family fails to
provide information requested by the PHA by the date specified, and this delay prevents the PHA
from completing the reexamination as scheduled.
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PART II: REEXAMINATIONS FOR FAMILIES PAYING FLAT RENTS
[24 CFR 960.253(f)]
9-II.A. OVERVIEW
HUD requires that the PHA offer all families the choice of paying income-based rent or flat rent at least
annually. The PHA’s policies for offering families a choice of rents are located in Chapter 6.
For families who choose flat rents, the PHA must conduct a reexamination of family composition at least
annually and must conduct a reexamination of family income at least once every 3 years [24 CFR
960.253(f)]. The PHA is only required to provide the amount of income-based rent the family might pay
in those years that the PHA conducts a full reexamination of income and family composition, or upon
request of the family after the family submits updated income information [24 CFR 960.253(e)(2)].
However, these regulations are not applicable to over-income families. Once an over-income
determination is made, the PHA must conduct an interim reexamination at 12 and 24 months, as
applicable, to determine if the family remains over-income [Notice PIH 2023-03].
As it does for families that pay income-based rent, the PHA must also review compliance with the
community service requirement for families with nonexempt individuals.
This part contains the PHA’s policies for conducting reexaminations of families who choose to pay flat
rents.
9-II.B. FULL REEXAMINATION OF FAMILY INCOME AND COMPOSITION
Frequency of Reexamination
PHA Policy
For families paying flat rents, the PHA will conduct a full reexamination of family income and
composition once every three years.
However, for flat rent families who become over-income, this policy will not apply. The PHA will
instead conduct an interim reexamination at 12 and 24 months following the initial over-income
determination as needed to verify the family remains over-income. The family will continue to be
given a choice between income-based and flat rent at each annual reexamination during the over-
income grace period.
If the family is subsequently determined to no longer be over-income:
If the determination is the result of an annual reexamination, the family will be given a
choice between income-based or flat rent at reexam. If the family selects flat rent, the PHA
will resume reexamination of family income and composition once every three years.
If determination is as a result of an interim reexamination, the PHA will conduct an annual
reexamination for the family at their next scheduled annual date. If the family selects flat
rent, the PHA will resume reexamination of family income and composition once every
three years. Families will only be given the choice between income-based and flat rent at
annual reexamination.
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Reexamination Policies
PHA Policy
In conducting full reexaminations for families paying flat rents, the PHA will follow the policies
used for the annual reexamination of families paying income-based rent as set forth in Sections 9-
I.B through 9-I.E above.
9-II.C. REEXAMINATION OF FAMILY COMPOSITION (“ANNUAL UPDATE”)
As noted above, full reexaminations are conducted every 3 years for families paying flat rents. In the
years between full reexaminations, regulations require the PHA to conduct a reexamination of family
composition (“annual update”) [24 CFR 960.257(a)(2)]. Over-income families who select the flat rent are
not subject to annual update as their income must be reviewed, and an interim reexamination
conducted, at 12 and 24 months as applicable.
The annual update process is similar to the annual reexamination process, except that the PHA does not
collect information about the family’s income and expenses, and the family’s rent is not recalculated
following an annual update.
Scheduling
The PHA must establish a policy to ensure that the reexamination of family composition for families
choosing to pay the flat rent is completed at least annually [24 CFR 960.257(a)(2)].
PHA Policy
For families paying flat rents, annual updates will be conducted in each of the 2 years following
the full reexamination.
In scheduling the annual update, the PHA will follow the policy used for scheduling the annual
reexamination of families paying income-based rent as set forth in Section 9-I.B. above.
Conducting Annual Updates
The terms of the public housing lease require the family to furnish information necessary for the
redetermination of rent and family composition [24 CFR 966.4(c)(2)].
PHA Policy
Generally, the family will not be required to attend an interview for an annual update.
However, if the PHA determines that an interview is warranted, the family may be required to
attend.
Notification of the annual update will be sent by first-class mail and will inform the family of the
information and documentation that must be provided to the PHA. The family will have 10
business days to submit the required information to the PHA. If the family is unable to obtain the
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information or documents within the required time frame, the family may request an extension.
The PHA will accept required documentation by mail, by email, by fax, or in person.
If the family’s submission is incomplete, or the family does not submit the information in the
required time frame, the PHA will send a second written notice to the family. The family will have
10 business days from the date of the second notice to provide the missing information or
documentation to the PHA.
If the family does not provide the required documents or information within the required time
frame (plus any extensions), the family will be in violation of their lease and may be terminated in
accordance with the policies in Chapter 13.
Change in Unit Size
Changes in family or household composition may make it appropriate to consider transferring the family
to comply with occupancy standards. The PHA may use the results of the annual update to require the
family to move to an appropriate size unit [24 CFR 960.257(a)(4)]. Policies related to such transfers are
located in Chapter 12.
Criminal Background Checks
Information obtained through criminal background checks may be used for lease enforcement and
eviction [24 CFR 5.903(e)]. Criminal background checks of residents will be conducted in accordance with
the policy in Section 13-IV.B.
PHA Policy
Each household member age 18 and over will be required to execute a consent form for criminal
background check as part of the annual update process.
The PHA will perform criminal background checks through local law enforcement and use the Dru
Sjodin National Sex Offender database for all adult household members.
If the recertification screening reveals that the tenant has falsified information or otherwise failed
to disclose criminal history on his/her full application and/or recertification forms, the PHA will
pursue termination of assistance, as described in Chapter 13, Mandatory Termination of
Assistance.
Compliance with Community Service
For families who include nonexempt individuals, the PHA must determine compliance with community
service requirements once each 12 months [24 CFR 960.257(a)(3)].
See Chapter 11 for the PHA’s policies governing compliance with the community service requirement.
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PART III: INTERIM REEXAMINATIONS
[24 CFR 960.257(b); 24 CFR 966.4; and Notice PIH 2023-27]
9-III.A. OVERVIEW
Family circumstances may change during the period between annual reexaminations. HUD and PHA
policies define the types of information about changes in family circumstances that must be reported,
and under what circumstances the PHA must process interim reexaminations to reflect those changes.
A family may request an interim determination of family income or composition because of any changes
since the last determination. The PHA must conduct any interim reexamination within a reasonable
period of time after the family request or when the PHA becomes aware of a change in the family’s
adjusted income that must be processed in accordance with HUD regulations. What qualifies as a
“reasonable time” may vary based on the amount of time it takes to verify information, but the PHA
generally should conduct the interim reexamination not longer than 30 days after the PHA becomes
aware of changes in income.
Notice PIH 2023-27 changes the conditions under which interim reexaminations must be conducted,
codifies when interim reexaminations should be processed and made effective, and requires related
changes for annual reexaminations and streamlined income determinations. When the PHA determines
that an interim reexamination of income is necessary, they must ask the family to report changes in all
aspects of adjusted income.
9-III.B. CHANGES IN FAMILY AND HOUSEHOLD COMPOSITION
Reporting
PHAs must require families to report household composition changes; however, PHAs determine the
timeframe in which reporting happens [Notice PIH 2023-27]. The PHA must adopt policies prescribing
when and under what conditions the family must report changes in family composition [24 CFR
960.257(b)(5)].
Changes in family or household composition may make it appropriate to consider transferring the family
to comply with occupancy standards. Policies related to such transfers are located in Chapter 12.
PHA Policy
All families, those paying income-based rent as well as flat rent, must report all changes in family
and household composition that occur between annual reexaminations (or annual updates) within
ten (10) business days of the change (e.g., If the resident or any member of the family is employed,
the start date of employment would start the count of 10 business days).
The changes must be submitted in writing on a Change Report form.
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New Family Members Not Requiring Approval
The addition of a family member as a result of birth, adoption, or court-awarded custody does not
require PHA approval. However, the family is required to promptly notify the PHA of the addition [24 CFR
966.4(a)(1)(v)].
PHA Policy
The family must inform the PHA in writing of the birth, adoption, or court-awarded custody of a
child within ten (10) business days.
New Family and Household Members Requiring Approval
With the exception of children who join the family as a result of birth, adoption, or court-awarded
custody, a family must request PHA approval to add a new family member [24 CFR 966.4(a)(1)(v)] or other
household member (live-in aide or foster child) [24 CFR 966.4(d)(3)].
The PHA may adopt reasonable policies concerning residence by a foster child or a live-in aide and
defining the circumstances in which PHA consent will be given or denied. Under such policies, the factors
considered by the PHA may include [24 CFR 966.4(d)(3)(i)]:
•
Whether the addition of a new occupant may necessitate a transfer of the family to another unit,
and whether such units are available.
•
The PHA’s obligation to make reasonable accommodation for persons with disabilities.
PHA Policy
Families must request PHA approval to add a new family member (other than due to birth,
adoption, or court-awarded custody), live-in aide, foster child, or foster adult. This includes any
person not on the lease who is expected to stay in the unit for more than 14 consecutive days or a
total of 30 cumulative calendar days during any 12-month period, and therefore no longer
qualifies as a “guest.” Requests must be made in writing and approved by the PHA prior to the
individual moving into the unit. If adding a person to a household (other than a child by birth,
adoption, or court-awarded custody) will require a transfer to a larger size unit (under the transfer
policy in Chapter 12), the PHA will approve the addition only if the family can demonstrate that
there are medical needs or other extenuating circumstances, including reasonable
accommodation, that should be considered by the PHA. Exceptions will be made on a case-by-case
basis.
The PHA will not approve the addition of a new family or household member unless the individual
meets the PHA’s eligibility criteria (see Chapter 3) and documentation requirements (See Chapter
7, Part II).
If the PHA determines that an individual does not meet the PHA’s eligibility criteria or
documentation requirements, the PHA will notify the family in writing of its decision to deny
approval of the new family or household member and the reasons for the denial.
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The PHA will make its determination within 10 business days of receiving all information required
to verify the individual’s eligibility.
Departure of a Family or Household Member
The family must promptly notify the PHA if any household member (including a live-in aide, foster child,
or foster adult) no longer lives in the unit. The PHA must process an interim for all decreases in adjusted
income when a family member permanently moves out of the unit.
PHA Policy
If a household member ceases to reside in the unit, the family must inform the PHA within 10
business days. This requirement also applies to family members who had been considered
temporarily absent, who are now permanently absent.
The PHA will process an interim if the family’s adjusted income will decrease as a result of a family
member permanently moving out of the unit.
Documentation of the household members new address will be required to remove the individual
from the household.
9-III.C. CHANGES AFFECTING INCOME OR EXPENSES
PHA Policy
This section only applies to families paying income-based rent. Families paying flat rent are not
required to report changes in income or expenses.
Interim reexaminations for changes in income or expenses may be scheduled either because the PHA
has reason to believe that changes in income or expenses may have occurred, or because the family
reports a change.
The PHA must estimate the income of the family for the upcoming 12-month period to determine family
income for an interim reexamination [24 CFR 5.609(c)(1)]. Policies for projecting income are found in
Chapter 6.
Interim Decreases [24 CFR 960.257(b)(2) and Notice PIH 2023-27]
A family may request an interim determination of family income for any change since the last
determination. However, the PHA may decline to conduct an interim reexamination if the PHA estimates
the family’s adjusted income will decrease by an amount that is less than 10 percent of the family’s
adjusted income. The PHA may set a lower threshold in PHA policy such as performing an interim for any
decreases in adjusted income, although HUD prohibits the PHA from setting a dollar-figure threshold.
However, while the PHA has some discretion, HUD requires that the PHA perform an interim
reexamination for a decrease in adjusted income of any amount in two circumstances:
•
When there is a decrease in family size attributed to the death of a family member; or
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•
When a family member permanently moves out of the assisted unit during the period since the
family’s last reexamination.
In the above circumstances, the PHA must perform an interim reexamination for any decrease in
adjusted income.
If the net effect of the changes in adjusted income due to a decrease in family size results in no change or
an increase in annual adjusted income, then PHA must process the removal of the household member(s)
as a non-interim reexamination transaction without making changes to the family’s annual adjusted
income.
PHA Policy
The PHA will conduct an interim reexamination any time the family’s adjusted income has
decreased by 5 percent or more.
Interim Increases [24 CFR 960.257(b)(3) and Notice PIH 2023-27]
Increases Less than 10 Percent
PHAs must not process interim reexaminations for income increases that result in less than a 10 percent
increase in annual adjusted income.
Increases 10 Percent or Greater
PHAs must conduct an interim reexamination of family income when the PHA becomes aware that the
family’s adjusted income has changed by an amount that the PHA estimates will result in an increase of
10 percent or more in adjusted income, with the following exceptions:
•
PHAs may not consider any increases in earned income when estimating or calculating whether the
family’s adjusted income has increased, unless the family has previously received an interim
reduction during the same reexamination cycle; and
•
PHAs may choose not to conduct an interim reexamination during the last three months of a
certification period if a family reports an increase in income within three months of the next annual
reexamination effective date.
When the family previously received an interim reexamination for a decrease to adjusted income during
the same annual reexamination cycle, a PHA has the discretion whether to consider a subsequent
increase in earned income.
PHA Policy
When a family reports an increase in their earned income between annual reexaminations, the
PHA will conduct an interim reexamination when the family’s adjusted income has increased by 10
percent or more.
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When the family previously received an interim reexamination resulting in a decrease to annual
adjusted income since the families last annual reexamination, the PHA will process the increase in
earned income when the 10 percent threshold has been met.
The PHA will process an interim reexamination for any increases in unearned income of 10
percent or more in adjusted income.
The PHA will not perform an interim reexamination when a family reports an increase in income
(whether earned or unearned income) within three months of their annual reexamination
effective date. However, families who delay reporting income increases until the last three months
of their certification period may be subject to retroactive rent increases in accordance with the
PHA policies in Chapter 15.
Concurrent Increases in Earned and Unearned Income [Notice PIH 2023-27]
When the family reports an increase in both earned and unearned income at the same time, the PHA
must look at the earned and unearned income changes independently of each other to determine if an
interim reexamination is performed. The PHA will only conduct an interim reexamination when the
increase independently meets the 10 percent threshold and all other requirements for performing
interim reexaminations. For example, if a family reported increases in both earned and unearned income
that overall resulted in a 12 percent increase in their adjusted income, but the change in earned income
represented a 7 percent increase and the change in unearned income represented a 5 percent increase,
the PHA may not perform an interim for either change since neither change meets the 10 percent
threshold amount independently. If the change in unearned income met the 10 percent threshold in this
case, the PHA would be required to perform an interim. If the change in earned income met the 10
percent threshold in this case, the PHA would refer to PHA policy to determine whether an interim was
required.
Cumulative Increases [Notice PIH 2023-27]
A series of smaller reported increases in adjusted income may cumulatively meet or exceed the 10-
percent increase threshold, at which point the PHA must conduct an interim reexamination in
accordance with PHA policy.
Public Housing Over-Income Families [24 CFR 960.507(c); Notice PIH 2020-3; and Notice PIH 2023-27]
Regardless of changes in adjusted income, in some circumstances the PHA is required to conduct an
interim reexamination to determine whether a family’s income continues to exceed the public housing
over-income limit. PHAs are required to conduct income examinations of public housing families who
have been determined to exceed the over-income limit at specific intervals. When a PHA makes an initial
determination that a family is over-income during an interim reexamination, the PHA must conduct a
second interim reexamination 12 months after the over-income determination, and then again 12
months after the second over-income determination, unless the family’s income falls below the over-
income limit during the 24-month period. This continued evaluation of the family’s over-income status
requires the PHA to notify any family that exceeds the over-income limit that they remain over the
income limit, even if the family is paying the flat rent [24 CFR 960.253]. An interim income reexamination
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to determine if a public housing family remains over-income does not reset the family’s normal annual
reexamination date.
Family Reporting
The PHA must adopt policies consistent with HUD regulations prescribing when and under what
conditions the family must report a change in family income or composition [24 CFR 960.257(b)(5)].
PHA policy may require families to report only changes that the family estimates meet the threshold for
an interim reexamination or the PHA may establish policies requiring that families report all changes in
income and household composition, and the PHA will subsequently determine if the change requires an
interim reexamination [Notice PIH 2023-27].
When the PHA determines that an interim reexamination of income is necessary, they must ask the
family to report changes in all aspects of adjusted income. For example, if the family is reporting a
decrease in adjusted income that is more than 10 percent, but the family also had a change in assets that
would result in a change in income, the change in assets must also be reviewed [Notice PIH 2023-27].
PHA Policy
The family will be required to report all changes in income regardless of the amount of the
change, whether the change is to earned or unearned income, or if the change occurred during
the last three months of the certification period. Families must report changes in income within 10
business days of the date the change takes effect. The family must notify the PHA of changes in
writing, including an email on the Change Report form. If the family provides oral notice, the PHA
will require the family to submit the changes in writing, including email on the Change Report
form.
When the Change Report is received by the PHA, the family must submit any required information
or documents within 10 business days of receiving a request from the PHA. This time frame may
be extended for good cause with PHA approval. The PHA will accept required documentation by
mail, email, or in person. Upon full verification of the change, the PHA will determine whether the
change will require an interim reexamination.
If the change will not result in an interim reexamination, the PHA will note the information
in the tenant file but will not conduct an interim reexamination. The PHA will send the
family written notification (which may be emailed) within 10 business days of making this
determination informing the family that the PHA will not conduct an interim reexamination.
If the change will result in an interim reexamination, the PHA will follow the interim policies
address in Chapter 9. The PHA will conduct the interim within a reasonable time period
based on the amount of time it takes to verify the information.
Generally, the family will not be required to attend an interview for an interim reexamination.
However, if the PHA determines that an interview is warranted, the family may be required to
attend.
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9-III.D. EFFECTIVE DATES
Changes Reported Timely [24 CFR 960.257(b)(6) and Notice PIH 2023-27]
If the family reports a change in family income or composition timely in accordance with PHA policies:
•
For rent increases, the PHA must provide the family with 30 days advance written notice. The rent
increase is effective the first of the month after the end of that 30-day notice period.
•
Rent decreases are effective on the first of the month after the date of the actual change leading to
the interim reexamination of family income. This means the decrease will be applied retroactively.
Changes Not Reported Timely [24 CFR 960.257(b)(6)(ii) and (iii) and Notice PIH 2023-27]
If the family failed to report a change in family income or composition timely in accordance with PHA
policies:
•
For rent increases, the PHA must implement any resulting rent increases retroactively to the first of
the month following the date of the change leading to the interim reexamination of family income.
•
For rent decreases, the PHA must implement the change no later than the first rent period following
completion of the interim reexamination.
However, the PHA may choose to adopt a policy that would make the effective date of the rent decrease
retroactive to the first of the month following completion of the reexamination. PHAs may choose to
establish conditions or requirements for when such a retroactive application would apply. PHAs that
choose to adopt such policies must ensure the earliest date that the retroactive decrease is applied is the
later of:
•
The first of the month following the date of the change that led to the interim reexamination; or
•
The first of the month following the most recent previous income examination.
In applying a retroactive change in rent as the result of an interim reexamination, the PHA must clearly
communicate the effect of the retroactive adjustment to the family so that there is no confusion over the
amount of the rent that is the family’s responsibility.
PHA Policy
In general, when the family fails to report a change in income or family composition timely, and
the change would lead to a rent decrease, the PHA will apply the decrease the first of the month
following completion of the interim reexamination, which includes receipt of the Change Report
Form and all required documentation
The PHA will decide to apply decreases retroactively on a case-by-case basis. When the PHA
applies the results of interim decreases retroactively, the PHA will clearly communicate the effect
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of the retroactive adjustment to the family and may enter into a repayment agreement in
accordance with PHA policies.
PART IV: RECALCULATING TENANT RENT
9-IV.A. OVERVIEW
For those families paying income-based rent, the PHA must recalculate the rent amount based on the
income information received during the reexamination process and notify the family of the changes [24
CFR 966.4, §960.257]. While the basic policies that govern these calculations are provided in Chapter 6,
this part lays out policies that affect these calculations during a reexamination.
9-IV.B. CHANGES IN UTILITY ALLOWANCES [24 CFR 965.507, 24 CFR 966.4]
The tenant rent calculations must reflect any changes in the PHA’s utility allowance schedule [24 CFR
960.253(c)(3)]. Chapter 16 discusses how utility allowance schedules are established.
PHA Policy
Unless the PHA is required to revise utility allowances retroactively, revised utility allowances will
be applied to a family’s rent calculations at the first annual reexamination after the allowance is
adopted.
9-IV.C. NOTIFICATION OF NEW TENANT RENT
The public housing lease requires the PHA to give the tenant written notice stating any change in the
amount of tenant rent, and when the change is effective [24 CFR 966.4(b)(1)(ii)].
When the PHA redetermines the amount of rent (Total Tenant Payment or Tenant Rent) payable by the
tenant, not including determination of the PHA’s schedule of Utility Allowances for families in the PHA’s
Public Housing Program, or determines that the tenant must transfer to another unit based on family
composition, the PHA must notify the tenant that the tenant may ask for an explanation stating the
specific grounds of the PHA determination, and that if the tenant does not agree with the determination,
the tenant shall have the right to request a hearing under the PHA’s grievance procedure [24 CFR
966.4(c)(4)].
9-IV.D. DISCREPANCIES
During an annual or interim reexamination, the PHA may discover that information previously reported
by the family was in error, or that the family intentionally misrepresented information. In addition, the
PHA may discover errors made by the PHA. When errors resulting in the overpayment or underpayment
of rent are discovered, corrections will be made in accordance with the policies in Chapter 15.
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PART V: NON-INTERIM REEXAMINATION TRANSACTIONS
Notice PIH 2023-27
Families may experience changes within the household that do not trigger an interim reexamination
under PHA policy and HUD regulations but which HUD still requires the PHA to report via Form HUD-
50058. These are known as non-interim reexamination transactions. In these cases, PHAs will submit a
separate, new action code on Form HUD-50058. The following is a list of non-interim reexamination
transactions:
•
Adding or removing a hardship exemption for the child care expense deduction;
•
Updating or removing the phased-in hardship relief for the health and medical care expense
deduction and/or reasonable attendant care and auxiliary apparatus expense deduction (families will
begin receiving a 24-month phased-in relief at their next annual or interim reexamination, whichever
occurs first)
•
Adding or removing general hardship relief for the health and medical care expense deduction and/or
reasonable attendant care and auxiliary apparatus expense deduction;
•
Adding or removing a minimum rent hardship;
•
Adding or removing a non-family member (i.e., live-in aide, foster child, foster adult);
•
Ending a family’s EID or excluding 50 percent (decreased from 100 percent) of a family member’s
increase in employment income at the start of the second 12-month EID period.
•
Adding a family member and the increase in adjusted income does not trigger an interim
reexamination under the final rule;
•
Removing a family member and the increase in adjusted income does not trigger an interim
reexamination under the final rule;
•
Adding/updating a family or household member’s Social Security number; and
•
Updating a family member’s citizenship status from eligible to ineligible or vice versa, resulting in a
change to the family’s rent and/or utility reimbursement, if applicable (i.e., family begins receiving
prorated assistance or previously prorated assistance becomes full assistance), or updating the
prorated rent calculation due to the addition or removal of family members in household with an
ineligible noncitizen(s).
PHAs must make all other changes to assets, income, and deductions at the next annual or interim
reexamination of income, whichever is sooner.
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EXHIBIT 9-1: CALCULATING INCOME AT ANNUAL REEXAMINATION
Example 1: Calculating Annual Income at Annual Reexamination Using EIV
Staff are processing the 3/1/2024 annual reexamination for Ruby Myers and her minor
daughter, Georgia. No interim reexaminations have been processed, and Ruby has not
reported any changes to annual income to the PHA since the 3/1/2023 annual
reexamination. The SSA-published 2024 COLA is 7 percent.
Last reexamination – 3/1/2023 Annual Reexamination
Ruby:
Wages: $30,000
Georgia:
SSI: $10,980 ($915 monthly)
The EIV report pulled on 12/15/2023
Ruby:
Georgia:
Wages Total: $33,651
SSI Total: $10,980
Quarter 3 of 2023: $8,859 (City Public School)
2023 benefit $915 monthly
Quarter 2 of 2023: $8,616 (City Public School)
Quarter 1 of 2023: $8,823 (City Public School)
Quarter 4 of 2022: $7,353 (City Public School)
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Income Reported on Reexamination Application
Ruby:
Wages at City Public School: $32,000
(switched jobs but no permanent change to
amount)
Georgia:
SSI benefits: $10,980 (no changes)
Calculating Ruby’s wages:
Step 1: Determine prior annual income from
EIV (i.e., Q4 2022 through Q3 of 2023:
$33,651).
Step 2: Take into consideration any interim
reexamination of family income completed
since the last annual reexamination (in this
case, there have been no interim
reexaminations processed since the last
annual reexamination).
Step 3: Ruby certifies that the $33,651 of
wages in EIV is accurate and reflects her
current annual income, so the PHA will use
$33,651 for annual wages for the 3/1/2024
annual reexamination given there have
been no additional changes to annual
income.
Calculating Georgia’s SSI benefit:
Step 1: Determine the prior annual income
from EIV (i.e., $915 x 12 months: $10,980).
Step 2: Take into consideration any interim
reexamination of family income completed
since the last annual reexamination (in this
case, there have been no interim
reexaminations processed since the last
annual reexamination).
Step 3: Ruby certifies the SSI income in EIV is
accurate and reflects Georgia’s current
annual income. The PHA must adjust the
prior-year income (2023 SSI benefit) by the
7- percent COLA and will use this amount to
calculate annual SSI income for the 3/1/2024
annual reexamination:
COLA: $64.05 ($915 x 0.07)
New gross SSI benefit: $11,748.60 ($979.05 x
12 months)
If Ruby did not agree with the annual wages
reported in EIV, the PHA/MFH Owner would
be required to verify her current income in
accordance with HUD’s verification
hierarchy.
Summary of Annual Income (as reported on the HUD-50058)
Ruby (Head of Household):
Other Wage: $33,651
Myers Family Total Annual Income: $45,399
Georgia (Other Youth Under 18):
SSI: $11,748
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Example 2: Calculating Annual Income at Annual Reexamination Using EIV:
Family Disagrees with EIV
Staff are processing Paul Hewson’s 5/1/2024 annual reexamination. Since the last annual
reexamination, Paul reported a decrease in annual income that exceeded 10 percent. Last
year, Paul reported a decrease in earned income because he transferred from a full-time
job at Sasha’s Sweets to a part-time job at Viking Bakery. Following HUD’s EIV verification
hierarchy, staff confirmed Paul was no longer employed at Sasha’s Sweets and decreased
his anticipated annual income from $28,000 to $7,500 resulting from his new part-time
employment at Viking Bakery; an interim reexamination was processed effective 7/1/2023.
After the 7/1/2023 interim, Paul worked briefly at two different jobs, but he says he is no
longer working and is not planning to work.
5/1/2023 Annual Reexamination
Wages: $28,000
The EIV report pulled on 1/15/2024
Wages Total: $18,271
Quarter 3 of 2023: $2,500 (Viking Bakery)
Quarter 3 of 2023: $796 (Sweet Tooth Candy
Bar)
Quarter 2 of 2023: $1,300 (Sasha’s Sweets)
Quarter 2 of 2023: $584 (Larry’s Concessions)
Quarter 2 of 2023: $2,401 (Viking Bakery)
Quarter 1 of 2023: $6,500 (Sasha’s Sweets)
Quarter 4 of 2022: $600 (Sasha’s Sweets)
SS/SSI: No history of benefits
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Income Reported on Reexamination Application
Wages: $0 (permanent change; no longer receiving)
Social Security: $14,400 ($1,200 monthly)
Paul certified on the PHA’s annual reexamination paperwork that he does not agree with
the annual wages of $18,271 reported in EIV and it is not reflective of his current
anticipated annual income. He reported he is currently unemployed, and provided a copy
of an award letter from the Social Security Administration to document that he will begin
receiving a monthly disability benefit of $1,200 effective 3/1/2024.
Calculating Wages and SS Benefit
Step 1: Determine prior annual income taking into consideration the 8/1/2023 interim
reexamination (i.e., EIV wages reflected Q4 2022 through Q3 2023: $18,271)
Step 2: Take into consideration any interim reexamination of family income completed
since the last annual reexamination. In this case, there was a 7/1/2023 interim that reduced
wages to $7,500.
Step 3: Obtain documentation to verify current income and confirm Paul is no longer
employed at Viking Bakery or The Sweet Tooth Candy Bar (the employers reported in the
most recent quarter of EIV). This step is necessary, because Paul did not agree with the EIV
income report or income reported on the last interim reexamination. Paul reported that he
is no longer working at all.
Process the annual reexamination effective 5/1/2024 using annual SS income of $14,400
and $0 wages.
Summary of Annual Income (as reported on the HUD-50058)
Paul (Head of Household): $14,400 (SS)
Hewson Family Total Annual Income: $14,400
9-49
Example 3: Calculating Annual Income at Annual Reexamination
Staff are processing the 11/1/2024 annual reexamination for Samantha and Fergus Pool,
head of household and spouse. On 2/14/2024 Samantha reported her monthly child
support payment was reduced from $200 to $100 per month, but an interim reexamination
was not processed because the reduction in child support income for Samantha’s
daughter, Hailey, did not result in a decrease of 10 percent or more in annual adjusted
income, and the PHA did not establish a lower threshold. Samantha did not report any
additional changes to the PHA.
Last reexamination – 11/1/2023 Annual Reexamination
Samantha:
Business income: $28,000
VA disability pension: $12,000
Child support: $2,400
Fergus:
Wages: $8,250
Other non-wage income: $3,000 (Go Fund
Me online fundraiser)
The EIV report pulled on 9/16/2024
Samantha:
Fergus:
Wages Total: $0 (no wage data reported
since Q1 2023)
Wages Total: $8,600
Quarter 1 of 2024: $2,100 (Ian’s Fish ‘n’ Chips)
Quarter 1 of 2024: $500 (Claire’s Healthcare
Supplies)
Quarter 4 of 2023: $1,000 (Claire’s Healthcare
Supplies)
Quarter 3 of 2023: $1,800 (The Onion Garden
Shop)
Quarter 2 of 2023: $3,200 (Ivar’s Fish Haus)
9-50
Calculating Samantha’s Net Business Income
Step 1: Determine prior annual net business income (i.e., $28,000 on last HUD–50058.
Step 2: Take into consideration any interim reexamination of family income completed since the last
annual reexamination. In this case, there have been no interim reexaminations processed since the
last annual reexamination.
Step 3: Adjust to reflect current net business income. Samantha reported on the annual
reexamination application that business income permanently decreased to $18,000. The PHA must
obtain supporting documentation from Samantha that demonstrates current net business income.
Samantha provided documentation that supported the current annual net business income is
$18,000. Process the annual reexamination effective 11/1/2024 using annual net business income
determined in Step 3.
Calculating Samantha’s VA Pension Income
Step 1: Determine prior annual VA pension income (i.e., $12,000 supported by a VA award letter
Samantha supplied that documents the prior year monthly VA pension was $1,000).
Step 2: Take into consideration any interim reexamination of family income completed since the last
annual reexamination. In this case, there have been no interim reexaminations processed since the
last annual reexamination.
Step 3: The PHA needs to adjust to reflect current VA pension income. Samantha supplies a VA
award letter showing a monthly pension of $1,025, or $12,300 annually. Process the annual
reexamination effective 11/1/2024 using annual VA pension income determined in Step 3 ($12,300 in
this example).
Current Family Circumstances: Income Reported on Reexamination Application
Samantha and Fergus reported how much income was earned/received in the previous 12-month
period and noted permanent changes, where applicable, for each source of their income on PHA’s
annual reexamination form. However, no information was reported by the family concerning
other non-wage income. Fergus reported only wages and his current employment at Ian’s Fish ‘n’
Chips for the annual reexamination. The family supplied the supporting documentation noted
below to the PHA for the 11/1/2024 annual reexamination.
Samantha:
Business income: $28,750 (last year); has
decreased to $18,000 (permanent change)
VA disability benefit: $12,000 (last year); has
increased to $12,300 (permanent change)
Child support: $2,400 (last year); has decreased
to $1,200 (permanent change)
Fergus:
Wages: $6,000
9-51
Calculating Samantha’s Child Support Income
Step 1: Determine prior annual child support income (i.e., $2,400 on the last HUD–50058).
Step 2: Take into consideration any interim reexamination of family income completed since the last
annual reexamination. In this case, there have been no interim reexaminations processed since the
last annual reexamination. The family reported a decrease from $200 to $100 monthly, but the
change was not processed because it did not meet the threshold.
Step 3: The family reported changes, so the PHA must adjust to reflect current child support income.
In this example, the family submitted a child support history report from the local child support
office that documents regular $100 monthly child supports payments beginning 3/1/2024 through
the current month. Process the annual reexamination effective 11/1/2024 using current annual child
support income determined in Step 3 ($1,200 in this example).
Calculating Fergus’ Wages
Step 1: Determine prior annual income from wages in EIV (i.e., Q2 2023 through Q1 of 2024: $8,600).
Step 2: Take into consideration any interim reexamination of family income completed since the last
annual reexamination. In this case, there have been no interim reexaminations processed since the
last annual reexamination.
Step 3: There is a discrepancy between what the family reported and EIV, so the PHA must verify and
adjust to reflect current annual income from wages. Fergus reported $6,000 in annual income from
wages on the annual reexamination from a single employer, Ian’s Fish ‘n’ Chips. The PHA projected
annual income of $7,800 based on the two paystubs for this employer, and EIV shows $8,600 earned
in the most recent four quarters in EIV. To complete Step 3, the PHA must do the following:
•
Resolve the discrepancy between EIV wages, the $6,000 annual income Fergus reported, and the
$7,800 projected based on the paystubs he provided, and
•
Verify he is no longer employed at Claire’s Healthcare Supplies in accordance with HUD’s
verification hierarchy and local policies.
The PHA determined that Fergus reported his net vs. gross annual income from wages, which he
corrected on the annual reexamination form to reflect his current gross annual income of $9,000.
The PHA verified Fergus was no longer employed at Claire’s Healthcare Supplies and obtained two
additional paystubs. Based on four current and consecutive paystubs, Fergus is now projected to
earn $9,360 annually. Process the annual reexamination effective 11/1/2024 using income from
wages determined in Step 3 ($9,360 in this example).
9-52
Calculating Fergus’ Other Non-Wage Income
Step 1: Determine prior annual income from other non-wage income (i.e., $3,000
on the last HUD– 50058).
Step 2: Take into consideration any interim reexamination of family income
completed since the last annual reexamination. In this case, there have been no
interim reexaminations processed since the last annual reexamination.
Step 3: The family did not report any non-wage income on the annual
reexamination form, but it was included on the last HUD–50058. The PHA must
verify and adjust to reflect current non-wage income. The PHA must verify no
income was received through a “Go Fund Me” online fundraiser so that it may be
excluded. Fergus provided a self-certification that he hasn’t solicited funds online
and doesn’t plan to in the following year; he also provided records from the
account that documented no fundraising activity in the prior 12-month period.
Process the annual reexamination effective 11/1/2024 using annual non-wage
income of $0 determined in Step 3.
Summary of Annual Income (as reported on the HUD-50058)
Samantha (Head of Household):
Own business: $18,000
Pension: $12,300
Child support: $1,200
Fergus (Co-head):
Wages: $9,360
Poole Family Total Annual Income: $40,860
10-1
Chapter 10
PETS
[24 CFR §5, Subpart C; 24 CFR §960, Subpart G]
INTRODUCTION
This chapter explains the PHA's policies on the keeping of pets and describes any criteria or standards
pertaining to the policies. The rules adopted are reasonably related to the legitimate interest of the PHA
to provide a decent, safe, and sanitary living environment for all tenants, and to protect and preserve the
physical condition of the property, as well as the financial interest of the PHA.
The chapter is organized as follows:
Part I: Assistance Animals. This part explains the difference between assistance animals,
including service and support animals, and pets and contains policies related to the designation of
an assistance animal as well as their care and handling.
Part II: Pet policies for all developments. This part includes pet policies that are common to
both elderly/disabled developments and general occupancy developments.
Part III: Pet deposits and fees for elderly/disabled developments. This part contains policies
for pet deposits and fees that are applicable to elderly/disabled developments.
Part IV: Pet deposits and fees for general occupancy developments. This part contains policies
for pet deposits and fees that are applicable to general occupancy developments.
10-2
PART I: ASSISTANCE ANIMALS
[Section 504; Fair Housing Act (42 U.S.C.); 24 CFR 5.303; 24 CFR 960.705]
[Notice FHEO 2020-01]
10-I.A. OVERVIEW
This part discusses situations under which permission for an assistance animal, including service and
support animals, may be denied, and also establishes standards for the care of assistance animals.
Notice FHEO 2020-01 was published January 28, 2020. The notice provides guidance to help PHAs and
other housing providers distinguish between a person with a non-obvious disability who has a legitimate
need for an assistance animal and a person without a disability who simply wants to have a pet or avoid
the costs and limitations imposed by the PHA’s pet policies. FHEO 2020-01 makes clear that the notice is
guidance and a tool for PHAs and other housing providers to use at their discretion and provides a set of
best practices for addressing requests for assistance animals. The guidance in FHEO 2020-01 should be
read together with HUD’s regulations prohibiting discrimination under the Fair Housing Act (FHA) and the
HUD/Department of Justice (DOJ) Joint Statement on Reasonable Accommodation under the Fair Housing
Act. Housing providers may also be subject to the Americans with Disabilities Act (ADA) and should
therefore refer also to DOJ’s regulations implementing Titles II and III of the ADA at 28 CFR Parts 35 and
36, in addition to DOJ’s other guidance on assistance animals.
There are two types of assistance animals: (1) service animals, and (2) other animals that do work,
perform tasks, provide assistance, and/or provide therapeutic emotional support for individuals with
disabilities (i.e., support animals).
Assistance animals, including service and support animals, are not pets, and thus, are not subject to the
PHA’s pet policies described in Parts II through IV of this chapter [24 CFR §5.303; §960.705; Notice FHEO
2020-01].
10-I.B. APPROVAL OF ASSISTANCE ANIMALS [NOTICE FHEO 2020-01]
Service Animals
Notice FHEO 2020-01 states that PHAs should initially follow the Department of Justice (DOJ) analysis to
assessing whether an animal is a service animal under the Americans with Disabilities Act (ADA). Under
the ADA, a service animal means any dog that is individually trained to do work or perform tasks for the
benefit of an individual with a disability, including a physical, sensory, psychiatric, intellectual, or other
mental disability. Other species of animals, whether wild or domestic, trained, or untrained, are not
service animals for the purposes of this definition. The work or tasks performed by a service animal must
be directly related to the individual’s disability.
As a best practice, housing providers may use the following questions to help them determine if an
animal is a service animal under the ADA:
•
Is the animal a dog? If not, the animal is not a service animal but may be another type of
assistance animal for which an accommodation is needed (support animal).
10-3
•
Is it readily apparent that the dog is trained to do work or perform tasks for the benefit of the
individual with a disability? If yes, further inquiries are inappropriate because the animal is a
service animal. If not, it is advisable that the PHA limit its inquiries to the following two questions:
(1) Is the animal required because of the disability? and (2) What work or task has the animal been
trained to perform?
If the answer to question (1) is “yes” and work or a task is identified in response to question (2),
grant the requested accommodation if otherwise reasonable. If the answer to either question is
“no,” the animal does not qualify as a service animal but may be a support animal.
A service animal must be permitted in all areas of the facility where members of the public are allowed.
Support Animals (Assistance Animals other than Service Animals)
If the animal does not qualify as a service animal, the PHA must next determine whether the animal
would qualify as a support animal (other type of assistance animal). If the individual has indeed
requested a reasonable accommodation to get or keep an animal in connection with a physical or mental
impairment or disability, the PHA may use the following questions to help them assess whether to grant
the accommodation in accordance with the policies outlined in Chapter 2 (the PHA is not required to
grant a reasonable accommodation that has not been requested):
•
Does the person have an observable disability or does the PHA already have information giving
them reason to believe that the person has a disability? If not, has the person requesting the
accommodation provided information that reasonably supports that the person seeking the
accommodation has a disability?
•
If the person has an observable disability, the PHA already has information giving them reason to
believe the person has a disability, or the person has provided information supporting that they
have a disability, then has the person provided information that reasonably supports that the
animal does work, performs tasks, provides assistance, and/or provides therapeutic emotional
support with respect to the individual’s disability?
•
If yes, is the animal commonly kept in households? An animal commonly kept in households would
be a dog, cat, small bird, rabbit, hamster, gerbil, other rodent, fish, turtle, or other small,
domesticated animal that is traditionally kept in the home for pleasure rather than for commercial
purposes. For purposes of this assessment, reptiles (other than turtles), barnyard animals,
monkeys, kangaroos, and other non-domesticated animals are not considered common
household animals.
If the individual is requesting to keep a unique animal not commonly kept in households, then the
requestor has the substantial burden of demonstrating a disability-related therapeutic need for
the specific animal or the specific type of animal. Such individuals are encouraged to submit
documentation from a health care professional.
10-4
General Considerations
A person with a disability is not automatically entitled to have an assistance animal. Reasonable
accommodation requires that there is a relationship between the person’s disability and their need for
the animal [PH Occ GB, p. 179].
Before denying a reasonable accommodation request due to lack of information confirming an
individual’s disability or disability-related need for an animal, the PHA is encouraged to engage in a good-
faith dialog with the requestor called the “interactive process” [FHEO 2020-01].
A PHA may not refuse to allow a person with a disability to have an assistance animal merely because the
animal does not have formal training. Some, but not all animals that assist persons with disabilities are
professionally trained. Other assistance animals are trained by the owners themselves and, in some
cases, no special training is required. The question is whether or not the animal performs the assistance
or provides the benefit needed by the person with the disability [PH Occ GB, p. 178].
A PHA’s refusal to permit persons with a disability to use and live with an assistance animal that is
needed to assist them, would violate Section 504 of the Rehabilitation Act and the Fair Housing Act unless
[PH Occ GB, p. 179]:
•
There is reliable objective evidence that the animal poses a direct threat to the health or safety of
others that cannot be reduced or eliminated by a reasonable accommodation
•
There is reliable objective evidence that the animal would cause substantial physical damage to
the property of others
The Fair Housing Act does not require a dwelling to be made available to an individual whose tenancy
would constitute a direct threat to the health or safety of other individuals or would result in substantial
physical damage to the property of others. A PHA may therefore refuse a reasonable accommodation for
an assistance animal if the specific animal poses a direct threat that cannot be eliminated or reduced to
an acceptable level through the actions the individual takes to maintain or control the animal (e.g.,
keeping the animal in a security enclosure).
While most requests for reasonable accommodations involve one animal, requests sometimes involve
more than one animal (for example, a person has a disability-related need for both animals, or two
people living together each have a disability-related need for a separate assistance animal). The decision-
making process in Notice FHEO 2020-01 should be used in accordance with the reasonable
accommodation policies in Chapter 2 for all requests for exceptions or modifications to the PHA’s rules,
policies, practices, and procedures so that persons with disabilities can have assistance animals in the
housing where they reside.
PHAs have the authority to regulate service animals and assistance animals under applicable federal,
state, and local law [24 CFR 5.303(b)(3); 960.705(b)(3)].
10-5
PHA Policy
For an animal to be excluded from the pet policy and be considered a service animal, it must be a
trained dog, and there must be a person with disabilities in the household who requires the dog’s
services.
For an animal to be excluded from the pet policy and be considered a support animal, there must
be a person with disabilities in the household, there must be a disability-related need for the
animal, and the family must request and the PHA approve a reasonable accommodation in
accordance with the criteria outlined in Notice FHEO 2020-01 and the policies contained in
Chapter 2.
10-I.C. CARE AND HANDLING
HUD regulations do not affect any authority a PHA may have to regulate assistance animals, including
service animals, under federal, state, and local law [24 CFR 5.303; 24 CFR 960.705].
PHA Policy
Residents are responsible for feeding, maintaining, providing veterinary care, and controlling their
assistance animals. A resident may do this on their own or with the assistance of family, friends,
volunteers, or service providers.
Residents must care for assistance animals in a manner that complies with state and local laws,
including anti-cruelty laws.
Residents must ensure that assistance animals do not pose a direct threat to the health or safety
of others, or cause substantial physical damage to the development, dwelling unit, or property of
other residents.
When a resident’s care or handling of an assistance animal violates these policies, the PHA will
consider whether the violation could be reduced or eliminated by a reasonable accommodation. If
the PHA determines that no such accommodation can be made, the PHA may withdraw the
approval of a particular assistance animal.
10-6
PART II: PET POLICIES FOR ALL DEVELOPMENTS
[24 CFR 5, Subpart C; 24 CFR 960, Subpart G]
10-II.A. OVERVIEW
The purpose of a pet policy is to establish clear guidelines for ownership of pets and to ensure that no
applicant or resident is discriminated against regarding admission or continued occupancy because of
ownership of pets. It also establishes reasonable rules governing the keeping of common household
pets. This part contains pet policies that apply to all developments.
10-II.B. MANAGEMENT APPROVAL OF PETS
Registration of Pets
PHAs may require registration of the pet with the PHA [24 CFR 960.707(b)(5)].
PHA Policy
Pets must be registered, and the pet agreement must be executed with the PHA before they are
brought onto the premises.
Registration includes documentation signed by a licensed veterinarian or state/local authority that
the pet has been spayed or neutered as applicable or in the case of underage animals within 30
days of the pet reaching 6 months of age; Documentation signed by a licensed veterinarian that
the pet has received all inoculations required by state or local law, and that the pet has no
communicable disease(s) and is pest-free; Documentation that the pet is licensed in accordance
with state or local law and one photograph of the pet.
This registration must be renewed annually and will be coordinated with the annual
reexamination date.
Pets will not be approved to reside in a unit until the completion of the registration requirements
are met and the pet agreement is executed.
Refusal to Register Pets
PHA Policy
The PHA will refuse to register a pet if:
•
The pet is not a common household pet as defined in Section 10-II.C. below;
•
Keeping the pet would violate any pet restrictions listed in this policy;
•
The pet owner fails to provide complete pet registration information, execute a pet
agreement, or fails to update the registration annually;
10-7
•
The applicant has previously been charged with animal cruelty under state or local law; or
has been evicted, had to relinquish a pet, or been prohibited from future pet ownership
due to pet rule violations or a court order; or
•
The PHA reasonably determines that the pet owner is unable to keep the pet in compliance
with the pet rules and other lease obligations. The pet's temperament and behavior may
be considered as a factor in determining the pet owner's ability to comply with provisions
of the lease.
If the PHA refuses to register a pet, a written notification will be sent to the pet owner within 10
business days of the PHA’s decision. The notice will state the reason for refusing to register the pet
and will inform the family of their right to appeal the decision in accordance with the PHA’s
grievance procedures.
Pet Agreement
PHA Policy
Residents who have been approved to have a pet must enter into a pet agreement with the PHA,
or the approval of the pet will be withdrawn.
The pet agreement is the resident’s certification that they have received a copy of the PHA’s pet
policy and applicable house rules, that they have read the policies and/or rules, understands
them, and agrees to comply with them.
The resident further certifies by signing the pet agreement that they understand that
noncompliance with the PHA’s pet policy and applicable house rules may result in the withdrawal
of PHA approval of the pet or termination of tenancy.
10-8
10-II.C. STANDARDS FOR PETS [24 CFR 5.318; 960.707(B)]
PHAs may establish reasonable requirements related to pet ownership including, but not limited to:
•
Limitations on the number of animals in a unit, based on unit size;
•
Prohibitions on types of animals that the PHA classifies as dangerous, provided that such
classifications are consistent with applicable state and local law;
•
Prohibitions on individual animals, based on certain factors, including the size and weight of the
animal;
•
Requiring pet owners to have their pets spayed or neutered
Cat declawing is not a requirement or condition of pet ownership in public housing and HUD encourages
PHAs to refrain from engaging in this practice [New PH OCC GB, Pet Ownership,
p. 9].
PHA’s may not require pet owners to have any pet’s vocal cords removed. PHAs may not require pet
owners to obtain or carry liability insurance.
Definition of “Common Household Pet”
There is no regulatory definition of common household pet for public housing programs, although the
regulations for pet ownership in both elderly/disabled and general occupancy developments use the
term. The regulations for pet ownership in elderly/disabled developments expressly authorize PHAs to
define the term [24 CFR 5.306(2)].
PHA Policy
Common household pet means a domesticated animal, such as a dog (maximum adult weight: 20
full grown), cat, bird, or fish that is traditionally recognized as a companion animal and is kept in
the home for pleasure rather than commercial purposes.
The COCHRD also permits a hamster, gerbil, guinea pig or a turtle. The size of the aquarium may not
exceed 10 gallons.
The following animals are not considered common household pets:
Reptiles
Rodents
Insects
Arachnids
Wild animals or feral animals
Pot-bellied pigs
Animals used for commercial breeding
10-9
Pet Restrictions
PHA Policy
The following animals are not permitted:
•
Any animal whose adult weight will exceed 20 pounds
•
Dogs of the pit bull, Rottweiler, chow, or boxer breeds
•
Ferrets or other animals whose natural protective mechanisms pose a risk to small children
of serious bites or lacerations.
•
Any animal not permitted under state or local law or code
•
Vicious
•
Exotic
•
Reptiles
•
Insects
•
Arachnids
•
Wild animals or feral animals
•
Pot-bellied pigs
•
Animals used for commercial breeding
Number of Pets
PHA Policy
Residents may own a maximum of one (1) pet. In the case of fish, residents may keep no more
than can be maintained in a safe and healthy manner in a tank holding up to 10 gallons. Such a
tank or aquarium will be counted as 1 pet.
Other Requirements
PHA Policy
Dogs and cats must be spayed or neutered at the time of registration or, in the case of underage
animals, within 30 days of the pet reaching 6 months of age. Exceptions may be made upon
veterinary certification that subjecting this particular pet to the procedure would be temporarily or
permanently medically unsafe or unnecessary.
Pets must be licensed in accordance with state or local law. Residents must provide proof of
licensing at the time of registration and annually, in conjunction with the resident’s annual
reexamination.
10-10
10-II.D. PET RULES
Pet owners must maintain pets responsibly, in accordance with PHA policies, and in compliance with
applicable state and local public health, animal control, and animal cruelty laws and regulations [24 CFR
5.315; 24 CFR 960.707(a)].
Pet Area Restrictions
PHA Policy
Pets must be maintained within the resident's unit. When outside of the unit (within the building
or on the grounds) dogs and cats must be kept on a leash or carried. They must be under the
control of the resident or other responsible individual at all times.
Pets other than dogs or cats must be kept in a cage or carrier when outside of the unit.
Pets are not permitted in common areas including lobbies, community rooms, and laundry areas
except for those common areas which are entrances to and exits from the building.
Pet owners are not permitted to exercise pets or permit pets to deposit waste on project premises
outside of the areas designated for such purposes.
Designated Pet/No-Pet Areas [24 CFR 5.318(g), PH Occ GB, p. 182]
PHAs may designate buildings, floors of buildings, or sections of buildings as no-pet areas where pets
generally may not be permitted. Pet rules may also designate buildings, floors of building, or sections of
building for residency by pet-owning tenants.
PHAs may direct initial tenant moves as may be necessary to establish pet and no-pet areas.
The PHA may not refuse to admit, or delay admission of, an applicant on the grounds that the applicant’s
admission would violate a pet or no-pet area. The PHA may adjust the pet and no-pet areas or may direct
such additional moves as may be necessary to accommodate such applicants for tenancy or to meet the
changing needs of the existing tenants.
PHAs may not designate an entire development as a no-pet area, since regulations permit residents to
own pets.
PHA Policy
With the exception of common areas as described in the previous policy, the PHA has not
designated any buildings, floors of buildings, or sections of buildings as no-pet areas. In addition,
the PHA has not designated any buildings, floors of buildings, or sections of buildings for
residency of pet-owning tenants.
10-11
Cleanliness
PHA Policy
The pet owner shall be responsible for the removal of waste by placing it in a sealed plastic bag
and disposing of it in a suitable covered trash container.
The pet owner shall take adequate precautions to eliminate any pet odors within or around the
unit and to maintain the unit in a sanitary condition at all times.
Litter box requirements:
•
Pet owners must promptly dispose of waste from litter boxes and must maintain litter
boxes in a sanitary manner.
•
Litter shall not be disposed of by being flushed through a toilet.
•
Litter boxes shall be kept inside the resident's dwelling unit.
Alterations to Unit
PHA Policy
Pet owners shall not alter their unit, patio, premises, or common areas to create an enclosure for
any animal.
Installation of pet doors is prohibited.
Noise
PHA Policy
Pet owners must agree to control the noise of pets so that such noise does not constitute a
nuisance to other residents or interrupt their peaceful enjoyment of their housing unit or
premises. This includes, but is not limited to loud or continuous barking, howling, whining, biting,
scratching, chirping, or other such activities.
Pet Care
PHA Policy
Each pet owner shall be responsible for adequate care, nutrition, exercise, and medical attention
for their pet.
Each pet owner shall be responsible for appropriately training and caring for their pet to ensure
that the pet is not a nuisance or danger to other residents and does not damage PHA property.
No animals may be tethered or chained inside or outside the dwelling unit at any time.
10-12
Responsible Parties
PHA Policy
The pet owner will be required to designate two responsible parties for the care of the pet if the
health or safety of the pet is threatened by the death or incapacity of the pet owner, or by other
factors that render the pet owner unable to care for the pet.
A resident who cares for another resident's pet must notify the PHA and sign a statement that
they agree to abide by all the pet rules.
Inspections and Repairs
PHA Policy
Except for emergencies, management will not enter the dwelling unit for performance of repairs
or inspections where a pet resides unless accompanied for the entire duration of the inspection or
repair by the pet owner or responsible person designated by the pet owner.
The pet must be held under physical restraint by the pet owner or responsible person until
management has completed its tasks. Any delays or interruptions suffered by management in the
inspection, maintenance, and upkeep of the premises due to the presence of a pet may be cause
for lease termination.
Pets Temporarily on the Premises
PHA Policy
Pets that are not owned by a tenant are not allowed on the premises. Residents are prohibited
from feeding or harboring stray animals.
This rule does not apply to visiting pet programs sponsored by a humane society or other non-
profit organizations and approved by the PHA.
Pet Rule Violations
PHA Policy
All complaints of cruelty and all dog bites will be referred to animal control or an applicable
agency for investigation and enforcement.
If a determination is made on objective facts supported by written statements received by an
eyewitness, that a resident/pet owner has violated the pet rules the COCHRD may serve a written
notice of lease violation(s) to the resident/pet owner.
The notice will contain a brief statement of the factual basis for the determination and the pet
rule(s) that were violated. The notice will also state:
•
That the pet owner has 3 business days from the effective date of the service of notice to
correct the violation or make written request for a meeting to discuss the violation(s);
10-13
•
That the pet owner is entitled to be accompanied by another person of their choice at the
meeting;
•
That the pet owner's failure to correct the violation(s), request a meeting, or appear at a
requested meeting may result in initiation of procedures to remove the pet, or to terminate
the pet owner's tenancy.
Notice of Pet Removal
PHA Policy
If the pet owner and the PHA are unable to resolve the violation at the meeting or the pet owner
fails to correct the violation in the time period allotted by the PHA, the PHA may serve notice to
remove the pet.
The notice will contain:
A brief statement of the factual basis for the PHA's determination of the pet rule that has
been violated
The requirement that the resident /pet owner must remove the pet within 30 calendar days
of the notice
A statement that failure to remove the pet may result in the initiation of termination of
tenancy procedures
Pet Removal
PHA Policy
If the death or incapacity of the pet owner threatens the health or safety of the pet, or
other factors occur that render the owner unable to care for the pet, the situation will be
reported to the responsible party designated by the pet owner.
If the responsible party is unwilling or unable to care for the pet, or if the PHA after
reasonable efforts cannot contact the responsible party, the PHA may contact the
appropriate state or local agency and request the removal of the pet.
In the event of the death of a pet, the resident/pet owner shall properly and immediately
remove and dispose of the remains. The remains shall not be placed in any container on the
grounds of a COCHRD property. Burial on the grounds is strictly prohibited.
If the pet is removed as a result of any aggressive act on the part of the pet, the pet will not
be allowed back on the premises.
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Termination of Tenancy
PHA Policy
The PHA may initiate procedures for termination of tenancy based on a pet rule violation if:
•
The pet owner has failed to remove the pet or correct a pet rule violation within the time
period specified;
•
The pet rule violation is sufficient to begin procedures to terminate tenancy under terms of
the lease.
Emergencies
PHA Policy
The PHA will take all necessary steps to ensure pets that become vicious, display symptoms of
severe illness, or demonstrate behavior that constitutes an immediate threat to the health or
safety of others, are immediately removed from the premises by referring the situation to the
appropriate state or local entity authorized to remove such animals.
If it is necessary for the PHA to place the pet in a shelter facility, the cost will be the responsibility
of the pet owner.
If the pet is removed as a result of any aggressive act on the part of the pet, the pet will not be
allowed back on the premises.
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PART III: PET DEPOSITS AND FEES IN ELDERLY/DISABLED DEVELOPMENTS
10-III.A. OVERVIEW
This part describes the PHA’s policies for pet deposits and fees in elderly, disabled and mixed population
developments. Policies governing deposits and fees in general occupancy developments are described in
Part IV.
10-III.B. PET DEPOSITS
Payment of Deposit
The PHA may require tenants who own or keep pets in their units to pay a refundable pet deposit. This
deposit is in addition to any other financial obligation generally imposed on tenants of the project [24
CFR 5.318(d)(1)].
The maximum amount of pet deposit that may be charged by a PHA on a per dwelling unit basis, is the
higher of the total tenant payment (TTP) or such reasonable fixed amount as the PHA may require. The
PHA may permit gradual accumulation of the pet deposit by the pet owner [24 CFR 5.318(d)(3)].
The pet deposit is not part of the rent payable by the resident [24 CFR 5.318(d)(5)].
PHA Policy
Pet owners are required to pay a pet deposit in addition to any other required deposits.
Resident/Pet owners of a dog or cat that meet the standards are required to pay a $250.00 deposit
before the pet is brought on the premises. $250.00 is refunded when the resident vacates the
premises, and the property has no damages caused by the pet.
The deposit must be paid in full before the pet is brought on the premises.
Refund of Deposit [24 CFR 5.318(d)(1)]
The PHA may use the pet deposit only to pay reasonable expenses directly attributable to the presence of
the pet, including (but not limited to) the costs of repairs and replacements to, and fumigation of, the
tenant’s dwelling unit. The PHA must refund the unused portion of the pet deposit to the tenant within a
reasonable time after the tenant moves from the project or no longer owns or keeps a pet in the unit.
PHA Policy
The PHA will refund the pet deposit to the resident, less the costs of any damages caused by the
pet to the dwelling unit, within 30 days of move-out or removal of the pet from the unit.
The resident will be billed for any amount that exceeds the pet deposit. The PHA will provide the
resident with a written list of any charges against the pet deposit within 14 business days of the
move-out inspection. If the resident disagrees with the amount charged to the pet deposit, the
PHA will provide a meeting to discuss the charges.
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10-III.C. OTHER CHARGES
Pet Fees
PHA Policy
Resident/Pet owners, who have a dog or a cat that meet the standards, are not required to pay a
non-refundable pet fee or a sanitation fee.
Sanitation fee for unauthorized pets
•
Residents who have a dog or cat without the written permission of the COCHRD will be
charged a $150.00 sanitation fee.
Pet-Related Damages During Occupancy
PHA Policy
All reasonable expenses incurred by the PHA as a result of damages directly attributable to the
presence of the pet in the property will be the responsibility of the resident, including but not
limited to:
•
The cost of repairs and replacements to the resident's dwelling unit
•
Fumigation of the dwelling unit
•
Repairs to common areas of the project
•
Elimination of fleas
If the resident is in occupancy when such costs occur, the resident shall be billed for such costs in
accordance with the policies in Section 8-I.F, Maintenance and Damage Charges. Pet deposits will
not be applied to the costs of pet-related damages during occupancy.
Charges for pet-related damage are not part of rent payable by the resident.
Pet Waste Removal Charge
The regulations do not address the PHA’s ability to impose charges for house pet rule violations.
However, charges for violation of PHA pet rules may be treated like charges for other violations of the
lease and PHA tenancy rules.
PHA Policy
A separate pet waste removal charge of $10.00 per occurrence will be assessed against pet
owners who fail to remove pet waste in accordance with this policy.
Notices of pet waste removal charges will be in accordance with requirements regarding notices
of adverse action. Charges are due and payable 14 calendar days after billing. If the family
requests a grievance hearing within the required timeframe, the PHA may not take action for
nonpayment of the charge until the conclusion of the grievance process.
Charges for pet waste removal are not part of rent payable by the resident.
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PART IV: PET DEPOSITS AND FEES IN
GENERAL OCCUPANCY DEVELOPMENTS
10-IV.A. OVERVIEW
This part describes the PHA’s policies for pet deposits and fees for those who reside in general occupancy
developments.
10-IV.B. PET DEPOSITS
A PHA may require a refundable pet deposit to cover additional costs attributable to the pet and not
otherwise covered [24 CFR 960.707(b)(1)].
A PHA that requires a resident to pay a pet deposit must place the deposit in an account of the type
required under applicable State or local law for pet deposits, or if there are no such requirements, for
rental security deposits, if applicable. The PHA must comply with such laws as to retention of the deposit,
interest, and return of the deposit to the resident, and any other applicable requirements [24 CFR
960.707(d)].
Payment of Deposit
PHA Policy
All resident pet owners of a dog or cat that meet the standards are required to pay a pet deposit
of $250.00 in addition to any other required deposits. The deposit must be paid in full before the
pet is brought on the premises.
$100.00 is refunded when the resident vacates the premises, and the property has no damages
caused by the pet.
$150.00 is a non-refundable pet sanitation fee.
The pet deposit is not part of rent payable by the resident.
Refund of Deposit
PHA Policy
The PHA will refund the pet deposit to the resident, less the costs of any damages caused by the
pet to the dwelling unit, within 30 days of move-out or removal of the pet from the unit.
The resident will be billed for any amount that exceeds the pet deposit.
The PHA will provide the resident with a written list of any charges against the pet deposit within
14 business days of the move-out inspection. If the resident disagrees with the amount charged to
the pet deposit, the PHA will provide a meeting to discuss the charges.
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10-IV.C. NON-REFUNDABLE NOMINAL PET FEE
PHAs may require payment of a non-refundable nominal pet fee to cover the reasonable operating costs
to the development relating to the presence of pets [24 CFR 960.707(b)(1)].
PHA Policy
Resident/Pet owners, who have a dog or a cat that meet the standards, are required to pay a non-
refundable nominal pet fee of $10.00 per month.
This fee is intended to cover the reasonable operating costs to the project relating to the presence
of pets. Reasonable operating costs to the project relating to the presence of pets include, but are
not limited to:
•
Landscaping costs
•
Pet control costs
•
Insurance costs
•
Clean-up costs
The pet fee of $10.00 will be billed on a monthly basis, and payment will be due 14 calendar days
after billing.
Charges for the non-refundable pet fee are not part of rent payable by the resident.
Sanitation fee for unauthorized pets
Residents who have a dog or cat without the written permission of the COCHRD will be charged a
$150.00 sanitation fee and must remove the animal from the premises within 48 hours.
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10-IV.D. OTHER CHARGES
Pet-Related Damages During Occupancy
PHA Policy
All reasonable expenses incurred by the PHA as a result of damages directly attributable to the
presence of the pet in the project will be the responsibility of the resident, including:
•
The cost of repairs and replacements to the resident’s dwelling unit
•
Fumigation of the dwelling unit
•
Repairs to common areas of the project
•
Elimination of fleas
If the resident is in occupancy when such costs occur, the resident shall be billed for such costs in
accordance with the policies in Section 8-I.F, Maintenance and Damage Charges.
Pet deposits will not be applied to the costs of pet-related damages during occupancy.
Charges for pet-related damage are not part of rent payable by the resident.
Pet Waste Removal Charge
The regulations do not address the PHA’s ability to impose charges for house pet rule violations.
However, charges for violation of PHA pet rules may be treated like charges for other violations of the
lease and PHA tenancy rules.
PHA Policy
A separate pet waste removal charge of $10.00 per occurrence will be assessed against pet
owners who fail to remove pet waste in accordance with this policy.
Such charges will be due and payable 14 calendar days after billing.
Charges for pet waste removal are not part of rent payable by the resident.
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CHAPTER 11
COMMUNITY SERVICE
INTRODUCTION
This chapter explains HUD regulations requiring PHAs to implement a community service program for all
nonexempt adults living in public housing.
This chapter describes HUD regulations and PHA policies related to these topics in two parts:
Part I: Community Service Requirements. This part describes who is subject to the community
service requirement, who is exempt, and HUD’s definition of economic self-sufficiency.
Part II: PHA Implementation of Community Service. This part provides PHA policy regarding
PHA implementation and program design.
PART I: COMMUNITY SERVICE REQUIREMENT
11-I.A. OVERVIEW
HUD regulations pertaining to the community service requirement are contained in 24 CFR §960 Subpart
F (§960.600 through §960.609). PHAs and residents must comply with the community service
requirement, effective with PHA fiscal years that commenced on or after October 1, 2000. Per
§903.7(l)(1)(iii), the PHA Plan must contain a statement of how the PHA will comply with the community
service requirement, including any cooperative agreement into which the PHA has entered or plans to
enter .
Community service is the performance of voluntary work or duties that are a public benefit, and that
serve to improve the quality of life, enhance resident self-sufficiency, or increase resident self-
responsibility in the community. Community service is not employment and may not include political
activities [24 CFR §960.601(b)].
In administering community service requirements, the PHA must comply with all nondiscrimination and
equal opportunity requirements [24 CFR §960.605(c)(5)].
11-2
11-I.B. REQUIREMENTS
Each adult resident of the PHA, who is not exempt, must [24 CFR §960.603(a)]:
•
Contribute 8 hours per month of community service; or
•
Participate in an economic self-sufficiency program (as defined in the regulations) for 8 hours per
month; or
•
Perform 8 hours per month of combined activities (community service and economic self-
sufficiency programs).
•
The required community service or self-sufficiency activity may be completed 8 hours each month
or may be aggregated across a year. Any blocking of hours is acceptable as long as 96 hours is
completed by each annual certification of compliance [Notice PIH 2015-12].
Definitions
Exempt Individual [24 CFR §960.601(b), Notice PIH 2015-12]
An exempt individual is an adult who:
•
Is age 62 years or older
•
Is blind or disabled (as defined under section 216[i][l] or 1614 of the Social Security Act), and who
certifies that because of this disability s/he is unable to comply with the service provisions
•
Is a primary caretaker of such an individual
•
Is engaged in work activities
PHA Policy
The PHA will consider 30 hours per week as the minimum number of hours needed to qualify
for a work activity exemption.
•
Is able to meet requirements of being exempted under a state program funded under part A of
title IV of the Social Security Act, or under any other welfare program of the state in which the PHA
is located, including a state-administered welfare-to-work program
•
This exemption applied to anyone whose characteristics or family situation meet the welfare
agency exemption criteria and can be verified.
•
Is a member of a family receiving assistance, benefits, or services under a state program funded
under part A of title IV of the Social Security Act, or under any other welfare program of the state
in which the PHA is located, including a state-administered welfare-to-work program and the
11-3
supplemental nutrition assistance program (SNAP), and has not been found by the state or other
administering entity to be in noncompliance with such program.
•
Is a member of a non-public housing over-income family.
Community Service [24 CFR §960.601(b), Notice PIH 2015-12]
Community service is the performance of voluntary work or duties that are a public benefit, and that serve
to improve the quality of life, enhance resident self-sufficiency, or increase resident self-responsibility in
the community. Community service is not employment and may not include political activities.
Eligible community service activities include, but are not limited to, work at:
•
Local public or nonprofit institutions such as schools, head start programs, before or after school
programs, childcare centers, hospitals, clinics, hospices, nursing homes, recreation centers, senior
centers, adult day care programs, homeless shelters, feeding programs, food banks, distribution
either donated or commodity foods), or clothes closets, (distributing donated clothing.).
•
Nonprofit organizations serving PHA residents or their children such as: Boy or Girl Scouts, Boys
or Girls Club, 4-H clubs, Police Assistance League (PAL), organized children’s recreation, mentoring
or education programs, Big Brothers or Big Sisters, garden centers, community clean-up
programs, beautification programs.
•
Programs funded under the Older Americans Act, such as Green Thumb Service Corps of Retired
Executives, senior meals programs, senior centers, Meals on Wheels.
•
Public or nonprofit organizations dedicated to seniors, youth, children, residents, citizens, special-
needs populations or with missions to enhance the environment, historic resources, cultural
identities, neighborhoods, or performing arts
•
PHA housing to improve grounds or provide gardens (so long as such work does not alter the
PHA’s insurance coverage); or work through resident organizations to help other residents with
problems, including serving on the Resident Advisory Board.
•
Care for the children of other residents so parent may volunteer.
PHAs may form their own policy in regard to accepting community services at profit-motivated entities,
acceptance of volunteer work performed at homes or offices of general private citizens, and court-
ordered or probation-based work.
PHA Policy
Community services at profit-motivated entities, volunteer work performed at homes or offices of
general private citizens, and court-ordered or probation-based work will not be considered eligible
community service activities.
Community Service must be only in the City of Chandler or serving citizens from the City of
Chandler.
11-4
Economic Self-Sufficiency Program [24 CFR §5.603(b), Notice PIH 2015-12]
For purposes of satisfying the community service requirement, an economic self-sufficiency program is
defined by HUD as any program designed to encourage, assist, train, or facilitate economic independence
of assisted families or to provide work for such families.
Eligible self-sufficiency activities include but are not limited to:
•
Job readiness or job training
•
Training programs through local one-stop career centers, workforce investment boards (local
entities administered through the U.S. Department of Labor), or other training providers
•
Employment counseling, work placement, or basic skills training
•
Education, including higher education (junior college or college), GED classes, or reading financial,
or computer literacy classes
•
Apprenticeships (formal or informal)
•
English proficiency or English as a second language classes
•
Budgeting and credit counseling
•
Any other program necessary to ready a participant to work (such as substance abuse or mental
health counseling)
Work Activities [42 U.S.C. 607(d)]
As it relates to an exemption from the community service requirement, work activities means:
•
Unsubsidized employment
•
Subsidized private sector employment
•
Subsidized public sector employment
•
Work experience (including work associated with the refurbishing of publicly assisted housing) if
sufficient private sector employment is not available
•
On-the-job training
•
Job search and job readiness assistance
•
Community service programs
•
Vocational educational training (not to exceed 12 months with respect to any individual)
•
Job skills training directly related to employment
11-5
•
Education directly related to employment, in the case of a recipient who has not received a high
school diploma or a certificate of high school equivalency
•
Satisfactory attendance at secondary school or in a course of study leading to a certificate of
general equivalence, in the case of a recipient who has not completed secondary school or
received such a certificate
Notification Requirements [24 CFR §960.605(c)(2), Notice PIH 2015-12, Notice PIH 2016-06]
The PHA must give each family a written description of the community service requirement, the process
for claiming status as an exempt person, and the process for PHA verification of exempt status. The PHA
must also notify the family of its determination identifying the family members who are subject to the
service requirement, and the family members who are exempt. In addition, the family must sign a
certification, such as Attachment A of Notice PIH 2015-12, that they have received and read the policy and
understand that if they are not exempt, failure to comply with the requirement will result in nonrenewal
of their lease. The family must also sign a certification at annual reexamination, such as Attachment B of
Notice PIH 2015-12, certifying that they understand the requirement.
PHA Policy
The PHA will provide the family with a copy of the Community Service Policy found in Exhibit 11-1
of this chapter at lease-up, lease renewal, when a family member is determined to be subject to
the community service requirement during the lease term, and at any time upon the family’s
request. The policy will notify the family that self-certification forms are subject to review by the
PHA.
On an annual basis, at the time of lease renewal, the PHA will notify the family in writing of the
family members who are subject to the community service requirement and the family members
who are exempt. If the family includes nonexempt individuals the notice will include a list of
agencies in the community that provide volunteer and/or training opportunities, as well as a
documentation form on which they may record the activities they perform, and the number of
hours contributed. The form will also have a place for a signature by an appropriate official, who
will certify to the activities and hours completed.
11-I.C. DETERMINATION OF EXEMPTION STATUS AND COMPLIANCE
[24 CFR §960.605(C)(3)]
The PHA must review and verify family compliance with service requirements annually at least thirty days
before the end of the 12-month lease term. The policy for documentation and verification of compliance
with service requirements may be found at Section 11-I.D., Documentation and Verification.
PHA Policy
Where the lease term does not coincide with the effective date of the annual reexamination, the
PHA will change the effective date of the annual reexamination to coincide with the lease term. In
making this change, the PHA will ensure that the annual reexamination is conducted within 12
months of the last annual reexamination.
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Annual Determination
Determination of Exemption Status
An exempt individual is excused from the community service requirement [24 CFR §960.603(a)].
PHA Policy
At least 60 days prior to lease renewal, the PHA will review and verify the exemption status of all
adult family members. This verification will only be done on an annual basis unless the family
reports a change or the PHA has reason to believe that an individual’s exemption status has
changed. For individuals who are exempt because they are 62 years of age and older, or disabled,
verification of exemption status will be done only at the initial examination.
Upon completion of the verification process, the PHA will notify the family of its determination in
accordance with the policy in Section 11-I.B., Notification Requirements.
Determination of Compliance
The PHA must review resident family compliance with service requirements annually at least 30 days
before the end of the 12-month lease term [24 CFR §960.605(c)(3)]. As part of this review, the PHA must
verify that any family member that is not exempt from the community service requirement has met their
service obligation.
PHA Policy
Approximately 90-120 days prior to the end of the lease term, the PHA will provide written notice
requiring the family to submit documentation that all subject family members have complied with
the service requirement. The family will have 10 business days to submit the PHA required
documentation form(s).
If the family fails to submit the required documentation within the required timeframe, or PHA
approved extension, the subject family members will be considered noncompliant with
community service requirements, and notices of noncompliance will be issued pursuant to the
policies in Section 11-I.E., Noncompliance.
Change in Status between Annual Determinations
PHA Policy
Exempt to Nonexempt Status:
If an exempt individual becomes nonexempt during the 12-month lease term, it is the family’s
responsibility to report this change to the PHA within 10 business days.
Within 10 business days of a family reporting such a change, or the PHA determining such a
change is necessary, the PHA will provide written notice of the effective date of the
requirement, a list of agencies in the community that provide volunteer and/or training
11-7
opportunities, as well as a documentation form on which the family member may record the
activities performed and number of hours contributed.
The effective date of the community service requirement will be the first of the month
following 30-day notice.
Determination of Initial Compliance
When an adult family member becomes subject to community service, their must perform 8
hours of community service for the months they are subject to the requirement before the
end of the lease term (anniversary date).
Nonexempt to Exempt Status
If a nonexempt person becomes exempt during the 12-month lease term, it is the family’s
responsibility to report this change to the PHA within 10 business days. Any claim of
exemption will be verified by the PHA in accordance with the policy at 11-I.D., Documentation
and Verification of Exemption Status.
Within 10 business days of a family reporting such a change, or the PHA determining such a
change is necessary, the PHA will provide the family written notice that the family member is
no longer subject to the community service requirement, if the PHA is able to verify the
exemption.
The exemption will be effective immediately.
Example 1: Alberto Jones turns 18 on 5/10 and is not exempt from the
community service requirement. His community service requirement begins
on 6/1, and his initial compliance is reviewed before the end of the lease term
(anniversary date), which is 11/30.
− Alberto must perform 6 months of community service in his initial
compliance period, before the end of the lease term (anniversary date).
Example 2: Lisa Dewhurst leaves her job on 9/20 and is not exempt from the
community service requirement. Her community service requirement begins
on 10/1, and her initial compliance is reviewed before the end of the lease term
(anniversary date), which is 6/30
− Ms. Dewhurst must perform 9 months of community service in her initial
compliance period, before the end of the lease term (anniversary date).
11-8
11-I.D. DOCUMENTATION AND VERIFICATION [24 CFR §960.605(C)(4)], §960.607, NOTICE PIH 2016-08]
The PHA must retain reasonable documentation of service requirement performance or exemption in
participant files.
Documentation and Verification of Exemption Status
PHA Policy
All family members who claim they are exempt from the community service requirement will be
required to sign the community service exemption certification form found in Exhibit 11-3. The
PHA will provide a completed copy to the family and will keep a copy in the tenant file.
The PHA will verify that an individual is exempt from the community service requirement by
following the verification hierarchy and documentation requirements in Chapter 7.
The PHA makes the final determination whether or not to grant an exemption from the
community service requirement. If a resident does not agree with the PHA’s determination, s/he
can dispute the decision through the PHA’s grievance procedures (see Chapter 14).
Documentation and Verification of Compliance
At each regularly scheduled reexamination, each nonexempt family member presents a signed
standardized certification form developed by the PHA of community service and self-sufficiency activities
performed over the last 12 months [Notice PIH 2015-12].
If qualifying community service activities are administered by an organization other than the PHA, a
family member who is required to fulfill a service requirement must provide documentation required by
the PHA. The PHA may require a self-certification or certification form a third party [24 CFR §960.607].
If the PHA accepts self-certification of compliance with the community service requirement, it must
provide a form, which includes a statement that the client performed the required hours, contact
information for the community service provider, a description of activities performed, and dates of
service.
If the PHA accepts self-certification, it must validate a sample of certifications through third-party
documentation. The PHA must notify families that self-certification forms are available and that a sample
of self-certifications will be validated.
HUD strongly encourages PHAs to investigate community service compliance when there are questions
of accuracy.
PHA Policy
Each individual who is subject to the community service requirement will be required to record
their community service or self-sufficiency activities and the number of hours contributed on the
required form. The certification form will also include places for signatures and phone numbers of
supervisors, instructors, and counselors certifying to the number of hours contributed.
11-9
Families will be required to submit the documentation to the PHA, upon request by the PHA, at
least annually.
If the PHA has reasonable cause to believe that the certification provided by the family is false or
fraudulent, the PHA has the right to require additional third-party verification.
11-I.E. NONCOMPLIANCE
Noncompliant Residents
The lease specifies that it is renewed automatically for all purposes unless the family fails to comply with
the community service requirement and families determined to be over-income for 24 consecutive
months. Violation of the service requirement is grounds for nonrenewal of the lease at the end of the
twelve-month lease term, but not for termination of tenancy during the course of the twelve-month lease
term [24 CFR §960.603(b)].
PHAs may not evict a family due to CSSR noncompliance. However, if PHA finds a tenant is noncompliant
with CSSR, the PHA must provide written notification to the tenant of the noncompliance, which must
include:
•
A brief description of the finding of non-compliance with CSSR.
•
A statement that the PHA will not renew the lease at the end of the current 12-month lease term
unless the tenant enters into a written work-out agreement with the PHA, or the family provides
written assurance that is satisfactory to the PHA explaining that the tenant or other noncompliant
resident no longer resides in the unit. Such written work-out agreement must include the means
through which a noncompliant family member will comply with the CSSR requirement [24 CFR
§960.607(c), Notice PIH 2015-12].
The notice must also state that the tenant may request a grievance hearing on the PHA’s determination,
in accordance with the PHA’s grievance procedures, and that the tenant may exercise any available
judicial remedy to seek timely redress for the PHA’s nonrenewal of the lease because of the PHA’s
determination.
PHA Policy
The notice of noncompliance will be sent at least 45 days prior to the end of the lease term.
The family will have 10 business days from the date of the notice of noncompliance to enter into a
written work-out agreement to cure the noncompliance over the 12-month term of the new lease,
provide documentation that the noncompliant resident no longer resides in the unit, or to request
a grievance hearing.
If the family reports that a noncompliant family member is no longer residing in the unit, the
family must provide documentation that the family member has actually vacated the unit before
the PHA will agree to continued occupancy of the family. Documentation must consist of a
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certification signed by the head of household as well as evidence of the current address of the
family member that previously resided with them.
If the family does not request a grievance hearing or does not take either corrective action
required by the notice of noncompliance within the required 10 business day timeframe, the PHA
will terminate tenancy in accordance with the policies in Section 13-IV.D.
Continued Noncompliance and Enforcement Documentation [24 CFR §960.607(b)]
Should a family member refuse to sign a written work-out agreement or fail to comply with the terms of
the work-out agreement, PHAs are required to initiate termination of tenancy proceedings at the end of
the current 12-month lease (see 24 CFR §966.53(c)) for failure to comply with lease requirements. When
initiating termination of tenancy proceedings, the PHA will provide the following procedural safeguards:
•
Adequate notice to the tenant of the grounds for terminating the tenancy and for non-renewal of
the lease;
•
Right of the tenant to be represented by counsel;
•
Opportunity for the tenant to refute the evidence presented by the PHA, including the right to
confront and cross-examine witnesses and present any affirmative legal or equitable defense
which the tenant may have; and,
•
A decision on the merits.
PHA Policy
Notices of continued noncompliance will be sent at least 30 days prior to the end of the lease term
and will also serve as the family’s termination notice. The notice will meet the requirements for
termination notices described in Section 13-IV.D, Form, Delivery, and Content of the Notice.
The family will have 10 business days from the date of the notice of non-compliance to provide
documentation that the noncompliant resident no longer resides in the unit, or to request a
grievance hearing.
If the family reports that a noncompliant family member is no longer residing in the unit, the
family must provide documentation that the family member has actually vacated the unit before
the PHA will agree to continued occupancy of the family. Documentation must consist of a
certification signed by the head of household as well as evidence of the current address of the
noncompliant family member that previously resided with them.
If the family does not request a grievance hearing or provide such documentation within the
required 10 business day timeframe, the family’s lease and tenancy will automatically terminate at
the end of the current lease term without further notice.
11-11
PART II: IMPLEMENTATION OF COMMUNITY SERVICE
11-II.A. OVERVIEW
Each PHA must develop a policy for administration of the community service and economic self-
sufficiency requirements for public housing. It is in the PHA’s best interests to develop a viable, effective
community service program, to provide residents the opportunity to engage in the community and to
develop competencies.
PHA Implementation of Community Service
The PHA may not substitute any community service or self-sufficiency activities performed by residents
for work ordinarily performed by PHA employees or replace a job at any location where residents
perform activities to satisfy the service requirement [24 CFR §960.609].
PHA Policy
The PHA will notify its insurance company if residents will be performing community service at the
PHA. In addition, the PHA will ensure that the conditions under which the work is to be performed
are not hazardous.
If a disabled resident certifies that they are able to perform community service, the PHA will
ensure that requests for reasonable accommodation are handled in accordance with the policies
in Chapter 2.
PHA Program Design
The PHA may administer qualifying community service or economic self-sufficiency activities directly or
may make community service activities available through a contractor, or through partnerships with
qualified organizations, including resident organizations, and community agencies or institutions [24 CFR
§960.605(b)].
PHA Policy
The PHA will attempt to provide the broadest choice possible to residents as they choose
community service activities.
The PHA’s goal is to design a service program that gives residents viable opportunities to become
involved in the community and to gain competencies and skills. The PHA will work with resident
organizations and community organizations to design, implement, assess, and recalibrate its
community service program.
The PHA will make every effort to identify volunteer opportunities throughout the community,
especially those in proximity to public housing developments. To the greatest extent possible, the
PHA will provide names and contacts at agencies that can provide opportunities for residents,
including persons with disabilities, to fulfill their community service obligations. The PHA will
provide in-house opportunities for volunteer work or self-sufficiency programs when possible.
11-12
If a member of the family is participating in the FSS program, the PHA will coordinate individual
training and service plans (ITSPs) with the community service requirement. Regular meetings with
the FSS Specialist will satisfy community service activities and will verify community service hours
within individual monthly logs.
11-13
EXHIBIT 11-1: Community Service and Self-Sufficiency Policy
A. Background
The Quality Housing and Work Responsibility Act of 1998 requires that all nonexempt (see definitions)
public housing adult residents (18 or older) contribute eight (8) hours per month of community service
(volunteer work) or participate in eight (8) hours of training, counseling, classes, or other activities that
help an individual toward self-sufficiency and economic independence. This is a requirement of the
public housing lease.
B. Definitions
Community Service – community service activities include, but are not limited to, work at:
•
Local public or nonprofit institutions such as schools, head start programs, before or after school
programs, childcare centers, hospitals, clinics, hospices, nursing homes, recreation centers, senior
centers, adult day care programs, homeless shelters, feeding programs, food banks (distributing
either donated or commodity foods), or clothes closets (distributing donated clothing).
•
Nonprofit organizations serving PHA residents or their children such as: Boy or Girl Scouts, Boys
or Girls Club, 4-H clubs, Police Assistance League (PAL), organized children’s recreation, mentoring
or education programs, Big Brothers or Big Sisters, garden centers, community clean-up
programs, beautification programs.
•
Programs funded under the Older Americans Act, such as Green Thumb, Service Corps of Retired
Executives, senior meals programs, senior centers, Meals on Wheels
•
Public or nonprofit organizations dedicated to seniors, youth, children, residents, citizens, special-
needs populations or with missions to enhance the environment, historic resources, cultural
identities, neighborhoods, or performing arts.
•
PHA housing to improve grounds or provide gardens (so long as such work does not alter the
PHA’s insurance coverage); or work through resident organizations to help other residents with
problems, including serving on the Resident Advisory Board.
•
Care for the children of other residents so parent may volunteer
NOTE: Political activity is excluded.
PHA Policy
Community Service must be only in the City of Chandler or serving citizens from the City of
Chandler.
Self-Sufficiency Activities – self-sufficiency activities include, but are not limited to:
•
Job readiness or job training
11-14
•
Training programs through local one-stop career centers, workforce investment boards (local
entities administered through the U.S. Department of Labor), or other training providers
•
Employment counseling, work placement, or basic skills training
•
Education, including higher education (junior college or college) or reading, financial, or
computer literacy classes
•
Apprenticeships (formal or informal)
•
English proficiency or English as a second language classes
•
Budgeting and credit counseling
•
Any other program necessary to ready a participant to work (such as substance abuse or
mental health counseling)
Exempt Adult – an adult member of the family who meets any of the following criteria:
•
Is 62 years of age or older
•
Is blind or a person with disabilities (as defined under section 216[i][l] or 1614 of the Social
Security Act), and who certifies that because of this disability they are unable to comply with
the service provisions, or is the primary caretaker of such an individuals
•
Is engaged in work activities
•
Is able to meet requirements under a state program funded under part A of title IV of the
Social Security Act, or under any other welfare program of the state in which the PHA is
located, including a state-administered welfare-to-work program; or
•
Is a member of a family receiving assistance, benefits, or services under a state program
funded under part A of title IV of the Social Security Act, or under any other welfare program
of the state in which the PHA is located, including a state-administered welfare-to work
program and the supplemental nutrition assistance program (SNAP), and has not been found
by the state or other administering entity to be in noncompliance with such program.
•
Is a member of a non-public housing over-income family.
PHAs can use reasonable guidelines in clarifying the work activities in coordination with TANF, as
appropriate.
Work Activities – as it relates to an exemption from the community service requirement, work
activities means:
•
Unsubsidized employment
•
Subsidized private sector employment
11-15
•
Subsidized public sector employment
•
Work experience (including work associated with the refurbishing of publicly assisted
housing) if sufficient private sector employment is not available
•
On-the-job training
•
Job search and job readiness assistance
•
Community service programs
•
Vocational educational training (not to exceed 12 months with respect to any individual)
•
Job skills training directly related to employment
•
Education directly related to employment, in the case of a recipient who has not received a
high school diploma or a certificate of high school equivalency
•
Satisfactory attendance at secondary school or in a course of study leading to a certificate of
general equivalence, in the case of a recipient who has not completed secondary school or
received such a certificate
•
Provision of childcare services to an individual who is participating in a community service
program
C. Requirements of the Program
1) The eight (8) hours per month may be either volunteer work or self-sufficiency program
activity, or a combination of the two.
2) At least eight (8) hours of activity must be performed each month or may be aggregated across
a year. Any blocking of hours is acceptable as long as 96 hours is completed by each annual
certification of compliance.
3) Family obligation:
•
At lease execution, all adult members (18 or older) of a public housing resident family
must:
−
Sign a certification (Attachment A) that they have received and read this policy and
understand that if they are not exempt, failure to comply with the community service
requirement will result in a nonrenewal of their lease; and
−
Declare if they are exempt. If exempt, they must complete the Exemption Form
(Exhibit 11-3) and provide documentation of the exemption.
•
Upon written notice from the PHA, nonexempt family members must present complete
documentation of activities performed during the applicable lease term. This
11-16
documentation will include places for signatures of supervisors, instructors, or counselors,
certifying to the number of hours contributed.
•
If a family member is found to be noncompliant at the end of the 12-month lease term,
they, and the head of household, will be required to sign an agreement with the housing
authority to make up the deficient hours over the next twelve (12) month period, or the
lease will be terminated.
•
At annual reexamination, the family must also sign a certification certifying that they
understand the community service requirement.
4) Change in exempt status:
•
If, during the twelve (12) month lease period, a nonexempt person becomes exempt, it is
their responsibility to report this to the PHA and provide documentation of exempt status.
•
If, during the twelve (12) month lease period, an exempt person becomes nonexempt, it is
their responsibility to report this to the PHA. Upon receipt of this information the PHA will
provide the person with the appropriate documentation form(s) and a list of agencies in
the community that provide volunteer and/or training opportunities.
D. Authority Obligation
1) To the greatest extent possible and practicable, the PHA will:
•
Provide names and contacts at agencies that can provide opportunities for residents,
including residents with disabilities, to fulfill their community service obligations.
•
Provide in-house opportunities for volunteer work or self-sufficiency activities.
2) The PHA will provide the family with a copy of this policy, and all applicable exemption
verification forms and community service documentation forms, at lease-up, lease renewal,
when a family member becomes subject to the community service requirement during the lease
term, and at any time upon the family’s request.
3) Although exempt family members will be required to submit documentation to support their
exemption, the PHA will verify the exemption status in accordance with its verification policies.
The PHA will make the final determination as to whether or not a family member is exempt from
the community service requirement. Residents may use the PHA’s grievance procedure if they
disagree with the PHA’s determination.
4) Noncompliance of family member:
•
At least thirty (30) days prior to the end of the 12-month lease term, the PHA will begin
reviewing the exempt or nonexempt status and compliance of family members;
11-17
•
If, at the end of the initial 12-month lease term under which a family member is subject to
the community service requirement, the PHA finds the family member to be noncompliant,
the PHA will not renew the lease unless:
−
The head of household and any other noncompliant resident enter into a written
agreement with the PHA, to make up the deficient hours over the next twelve (12)
month period; or
−
The family provides written documentation satisfactory to the PHA that the
noncompliant family member no longer resides in the unit.
•
If, at the end of the next 12-month lease term, the family member is still not compliant, a
30-day notice to terminate the lease will be issued and the entire family will have to vacate,
unless the family provides written documentation satisfactory to the PHA that the
noncompliant family member no longer resides in the unit;
•
The family may use the PHA’s grievance procedure to dispute the lease termination.
All adult family members must sign and date below, certifying that they have read and received a copy of
this Community Service and Self-Sufficiency Policy.
Resident
Date
Resident
Date
Resident
Date
Resident
Date
11-18
EXHIBIT 11-2: Definition of a Person with a Disability Under
Social Security Acts 216(i)(l) and Section 1416 (excerpt) for
Purposes of Exemption from Community Service
Social Security Act:
216(i)(1): Except for purposes of sections 202(d), 202(e), 202(f), 223, and 225, the term “disability” means
(A) inability to engage in any substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or has lasted or can be expected to last
for a continuous period of not less than 12 months, or (B) blindness; and the term “blindness” means
central visual acuity of 20/200 or less in the better eye with the use of a correcting lens. An eye, which is
accompanied by a limitation in the fields of vision such that the widest diameter of the visual field
subtends an angle no greater than 20 degrees shall be considered for purposes of this paragraph as
having a central visual acuity of 20/200 or less.
Section 1416 (excerpt):
SEC. 1614. [42 U.S.C. 1382c] (a)(1) For purposes of this title, the term “aged, blind, or disabled individual”
means an individual who—
(A) is 65 years of age or older, is blind (as determined under paragraph (2)), or is disabled (as
determined under paragraph (3)), and
(B)(i) is a resident of the United States, and is either (I) a citizen or (II) an alien lawfully admitted for
permanent residence or otherwise permanently residing in the United States under color of law
(including any alien who is lawfully present in the United States as a result of the application of the
provisions of section 212(d)(5) of the Immigration and Nationality Act), or
(ii) is a child who is a citizen of the United States and, who is living with a parent of the child who is
a member of the Armed Forces of the United States assigned to permanent duty ashore outside
the United States.
(2) An individual shall be considered to be blind for purposes of this title if he has central visual
acuity of 20/200 or less in the better eye with the use of a correcting lens. An eye, which is
accompanied by a limitation in the fields of vision such that the widest diameter of the visual field
subtends an angle no greater than 20 degrees shall be considered for purposes of the first
sentence of this subsection as having a central visual acuity of 20/200 or less. An individual shall
also be considered to be blind for purposes of this title if he is blind as defined under a State plan
approved under title X or XVI as in effect for October 1972 and received aid under such plan (on
the basis of blindness) for December 1973, so long as he is continuously blind as so defined.
(3)(A) Except as provided in subparagraph (C), an individual shall be considered to be disabled for
purposes of this title if he is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to result in death
or which has lasted or can be expected to last for a continuous period of not less than twelve
months.
EXHIBIT 11-3: PHA Determination of Exemption for Community Service
Family:
11-19
Adult Family Member:
This adult family member meets the requirements for being exempted from the PHA’s community
service requirement for the following reason:
62 years of age or older. (Documentation of age in file)
Is a person with disabilities and self-certifies below that they are unable to comply with the
community service requirement. (Documentation of HUD definition of disability in file)
Tenant certification: I am a person with disabilities and am unable to comply with the
community service requirement.
Signature of Family Member
Date
Is the primary caretaker of such an individual in the above category. (Documentation in file)
Is engaged in work activities. (Employment Verification in file)
Is able to meet requirements under a state program funded under part A of title IV of the Social
Security Act, or under any other welfare program of the state in which the PHA is located,
including a state-administered welfare-to-work (Documentation in file)
Is a member of a family receiving assistance, benefits, or services under a state program funded
under part A of title IV of the Social Security Act, or under any other welfare program of the state
in which the PHA is located, including a state-administered welfare-to-work program and the
supplemental nutrition assistance program (SNAP), and has not been found by the state or other
administering entity to be in noncompliance with such program (Documentation in file)
Signature of Family Member
Date
Signature of PHA Official
Date
11-20
EXHIBIT 11-4: CSSR Work-Out Agreement
Date:
Noncompliant Adult:
Adult Family Member:
Community Service & Self-Sufficiency Requirement (CSSR):
Under Section 12 of the U.S. Housing Act, the ____________________________ (insert name of PHA) is required
to enforce the community service and self-sufficiency requirement (CSSR). Under the CSSR, each
nonexempt adult family member residing in public housing must perform 8 hours per month of
community service or self-sufficiency activities.
Noncompliance: ________________________ (insert name of PHA) has found that the nonexempt individual
named above is in noncompliance with the CSSR. This work-out agreement is the PHA’s written
notification to you of this noncompliance.
Our records show that for the most recent lease term you were required to perform:
________ hours of CSSR activities. However, there were ________ hours of verified CSSR activities.
Therefore, you are in noncompliance for ________ hours.
__________________________ (insert name of PHA) will not renew the lease at the end of the current 12-
month lease term unless the head of household and noncompliant adult sign a written work-out
agreement with ________________________ (insert name of PHA), or the family provides written assurance
that is satisfactory to ___________________________ (insert name of PHA) explaining that the noncompliant
adult no longer resides in the unit. The regulations require that the work-out agreement include the
means through which a noncompliant family member will comply with the CSSR requirement. [24 CFR
§960.607(c), Notice PIH 2015-12]. The terms of the CSSR work-out agreement are on the reverse side of
this page.
Enforcement: Should a family member refuse to sign this CSSR work-out agreement, or fail to comply
with the terms of this CSSR work-out agreement, or fail to provide satisfactory written assurance that the
noncompliant adult no longer resides in the unit, _____________________ (insert name of PHA) is required to
initiate termination of tenancy proceedings at the end of the current 12-month lease [24 CFR §966.53(c)].
11-21
Terms of CSSR Work-Out Agreement
Noncompliant Adult:
Please check one of the below boxes:
I [head of household or spouse/cohead] certify that the noncompliant adult named above no
longer resides in the unit. [Verification attached.]
I, the noncompliant adult named above, agree to complete ________ hours in the upcoming 12-
month lease term. These hours include the _________ hours not fulfilled in the most previous lease
term, plus the 96 hours for the upcoming lease term.
Below is a description of means through which I will comply with the CSSR requirement:
Description of Activity
Number of Hours
1
2
3
4
5
Total Hours
SIGNED AND ATTESTED THIS DATE
Signature:
Head of Household
Date
Noncompliant Adult, if other than Head of Household
Date
PHA Official
Date
12-1
Chapter 12
TRANSFER POLICY
INTRODUCTION
This chapter explains the PHA’s transfer policy, based on HUD regulations, HUD guidance, and PHA policy
decisions.
This chapter describes HUD regulations and PHA policies related to transfers in four parts:
Part I: Emergency Transfers. This part describes emergency transfers, emergency transfer
procedures, and payment of transfer costs.
Part II: PHA Required Transfers. This part describes types of transfers that may be required by
the PHA, notice requirements, and payment of transfer costs.
Part III: Transfers Requested by Residents. This part describes types of transfers that may be
requested by residents, eligibility requirements, security deposits, payment of transfer costs, and
handling of transfer requests.
Part IV: Transfer Processing. This part describes creating a waiting list, prioritizing transfer
requests, the unit offer policy, examples of good cause, deconcentration, transferring to another
development and reexamination.
The PHA may require the tenant to move from the unit under some circumstances. There are also
emergency circumstances under which alternate accommodations for the tenant must be provided, that
may or may not require a transfer.
The tenant may also request a transfer, such as a request for a new unit as a reasonable
accommodation.
The PHA must have specific policies in place to deal with acceptable transfer requests.
12-2
PART I EMERGENCY TRANSFERS
12-I.A. OVERVIEW
HUD categorizes certain situations that require emergency transfers [PH OCC GB, p. 147]. The
emergency transfer differs from a typical transfer in that it requires immediate action by the PHA.
In the case of a genuine emergency, it may be unlikely that the PHA will have the time or resources to
immediately transfer a tenant. Due to the immediate need to vacate the unit, placing the tenant on a
transfer waiting list would not be appropriate. Under such circumstances, if an appropriate unit is not
immediately available, the PHA should find alternate accommodations for the tenant until the emergency
passes, or a permanent solution, i.e., return to the unit or transfer to another unit, is possible.
12-3
12-I.B. EMERGENCY TRANSFERS
If the dwelling unit is damaged to the extent that conditions are created which are hazardous to life,
health, or safety of the occupants, the PHA must offer standard alternative accommodations, if available,
where necessary repairs cannot be made within a reasonable time [24 CFR 966.4(h)]. VAWA requires the
PHA to adopt an emergency transfer plan for victims of domestic violence, dating violence, sexual assault,
stalking, or human trafficking.
PHA Policy
The PHA has adopted an emergency transfer plan, which is included as Exhibit 16-3 to this plan.
The following are considered emergency circumstances warranting an immediate transfer of the
tenant or family:
•
Maintenance conditions in the resident’s unit, building or at the site that pose an
immediate, verifiable threat to the life, health or safety of the resident or family members
that cannot be repaired or abated within 24 hours. Examples of such unit or building
conditions would include: a gas leak, no heat in the building during the winter, no water,
toxic contamination, and serious water leaks.
•
A verified incident of domestic violence, dating violence, sexual assault, stalking, or human
trafficking. For instances of domestic violence, dating violence, sexual assault, stalking, or
human trafficking, the threat may be established through documentation outlined in
section 16-VII.D. To request the emergency transfer, the requestor must submit an
emergency transfer request form (HUD-5383) (Exhibit 16-4 of this ACOP), although the PHA
may waive this requirement in order to expedite the transfer process.
•
The PHA will immediately process requests for transfers due to domestic violence, dating
violence, sexual assault, stalking, or human trafficking. The PHA will allow a tenant to make
an internal emergency transfer under VAWA when a safe unit is immediately available. The
PHA defines immediately available as a vacant unit, that is ready for move-in within a
reasonable period of time, not to exceed seven (7) days. If an internal transfer to a safe
unit is not immediately available, the PHA will assist the resident in seeking an external
emergency transfer either within or outside the PHA’s programs.
12-4
12-I.C. EMERGENCY TRANSFER PROCEDURES
PHA Policy
Any condition that would produce an emergency work order would qualify a family for an
emergency transfer if the repairs cannot be made within 24 hours.
If the transfer is necessary because of maintenance conditions, and an appropriate unit is not
immediately available, the PHA will provide temporary accommodations to the tenant by
arranging for temporary lodging at a hotel or similar location. The family is entitled to alternative
accommodations even if the tenant, household member, guest, or other covered person is
responsible for the damage that caused the hazard or if a family is in the process of being evicted.
If the conditions that required the transfer cannot be repaired, or the condition cannot be
repaired in a reasonable amount of time, the PHA will transfer the resident to the first available
and appropriate unit after the temporary relocation.
Emergency transfers that arise due to maintenance conditions are mandatory for the tenant.
If the emergency transfer is necessary to protect a victim of domestic violence, dating violence,
sexual assault, stalking, or human trafficking, the PHA will follow procedures outlined in Exhibit 16-
4.
12-I.D. COSTS OF TRANSFER
PHA Policy
The PHA will bear the reasonable costs of temporarily accommodating the tenant and of long-
term transfers, if any, due to emergency conditions.
The reasonable cost of transfers includes the cost of packing, moving, and unloading.
The PHA will establish a moving allowance based on the typical costs in the community of packing,
moving, and unloading. To establish typical costs, the PHA will collect information from companies
in the community that provide these services.
The PHA will reimburse the family for eligible out-of-pocket moving expenses up to the PHA’s
established moving allowance.
12-5
PART II: PHA REQUIRED TRANSFERS
12-II.A. OVERVIEW
HUD regulations regarding transfers are minimal, leaving it up to the PHA to develop reasonable transfer
policies.
The PHA may require that a resident transfer to another unit under some circumstances. For example,
the PHA may require a resident to transfer to make an accessible unit available to a disabled family. The
PHA may also transfer a resident to maintain occupancy standards based on family composition. Finally,
a PHA may transfer residents to demolish or renovate the unit.
A transfer that is required by the PHA is an adverse action and is subject to the notice requirements for
adverse actions [24 CFR 966.4(e)(8)(i)].
12-II.B. TYPES OF PHA REQUIRED TRANSFERS
PHA Policy
The types of transfers that may be required by the PHA, include, but are not limited to, transfers
to make an accessible unit available for a disabled family, transfers to comply with occupancy
standards, transfers for demolition, disposition, revitalization, or rehabilitation, and emergency
transfers as discussed in Part I of this chapter.
Transfers required by the PHA are mandatory for the tenant. The family will be given seven (7)
days to vacate the unit after receipt of written notice.
Transfers to Make an Accessible Unit Available
When a family is initially given an accessible unit, but does not require the accessible features, the PHA
may require the family to agree to move to a non-accessible unit when it becomes available [24 CFR
8.27(b)].
PHA Policy
When a non-accessible unit becomes available, the PHA will transfer a family living in an accessible
unit that does not require the accessible features, to an available unit that is not accessible. The
PHA may wait until a disabled resident requires the accessible unit before transferring the family
that does not require the accessible features out of the accessible unit.
When a tenant who does not require accessibility features for disabled persons accepts an
accessible unit, the tenant acknowledges and agrees to transfer to a unit without such features
should another person eligible for housing assistance need the accessible dwelling unit. The
tenant further acknowledges the responsibility for all costs associated with the transfer to another
dwelling unit.
12-6
Occupancy Standards Transfers
The PHA may require a resident to move when a reexamination indicates that there has been a change in
family composition, and the family is either overcrowded or over-housed according to PHA policy [24 CFR
960.257(a)(4)]. On some occasions, the PHA may initially place a resident in an inappropriately sized unit
at lease-up, where the family is over-housed, to prevent vacancies. The public housing lease must include
the tenant’s agreement to transfer to an appropriately sized unit based on family composition [24 CFR
966.4(c)(3)].
PHA Policy
The PHA will transfer a family when the family size has changed, and the family is now too large
(overcrowded) or too small (over-housed) for the unit occupied.
For purposes of the transfer policy, overcrowded and over-housed are defined as follows:
•
Overcrowded: the number of household members exceeds the maximum number of
persons allowed for the unit size in which the family resides, according to the chart in
Section 5-I.B.
•
Over-housed: the family no longer qualifies for the bedroom size in which they are living
based on the PHA’s occupancy standards as described in Section 5-I.B.
The PHA may also transfer a family who was initially placed in a unit in which the family was over-
housed to a unit of an appropriate size based on the PHA’s occupancy standards, when the PHA
determines there is a need for the transfer.
The PHA may elect not to transfer an over-housed family in order to prevent vacancies.
A family that is required to move because of family size will be advised by the PHA that a transfer
is necessary, and that the family has been placed on the transfer list.
Families that request and are granted an exception to the occupancy standards (for either a larger
or smaller size unit) in accordance with the policies in Section 5-I.C. will only be required to
transfer if it is necessary to comply with the approved exception.
Demolition, Disposition, Revitalizations, or Rehabilitation, Including Rental Assistance
Demonstration (RAD) Conversions Transfers
These transfers permit the PHA to demolish, sell or do major capital or rehabilitation work at a building
site [PH Occ GB, page 148].
PHA Policy
The PHA will relocate a family when the unit or site in which the family lives is undergoing major
rehabilitation that requires the unit to be vacant, or the unit is being disposed of or demolished.
The PHA’s relocation plan may or may not require transferring affected families to other available
public housing units.
12-7
If the relocation plan calls for transferring public housing families to other public housing units,
affected families will be placed on the transfer list.
In cases of revitalization or rehabilitation, the family may be offered a temporary relocation if
allowed under Relocation Act provisions, and may be allowed to return to their unit, depending on
contractual and legal obligations, once revitalization or rehabilitation is complete.
12-II.C. ADVERSE ACTION [24 CFR 966.4(E)(8)(I)]
A PHA required transfer is an adverse action. As an adverse action, the transfer is subject to the
requirements regarding notices of adverse actions. If the family requests a grievance hearing within the
required timeframe, the PHA may not take action on the transfer until the conclusion of the grievance
process.
12-II.D. COST OF TRANSFER
PHA Policy
The PHA will bear the reasonable costs of transfers that the PHA requires, except that residents
will be required to bear the cost of occupancy standards transfers.
The reasonable costs of transfers include the cost of packing, moving, and unloading.
The PHA will establish a moving allowance based on the typical costs in the community of packing,
moving, and unloading. To establish typical costs, the PHA will collect information from companies
in the community that provide these services.
The PHA will reimburse the family for eligible out-of-pocket moving expenses up to the PHA’s
established moving allowance.
12-8
PART III: TRANSFERS REQUESTED BY TENANTS
12-III.A. OVERVIEW
HUD provides the PHA with discretion to consider transfer requests from tenants. The only requests that
the PHA is required to consider are requests for reasonable accommodation. All other transfer requests
are at the discretion of the PHA. To avoid administrative costs and burdens, this policy limits the types of
requests that will be considered by the PHA.
Some transfers that are requested by tenants should be treated as higher priorities than others due to
the more urgent need for the transfer.
12-III.B. TYPES OF RESIDENT REQUESTED TRANSFERS
PHA Policy
The types of requests for transfers that the PHA will consider are limited to requests for transfers
to alleviate a serious or life-threatening medical condition, transfers due to a threat of physical
harm or criminal activity, reasonable accommodation, transfers to a different unit size provided
thatthe family qualifies for the unit according to the PHA’s occupancy standards, and transfers to a
location closer to employment. No other transfer requests will be considered by the PHA.
The PHA will consider the following as high priority transfer requests:
•
When a transfer is needed to alleviate verified medical problems of a serious or life-
threatening nature
•
When there has been a verified threat of physical harm or criminal activity. Such
circumstances may, at the PHA’s discretion, include an assessment by law enforcement
indicating that a family member is the actual or potential victim of a criminal attack,
retaliation for testimony, or a hate crime.
•
When a family requests a transfer as a reasonable accommodation. Examples of a
reasonable accommodation transfer include, but are not limited to, a transfer to a first-
floor unit for a person with mobility impairment, or a transfer to a unit with accessible
features.
The PHA will consider the following as regular priority transfer requests:
•
When a family requests a larger bedroom size unit even though the family does not meet
the PHA’s definition of overcrowded, as long as the family meets the PHA’s occupancy
standards for the requested size unit
•
When the head of household or spouse is employed 25 miles or more from the public
housing unit, has no reliable transportation and public transportation is not adequate.
Transfers requested by the tenant are considered optional for the tenant.
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12-III.C. ELIGIBILITY FOR TRANSFER
Transferring residents do not have to meet the admission eligibility requirements pertaining to income or
preference. However, the PHA may establish other standards for considering a transfer request [PH Occ
GB, p. 150].
PHA Policy
Except where reasonable accommodation is being requested, the PHA will only consider transfer
requests from residents that meet the following requirements:
•
Have not engaged in criminal activity that threatens the health and safety of residents and
staff
•
Owe no back rent or other charges, or have a pattern of late payment
•
Have no housekeeping lease violations or history of damaging property
•
Can get utilities turned on in the name of the head of household (applicable only to
properties with tenant-paid utilities)
A resident with housekeeping standards violations will not be transferred until the resident passes
a follow-up housekeeping inspection.
Exceptions to the good record requirement may be made when it is to the PHA’s advantage to
make the transfer.
Exceptions will also be made when the PHA determines that a transfer is necessary to protect the
health or safety of a resident who is a victim of domestic violence, dating violence, sexual assault,
stalking, or human trafficking, and who provides documentation of abuse in accordance with
Section 16-VII.D of this ACOP. Tenants who are not in good standing may still request an
emergency transfer under VAWA.
If a family requested to be placed on the waiting list for a unit size smaller than designated by the
occupancy guidelines, the family will not be eligible to transfer to a larger size unit for a period of
two years from the date of admission, unless they have a change in family size or composition, or
it is needed as a reasonable accommodation.
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12-III.D. SECURITY DEPOSITS
PHA Policy
When a family transfers from one unit to another, the PHA will transfer their security deposit to
the new unit. The tenant will be billed for any maintenance or others charges due for the “old”
unit.
12-III.E. COST OF TRANSFER
The PHA must pay moving expenses to transfer a resident with a disability to an accessible unit as an
accommodation for the resident’s disability [Notice PIH 2010-26].
PHA Policy
The resident will bear all the costs of transfer theyrequest. However, the PHA will bear the
transfer costs when the transfer is done as a reasonable accommodation.
12-III.F. HANDLING OF REQUESTS
PHA Policy
Residents requesting a transfer to another unit or development will be required to submit a
written request for transfer.
In order to request the emergency transfer under VAWA, the resident will be required to submit
an emergency transfer request form (HUD-5383) (Exhibit 16-4 of this ACOP). The PHA may, on a
case-by-case basis, waive this requirement and accept a verbal request in order to expedite the
transfer process. If the PHA accepts an individual’s statement, the PHA will document acceptance
of the statement in the individual’s file in accordance with 16-VII.D. of this ACOP. Transfer requests
under VAWA will be processed in accordance with the PHA’s Emergency Transfer Plan (Exhibit 16-
3).
In case of a reasonable accommodation transfer, the PHA will encourage the resident to make the
request in writing using a reasonable accommodation request form. However, the PHA will
consider the transfer request any time the resident indicates that an accommodation is needed
whether or not a formal written request is submitted.
The PHA will respond by approving the transfer and putting the family on the transfer list, by
denying the transfer, or by requiring more information or documentation from the family, such as
documentation of domestic violence, dating violence, sexual assault, stalking, or human trafficking
in accordance with section 16-VII.D of this ACOP.
If the family does not meet the “good record” requirements under Section 12-III.C., the manager
will address the problem and, until resolved, the request for transfer will be denied.
The PHA will respond within ten (10) business days of the submission of the family’s request. If the
PHA denies the request for transfer, the family will be informed of its grievance rights.
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PART IV: TRANSFER PROCESSING
12-IV.A. OVERVIEW
Generally, families who request a transfer should be placed on a transfer list and processed in a
consistent and appropriate order. The transfer process must be clearly auditable to ensure that residents
do not experience inequitable treatment.
12-IV.B. TRANSFER LIST
PHA Policy
The PHA will maintain a centralized transfer list to ensure that transfers are processed in the
correct order and that procedures are uniform across all properties.
Emergency transfers will not automatically go on the transfer list. Instead, emergency transfers
will be handled immediately, on a case-by-case basis. If the emergency cannot be resolved by a
temporary accommodation, and the resident requires a permanent transfer, the family will be
placed at the top of the transfer list.
Transfers will be processed in the following order:
1) Emergency transfers (hazardous maintenance conditions, VAWA)
2) High-priority transfers (verified medical condition, threat of harm or criminal activity, and
reasonable accommodation)
3) Transfers to make accessible units available
4) Demolition, renovation, etc.
5) Occupancy standards
6) Other PHA-required transfers
7) Other resident -requested transfers
Within each category, transfers will be processed in order of the date a family was placed on the transfer
list, starting with the earliest date.
With the approval of the executive director, the PHA may, on a case-by-case basis, transfer a family
without regard to its placement on the transfer list in order to address the immediate need of a family in
crisis.
Demolition and renovation transfers will gain the highest priority as necessary to allow the PHA to meet
the demolition or renovation schedule.
Transfers will take precedence over waiting list admissions.
12-12
12-IV.C. TRANSFER OFFER POLICY
PHA Policy
Residents will receive one offer of a transfer.
When the transfer is required by the PHA, the refusal of that offer without good cause will result in
lease termination.
When the transfer has been requested by the resident, the refusal of that offer without good
cause will result in the removal of the family from the transfer list. In such cases, the family must
wait six months to reapply for another transfer.
12-IV.D. GOOD CAUSE FOR UNIT REFUSAL
PHA Policy
Examples of good cause for refusal of a unit offer include, but are not limited to, the following:
•
The family demonstrates to the PHA’s satisfaction that accepting the unit offer will require
an adult household member to quit a job, drop out of an educational institution or job
training program, or take a child out of day care or an educational program for children
with disabilities.
•
The family demonstrates to the PHA’s satisfaction that accepting the offer will place a
family member’s life, health, or safety in jeopardy. The family should offer specific and
compelling documentation such as restraining orders, other court orders, or risk
assessments related to witness protection from a law enforcement agency, or
documentation of domestic violence, dating violence, sexual assault, stalking, or human
trafficking in accordance with section 16-VII.D of this ACOP. Reasons offered must be
specific to the family. Refusals due to location alone do not qualify for this good cause
exemption.
•
A health professional verifies temporary hospitalization or recovery from illness of the
principal household member, other household members (as listed on final application) or
live-in aide necessary to the care of the principal household member.
•
The unit is inappropriate for the applicant’s disabilities, or the family does not need the
accessible features in the unit offered and does not want to be subject to a 30-day notice to
move.
•
The unit has lead-based paint and the family includes children under the age of six.
The PHA will require documentation of good cause for unit refusals.
12-13
12-IV.E. DECONCENTRATION
PHA Policy
If subject to deconcentration requirements, the PHA will consider its deconcentration goals when
transfer units are offered. When feasible, families above the Established Income Range will be
offered a unit in a development that is below the Established Income Range, and vice versa, to
achieve the PHA’s deconcentration goals. A deconcentration offer will be considered a “bonus”
offer; that is, if a resident refuses a deconcentration offer, the resident will receive one additional
transfer offer.
12-IV.F. REEXAMINATION POLICIES FOR TRANSFERS
PHA Policy
The reexamination date will be changed to the first of the month in which the transfer took place.
13-1
Chapter 13
LEASE TERMINATIONS
INTRODUCTION
Either party to the dwelling lease agreement may terminate the lease in accordance with the terms of the
lease. A public housing lease is different from a private dwelling lease in that the family’s rental
assistance is tied to their tenancy. When the family moves from their public housing unit, they lose their
rental assistance. Therefore, there are additional safeguards to protect the family’s tenancy in public
housing.
Likewise, there are safeguards to protect HUD’s interest in the public housing program. The PHA has the
authority to terminate the lease because of the family’s failure to comply with HUD regulations, for
serious or repeated violations of the terms of the lease, and for other good cause. HUD regulations also
specify when termination of the lease is mandatory by the PHA.
When determining PHA policy on terminations of the lease, the PHA must consider state and local
landlord-tenant laws in the area where the PHA is located. Such laws vary from one location to another,
and these variances may be either more or less restrictive than federal law or HUD regulation.
This chapter presents the policies that govern voluntary termination of the lease by the family and the
mandatory and voluntary termination of the lease by the PHA. It is presented in four parts:
Part I: Termination by Tenant. This part discusses the PHA requirements for voluntary
termination of the lease by the family.
Part II: Termination by PHA - Mandatory. This part describes circumstances when termination
of the lease by the PHA is mandatory. This part also explains nonrenewal of the lease for
noncompliance with community service requirements and families that have been over the
income limit for 24 consecutive months.
Part III: Termination by PHA – Other Authorized Reasons. This part describes the PHA’s options
for lease termination that are not mandated by HUD regulation but for which HUD authorizes
PHAs to terminate. For some of these options HUD requires the PHA to establish policies and
lease provisions for termination, but termination is not mandatory. For other options the PHA has
full discretion whether to consider the options as just cause to terminate provided that the PHA
policies are reasonable, nondiscriminatory, and do not violate state or local landlord-tenant law.
This part also discusses the alternatives that the PHA may consider in lieu of termination, and the
criteria the PHA will use when deciding what actions to take.
Part IV: Notification Requirements. This part presents the federal requirements for disclosure
of criminal records to the family prior to termination, the HUD requirements and PHA policies
regarding the timing and content of written notices for lease termination and eviction, and
notification of the post office when eviction is due to criminal activity. This part also discusses
record keeping related to lease termination.
13-2
PART I: TERMINATION BY TENANT
13-I.A. TENANT CHOOSES TO TERMINATE THE LEASE [24 CFR 966.4(K)(1)(II) AND 24 CFR 966.4(I)(1)]
The family may terminate the lease at any time, for any reason, by following the notification procedures
as outlined in the lease. Such notice must be in writing and delivered to the property site office or the
PHA central office or sent by pre-paid first-class mail, properly addressed.
PHA Policy
If a family desires to move and terminate their tenancy with the PHA, they must give at least 30
calendar days advance written notice to the PHA of their intent to vacate. When a family must give
less than 30 days’ notice due to circumstances beyond their control the PHA, at its discretion, may
waive the 30-day requirement.
The notice of lease termination must be signed by the head of household, spouse, or cohead.
13-3
PART II: TERMINATION BY PHA – MANDATORY
13-II.A. OVERVIEW
HUD requires mandatory termination of the lease for certain actions or inactions of the family. There are
other actions or inactions of the family that constitutes grounds for lease termination, but the lease
termination is not mandatory. The PHA must establish policies for termination of the lease in these cases
where termination is optional for the PHA.
For those tenant actions or failures to act where HUD requires termination, the PHA has no such option.
In those cases, the family’s lease must be terminated. This part describes situations in which HUD
requires the PHA to terminate the lease.
Upon the PHA’s HOTMA 102/104 compliance date, the beow section on failure to provide consent is
added:
13-II.B. FAILURE TO PROVIDE CONSENT [24 CFR 960.259(A) AND (B)]
The PHA must terminate the lease if any family member fails to sign and submit any consent form s/he is
required to sign for any reexamination.
However, this does not apply if the applicant, participant, or any member of their family, revokes their
consent with respect to the ability of the PHA to access financial records from financial institutions,
unless the PHA establishes a policy that revocation of consent to access financial records will result in
denial of admission or termination of assistance [24 CFR 5.232(c)]. PHAs may not process interim or
annual reexaminations of income without the family’s executed consent forms.
PHA Policy
The PHA has established a policy that revocation of consent to access financial records will result
in termination of assistance in accordance with PHA policy.
See Chapter 7 for a complete discussion of consent requirements.
13-II.C. FAILURE TO DOCUMENT CITIZENSHIP [24 CFR 5.514(C) AND (D) AND 24 CFR 960.259(A)]
The PHA must terminate the lease if (1) a family fails to submit required documentation within the
required timeframe concerning any family member’s citizenship or immigration status; (2) a family
submits evidence of citizenship and eligible immigration status in a timely manner, but United States
Citizenship and Immigration Services (USCIS) primary and secondary verification does not verify eligible
immigration status of the family, resulting in no eligible family members; or (3) a family member, as
determined by the PHA, has knowingly permitted another individual who is not eligible for assistance to
reside (on a permanent basis) in the unit. For (3), such termination must be for a period of at least 24
months. This does not apply to ineligible noncitizens already in the household where the family’s
assistance has been prorated.
13-4
See Chapter 7 for a complete discussion of documentation requirements.
13-II.D. FAILURE TO DISCLOSE AND DOCUMENT SOCIAL SECURITY NUMBERS [24 CFR 5.218(C), 24 CFR
960.259(A)(3), NOTICE PIH 2018-24]
The PHA must terminate assistance if a participant family fails to disclose the complete and accurate
social security numbers of each household member and the documentation necessary to verify each
social security number.
However, if the family is otherwise eligible for continued program assistance, and the PHA determines
that the family’s failure to meet the SSN disclosure and documentation requirements was due to
circumstances that could not have been foreseen and were outside of the family’s control, the PHA may
defer the family’s termination and provide the opportunity to comply with the requirement within a
period not to exceed 90 calendar days from the date the PHA determined the family to be noncompliant.
PHA Policy
The PHA will defer the family’s termination and provide the family with the opportunity to comply
with the requirement for a period of 90 calendar days for circumstances beyond the participant’s
control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death
in the family, or other emergency, if there is a reasonable likelihood that the participant will be
able to disclose an SSN by the deadline.
See Chapter 7 for a complete discussion of documentation and certification requirements.
13-II.E. FAILURE TO ACCEPT THE PHA’S OFFER OF A LEASE REVISION [24 CFR 966.4(I)(2)(II)(E)]
The PHA must terminate the lease if the family fails to accept the PHA’s offer of a lease revision to an
existing lease, provided the PHA has done the following:
•
The revision is on a form adopted by the PHA in accordance with 24 CFR §966.3 pertaining to
requirements for notice to tenants and resident organizations and their opportunity to present
comments.
•
The PHA has made written notice of the offer of the revision at least 60 calendar days before the
lease revision is scheduled to take effect.
•
The PHA has specified in the offer a reasonable time limit within that period for acceptance by the
family.
See Chapter 8 for information pertaining to PHA policies for offering lease revisions.
13-5
13-II.F. METHAMPHETAMINE CONVICTION [24 CFR 966.4(L)(5)(I)(A)]
The PHA must immediately terminate the lease if the PHA determines that any household member has
ever been convicted of the manufacture or production of methamphetamine on the premises of federally
assisted housing.
See Part 13-III.B. below for the HUD definition of premises.
13-II.G. LIFETIME REGISTERED SEX OFFENDERS (PIH NOTICE 2012-28)
Should a PHA discover that a member of an assisted household was subject to a lifetime registration
requirement at admission and was erroneously admitted after June 25, 2001, the PHA must immediately
terminate assistance for the household member.
In this situation, the PHA must offer the family the opportunity to remove the ineligible family member
from the household. If the family is unwilling to remove that individual from the household, the PHA
must terminate assistance for the household.
13-II.H. NONCOMPLIANCE WITH COMMUNITY SERVICE REQUIREMENTS [24 CFR 966.4(I)(2)(II)(D), 24
CFR 960.603(B) AND 24 CFR 960.607(B)(2)(II) AND (C)]
The PHA is prohibited from renewing the lease at the end of the 12-month lease term when the family
fails to comply with the community service requirements as described in Chapter 11.
13-II.I DEATH OF A SOLE FAMILY MEMBER [NOTICE PIH 2012-4]
The PHA must immediately terminate the lease following the death of the sole family member.
13-II.J. OVERINCOME FAMILIES [24 CFR 960.507; FR Notice 7/26/18; Notice PIH 2023-03; FR Notice
2/14/23]
In the public housing program, an over-income family is defined as a family whose annual income exceeds
the over-income limit for 24 consecutive months. When this occurs, the PHA must either:
•
Terminate the family’s tenancy within six months of the PHA’s final notification of the end of the 24-
month grace period; or
•
Within 60 days of the PHA’s final notification of the end of the 24-month grace period or the next
lease renewal (whichever is sooner), have the family execute a new lease that is consistent with 24
CFR 960.509 and charge the family a monthly rent that is the higher of the applicable fair market rent
(FMR) or the amount of monthly subsidy for the unit, including amounts from the operating and
capital funds.
PHA Policy
13-6
For families whose income exceeds the over-income limit for 24 consecutive months, the PHA will
not terminate the family’s tenancy and will charge the family the alternative non-public housing
rent, as well as require the family to sign a new non-public housing lease in accordance with the
continued occupancy policies below.
All PHAs, regardless of size, must implement over-income policies. However, if a PHA owns or operates
fewer than 250 public housing units and admits families whose annual income exceeds the low-income
limit because there are no income-eligible families on the PHA’s waiting list in accordance with 24 CFR
960.503, the over-income limit regulation does not apply to tenant families [24 CFR 950.503]. This
regulation is unrelated to HOTMA 103 [24 CFR 960.507]. This is because these families are considered
unassisted tenants are not participants in the public housing program.
.
Over-Income Limit [Notice PIH 2023-03; HOTMA 103 FAQs, December 2024]
The PHA must publish over-income limits in their ACOP and update them no later than 60 days after HUD
publishes new income limits each year. The over-income limit is calculated by multiplying the very low-
income limit (VLI) by 2.4, as adjusted for family size. When determining whether a family is over-income,
the PHA must use the applicable income limit for the current number of family members, not including
any household members. Further, the over-income limit is based on the family’s annual income, rather
than their adjusted income.
PHA Policy
The PHA will rely on the following over-income limits. These numbers will be updated within 60 days of
HUD publishing new income limits each year and will be effective for all annual and interim
reexaminations once these policies have been adopted.
For families larger than eight persons, the over-income limit will be calculated by multiplying the
applicable very low-income limit by 2.4.
Decreases in Income [24 CFR 960.507(c)(4)]
If, at any time during the consecutive 24-month period following the initial over-income determination,
the PHA determines that the family’s income is below the over-income limit, the PHA’s over-income
policies no longer apply to the family. If the PHA later determines that the family’s income exceeds the
Family Size
1
2
3
4
5
6
7
8
VLI
$39,300
$44,850
$50,500
$56,100
$60,600
$65,100
$69,600
$74,100
Over-Income
Limit (2.4
adjustment)
$94,320
$107,640
$121,200
$134,640 $145,440
$156,240
$167,040
$177,840
13-7
over-income limit at a subsequent annual or interim reexamination, the family is entitled to a new 24
consecutive month period and new notices under this section.
PHA Policy
If, at any time during the 24-month period following the initial over-income determination, an over-
income family experiences a decrease in income, the family may request an interim redetermination of
rent in accordance with PHA policy in Chapter 9.
If, as a result, the previously over-income family is now below the over-income limit, the family is no
longer subject to over-income provisions as of the effective date of the recertification. The PHA will notify
the family in writing within 10 business days of the determination that over-income policies no longer
apply to them.
Initial Notice of Over-Income Status [24 CFR 960.507(c)(1); Notice PIH 2023-03; HOTMA 103 FAQs,
December 2024]
The PHA is required to provide over-income families with three notifications within 30 days of the
following points: at the initial determination when a family’s income first exceeds the limit, at 12 months
after the family continues to exceed the limit, and at 24 months of continuously exceeding the limit. If
proper notice is not given, the PHA is required to continue to allow the family to stay in the unit until all
three notices have been given.
If the PHA determines the family has exceeded the over-income limit during an annual or interim
reexamination, the PHA must provide written notice to the family of the over-income determination no
later than 30 days after thePHA’s initial over-income determination. The 24 consecutive month grace
period begins on the date the PHA notifies the family (for example, the post date of the notice).
The notice must state that the family has exceeded the over-income limit and continuing to do so for a
total of 24 consecutive months will result in the PHA following its continued occupancy policy for over-
income families. The PHA must afford the family an opportunity for a hearing if the family disputes within
a reasonable time the PHA’s determination that the family has exceeded the over-income limit. However,
the 24-month grace period does not restart if required notices do not include grievance rights.Exhibits
13-1 and 13-2 provide sample initial notices based on HUD’s model notices.
PHA Policy
At annual or interim reexamination, if a family’s income exceeds the applicable over-income limit, within
10 business days of the determination, the PHA will notify the family in writing of the determination. The
notice will state that if the family continues to be over-income for 24 consecutive months, the family will
be subject to the PHA’s over-income policies. The notice will state that the family may request a hearing if
the family disputes the PHA’s determination in accordance with PHA policies in Chapter 14. The PHA will
ensure that all notices and communications are provided in a manner that is effective for persons with
hearing, visual, and other impairments.
13-8
Second Notice of Over-Income Status [24 CFR 960.507(c)(2); Notice PIH 2023-03; Notice PIH 2023-27]
The PHA must conduct an income examination 12 months after the initial over-income determination,
even if the family is paying flat rent, unless the PHA determined the family’s income fell below the over-
income limit since the initial over-income determination. This includes when the PHA makes an initial
determination that a family is over-income during an interim reexamination. In this case the PHA must
conduct a second interim reexamination 12 months after the over-income determination, unless the
family’s income falls below the over-income limit during the 24-month period. See Chapter 9 for PHA
policies on interims for over-income families.
If the PHA determines the family continues to exceed the over-income limit for 12 consecutive months,
the PHA must provide written notification of this 12-month over-income determination no later than 30
days after the income examination. The notice must state that the family has exceeded the over-income
limit for 12 consecutive months and continuing to do so for a total of 24 consecutive months will result in
the PHA following its continued occupancy policy for over-income families. Additionally, if applicable
under PHA policy, the notice must include an estimate (based on current data) of the alternative non-
public housing rent for the family’s unit. The PHA must afford the family an opportunity for a hearing if
the family disputes within a reasonable time the PHA’s determination that the family has exceeded the
over-income limit. However, the 24-month grace period does not restart if required notices do not
include grievance rights. Exhibits 13-3 and 13-4 provide sample 12-month notices based on HUD’s model
notices.
PHA Policy
If a family’s income continues to exceed the applicable over-income limit after 12 consecutive months,
within 10 business days of the determination, the PHA will notify the family in writing of the
determination. The notice will state that if the family continues to be over-income for 24 consecutive
months, the family will be subject to the PHA’s over-income policies. The notice will also state that the
family may request a hearing if the family disputes the PHA’s determination in accordance with PHA
policies in Chapter 14. The PHA will ensure that all notices and communications are provided in a manner
that is effective for persons with hearing, visual, and other impairments.
Final Notice of Over-Income Status [24 CFR 960.507(c)(3) and 960.509; Notice PIH 2023-03; Notice
PIH 2023-27; HOTMA 103 FAQs, December 2024]
Unless the PHA determined the family’s income fell below the over-income limit since the second over-
income determination, the PHA must conduct an income examination 24 months after the initial over
income determination, even if the family is paying flat rent. When a PHA makes an initial determination
that a family is over-income during an interim reexamination, the PHA must conduct an interim
reexamination 12 months after the over-income determination, and then again 12 months after the
13-9
second over-income determination, unless the family’s income falls below the over-income limit during
the 24-month period.
If the family continues to be over-income based on this determination, the PHA must provide written
notification of this determination no later than 30 days after the income examination. The notice must
state that the family has exceeded the over-income limit for 24 consecutive months and that the PHA will
follow its continued occupancy policies for over-income families. The PHA must afford the family an
opportunity for a hearing if the family disputes within a reasonable time the PHA’s determination that the
family has exceeded the over-income limit. However, the 24-month grace period does not restart if
required notices do not nclude grievance rights. Exhibits 13-5 and 13-6 provide sample 24-month notices
based on HUD’s model notices.
PHA Policy
For families whose income exceeds the over-income limit for 24 consecutive months, the PHA will evict or
terminate the tenancies of families if they continue to exceed the over income limit for a period of two
years.
At annual or interim reexamination, if a family’s adjusted income exceeds the applicable over-income
limit, the PHA will document the family file and begin tracking the family’s over-income status.
If one year after the applicable annual or interim reexamination the family’s income continues to exceed
the applicable over-income limit, the PHA will notify the family in writing that their income has exceeded
the over-income limit for one year, and that if the family continues to be over-income for 12 consecutive
months, the family will be subject to the PHA’s over-income policies.
HUD allows for PHAs to terminate assistance after two years of a family consistently exceeding the over-
income limit for their household size. COCHRD will monitor the family’s over-income status for the entire
two years and the family will be notified of their status at each point of the process during the two years.
If the family continues to be over-income at the end of the two-year period, then the family will be given a
final 30-day notice of termination of assistance based on the income information on file.
If the family’s income should change before the termination date to the point where the family is no
longer over income, COCHRD will void the termination. The over-income limits are updated when the
new income limits are announced by HUD each year.
The notice will also include a new non-public housing lease and inform the family that the lease must be
executed by the family and the PHA no later than 60 days from the date of the notice or at the next lease
renewal, whichever is sooner. The family will continue to be a public housing program participant until
the family executes the new non-public housing lease. The notice will also state that failure to execute the
lease within this time period stated in the notice will result in termination of tenancy no more than six
months after the date of the notice. The PHA will permit an over-income family to execute a lease beyond
this time period, but before termination of tenancy, if the over-income family pays the PHA the total
difference between the alternative non-public housing rent and their public housing rent dating back to
the point in time that the over-income family was required to execute the new lease.
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Once the family signs the new non-public housing lease, the family will no longer be a public housing
participant family. The family will no longer be subject to income examinations, are precluded from
participating in the resident council, and cannot participate in any programs that are only for public
housing or low-income families. The PHA will not provide such families with hearing or grievance rights.
Units occupied by NPHOI families continue to be part of the public housing inventory and are required to
be inspected in the same way as units occupied by families in the public housing program. Further,
NPHOI families are still required to abide by the PHA’s smoke-free policies as well as the PHA’s pet rules.
NPHOI families are not entitled to VAWA protections as prescribed in HUD regulations but may be
entitled to protections under state and local law.
The non-public housing over-income (NPHOI) lease will contain all required provisions listed at 24 CFR
960.509. The initial term of the lease will be for one year. Upon expiration of the initial lease term, the
lease will not renew automatically, and subsequent leases will state renewal terms. At any time, the PHA
may terminate tenancy in accordance with 24 CFR 960.509(b)(11) and in accordance with state and local
law.
Upon execution of the lease, the tenant will be required to pay the amount of monthly tenant rent
(known as the alternative non-public housing rent) determined by the PHA in accordance with HUD
regulations. The PHA will comply with state and local law in giving the tenant written notice stating any
changes in the amount of tenant rent. Charges assessed under the lease will be due in accordance with
state and local law.
NPHOI families will not receive a utility allowance. The family will be responsible for their utilities where
utilities are individually metered. Where utilities are not individually metered, the NPHOI family will be
charged an allocation of the total energy plus any surcharges with no utility allowance.
If an NPHOI family subsequently experiences a decrease in income after signing the NPHOI lease, the
family may only be readmitted to the public housing program if they once again become an eligible low-
income family and reapply to the public housing program. The family will continue to pay the alternative
rent until they are readmitted to public housing.
PART III: TERMINATION BY PHA – OTHER AUTHORIZED REASONS
13-III.A. OVERVIEW
Besides requiring PHAs to terminate the lease under the circumstances described in Part II, HUD requires
the PHA to establish provisions in the lease for termination pertaining to certain criminal activity, alcohol
abuse, and certain household obligations stated in the regulations. While these provisions for lease
termination must be in the lease agreement, HUD does not require PHAs to terminate for such violations
in all cases. The PHA has the discretion to consider circumstances surrounding the violation or, in
applicable situations, whether the offending household member has entered or completed rehabilitation,
and the PHA may, as an alternative to termination, require the exclusion of the culpable household
member. The PHA must adopt policies concerning the use of these options.
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In addition, HUD authorizes PHAs to terminate the lease for other grounds, but for only those grounds
that constitute serious or repeated violations of material terms of the lease or for other good cause. The
PHA must develop policies pertaining to what constitutes serious or repeated lease violations, and other
good cause, based upon the content of the PHA lease. In the development of the terms of the lease, the
PHA must consider the limitations imposed by state and local landlord-tenant law, as well as HUD
regulations and federal statutes. Because of variations in state and local landlord-tenant law, and
because HUD affords PHAs wide discretion in some areas, a broad range of policies could be acceptable.
The PHA also has the option to terminate the tenancies of certain over-income families.(See 13-II.J)
The PHA may consider alternatives to termination and must establish policies describing the criteria the
PHA will use when deciding what action to take, the types of evidence that will be acceptable, and the
steps the PHA must take when terminating a family’s lease.
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13-III.B. MANDATORY LEASE PROVISIONS [24 CFR 966.4(I)(5)]
This section addresses provisions for lease termination that must be included in the lease agreement
according to HUD regulations. Although the provisions are required, HUD does not require PHAs to
terminate for such violations in all cases, therefore PHA policies are needed.
Definitions [24 CFR 5.100]
The following definitions will be used for this and other parts of this chapter:
Affiliated individual is defined in Section 16-VII.B.
Covered person means a tenant, any member of the tenant’s household, a guest, or another person under
the tenant’s control.
Dating violence is defined in section 16-VII.B.
Domestic violence is defined in section 16-VII.B.
Drug means a controlled substance as defined in section 102 of the Controlled Substances Act [21 U.S.C.
802].
Drug-related criminal activity means the illegal manufacture, sale, distribution, or use of a drug, or the
possession of a drug with the intent to manufacture, sell, distribute, or use the drug.
Guest means a person temporarily staying in the unit with the consent of a tenant or other member of
the household who has express or implied authority to so consent on behalf of the tenant.
Household means the family and PHA-approved live-in aide. The term household also includes foster
children and/or foster adults that have been approved to reside in the unit [HUD-50058, Instruction
Booklet, p. 65].
Other person under the tenant’s control means that the person, although not staying as a guest in the unit,
is, or was at the time of the activity in question, on the premises because of an invitation from the tenant
or other member of the household who has express or implied authority to so consent on behalf of the
tenant. Absent evidence to the contrary, a person temporarily and infrequently on the premises solely for
legitimate commercial purposes is not under the tenant’s control.
Premises means the building or complex or development in which the public or assisted housing dwelling
unit is located, including common areas and grounds.
Sexual assault is defined in Section 16-VII.B.
Stalking is defined in Section 16-VII.B.
Violent criminal activity means any criminal activity that has as one of its elements the use, attempted use,
or threatened use of physical force substantial enough to cause, or be reasonably likely to cause, serious
bodily injury or property damage.
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Drug Crime On or Off the Premises [24 CFR 966.4(l)(5)(i)(B)]
The lease must provide that drug-related criminal activity engaged in on or off the premises by the
tenant, member of the tenant’s household or guest, or any such activity engaged in on the premises by
any other person under the tenant’s control is grounds for termination.
PHA Policy
The PHA will terminate the lease for drug-related criminal activity engaged in, on, or off the
premises by any tenant, member of the tenant’s household or guest, and any such activity
engaged in on the premises by any other person under the tenant’s control.
The PHA will consider all credible evidence, including but not limited to, Police Reports, any record
of arrests or convictions of covered persons related to the drug-related criminal activity.
A record or records of arrest will not be used as the sole basis for the termination or proof that
the participant engaged in disqualifying criminal activity.
In making its decision to terminate the lease, the PHA will consider alternatives as described in Section
13-III.D and other factors as described in Section 13-III.E and 13-III.F. Upon consideration of such
alternatives and factors, the PHA may, on a case-by-case basis, choose not to terminate the lease.
Illegal Use of a Drug [24 CFR 966.4(I)(5)(i)(B)]
The lease must provide that a PHA may evict a family when the PHA determines that a household
member is illegally using a drug or that a pattern of illegal use of a drug interferes with the health, safety,
or right to peaceful enjoyment of the premises by other residents.
PHA Policy
The PHA will terminate the lease when the PHA determines that a household member is illegally
using a drug or the PHA determines that a pattern of illegal use of a drug interferes with the
health, safety, or right to peaceful enjoyment of the premises by other residents.
A pattern of illegal drug use means more than one incident of any use of illegal drugs during the
previous three months.
The PHA will consider all credible evidence, including but not limited to, Police Reports, or any
record of arrests or convictions of household members related to the use of illegal drugs.
A record or records of arrest will not be used as the sole basis for the termination or proof that
the participant engaged in disqualifying criminal activity.
In making its decision to terminate the lease, the PHA will consider alternatives as described in
Section 13-III.D and other factors as described in Section 13-III.E and 13-III.F. Upon consideration
of such alternatives and factors, the PHA may, on a case-by-case basis, choose not to terminate
the lease.
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State laws purporting to legalize medical and recreational marijuana directly conflict with the
admission and continued requirements of the Quality Housing and Work Responsibility Act of
1998 (“Public Housing Reform Act”) and are thus subject to preemption. [September 24, 1999,
HUD Letter Re: Medical Use of Marijuana]
PHA Policy
The use, possession, or growing of marijuana by any household member on the premises of a
subsidized unit is grounds for termination of assistance. The “premises” includes, but is not limited
to, the interior and exterior of the subsidized unit, patio/balcony, sidewalks, walkways, recreation
areas/common areas, laundry room, parking lot, etc.).
Household members with a “medical marijuana card” are not exempt from this rule.
The use of marijuana may include smoking, edibles, or other forms of the drug.
Threat to Other Residents [24 CFR 966.4(l)(5)(ii)(A)]
The lease must provide that any criminal activity by a covered person that threatens the health, safety, or
right to peaceful enjoyment of the premises by other residents (including PHA management staff residing
on the premises) or by persons residing in the immediate vicinity of the premises is grounds for
termination of tenancy.
PHA Policy
The PHA will terminate the lease when a covered person engages in any criminal activity that
threatens the health, safety, or right to peaceful enjoyment of the premises by other residents
(including PHA management staff residing on the premises) or by persons residing in the
immediate vicinity of the premises.
Immediate vicinity means within a three-block radius of the premises.
The PHA will consider all credible evidence, including but not limited to, Police Reports, any record
of arrests or convictions of covered persons related to the criminal activity.
A record or records of arrest will not be used as the sole basis for the termination or proof that
the participant engaged in disqualifying criminal activity.
In making its decision to terminate the lease, the PHA will consider alternatives as described in
Section 13-III.D and other factors as described in Sections 13-III.E and 13-III.F. Upon consideration
of such alternatives and factors, the PHA may, on a case-by-case basis, choose not to terminate
the lease.
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Alcohol Abuse [24 CFR 966.4(l)(5)(vi)(A)]
PHAs must establish standards that allow termination of tenancy f the PHA determines that a household
member has engaged in abuse or pattern of abuse of alcohol that threatens the health, safety, or right to
peaceful enjoyment of the premises by other residents.
PHA Policy
The PHA will terminate the lease if the PHA determines that a household member has engaged in
abuse or a pattern of abuse of alcohol that threatens the health, safety, or right to peaceful
enjoyment of the premises by other residents.
A pattern of such alcohol abuse means more than one incident of any such abuse of alcohol
during the previous three months.
The PHA will consider all credible evidence, including but not limited to, Police Reports, any record
of arrests or convictions of household members related to the abuse of alcohol.
A record or records of arrest will not be used as the sole basis for the termination or proof that
the participant engaged in disqualifying criminal activity.
In making its decision to terminate the lease, the PHA will consider alternatives as described in
Section 13-III.D and other factors as described in Sections 13-III.E and 13-III.F. Upon consideration
of such alternatives and factors, the PHA may, on a case-by-case basis, choose not to terminate
the lease.
Furnishing False or Misleading Information Concerning Illegal Drug Use or Alcohol Abuse or
Rehabilitation [24 CFR 966.4(l)(5)(vi)(B)]
PHAs must establish standards that allow termination of tenancy if the PHA determines that a household
member has furnished false or misleading information concerning illegal drug use, alcohol abuse, or
rehabilitation of illegal drug users or alcohol abusers.
PHA Policy
The PHA will terminate the lease if the PHA determines that a household member has furnished
false or misleading information concerning illegal drug use, alcohol abuse, or rehabilitation of
illegal drug users or alcohol abusers.
The PHA will consider all credible evidence, including but not limited to, Police Reports, any record
of arrests or convictions of household members related to the use of illegal drugs or the abuse of
alcohol, and any records or other documentation (or lack of records or documentation)
supporting claims of rehabilitation of illegal drug users or alcohol abusers.
In making its decision to terminate the lease, the PHA will consider alternatives as described in
Section 13-III.D and other factors as described in Section 13-III.E and 13-III.F. Upon consideration
of such alternatives and factors, the PHA may, on a case-by-case basis, choose not to terminate
the lease.
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Other Serious or Repeated Violations of Material Terms of the Lease – Mandatory Lease Provisions
[24 CFR 966.4(l)(2)(i) and 24 CFR 966.4(f)]
HUD regulations require certain tenant obligations to be incorporated into the lease. Violations of such
regulatory obligations are considered to be serious or repeated violations of the lease and grounds for
termination. Incidents of actual or threatened domestic violence, dating violence, sexual assault, stalking,
or human trafficking may not be construed as serious or repeated violations of the lease by the victim or
threatened victim [24 CFR §5.2005(c)(1)].
PHA Policy
The PHA will terminate the lease for the following violations of tenant obligations under the lease:
Failure to make payments due under the lease, including nonpayment of rent (see Chapter 8 for
details pertaining to lease requirements for payments due);
Repeated late payment of charges due under the lease, with the exception of nonpayment of rent.
Four (4) late payments within a 12 month period shall constitute a repeated late payment.
Failure to fulfill the following household obligations:
•
Not to assign the lease or to sublease the dwelling unit. Subleasing includes receiving
payment to cover rent and utility costs by a person living in the unit who is not listed as a
family member.
•
Not to provide accommodations for boarders or lodgers.
•
To use the dwelling unit solely as a private dwelling for the tenant and the tenant’s
household as identified in the lease, and not to use or permit its use for any other purpose.
•
To abide by necessary and reasonable regulations promulgated by the PHA for the benefit
and well-being of the housing project and the tenants, which shall be posted in the project
office and incorporated by reference in the lease.
•
To comply with all obligations imposed upon tenants by applicable provisions of building
and housing codes materially affecting health and safety.
•
To keep the dwelling unit and such other areas as may be assigned to the tenant for the
tenant’s exclusive use in a clean and safe condition.
•
To dispose of all ashes, garbage, rubbish, and other waste from the dwelling unit in a
sanitary and safe manner.
•
To use only in a reasonable manner all electrical, plumbing, sanitary, heating, ventilating,
air-conditioning and other facilities and appurtenances including elevators.
•
To refrain from, and to cause the household and guests to refrain from destroying,
defacing, damaging, or removing any part of the dwelling unit or project
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•
To pay reasonable charges (other than for normal wear and tear) for the repair of damages
to the dwelling unit, or to the project (including damages to project buildings, facilities, or
common areas) caused by the tenant, a member of the household or a guest
•
To act, and cause household members or guests to act, in a manner which will not disturb
other residents’ peaceful enjoyment of their accommodations and will be conducive to
maintaining the project in a decent, safe, and sanitary condition
In making its decision to terminate the lease, the PHA will consider alternatives as described in
Section 13-III.D and other factors as described in Sections 13-III.E and 13-III.F. Upon consideration
of such alternatives and factors, the PHA may, on a case-by-case basis, choose not to terminate the
lease.
13-III.C. OTHER AUTHORIZED REASONS FOR TERMINATION [24 CFR 966.4(I)(2) AND (5)(II)(B)]
HUD authorizes PHAs to terminate the lease for reasons other than those described in the previous
sections. These reasons are referred to as “other good cause.”
Other Good Cause [24 CFR 966.4(l)(2)(ii)(B) and (C)]
HUD regulations state that the PHA may terminate tenancy for other good cause. The regulations provide
a few examples of other good cause, but do not limit the PHA to only those examples. The Violence
against Women Reauthorization Act prohibits PHAs from considering incidents of actual or threatened
domestic violence, dating violence, sexual assault, stalking, or human trafficking as “other good cause” for
terminating the assistance, tenancy or occupancy rights of the victim or threatened victim of such
violence [see 24 CFR 5.2005 (c)(1)].
PHA Policy
The PHA will terminate the lease for the following reasons.
•
Fugitive Felon or Parole Violator. If a tenant is fleeing to avoid prosecution, or custody or
confinement after conviction, for a crime, or attempt to commit a crime, that is a felony
under the laws of the place from which the individual flees, or that, in the case of the State
of New Jersey, is a high misdemeanor; or violating a condition of probation or parole
imposed under federal or state law.
•
Persons subject to sex offender registration requirement. If any member of the household has,
during their current public housing tenancy, become subject to a registration requirement
under a state sex offender registration program.
•
Discovery of facts after admission to the program that would have made the tenant
ineligible
•
Discovery of material false statements or fraud by the tenant in connection with an
application for assistance or with reexamination of income
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•
Failure to furnish such information and certifications regarding family composition and
income as may be necessary for the PHA to make determinations with respect to rent,
eligibility, and the appropriateness of the dwelling unit size
•
Failure to transfer to an appropriate size dwelling unit based on family composition, upon
appropriate notice by the PHA that such a dwelling unit is available
•
Failure to permit access to the unit by the PHA after proper advance notification for the
purpose of performing routine inspections and maintenance, for making improvements or
repairs, or to show the dwelling unit for re-leasing, or without advance notice if there is
reasonable cause to believe that an emergency exists
•
Failure to promptly inform the PHA of the birth, adoption, or court-awarded custody of a
child. In such a case, promptly means within 10 business days of the event.
•
Failure to abide by the provisions of the PHA pet policy
•
If the family has breached the terms of a repayment agreement entered into with the PHA
•
If a family member has violated federal, state, or local law that imposes obligations in
connection with the occupancy or use of the premises.
•
If a household member has engaged in or threatened violent or abusive behavior toward
PHA personnel.
−
Abusive or violent behavior towards PHA personnel includes verbal as well as physical
abuse or violence. Use of racial epithets, or other language, written or oral, that is
customarily used to intimidate may be considered abusive or violent behavior.
−
Threatening refers to oral or written threats or physical gestures that communicate
intent to abuse or commit violence.
In making its decision to terminate the lease, the PHA will consider alternatives as described in
Section 13-III.D and other factors described in Sections 13-III.E and 13-III.F. Upon consideration of
such alternatives and factors, the PHA may, on a case-by-case basis, choose not to terminate the
lease.
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Family Absence from Unit [24 CFR 982.551(i)]
It is reasonable that the family may be absent from the public housing unit for brief periods. However,
the PHA needs a policy on how long the family may be absent from the unit. Absence in this context
means that no member of the family is residing in the unit.
PHA Policy
The family must supply any information or certification requested by the PHA to verify that the
family is living in the unit, or relating to family absence from the unit, including any PHA-requested
information or certification on the purposes of family absences. The family must cooperate with
the PHA for this purpose.
The family must promptly notify the PHA when all family members will be absent from the unit for
an extended period. An extended period is defined as any period greater than 30 calendar days. In
such a case promptly means within 10 business days of the start of the extended absence.
If a family is absent from the public housing unit for more than 30 consecutive days, and the
family does not adequately verify that they are living in the unit; the PHA will terminate the lease
for other good cause.
Abandonment of the unit. If the family appears to have vacated the unit without giving proper
notice, the PHA will follow state and local landlord-tenant law pertaining to abandonment before
taking possession of the unit. If necessary, the PHA will secure the unit immediately to prevent
vandalism and other criminal activity.
Upon the PHA’s HOTMA 102/104 compliance date, the below section on the asset limitation is added:
Asset Limitation [24 CFR 5.618; Notice PIH 2023-27]
The PHA has discretion with respect to the application of the asset limitation at annual and interim
reexamination. The PHA may adopt a written policy of total nonenforcement, enforcement, or limited
enforcement as well as adopting exception policies.
PHA Policy
The PHA has adopted a policy of total nonenforcement of the asset limitation for all program
participants. The asset limitation only applies to initial eligibility determinations for new
admissions to the PHA’s public housing program.
13-III.D. ALTERNATIVES TO TERMINATION OF TENANCY
Exclusion of Culpable Household Member [24 CFR 966.4(l)(5)(vii)(C)]
As an alternative to termination of the lease for criminal activity or alcohol abuse HUD provides that the
PHA may consider exclusion of the culpable household member. Such an alternative can be used for any
other reason where such a solution appears viable in accordance with PHA policy.
Additionally, under the Violence against Women Act, the PHA may bifurcate a lease in order to terminate
the tenancy of an individual who is a tenant or lawful occupant of a unit and engages in criminal activity
directly related to domestic violence, dating violence, sexual assault, stalking, or human trafficking.
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PHA Policy
The PHA will consider requiring the tenant to exclude a household member in order to continue to
reside in the assisted unit, where that household member has participated in or been culpable for
action or failure to act that warrants termination.
As a condition of the family’s continued occupancy, the head of household must certify that the
culpable household member has vacated the unit and will not be permitted to visit or to stay as a
guest in the assisted unit. The family must present evidence of the former household member’s
current address upon PHA request.
Repayment of Family Debts
PHA Policy
If a family owes amounts to the PHA, as a condition of continued occupancy, the PHA will require
the family to repay the full amount or to enter into a repayment agreement, within 30 days of
receiving notice from the PHA of the amount owed. See Chapter 16 for policies on repayment
agreements.
13-III.E. CRITERIA FOR DECIDING TO TERMINATE TENANCY
A PHA that has grounds to terminate a tenancy is not required to do so, except as explained in Part II of
this chapter, and may consider all of the circumstances relevant to a particular case before making a
decision.
Evidence [24 CFR 982.553(c)]
For criminal activity, HUD permits the PHA to terminate the lease if a preponderance of the evidence
indicates that a household member has engaged in the activity, regardless of whether the household
member has been arrested or convicted, and without satisfying the standard of proof used for a criminal
conviction.
PHA Policy
The PHA will use the preponderance of the evidence as the standard for making all termination
decisions.
Preponderance of the evidence is defined as evidence which is of greater weight or more convincing
than the evidence which is offered in opposition to it; that is, evidence which as a whole shows
that the fact sought to be proved is more probable than not.
Preponderance of the evidence may not be determined by the number of witnesses, but by the
greater weight of all evidence.
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Consideration of Circumstances [24 CFR 966.4(l)(5)(vii)(B)]
Although it is required that certain lease provisions exist for criminal activity and alcohol abuse, HUD
provides that the PHA may consider all circumstances relevant to a particular case in order to determine
whether or not to terminate the lease.
Such relevant circumstances can also be considered when terminating the lease for any other reason.
PHA Policy
The PHA will consider the following facts and circumstances before deciding whether to terminate
the lease for any of the HUD required lease provisions or for any other reasons:
•
The seriousness of the offending action, especially with respect to how it would affect other
residents’ safety or property
•
The extent of participation or culpability of the leaseholder, or other household members,
in the offending action, including whether the culpable member is a minor, a person with
disabilities, or (as discussed further in Section 13-III.F) a victim of domestic violence, dating
violence, sexual assault, stalking, or human trafficking
•
The effects that the eviction will have on other family members who were not involved in
the action or failure to act
•
The effect on the community of the termination, or of the PHA’s failure to terminate the
tenancy
•
The effect of the PHA’s decision on the integrity of the public housing program
•
The demand for housing by eligible families who will adhere to lease responsibilities
•
The extent to which the leaseholder has shown personal responsibility and whether they
have taken all reasonable steps to prevent or mitigate the offending action
•
The length of time since the violation occurred, including the age of the individual at the
time of the conduct, as well as the family’s recent history, and the likelihood of favorable
conduct in the future
•
While a record or records of arrest will not be used as the sole basis for termination, an
arrest may, however, trigger an investigation to determine whether the participant actually
engaged in disqualifying criminal activity. As part of its investigation, the PHA may obtain
the police report associated with the arrest and consider the reported circumstances of the
arrest. The PHA may also consider:
•
Any statements made by witnesses, or the participant not included in the police
report
•
Whether criminal charges were filed
•
Whether, if filed, criminal charges were abandoned, dismissed, not prosecuted, or
ultimately resulted in an acquittal
•
Any other evidence relevant to determining whether or not the participant engaged in
disqualifying activity
•
Evidence of criminal conduct will be considered if it indicates a demonstrable risk to safety
and/or property.
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•
In the case of program abuse, the dollar amount of the underpaid rent and whether or not
a false certification was signed by the family.
Consideration of Rehabilitation [24 CFR 966.4(l)(5)(vii)(D)]
HUD authorizes PHAs to take into consideration whether a household member who had used illegal
drugs or abused alcohol and is no longer engaging in such use or abuse is participating in or has
successfully completed a supervised drug or alcohol rehabilitation program.
PHA Policy
In determining whether to terminate the lease for illegal drug use or a pattern of illegal drug use,
or for abuse or a pattern of abuse of alcohol, by a household member who is no longer engaging
in such use or abuse, the PHA will consider whether such household member has successfully
completed a supervised drug or alcohol rehabilitation program.
For this purpose, the PHA will require the tenant to submit evidence of the household member’s
successful completion of a supervised drug or alcohol rehabilitation program.
Reasonable Accommodation [24 CFR 966.7]
If the family includes a person with disabilities, the PHA’s decision to terminate the family’s lease is
subject to consideration of reasonable accommodation in accordance with 24 CFR Part 8.
PHA Policy
If a family indicates that the behavior of a family member with a disability is the reason for a
proposed termination of lease, the PHA will determine whether the behavior is related to the
disability. If so, upon the family’s request, the PHA will determine whether alternative measures
are appropriate as a reasonable accommodation. The PHA will only consider accommodations
that can reasonably be expected to address the behavior that is the basis of the proposed lease
termination. See Chapter 2 for a discussion of reasonable accommodation.
Nondiscrimination Limitation [24 CFR 966.4(l)(5)(vii)(F)]
The PHA’s eviction actions must be consistent with fair housing and equal opportunity provisions of 24
CFR 5.105.
13-III.F. TERMINATIONS RELATED TO DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT,
STALKING, OR HUMAN TRAFFICKING
This section addresses the protections against termination of tenancy that the Violence against Women
Act (VAWA) provides for public housing residents who are victims of domestic violence, dating violence,
sexual assault, stalking, or human trafficking. For general VAWA requirements and PHA policies
13-23
pertaining to notification, documentation, and confidentiality, see Section 16-VII of this ACOP, where
definitions of key VAWA terms are also located.
VAWA Protections against Termination [24 CFR 5.2005(c)]
VAWA provides that no person may deny assistance, tenancy, or occupancy rights to public housing to a
tenant on the basis or as a direct result of criminal activity directly relating to domestic violence, dating
violence, sexual assault, or stalking that is engaged in by a member of the household of the tenant or
any guest or other person under the control of the tenant, if the tenant or affiliated individual is the
victim or threatened victim of such domestic violence, dating violence, sexual assault, or stalking [FR
Notice 8/6/13].
VAWA further provides that incidents of actual or threatened domestic violence, dating violence, sexual
assault, or stalking may not be construed either as serious or repeated violations of the lease by the
victim or threatened victim of such violence or as good cause for terminating the tenancy or occupancy
rights of the victim of such violence [24 CFR §5.2005(c)(1), FR Notice 8/6/13].
•
Although the VAWA 2022 statute does not specifically include human trafficking in the list of
victims protected under VAWA, in 2022 HUD began including human trafficking as part of the list
of victims protected under VAWA (as seen in Notices PIH 2022-06, PIH 2022-22, and PIH 2022-24).
In the absence of a final rule implementing VAWA 2022 and to mirror HUD’s recent usage, this
policy includes human trafficking in addition to domestic violence, dating violence, sexual assault,
and stalking anywhere such a list appears.
PHAs and owners may not coerce, intimidate, threaten, interfere with, or retaliate against any person
who exercises or assists or encourages a person to exercise any rights or protections under VAWA [FR
Notice 1/4/23].
Limits on VAWA Protections [24 CFR 5.2005(d) and (e), FR Notice 8/6/13]
While VAWA prohibits a PHA from using domestic violence, dating violence, sexual assault, stalking, or
human trafficking as the cause for a termination or eviction action against a public housing tenant who is
the victim of the abuse, the protections it provides are not absolute. Specifically:
•
VAWA does not limit a PHA’s otherwise available authority to terminate assistance to or evict a
victim for lease violations not premised on an act of domestic violence, dating violence, sexual
assault, stalking, or human trafficking providing that the PHA does not subject the victim to a more
demanding standard than the standard to which it holds other tenants.
•
VAWA does not limit a PHA’s authority to terminate the tenancy of any public housing tenant if the
PHA can demonstrate an actual and imminent threat to other tenants or those employed at or
providing service to the property if that tenant’s tenancy is not terminated.
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HUD regulations define actual and imminent threat to mean words, gestures, actions, or other indicators
of a physical threat that (a) is real, (b) would occur within an immediate time frame, and (c) could result in
death or serious bodily harm [24 CFR §5.2005(d)(2) and (e)]. In determining whether an individual would
pose an actual and imminent threat, the factors to be considered include:
•
The duration of the risk
•
The nature and severity of the potential harm
•
The likelihood that the potential harm will occur
•
The length of time before the potential harm would occur [24 CFR §5.2005(e)]
In order to demonstrate an actual and imminent threat, the PHA must have objective evidence of words,
gestures, actions, or other indicators. Even when a victim poses an actual and imminent threat, however,
HUD regulations authorize a PHA to terminate the victim’s assistance “only when there are no other
actions that could be taken to reduce or eliminate the threat, including but not limited to transferring the
victim to a different unit, barring the perpetrator from the property, contacting law enforcement to
increase police presence or develop other plans to keep the property safe, or seeking other legal
remedies to prevent the perpetrator from acting on a threat” [24 CFR 5.2005(d)(3)]. Additionally, HUD
regulations state that restrictions “predicated on public safety cannot be based on stereotypes but must
be tailored to particularized concerns about individual residents” [24 CFR 5.2005(d)(3)].
PHA Policy
In determining whether a public housing tenant who is a victim of domestic violence, dating
violence, sexual assault, stalking, or human trafficking is an actual and imminent threat to other
tenants or those employed at or providing service to a property, the PHA will consider the
following, and any other relevant, factors:
•
Whether the threat is toward an employee or tenant other than the victim of domestic
violence, dating violence, sexual assault, stalking, or human trafficking
•
Whether the threat is a physical danger beyond a speculative threat
•
Whether the threat is likely to happen within an immediate time frame
•
Whether the threat to other tenants or employees can be eliminated in some other way,
such as by helping the victim relocate to a confidential location, transferring the victim to
another unit, or seeking a legal remedy to prevent the perpetrator from acting on the
threat
If the tenant wishes to contest the PHA’s determination that they are an actual and imminent
threat to other tenants or employees, the tenant may do so as part of the grievance hearing or in
a court proceeding.
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Documentation of Abuse [24 CFR 5.2007]
PHA Policy
When an individual facing termination of tenancy for reasons related to domestic violence, dating
violence, sexual assault, stalking, or human trafficking claims protection under VAWA, the PHA will
request in writing that the individual provide documentation supporting the claim in accordance
with the policies in Section 16-VII.D of this ACOP.
The PHA reserves the right to waive the documentation requirement if it determines that a
statement or other corroborating evidence from the individual will suffice. In such cases the PHA
will document the waiver in the individual’s file.
Terminating or Evicting a Perpetrator of Domestic Violence
Although VAWA provides protection from termination for victims of domestic violence, it does not
provide such protection for perpetrators. In fact, VAWA gives the PHA the explicit authority to bifurcate a
lease, or remove a household member from a lease, “in order to evict, remove, or terminate assistance
to any individual who is a tenant or lawful occupant of the housing and who engages in criminal activity
directly relating to domestic violence, dating violence, sexual assault, or stalking against an affiliated
individual or other individual, without evicting, removing, terminating assistance to, or otherwise
penalizing a victim of such criminal activity who is also a tenant or lawful occupant of the housing” [FR
Notice 8/6/13]. Moreover, HUD regulations impose on the PHA the obligation to consider lease
bifurcation in any circumstances involving domestic violence, dating violence, sexual assault, stalking, or
human trafficking [see 24 CFR 966.4(e)(9)].
Specific lease language affirming the PHA’s authority to bifurcate a lease is not necessary, and the
authority supersedes any local, state, or federal law to the contrary. However, if the PHA chooses to
exercise its authority to bifurcate a lease, it must follow any procedures prescribed by HUD or by
applicable local, state, or federal law for eviction, lease termination, or termination of assistance. This
means that the PHA must follow the same rules when terminating or evicting an individual as it would
when terminating or evicting an entire family [FR Notice 3/16/07]. However, perpetrators should be given
no more than 30 days’ notice of termination in most cases Notice PIH 2017-18].
PHA Policy
The PHA will bifurcate a family’s lease and terminate the tenancy of a family member if the PHA
determines that the family member has committed criminal acts of physical violence against other
family members or others. This action will not affect the tenancy or program assistance of the
remaining, nonculpable family members.
In making its decision, the PHA will consider all credible evidence, including, but not limited to, a
signed certification (form HUD-5382) or other documentation of abuse submitted to the PHA by
13-26
the victim in accordance with this section and Section 16-VII.D. The PHA will also consider the
factors in Section 13.III.E. Upon such consideration, the PHA may, on a case-by-case basis, choose
not to bifurcate the lease and terminate the tenancy of the culpable family member.
If the PHA does bifurcate the lease and terminate the tenancy of the culpable family member, it
will do so in accordance with the lease, applicable law, and the policies in this ACOP. If the person
removed from the lease was the only tenant eligible to receive assistance, the PHA must provide
any remaining tenant a chance to establish eligibility for the unit. If the remaining tenant cannot
do so, the PHA must provide the tenant reasonable time to find new housing or to establish
eligibility for another housing program covered under VAWA.
The PHA may consider trespassing the perpetrator.
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PART IV: NOTIFICATION REQUIREMENTS,
EVICTION PROCEDURES, AND RECORD KEEPING
13-IV.A. OVERVIEW
HUD regulations specify the requirements for the notice that must be provided prior to lease
termination. This part discusses those requirements and the specific requirements that precede and
follow termination for certain criminal activities, which are addressed in the regulations. This part also
discusses specific requirements pertaining to the actual eviction of families and record keeping.
13-IV.B. CONDUCTING CRIMINAL RECORDS CHECKS [24 CFR 5.903(E)(II) AND 24 CFR 960.259]
HUD authorizes PHAs to conduct criminal records checks on public housing residents for lease
enforcement and eviction. PHA policy determines when the PHA will conduct such checks.
PHA Policy
The PHA will conduct criminal records checks for all adult household members at the annual
reexamination and when it has come to the attention of the PHA, either from local law
enforcement or by other means that an individual has engaged in the destruction of property,
engaged in violent activity against another person, or has interfered with the right to peaceful
enjoyment of the premises of other residents.
Such checks will also include sex offender registration information. In order to obtain such
information, all adult household members must sign consent forms for release of criminal
conviction and sex offender registration records on an annual basis.
The PHA may not pass along to the tenant the costs of a criminal records check.
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13-IV.C. DISCLOSURE OF CRIMINAL RECORDS TO FAMILY [24 CFR 5.903(F), 24 CFR 5.905(D) AND 24
CFR 966.4(I)(5)(IV)]
In conducting criminal records checks, if the PHA uses the authority of 24 CFR §5.903 and §5.905 to
obtain such information, certain protections must be afforded the tenant before any adverse action is
taken. In such cases if the PHA obtains criminal records information from a state or local agency showing
that a household member has been convicted of a crime, or is subject to a sex offender registration
requirement, relevant to lease enforcement or eviction, the PHA must notify the household of the
proposed action and must provide the subject of the record and the tenant a copy of such information,
and an opportunity to dispute the accuracy and relevance of the information before an eviction or lease
enforcement action is taken.
PHA Policy
In all cases where criminal record or sex offender registration information would result in lease
enforcement or eviction, the PHA will notify the household in writing of the proposed adverse
action and will provide the subject of the record and the tenant a redacted copy of such
information, and an opportunity to dispute the accuracy and relevance of the information before
an eviction or lease enforcement action is taken.
The family will be given 10 business days from the date of the PHA notice, to dispute the accuracy
and relevance of the information. If the family does not contact the PHA to dispute the
information within that 10-business day period, the PHA will proceed with the termination action.
Should the tenant not exercise their right to dispute prior to any adverse action, the tenant still
has the right to dispute in the grievance hearing or court trial.
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13-IV.D. LEASE TERMINATION NOTICE [24 CFR 966.4(I)(3)]
Form, Delivery, and Content of the Notice
Notices of lease termination must be in writing. The notice must state the specific grounds for
termination; the date the termination will take place, the resident’s right to reply to the termination
notice, and their right to examine PHA documents directly relevant to the termination or eviction. If the
PHA does not make the documents available for examination upon request by the tenant, the PHA may
not proceed with the eviction [24 CFR 996.4(m)]. Notices of lease termination must be provided in
accessible formats to ensure effective communication for individuals with disabilities, and the notice
must provide meaningful access for persons with LEP.
The notice will also include a new non-public housing lease and inform the family that the lease must be
executed by the family and the PHA no later than 60 days from the date of the notice or at the next lease
renewal, whichever is sooner. The family will continue to be a public housing program participant until
the family executes the new non-public housing lease. The notice will also state that failure to execute the
lease within this time period stated in the notice will result in termination of tenancy no more than six
months after the date of the notice. The PHA will permit an over-income family to execute a lease beyond
this time period, but before termination of tenancy, if the over-income family pays the PHA the total
difference between the alternative non-public housing rent and their public housing rent dating back to
the point in time that the over-income family was required to execute the new lease.
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Once the family signs the new non-public housing lease, the family will no longer be a public housing
participant family. The family will no longer be subject to income examinations, are precluded from
participating in the resident council, and cannot participate in any programs that are only for public
housing or low-income families. The PHA will not provide such families with hearing or grievance rights.
Units occupied by NPHOI families continue to be part of the public housing inventory and are required to
be inspected in the same way as units occupied by families in the public housing program. Further,
NPHOI families are still required to abide by the PHA’s smoke-free policies as well as the PHA’s pet rules.
NPHOI families are not entitled to VAWA protections as prescribed in HUD regulations but may be
entitled to protections under state and local law.
The non-public housing over-income (NPHOI) lease will contain all required provisions listed at 24 CFR
960.509. The initial term of the lease will be for one year. Upon expiration of the initial lease term, the
lease will not renew automatically, and subsequent leases will state renewal terms. At any time, the PHA
may terminate tenancy in accordance with 24 CFR 960.509(b)(11) and in accordance with state and local
law.
Upon execution of the lease, the tenant will be required to pay the amount of monthly tenant rent
(known as the alternative non-public housing rent) determined by the PHA in accordance with HUD
regulations. The PHA will comply with state and local law in giving the tenant written notice stating any
changes in the amount of tenant rent. Charges assessed under the lease will be due in accordance with
state and local law.
NPHOI families will not receive a utility allowance. The family will be responsible for their utilities where
utilities are individually metered. Where utilities are not individually metered, the NPHOI family will be
charged an allocation of the total energy plus any surcharges with no utility allowance.
If an NPHOI family subsequently experiences a decrease in income after signing the NPHOI lease, the
family may only be readmitted to the public housing program if they once again become an eligible low-
income family and reapply to the public housing program. The family will continue to pay the alternative
rent until they are readmitted to public housing.
PHA Policy
The notice of lease termination will include information on how the family may request a reasonable
accommodation for persons with disabilities and provide contact information for the PHA’s 504
coordinator.
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When the PHA is required to offer the resident an opportunity for a grievance hearing, the notice must
also inform the resident of their right to request a hearing in accordance with the PHA’s grievance
procedure. In these cases, the tenancy shall not terminate until the time for the tenant to request a
grievance hearing has expired and the grievance procedure has been completed.
PHA Policy
The PHA has the sole discretion to require that informal hearings be conducted remotely.
At the time the notice is sent to the resident informing them of the right to request a hearing, the
resident will be notified how the hearing will be conducted (remotely or in person). If remote, the
resident will be informed of the processes involved in a remote hearing and that the PHA will
provide technical assistance, if needed, before the hearing.
Remote hearings will allow the PHA to provide a reasonable accommodation for a person with a
disability, if an applicant does not have childcare or transportation that would enable them to
attend the informal hearing, or if the applicant believes an in-person informal hearing would
create an undue health risk. The PHA will consider other reasonable requests for a remote
informal hearing on a case-by-case basis.
(24 CFR §966.56(a), states, “The hearing must be scheduled promptly for a time and place
reasonably convenient to both the complainant and the PHA and held before a hearing officer.)
When the PHA is not required to offer the resident an opportunity for a grievance hearing because HUD
has made a due process determination and the lease termination is for criminal activity that threatens
health, safety or right to peaceful enjoyment or for drug-related criminal activity, the notice of lease
termination must state that the tenant is not entitled to a grievance hearing on the termination. It must
specify the judicial eviction procedure to be used by the PHA for eviction of the tenant, and state that
HUD has determined that the eviction procedure provides the opportunity for a hearing in court that
contains the basic elements of due process as defined in HUD regulations. The notice must also state
whether the eviction is for a criminal activity that threatens the health, safety, or right to peaceful
enjoyment of the premises of other residents or employees of the PHA, or for a drug-related criminal
activity on or off the premises.
PHA Policy
The PHA will attempt to deliver notices of lease termination directly to the tenant or an adult
member of the household. If such attempt fails, the notice will be sent by first-class mail the same
day. All notices of lease termination will include a copy of the forms HUD-5382 and HUD-5380 to
accompany the termination notice. Any tenant who claims that the cause for termination involves
domestic violence, dating violence, sexual assault, stalking, or human trafficking of which the
tenant or affiliated individual of the tenant is the victim will be given the opportunity to provide
documentation in accordance with the policies in sections 13-III.F and 16-VII.D.
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Timing of the Notice [24 CFR 966.4(l)(3)(i;)]
The PHA must give written notice of lease termination of:
•
At least 30calendar days in the case of failure to pay rent
•
A reasonable period of time considering the seriousness of the situation (but not to exceed 30
calendar days)
−
If the health or safety of other residents, PHA employees, or persons residing in the
immediate vicinity of the premises is threatened
−
If any member of the household has engaged in any drug-related criminal activity or violent
criminal activity
−
If any member of the household has been convicted of a felony
•
30 calendar days in any other case, except that if a state or local law allows a shorter notice
period, such shorter period shall apply
PHA Policy
The PHA will give written notice of 14 calendar days, or such longer period as may be required by
HUD, from the date of the notice for nonpayment of rent. The PHA will give written notice of 5
calendar days for utilities not in service.
For all other lease terminations, the PHA will give a 30-day written notice or, if state or local law
allows less than 30 days, such shorter notice will be given.
The Notice to Vacate that may be required under state or local law may be combined with (run
concurrently), or may run consecutive to the notice of lease termination.PHA Policy
Any Notice to Vacate or Notice to Quit that is required by state or local law will either be combined
with or run concurrently with the Notice of Lease Termination under this section.
Notice of Nonrenewal Due to Community Service Noncompliance [24 CFR 966.4(l)(2)(ii) (D), 24 CFR
960.603(b) and 24 CFR 960.607(b)]
When the PHA finds that a family is in noncompliance with the community service requirement, the
tenant and any other noncompliant resident must be notified in writing of this determination.
Notices of noncompliance will be issued in accordance with the requirements and policies in Section 11-
I.E.
PHA Policy
If after receiving a notice of initial noncompliance the family does not request a grievance hearing
or does not take either corrective action required by the notice within the required timeframe, a
termination notice will be issued in accordance with the policies above.
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If a family agreed to cure initial noncompliance by signing an agreement and is still in
noncompliance after being provided the 12-month opportunity to cure, the family will be issued a
notice of continued noncompliance. The notice of continued noncompliance will be sent in
accordance with the policies in Section 11-I.E. and will also serve as the notice of termination of
tenancy.
Notice of Termination Based on Citizenship Status [24 CFR 5.514 (c) and (d)]
In cases where termination of tenancy is based on citizenship status, HUD requires the notice of
termination to contain additional information. In addition to advising the family of the reasons their
assistance is being terminated, the notice must also advise the family of any of the following that apply:
the family’s eligibility for proration of assistance, the criteria and procedures for obtaining relief under
the provisions for preservation of families, the family’s right to request an appeal to the USCIS of the
results of secondary verification of immigration status and to submit additional documentation or a
written explanation in support of the appeal, and the family’s right to request an informal hearing with
the PHA either upon completion of the USCIS appeal or in lieu of the USCIS appeal. Please see Chapter 14
for the PHA’s informal hearing procedures.
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13-IV.E. EVICTION [24 CFR 966.4(I)(4) AND 966.4(M)]
Eviction notice means a notice to vacate, or a complaint or other initial pleading used under state or local
law to commence an eviction action. The PHA may only evict the tenant from the unit by instituting a
court action, unless the law of the jurisdiction permits eviction by administrative action, after a due
process administrative hearing, and without a court determination of the rights and liabilities of the
parties.
PHA Policy
When a family does not vacate the unit after receipt of a termination notice, by the deadline given
in the notice, the PHA will follow state and local landlord-tenant law in filing an eviction action with
the local court that has jurisdiction in such cases.
If the eviction action is finalized in court and the family remains in occupancy beyond the deadline
to vacate given by the court, the PHA will seek the assistance of the court to remove the family
from the premises as per state and local law.
The PHA may not proceed with an eviction action if the PHA has not made available the documents to be
used in the case against the family and has not afforded the family the opportunity to examine and copy
such documents in accordance with the provisions of 24 CFR §966.4(l)(3) and (m).
13-IV.F. NOTIFICATION TO POST OFFICE [24 CFR 966.4(I)(5)(III)(B)]
When the PHA evicts an individual or family for criminal activity, including drug-related criminal activity,
the PHA must notify the local post office serving the dwelling unit that the individual or family is no longer
residing in the unit.
13-IV.G. RECORD KEEPING
For more information concerning general record keeping, see Chapter 16.
PHA Policy
A written record of every termination and/or eviction will be maintained by the PHA at the
development where the family was residing, and will contain the following information:
−
Name of resident, number and identification of unit occupied
−
Date of the notice of lease termination and any other notices required by state or local law;
these notices may be on the same form and will run concurrently
−
Specific reason(s) for the notices, citing the lease section or provision that was violated, and
other facts pertinent to the issuing of the notices described in detail (other than any criminal
history reports obtained solely through the authorization provided in 24 CFR §5.903 and
§5.905)
−
Date and method of notifying the resident
−
Summaries of any conferences held with the resident including dates, names of conference
participants, and conclusions
13-35
EXHIBIT 13-1: SAMPLE NOTICE FOR OVER-INCOME FAMILIES – INITIAL NOTIFICATION FOR NPHOI
FAMILY OPTION2
This material is based upon work supported, in whole or in part, by Federal award number NAL-C-17-094-
05 awarded to NALCAB by the U.S. Department of Housing and Urban Development. The substance and
findings of the work are dedicated to the public. Neither the United States Government, nor any of its
employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the
accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or
represents that its use would not infringe privately-owned rights. Reference herein to any individuals,
agencies, companies, products, process, services, service by trade name, trademark, manufacturer, or
otherwise does not constitute or imply an endorsement, recommendation, or favoring by the author(s),
contributor(s), the U.S. Government or any agency thereof. Opinions contained herein are those of the
author(s) and do not necessarily reflect the official position of, or a position that is endorsed by, HUD or
any Federal agency.
These Sample Notices include provisions required per 24 CFR 960.507(c). Anything included in brackets
and italic is meant as instruction to the PHA in creating its own notices. Example: [This text is meant as
instruction to the PHA.]
2 This sample notice is presented verbatim from HUD’s sample forms used in the HOTMA Income
and Assets Training Series, available at https://www.hudexchange.info/resource/6849/hotma-sample-
notices-for-overincome-families/. Only the formatting has been changed to be consistent with the
formatting used throughout this ACOP.
13-36
OVER-INCOME FAMILY
INITIAL NOTIFICATION
_______________________
[name of PHA]
Resident name:
Address:
Date:
Purpose
The purpose of this notice is to inform you that ________ [name of PHA] has determined that your family’s
income is above the income limit (over-income) according to federal rules for the public housing
program. This is your initial (first) notice.
What happens next?
For now, your rent will continue to be calculated as usual, you will continue to be offered a choice
between income-based and flat rent, and you do not have to move. If your family remains over-income
for the following 24 consecutive months, you will no longer be eligible for assistance under the public
housing program but may remain in a public housing unit paying an alternative non-public housing rent
calculated under federal rules for non-public housing tenants.
If you think that we have made a mistake and your family should not be considered over-income, you
may request a hearing by calling: XXX-XXX-XXXX or emailing [address] or requesting more information
from PHA staff at: [location]. If you wish to request a hearing, please do so as soon as possible. If you do
not wish to request a hearing, you do not need to do anything at this time.
13-37
What about changes to my income?
We will continue to reexamine your income every 12 months as usual. After each reexamination, you will
receive a notification like this one if your family is still over-income.
If your family’s income drops below the over-income limit before the end of the 24 consecutive-month
grace period, you will no longer be considered over-income. If your family’s income increases again to an
amount that is over-income, you will receive another 24 consecutive month grace period.
If your income changes, contact us using the information provided below to learn the policy for
requesting an interim reexamination.
[PHA: Please note that the following section is optional. The regulations only require this level of detail for the
second notice.]
What if my family remains over-income in 24 consecutive months?
According to the Continued Occupancy Policy, your family may continue to reside in a public housing unit
even if you remain over-income after 24 months. However, your unit will no longer receive assistance
from the federal public housing program so your rent will be calculated differently.
If you choose to stay in your unit after remaining over-income for 24 consecutive months, you will:
•
Pay an “alternative non-public housing rent” (currently estimated at $_____)
> The alternative rent is adjusted annually and subject to change.
> You will receive a notification with more details on what to expect next if you decide to remain in a
public housing unit after 24 consecutive months of being over-income.
• Need to sign a new lease for Non-Public Housing Over-Income (NPHOI) families.
> The NPHOI lease will need to be signed no later than 60 days after receiving notification of the end
of the 24-month grace period or at the next lease renewal, whichever is sooner.
[INSERT PHA CONTACT INFORMATION]
13-38
13-39
EXHIBIT 13-2: SAMPLE NOTICE FOR OVER-INCOME FAMILIES – INITIAL NOTIFICATION FOR
TERMINATE ONLY OPTION3
This material is based upon work supported, in whole or in part, by Federal award number NAL-C-17-094-
05 awarded to NALCAB by the U.S. Department of Housing and Urban Development. The substance and
findings of the work are dedicated to the public. Neither the United States Government, nor any of its
employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the
accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or
represents that its use would not infringe privately-owned rights. Reference herein to any individuals,
agencies, companies, products, process, services, service by trade name, trademark, manufacturer, or
otherwise does not constitute or imply an endorsement, recommendation, or favoring by the author(s),
contributor(s), the U.S. Government or any agency thereof. Opinions contained herein are those of the
author(s) and do not necessarily reflect the official position of, or a position that is endorsed by, HUD or
any Federal agency.
These Sample Notices include provisions required per 24 CFR 960.507(c). Anything included in brackets
and italic is meant as instruction to the PHA in creating its own notices. Example: [This text is meant as
instruction to the PHA.]
3 This sample notice is presented verbatim from HUD’s sample forms used in the HOTMA Income
and Assets Training Series, available at https://www.hudexchange.info/resource/6849/hotma-sample-
notices-for-overincome-families/. Only the formatting has been changed to be consistent with the
formatting used throughout this ACOP.
13-40
OVER-INCOME FAMILY
INITIAL NOTIFICATION
_______________________
[name of PHA]
Resident name:
Address:
Date:
Purpose
The purpose of this notice is to inform you that ________ [name of PHA] has determined that your family’s
income is above the income limit (over-income) according to federal rules for the public housing
program. This is your initial (first) notice.
What happens next?
For now, your rent will continue to be calculated as usual, you will continue to be offered a choice
between income-based and flat rent, and you do not have to move. If your family remains over-income
for the following 24 consecutive months, you will no longer be eligible for assistance under the public
housing program.
If you think that we have made a mistake and your family should not be considered over-income, you
may request a hearing by calling: XXX-XXX-XXXX or emailing [address] or requesting more information
from PHA staff at: [location]. If you wish to request a hearing, please do so as soon as possible. If you do
not wish to request a hearing, you do not need to do anything at this time.
13-41
What about changes to my income?
We will continue to reexamine your income every 12 months as usual. After each reexamination, you will
receive a notification like this one if your family is still over-income.
If your family’s income drops below the over-income limit before the end of the 24 consecutive-month
grace period, you will no longer be considered over-income. If your family’s income increases again to an
amount that is over-income, you will receive another 24 consecutive month grace period.
If your income changes, contact us using the information provided below to learn the policy for
requesting an interim reexamination.
[PHA: Please note that the following section is optional. The regulations only require this level of detail for the
second notice.]
What if my family remains over-income for 24 consecutive months?
Within 30 days of the recertification, you will receive a notice like this one informing you that your family
has remained over-income for 24 consecutive months. According to the Continued Occupancy Policy,
families that remain over-income for 24 consecutive months must leave their units and find other
housing in no more than___ [up to 6 depending on PHA policy] months after receiving notification.
If your family continues to reside in the unit after ____ [restate date], the PHA will begin eviction
proceedings by issuing a notice to vacate.
Until the time of lease termination, you will continue to be a public housing program participant and will
continue to be charged your choice of income-based or flat rent.
[INSERT PHA CONTACT INFORMATION]
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EXHIBIT 13-3: SAMPLE NOTICE FOR OVER-INCOME FAMILIES – 12-MONTH NOTIFICATION FOR NPHOI
FAMILY OPTION4
This material is based upon work supported, in whole or in part, by Federal award number NAL-C-17-094-
05 awarded to NALCAB by the U.S. Department of Housing and Urban Development. The substance and
findings of the work are dedicated to the public. Neither the United States Government, nor any of its
employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the
accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or
represents that its use would not infringe privately-owned rights. Reference herein to any individuals,
agencies, companies, products, process, services, service by trade name, trademark, manufacturer, or
otherwise does not constitute or imply an endorsement, recommendation, or favoring by the author(s),
contributor(s), the U.S. Government or any agency thereof. Opinions contained herein are those of the
author(s) and do not necessarily reflect the official position of, or a position that is endorsed by, HUD or
any Federal agency.
These Sample Notices include provisions required per 24 CFR 960.507(c). Anything included in brackets
and italic is meant as instruction to the PHA in creating its own notices. Example: [This text is meant as
instruction to the PHA.]
4 This sample notice is presented verbatim from HUD’s sample forms used in the HOTMA Income
and Assets Training Series, available at https://www.hudexchange.info/resource/6849/hotma-sample-
notices-for-overincome-families/. Only the formatting has been changed to be consistent with the
formatting used throughout this ACOP.
13-43
OVER-INCOME FAMILY
12 MONTH NOTIFICATION
_______________________
[name of PHA]
Resident name:
Address:
Date:
Purpose
The purpose of this notice is to inform you that ________ [name of PHA] has determined that your family’s
income is above the income limit (over-income) according to federal rules for public housing. This is your
12-month (second) notice.
What happens next?
For now, your rent will continue to be calculated as usual, you will continue to be offered a choice
between income-based and flat rent, and you do not have to move. If your family remains over-income
for the following 12 consecutive months, you will no longer be eligible for assistance under the public
housing program but may remain in a public housing unit paying an alternative non-public housing rent
calculated under federal rules for non-public housing tenants.
If you think that we have made a mistake and your family should not be considered over-income, you
may request a hearing by calling: XXX-XXX-XXXX or emailing [address] or requesting more information
from PHA staff at: [location]. If you wish to request a hearing, please do so as soon as possible. If you do
not wish to request a hearing, you do not need to do anything at this time.
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What about changes to my income?
We will need to re-examine your income in 12 months. After the reexamination, you will receive a
notification like this one if your family is still over-income.
If your family’s income drops below the over-income limit before the end of the 24 consecutive-month
grace period, you will no longer be considered over-income. If your family’s income increases again to an
amount that is over-income, you will receive another 24 consecutive month grace period.
If your income changes, contact us using the information provided below to learn the policy for
requesting an interim reexamination.
What if my family remains over-income in consecutive 12 months?
According to the Continued Occupancy Policy, your family may continue your tenancy even if you remain
over-income for another 12 months (24 consecutive months total). However, your unit will no longer
receive assistance from the federal public housing program so your rent will be calculated differently.
If you choose to remain in a public housing unit after the 24 month grace period, you will:
• No longer be a public housing program participant and will therefore not be eligible to participate in
the resident council or programs specifically for public housing residents.
• Pay an “alternative non-public housing rent” (currently estimated at $_____)
• Need to sign a new lease
[INSERT PHA CONTACT INFORMATION]
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CHAPTER 14
GRIEVANCES AND APPEALS
INTRODUCTION
This chapter discusses grievances and appeals pertaining to PHA actions or failures to act that adversely
affect public housing applicants or residents. The policies are discussed in the following three parts:
Part I: Informal Hearings for Public Housing Applicants. This part outlines the requirements
and procedures for informal hearings for public housing applicants.
Part II: Informal Hearings with Regard to Noncitizens. This part discusses informal hearings
regarding citizenship status and where they differ from the requirements for general applicant
and tenant grievances.
Part III: Grievance Procedures for Public Housing Residents. This part outlines the
requirements and procedures for handling grievances for public housing residents.
Note that this chapter is not the PHA’s grievance procedure. The grievance procedure is a
document separate from the ACOP. This chapter of the ACOP provides the policies that drive the
grievance procedure. A sample grievance procedure is provided as Exhibit 14-1. However, please
note that the procedure provided is only a sample and is designed to match up with the default
policies in the model ACOP. As such, the PHA would need to modify accordingly should any
alternative policy decisions be adopted.
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PART I: INFORMAL HEARINGS FOR PUBLIC HOUSING APPLICANTS
14-I.A. OVERVIEW
When the PHA makes a decision that has a negative impact on an applicant family, the family is often
entitled to appeal the decision. For applicants, the appeal takes the form of an informal hearing. HUD
regulations do not provide a structure for or requirements regarding informal hearings for applicants
(except with regard to citizenship status, to be covered in Part II). This part discusses the PHA policies
necessary to respond to applicant appeals through the informal hearing process.
14-I.B. INFORMAL HEARING PROCESS [24 CFR §960.208(A) AND PH OCC GB, P. 58]
Informal hearings are provided for public housing applicants. An applicant is someone who has applied
for admission to the public housing program but is not yet a tenant in the program. Informal hearings are
intended to provide a means for an applicant to dispute a determination of ineligibility for admission to a
project [24 CFR§ 960.208(a)]. Applicants to public housing are not entitled to the same hearing process
afforded tenants under the PHA grievance procedure [24 CFR §966.53(a) and PH Occ GB, p. 58].
Informal hearings provide applicants the opportunity to review the reasons for denial of admission and
to present evidence to refute the grounds for denial.
Use of Informal Hearing Process
While the PHA must offer the opportunity of an informal hearing to applicants who have been
determined as ineligible for admission, the PHA could make the informal hearing process available to
applicants who wish to dispute other PHA actions that adversely affect them.
PHA Policy
The PHA will only offer informal hearings to applicants for the purpose of disputing denials of
admission.
Notice of Denial [24 CFR §960.208(a)]
The PHA must give an applicant prompt notice of a decision denying eligibility for admission. The notice
must contain a brief statement of the reasons for the PHA decision and must also state that the applicant
may request an informal hearing to dispute the decision. The notice must describe how to obtain the
informal hearing.
PHA Policy
The PHA has the sole discretion to require that informal hearings be conducted remotely.
The PHA’s notice of denial will include information about how the hearing will be conducted
(remotely or in person). If remote, the resident will be informed of the processes involved in a
remote hearing and that the PHA will provide technical assistance, if needed, before the hearing.
14-3
Remote hearings will allow the PHA to provide a reasonable accommodation for a person with a
disability, if an applicant does not have childcare or transportation that would enable them to
attend the informal hearing, or if the applicant believes an in-person informal hearing would
create an undue health risk. The PHA will consider other reasonable requests for a remote
informal hearing on a case-by-case basis.
(24 CFR §966.56. (a), states, “The hearing must be scheduled promptly for a time and place
reasonably convenient to both the complainant and the PHA and held before a hearing officer.)
When denying eligibility for admission, the PHA must provide the family a notice of VAWA rights (form
HUD-5380) as well as the HUD VAWA self-certification form (form HUD-5382) in accordance with the
Violence against Women Reauthorization Act, and as outlined in Section 16-VII.C. The notice and self-
certification form must accompany the written notification of the denial of eligibility determination.
Prior to notification of denial based on information obtained from criminal or sex offender registration
records, the family, in some cases, must be given the opportunity to dispute the information in those
records which would be the basis of the denial. See Section 3-III.G for details concerning this
requirement.
Scheduling an Informal Hearing
PHA Policy
A request for an informal hearing must be made in writing and delivered to the PHA either in
person or by first class mail, by the close of the business day, no later than 10 business days from
the date of the PHA’s notification of denial of admission.
The PHA will schedule and send written notice of the informal hearing within 10 business days of
the family’s request.
If the informal hearing will be conducted remotely, at the time the notice is sent to the family, the
family will be informed:
•
Regarding the processes involved in a remote informal hearing;
•
That the PHA will provide technical assistance prior to and during the informal
hearing, if needed; and
•
That if the family or any individual witness has any technological, resource, or
accessibility barriers preventing them from fully accessing the remote informal
hearing, the family may inform the PHA and the PHA will assist the family in either
resolving the issues or allow the family to participate in an in-person informal
hearing, as appropriate.
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Conducting an Informal Hearing [PH Occ GB, p. 58]
PHA Policy
The informal hearing will be conducted by a person other than the one who made or approved
the decision under review, or a subordinate of this person.
The applicant will be provided an opportunity to present written or oral objections to the decision
of the PHA.
The person conducting the informal hearing will make a recommendation to the PHA, but the PHA
is responsible for making the final decision as to whether admission should be granted or denied.
Remote Informal Hearings [Notice PIH 2020-32]
There is no requirement that informal hearings be conducted in-person, and as such, HUD allows
PHAs to conduct all or a portion of their informal hearings remotely either over the phone, via
video conferencing, or through other virtual platforms. If the PHA chooses to conduct remote
informal hearings, applicants may still request an in-person informal hearing, as applicable.
PHA Policy
All PHA policies and processes for remote informal hearings will be conducted in accordance with
due process requirements and compliance with HUD regulations.
The PHA has the sole discretion to require that informal hearings be conducted remotely in case
of local, state, or national physical distancing orders, and in cases of inclement weather or natural
disaster.
24 CFR §966.56.(a), states, “The hearing must be scheduled promptly for a time and place
reasonably convenient to both the complainant and the PHA and held before a hearing officer. In
addition, the PHA will conduct an informal hearing remotely upon request of the applicant as a
reasonable accommodation for a person with a disability, if an applicant does not have child care
or transportation that would enable them to attend the informal hearing, or if the applicant
believes an in-person informal hearing would create an undue health risk. The PHA will consider
other reasonable requests for a remote informal hearing on a case-by-case basis.
Ensuring Accessibility for Persons with Disabilities and LEP Individuals
As with in-person informal hearings, the platform for conducting remote informal hearings must be
accessible to persons with disabilities and the informal hearing must be conducted in accordance with
Section 504 and accessibility requirements. This includes ensuring any information, websites, emails,
digital notifications, and other virtual platforms are accessible for persons with vision, hearing, and other
disabilities. Further, providing effective communication in a digital context may require the use of
individualized auxiliary aids or services, such as audio description, captioning, sign language and other
types of interpreters, keyboard accessibility, accessible documents, screen reader support, and
14-5
transcripts. Auxiliary aids or services must be provided in accessible formats, in a timely manner, and in
such a way to protect the privacy and independence of the individual. PHAs may never request or require
that individuals with disabilities provide their own auxiliary aids or services, including for remote informal
hearings.
If no method of conducting a remote informal hearing is available that appropriately accommodates an
individual’s disability, the PHA may not hold against the individual their inability to participate in the
remote informal review, and the PHA should consider whether postponing the remote informal hearing
to a later date is appropriate or whether there is a suitable alternative.
Due to the individualized nature of disability, the appropriate auxiliary aid or service necessary, or
reasonable accommodation, will depend on the specific circumstances and requirements.
As with in-person hearings, Limited English Proficiency (LEP) requirements also apply to remote informal
hearings, including the use of interpretation services and document translation. See Chapter 2 for a more
thorough discussion of accessibility and LEP requirements, all of which apply in the context of remote
informal hearings.
Conducting Remote Informal Hearings [PIH 2020-32]
The PHA must ensure that the lack of technology or inability to use technology for remote informal
hearings does not pose a disadvantage to families that may not be apparent to the PHA. The PHA should
determine through a survey or other means if these barriers exist prior to conducting the remote
informal hearing and, if the family does not have the proper technology to fully participate, either
postpone the informal hearing or provide an alternative means of access.
As with in-person informal hearings, the PHA must provide all materials presented, whether paper or
electronic, to the family prior to the remote informal hearing. The family must also be provided with an
accessible means by which to transmit their own evidence.
The PHA must ensure that the applicant has the right to hear and be heard. All PHA policies and
processes for remote informal hearings will be conducted in accordance with due process requirements
and will be in compliance with HUD regulations at 24 CFR 966.56 and the guidance for conducting remote
hearings specified in Notice PIH 2020-32.
PHA Policy
The PHA will conduct remote informal hearings via a video conferencing platform, when available.
If, after attempting to resolve any barriers, applicants are unable to adequately access the video
conferencing platform at any point, or upon applicant request, the informal hearing will be
conducted by telephone conferencing call-in. If the family is unable to adequately access the
telephone conferencing call-in at any point, the remote informal hearing will be postponed, and
an in-person alternative will be provided promptly within a reasonable time.
At least five business days prior to scheduling the remote hearing, the PHA will provide the family
with login information and/or conferencing call-in information and an electronic copy of all
materials being presented via first class mail and/or email. The notice will advise the family of
technological requirements for the hearing and request the family notify the PHA of any known
14-6
barriers. The PHA will resolve any barriers using the guidance in Section 6 of Notice PIH 2020-32,
including offering the family the opportunity to attend an in-person hearing.
If the informal hearing is to be conducted remotely, the PHA will require the family to provide any
documents directly relevant to the informal hearing at least 24 hours before the scheduled
hearing through the mail, via email, or text. The PHA will scan and email copies of these
documents to the PHA representative and to the person conducting the informal hearing the
same day.
Documents will be shared electronically whenever possible.
The PHA will follow up the email with a phone call and/or email to the applicant at least one
business day prior to the remote informal hearing to ensure that the applicant received all
information and is comfortable accessing the video conferencing or call-in platform.
The PHA will ensure that all electronic information stored or transmitted with respect to the
informal hearing is secure, including protecting personally identifiable information (PII), and meets
the requirements for accessibility for persons with disabilities and persons with LEP.
Informal Hearing Decision [PH Occ GB, p. 58]
PHA Policy
The PHA will notify the applicant of the PHA’s final decision, including a brief statement of the
reasons for the final decision.
In rendering a decision, the PHA will evaluate the following matters:
−
Whether or not the grounds for denial were stated factually in the notice
−
The validity of grounds for denial of admission. If the grounds for denial are not specified in
the regulations or in PHA policy, then the decision to deny assistance will be overturned.
See Chapter 3 for a detailed discussion of the grounds for applicant denial.
−
The validity of the evidence. The PHA will evaluate whether the facts presented prove the
grounds for denial of admission. If the facts prove that there are grounds for denial, and
the denial is required by HUD, the PHA will uphold the decision to deny admission.
−
If the facts prove the grounds for denial, and the denial is discretionary, the PHA will
consider the recommendation of the person conducting the informal hearing in making the
final decision whether to deny admission.
The PHA will notify the applicant of the final decision, including a statement explaining the
reason(s) for the decision. The notice will be mailed, with return receipt requested, within 10
business days of the informal hearing, to the applicant and their representative, if any.
If the informal hearing decision overturns the denial, processing for admission will resume.
If the family fails to appear for their informal hearing, the denial of admission will stand, and the
family will be so notified.
14-7
Reasonable Accommodation for Persons with Disabilities [24 CFR §966.7]
Persons with disabilities may request reasonable accommodations to participate in the informal hearing
process and the PHA must consider such accommodations. The PHA must also consider reasonable
accommodation requests pertaining to the reasons for denial if related to the person’s disability. See
Chapter 2 for more detail pertaining to reasonable accommodation requests.
14-8
PART II: INFORMAL HEARINGS WITH REGARD TO NONCITIZENS
14-II.A. HEARING AND APPEAL PROVISIONS FOR NONCITIZENS [24 CFR §5.514]
Denial or termination of assistance based on immigration status is subject to special hearing and notice
rules. These special hearings are referred to in the regulations as informal hearings, but the
requirements for such hearings are different from the informal hearings used to deny applicants for
reasons other than immigration status.
Assistance to a family may not be delayed, denied, or terminated on the basis of immigration status at
any time prior to a decision under the United States Citizenship and Immigration Services (USCIS) appeal
process. Assistance to a family may not be terminated or denied while the PHA hearing is pending, but
assistance to an applicant may be delayed pending the completion of the informal hearing.
A decision against a family member, issued in accordance with the USCIS appeal process or the PHA
informal hearing process, does not preclude the family from exercising the right, that may otherwise be
available, to seek redress directly through judicial procedures.
Notice of Denial or Termination of Assistance [24 CFR §5.514(d)]
As discussed in Chapters 3 and 13, the notice of denial or termination of assistance for noncitizens must
advise the family of any of the following that apply:
•
That financial assistance will be denied or terminated; and provide a brief explanation of the
reasons for the proposed denial or termination of assistance.
•
The family may be eligible for proration of assistance.
•
In the case of a tenant, the criteria, and procedures for obtaining relief under the provisions for
preservation of families [24 CFR §5.514 and §5.518].
•
That the family has a right to request an appeal to the USCIS of the results of secondary
verification of immigration status and to submit additional documentation or explanation in
support of the appeal.
•
That the family has a right to request an informal hearing with the PHA either upon completion of
the USCIS appeal or in lieu of the USCIS appeal.
•
For applicants, assistance may not be delayed until the conclusion of the USCIS appeal process,
but assistance may be delayed during the period of the informal hearing process.
United States Citizenship and Immigration Services Appeal Process [24 CFR §5.514(e)]
When the PHA receives notification that the USCIS secondary verification failed to confirm eligible
immigration status, the PHA must notify the family of the results of the USCIS verification. The family will
have 30 days from the date of the notification to request an appeal of the USCIS results. The request for
14-9
appeal must be made by the family in writing directly to the USCIS. The family must provide the PHA with
a copy of the written request for appeal and proof of mailing.
PHA Policy
The PHA will notify the family in writing of the results of the USCIS secondary verification within 10
business days of receiving the results.
The family must provide the PHA with a copy of the written request for appeal and proof of
mailing within 10 business days of sending the request to the USCIS.
The family must forward to the designated USCIS office any additional documentation or written
explanation in support of the appeal. This material must include a copy of the USCIS document
verification request (used to process the secondary request) or such other form specified by the USCIS,
and a letter indicating that the family is requesting an appeal of the USCIS immigration status verification
results.
The USCIS will notify the family, with a copy to the PHA, of its decision. When the USCIS notifies the PHA
of the decision, the PHA must notify the family of its right to request an informal hearing.
PHA Policy
The PHA will send written notice to the family of its right to request an informal hearing within 10
business days of receiving notice of the USCIS decision regarding the family’s immigration status.
Informal Hearing Procedures for Applicants [24 CFR §5.514(f)]
After notification of the USCIS decision on appeal, or in lieu of an appeal to the USCIS, an applicant family
may request that the PHA provide a hearing. The request for a hearing must be made either within 30
days of receipt of the PHA notice of denial, or within 30 days of receipt of the USCIS appeal decision.
The informal hearing procedures for applicant families are described below.
Informal Hearing Officer
The PHA must provide an informal hearing before an impartial individual, other than a person who made
or approved the decision under review, and other than a person who is a subordinate of the person who
made or approved the decision. Such individual or individuals do not need legal training.
PHA Policy
The PHA will contract a hearing officer.
Efforts will be made to assure that the person selected is neither a friend, nor enemy, of the
complainant that they do not have a personal stake in the matter under dispute and will otherwise
not appear to lack impartiality.
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Evidence
The family must be provided the opportunity to examine and copy at the family’s expense, at a
reasonable time in advance of the hearing, any documents in the possession of the PHA pertaining to the
family’s eligibility status, or in the possession of the USCIS (as permitted by USCIS requirements),
including any records and regulations that may be relevant to the hearing.
PHA Policy
The family will be allowed to copy any documents related to the hearing at a cost of $.25 per page.
This is for documents in addition to what is provided for the hearing.
The family must request discovery of PHA documents no later than 12:00 p.m. on the business
day prior to the hearing.
The family must be provided the opportunity to present evidence and arguments in support of eligible
status. Evidence may be considered without regard to admissibility under the rules of evidence
applicable to judicial proceedings.
The family must also be provided the opportunity to refute evidence relied upon by the PHA, and to
confront and cross-examine all witnesses on whose testimony or information the PHA relies.
Representation and Interpretive Services
The family is entitled to be represented by an attorney or other designee, at the family’s expense, and to
have such person make statements on the family’s behalf.
The family is entitled to request an interpreter. The PHA is obligated to provide a competent interpreter,
free of charge, upon request. The family may also or instead provide its own interpreter, at the expense
of the family.
Recording of the Hearing
The family is entitled to have the hearing recorded by audiotape. The PHA may, but is not required to,
provide a transcript of the hearing.
PHA Policy
The family will be allowed to have a copy of the informal hearing tape at a prepaid cost of $5.00
per tape.
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Hearing Decision
The PHA must provide the family with a written notice of the final decision, based solely on the facts
presented at the hearing, within 14 calendar days of the date of the informal hearing. The notice must
state the basis for the decision.
PHA Policy
The hearing decision may be provided to the family by the hearing officer in which case, the PHA
will not need to mail one out; however, it is the PHA’s responsibility to ensure the hearing decision
is mailed out within 14 calendar days of the date of the informal hearing.
Retention of Documents [24 CFR 5.514(h)]
The PHA must retain for a minimum of 5 years the following documents that may have been submitted
to the PHA by the family, or provided to the PHA as part of the USCIS appeal or the PHA informal hearing
process:
•
The application for assistance
•
The form completed by the family for income reexamination
•
Photocopies of any original documents, including original USCIS documents
•
The signed verification consent form
•
The USCIS verification results
•
The request for a USCIS appeal
•
The final USCIS determination
•
The request for an informal hearing
•
The final informal hearing decision
Informal Hearing Procedures for Residents [24 CFR §5.514(f)]
After notification of the USCIS decision on appeal, or in lieu of an appeal to the USCIS, a resident family
may request that the PHA provide a hearing. The request for a hearing must be made either within 30
days of receipt of the PHA notice of termination, or within 30 days of receipt of the USCIS appeal decision.
The informal hearing procedures for resident families whose tenancy is being terminated based on
immigration status is the same as for any grievance under the grievance procedures for resident families
found in Part III below.
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PART III: GRIEVANCE PROCEDURES FOR PUBLIC HOUSING RESIDENTS
14-III.A. REQUIREMENTS [24 CFR §966.52]
PHAs must have a grievance procedure in place through which residents of public housing are provided
an opportunity to grieve any PHA action or failure to act involving the lease or PHA policies which
adversely affect their rights, duties, welfare, or status. The PHA must not only meet the minimal
procedural due process requirements provided under the regulations but must also meet any additional
requirements imposed by local, state or federal law.
The PHA grievance procedure must be included in, or incorporated by reference in, the lease.
PHA Policy
The PHA grievance procedure will be incorporated by reference in the tenant lease.
The PHA must provide at least 30-day notice to tenants and resident organizations setting forth proposed
changes in the PHA grievance procedure and provide an opportunity to present written comments.
Comments submitted must be considered by the PHA before adoption of any changes to the grievance
procedure by the PHA.
PHA Policy
Residents and resident organizations will have 30 calendar days from the date they are notified by
the PHA of any proposed changes in the PHA grievance procedure, to submit written comments to
the PHA.
The PHA must furnish a copy of the grievance procedure to each tenant and to resident
organizations.
14-III.B. DEFINITIONS [24 CFR §966.53; 24 CFR §966.51(A)(2)(I)]
There are several terms used by HUD with regard to public housing grievance procedures, which take on
specific meanings different from their common usage. These terms are as follows:
•
Grievance – any dispute which a tenant may have with respect to PHA action or failure to act in
accordance with the individual tenant’s lease or PHA regulations which adversely affect the
individual tenant’s rights, duties, welfare, or status
•
Complainant – any tenant whose grievance is presented to the PHA or at the project
management office
•
Due Process Determination – a determination by HUD that law of the jurisdiction requires that
the tenant must be given the opportunity for a hearing in court which provides the basic elements
of due process before eviction from the dwelling unit
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•
Expedited Grievance – a procedure established by the PHA for any grievance or termination that
involves:
-
Any criminal activity that threatens the health, safety, or right to peaceful enjoyment or the PHA’s
public housing premises by other residents or employees of the PHA; or
-
Any drug-related criminal activity on or off the premises
•
Elements of Due Process – an eviction action or a termination of tenancy in a state or local court
in which the following procedural safeguards are required:
−
Adequate notice to the tenant of the grounds for terminating the tenancy and for eviction
−
Right of the tenant to be represented by counsel
−
Opportunity for the tenant to refute the evidence presented by the PHA including the right
to confront and cross-examine witnesses and to present any affirmative legal or equitable
defense which the tenant may have
−
A decision on the merits
•
Hearing Officer/Panel – a impartial person/panel or selected by the PHA, other than the person
who made or approved the decision under review, or a subordinate of that person. The individual
or individuals do not need legal training.
•
Tenant – the adult person (or persons) (other than a live-in aide)
−
Who resides in the unit, and who executed the lease with the PHA as lessee of the dwelling
unit, or, if no such person now resides in the unit,
−
Who resides in the unit, and who is the remaining head of household of the tenant family
residing in the dwelling unit.
•
Resident Organization – includes a resident management corporation
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14-III.C. APPLICABILITY [24 CFR §966.51]
Grievances could potentially address most aspects of a PHA’s operation. However, there are some
situations for which the grievance procedure is not applicable.
The grievance procedure is applicable only to individual tenant issues relating to the PHA. It is not
applicable to disputes between tenants not involving the PHA. Class grievances are not subject to the
grievance procedure and the grievance procedure is not to be used as a forum for initiating or
negotiating policy changes of the PHA.
If HUD has issued a due process determination, a PHA may exclude from the PHA grievance procedure
any grievance concerning a termination of tenancy or eviction that involves:
•
Any criminal activity that threatens the health, safety or right to peaceful enjoyment of the
premises of other residents or employees of the PHA
•
Any violent or drug-related criminal activity on or off such premises; or
•
Any criminal activity that resulted in felony conviction of a household member
In states without due process determinations, PHAs must grant opportunity for grievance hearings for all
lease terminations, regardless of cause, with the following exception: PHAs may use expedited grievance
procedures for the excluded categories listed above. These expedited grievance procedures are
described in Section 14-III.E., below.
If HUD has issued a due process determination, the PHA may evict through the state/local judicial
eviction procedures. In this case, the PHA is not required to provide the opportunity for a hearing under
the PHA’s grievance procedure as described above.
PHA Policy
The PHA is located in a HUD-declared due process state. Therefore, the PHA will not offer
grievance hearings for lease terminations involving criminal activity that resulted in a felony
conviction of a household member or that threatens the health, safety, or right to peaceful
enjoyment of the premises of other residents or employees of the PHA, or for violent or drug-
related criminal activity on or off the premises, or for any criminal activity that resulted in felony
conviction of a household member.
See Chapter 13 for related policies on the content of termination notices.
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14-III.D. INFORMAL SETTLEMENT OF GRIEVANCE [24 CFR §966.54] [SEE LOCAL PROCEDURE,
“GRIEVANCE POLICY AND FLOWCHART” FOR DETAILS]
HUD regulations state that any grievance must be personally presented, either orally or in writing, to the
PHA office or to the office of the housing development in which the complainant resides so that the
grievance may be discussed informally and settled without a hearing.
The informal settlement is the first step in the Public Housing Grievance process, and is performed
internally, between the tenant and PHA. As of March 8, 2016, HUD no longer mandates the grievance
process, instead allowing local authority to determine the process.
PHA Policy
The PHA will accept requests for an informal settlement of a grievance either orally or in writing
(including emailed requests), to the PHA office within 10 business days of the grievable event, to
allow the grievance to be discussed informally and settled without a hearing.
Within 10 business days of receipt of the request, the PHA will mail and/or email the tenant the
date and time of the appointment. The tenant must notify the PHA in writing 48 hours in advance
to reschedule the appointment.
The PHA has the option to conduct the informal settlement via writing only, or it may be
conducted remotely, telephonically, or in person. The PHA has the sole discretion regarding the
method of an informal settlement.
If a tenant fails to attend the scheduled meeting without prior notice, the PHA will reschedule the
appointment only if the tenant can show good cause for failing to appear, or if it is needed as a
reasonable accommodation for a person with disabilities.
Good cause is defined as an unavoidable conflict, which seriously affects the health, safety, or
welfare of the family.
HUD regulations require that a summary of such discussion will be prepared within a reasonable time
and one copy will be given to the tenant and one retained in the PHA’s tenant file.
The summary must specify the names of the participants, dates of meeting, the nature of the proposed
disposition of the complaint and the specific reasons therefore, and will specify the procedures by which
a hearing may be obtained if the complainant is not satisfied.
PHA Policy
The PHA has the sole discretion to determine the method of holding the informal grievance
settlement meeting.
The PHA will prepare a summary of the informal settlement within 5 business days; one copy to
be given to the tenant and one copy to be retained in the PHA’s tenant file.
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For PHAs who have the option to establish an expedited grievance procedure, and who exercise this
option, the informal settlement of grievances is not applicable to those grievances for which the
expedited grievance procedure applies.
14-III.E. PROCEDURES TO OBTAIN A HEARING AFTER THE INFORMAL SETTLEMENT MEETING [24 CFR
§966.56(A)]
Requests for Hearing and Failure to Request [24 CFR §966.56(a), (c)]
All grievances must be presented in accordance with the informal settlement procedures prescribed
above as a condition prior to a grievance hearing.
PHA Policy
The resident must submit a written request (including emailed requests) for a grievance hearing to
the PHA within 5 business days of the tenant’s receipt of the summary of the informal settlement.
If the complainant does not request a hearing, the PHA’s disposition of the grievance under the
informal settlement process will become final.
However, failure to request a hearing does not constitute a waiver by the complainant of the right
to contest the PHA’s action in disposing of the complaint in an appropriate judicial proceeding [24
CFR §966.56(c)].
Scheduling of Hearings [24 CFR §966.56(a)]
If the complainant has complied with all requirements for requesting a hearing as described above, a
hearing must be scheduled by the PHA promptly for a time and place reasonably convenient to both the
complainant and the PHA.
A written notification specifying the time, place, and the procedures governing the hearing must be
delivered to the complainant and the appropriate PHA official.
PHA Policy
Within 10 business days of receiving a written request for a hearing, the hearing will be scheduled,
and a written notice of the hearing will be sent the complainant.
•
If the PHA hearing will be conducted remotely, at the time the notice is sent to the family, the
family will be notified:
•
Regarding the processes involved in a remote grievance hearing;
•
That the PHA will provide technical assistance prior to and during the hearing, if needed; and
•
That if the family or any individual witness has any technological, resource, or accessibility
barriers, the family may inform the PHA and the PHA will assist the family in either resolving
the issue or allow the family to participate in an in-person hearing, as appropriate.
The PHA may wish to permit the tenant to request to reschedule a hearing for good cause.
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PHA Policy
The tenant may request to reschedule a hearing for good cause, or if it is needed as a reasonable
accommodation for a person with disabilities. Good cause is defined as an unavoidable conflict,
which seriously affects the health, safety, or welfare of the family. Requests to reschedule a
hearing must be made orally or in writing prior to the hearing date. At its discretion, the PHA may
request documentation of the “good cause” prior to rescheduling the hearing.
Expedited Grievance Procedure [24 CFR 966.52(a)]
The PHA may establish an expedited grievance procedure for any grievance concerning a termination of
tenancy or eviction that involves:
•
Any criminal activity that threatens the health, safety, or right to peaceful enjoyment of the premises
by other residents or employees of the PHA;
•
Any drug-related criminal activity on or near such premises; or
•
Any criminal activity that resulted in felony conviction of a household member.
In such expedited grievances, the informal settlement of grievances as discussed in 14-III.D is not
applicable.
The PHA may adopt special procedures concerning expedited hearings, including provisions for
expedited notice or scheduling, or provisions for expedited decision on the grievance.
PHA Policy
The PHA will not offer expedited grievance procedures.
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14-III.F. SELECTION OF HEARING OFFICER/PANEL [24 CFR §966.53(E), PIH 2016-05]
The grievance hearing must be conducted by an impartial person or persons appointed by the PHA, other
than the person who made or approved the PHA action under review, or a subordinate of such person.
Such individual or individuals do not need legal training. PHAs must describe their policies for selection of
a hearing officer in their lease.
PHA Policy
PHA grievance hearings will be conducted by a single hearing officer and not a panel. The PHA will
contract a hearing officer.
The PHA must determine the methodology for appointment of the hearing officer, and it must be stated
in the grievance procedure.
PHA Policy
The PHA will appoint a person who has been selected in the manner required under the grievance
procedure. Efforts will be made to assure that the person selected is neither a friend, nor enemy,
of the complainant that they do not have a personal stake in the matter under dispute and will
otherwise not appear to lack impartiality.
The PHA must include the method of selection in the Public Housing Lease. (24 CFR §966.4) (See Public
Housing Lease Agreement, effective 7/1/2019, Section XVI.)
14-III.G. REMOTE HEARINGS [PIH 2020-32]
There is no requirement that grievance hearings be conducted in-person, and as such, HUD allows PHAs
to conduct all or a portion of their grievance hearings remotely either over the phone, via video
conferencing, or through other virtual platforms. If the PHA chooses to conduct remote grievance
hearings, applicants may still request an in-person hearing, as applicable.
PHA Policy
The PHA has the sole discretion to require that hearings be conducted remotely in case of local,
state, or national physical distancing orders, and in cases of inclement weather or natural disaster.
In addition, the PHA will conduct a hearing remotely upon request as a reasonable
accommodation for a person with a disability, if a tenant does not have child care or
transportation that would enable them to attend the hearing, or if the tenant believes an in-
person hearing would create an undue health risk. The PHA will consider other reasonable
requests for a remote hearing on a case-by-case basis.
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Discovery of Documents Before the Remote Hearing [PIH 2020-32]
PHA Policy
If the hearing will be conducted remotely, the PHA will compile a hearing packet, consisting of all
documents the PHA intends to produce at the hearing.
The PHA will deliver by mail, email or hand-delivery, copies of the hearing packet to the tenant, the
tenant’s representatives, if any, and the hearing officer at least three (3) days before the scheduled
remote hearing. The original hearing packet will be in the possession of the PHA representative
and retained by the PHA.
If the hearing is to be held in person, the packet will be available at the front desk for the tenant to
pick up at least three (3) days before the scheduled hearing.
If the hearing is to be conducted remotely, the PHA will require the resident to provide any
documents directly relevant to the hearing at least 24 hours before the scheduled hearing,
through US Mail, via email, or text.
The PHA will scan and email copies of these documents to the hearing officer the same day they
are received.
Documents will be shared electronically whenever possible.
Ensuring Accessibility for Persons with Disabilities ad LEP Individuals
As with in-person grievance hearings, the platform for conducting remote grievance hearings must be
accessible to persons with disabilities and the grievance hearings must be conducted in accordance with
Section 504 and accessibility requirements. This includes ensuring any information, websites, emails,
digital notifications, and other virtual platforms are accessible for persons with vision, hearing, and other
disabilities. Further, providing effective communication in a digital context may require the use of
individualized auxiliary aids or services, such as audio description, captioning, sign language and other
types of interpreters, keyboard accessibility, accessible documents, screen reader support, and
transcripts. Auxiliary aids or services must be provided in accessible formats, in a timely manner, and in
such a way to protect the privacy and independence of the individual. PHAs may never request or require
that individuals with disabilities provide their own auxiliary aids or services, including for remote
grievance hearings.
If no method of conducting a remote grievance hearing is available that appropriately accommodates an
individual’s disability, the PHA may not hold against the individual their inability to participate in the
remote grievance hearing, and the PHA should consider whether postponing the remote hearing to a
later date is appropriate or whether there is a suitable alternative.
Due to the individualized nature of disability, the appropriate auxiliary aid or service necessary, or
reasonable accommodation will depend on the specific circumstances and requirements.
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As with in-person reviews, Limited English Proficiency (LEP) requirements also apply to remote grievance
hearings, including the use of interpretation services and document translation. See Chapter 2 for a more
thorough discussion of accessibility and LEP requirements, all of which apply in the context of remote
grievance hearings.
Conducting Hearings Remotely
The PHA must ensure that the tenant has the right to hear and be heard.
The PHA must ensure that the lack of technology or inability to use technology for remote grievance
hearings does not pose a disadvantage to families that may not be apparent to the PHA. The PHA should
determine through a survey or other means if these barriers exist prior to conducting the remote
grievance hearing and, if the family does not have the proper technology to fully participate, either
postpone the hearing or provide an alternative means of access.
As with in-person grievance hearings, the PHA must provide all materials presented, whether paper or
electronic, to the family prior to the remote grievance hearing. The family must also be provided with an
accessible means by which to transmit their own evidence.
The PHA’s essential responsibility is to ensure grievance hearings meet the requirements of due process
and comply with HUD regulations. Therefore, all PHA policies and processes for remote grievance
hearings will be conducted in accordance with due process requirements and will be in compliance with
HUD regulations at 24 CFR 966.56 and the guidance for conducting remote hearings specified in Notice
PIH 2020-32.
PHA Policy
The PHA will conduct remote grievance hearings via a video conferencing platform, when
available. If, after attempting to resolve any barriers, participants are unable to adequately access
the video conferencing platform at any point, or upon request, the grievance hearing will be
conducted by telephone conferencing call-in. If the family is unable to adequately access the
telephone conferencing call-in at any point, the remote grievance hearing will be postponed, and
an in-person alternative will be provided promptly within a reasonable time.
At least five business days prior to scheduling the remote hearing, the PHA will provide the family
with login information and/or conferencing call-in information and an electronic copy of all
materials being presented via first class mail and/or email. The notice will advise the family of
technological requirements for the hearing and request the family notify the PHA of any known
barriers. The PHA will resolve any barriers using the guidance in Section 6 of Notice PIH 2020-32,
including offering the family the opportunity to attend an in-person hearing.
The PHA will follow up with a phone call and/or email to the family at least one business day prior
to the remote grievance hearing to ensure that the family received all information and is
comfortable accessing the video conferencing or call-in platform.
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The PHA will ensure that all electronic information stored or transmitted with respect to the
grievance hearing is secure, including protecting personally identifiable information (PII), and
meets the requirements for accessibility for persons with disabilities and persons with LEP.
14-III.H. PROCEDURES GOVERNING THE HEARING [24 CFR §966.56]
Rights of Complainant [24 CFR §966.56(b)]
The complainant will be afforded a fair hearing. This includes:
•
The opportunity to examine before the grievance hearing any PHA documents, including records
and regulations that are directly relevant to the hearing. The tenant must be allowed to copy any
such document at the tenant’s expense. If the PHA does not make the document available for
examination upon request by the complainant, the PHA may not rely on such document at the
grievance hearing.
PHA Policy
The tenant will be allowed to copy any documents related to the hearing at a cost of $.25 per
page. There will be no charge for documents emailed by the PHA. The family must request
discovery of PHA documents no later than 12:00 p.m. on the business day prior to the hearing.
•
The right to be represented by counsel or other person chosen to represent the tenant and to have
such person make statements on the tenant’s behalf.
PHA Policy
Hearings may be attended by the following applicable persons:
•
The PHA representative(s) and any witnesses for the PHA
•
The tenant and any witnesses for the tenant
•
The tenant’s counsel or other representative
•
PHA’s counsel
•
Any other person approved by the PHA as a reasonable accommodation for a person with a
disability
•
The right to a private hearing unless the complainant requests a public hearing.
•
The right to present evidence and arguments in support of the tenant’s complaint, to controvert
evidence relied on by the PHA or project management, and to confront and cross-examine all
witnesses upon whose testimony or information the PHA or project management relies.
•
A decision based solely and exclusively upon the facts presented at the hearing.
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Failure to Appear [24 CFR 966.56(c)]
If the complainant or the PHA fails to appear at a scheduled hearing, the hearing officer may make a
determination to postpone the hearing for no more than five business days or may make a
determination that the party has waived their right to a hearing. Both the complainant and the PHA must
be notified of the determination by the hearing officer: Provided, That a determination that the
complainant has waived their right to a hearing will not constitute a waiver of any right the complainant
may have to contest the PHA’s disposition of the grievance in an appropriate judicial proceeding.
There may be times when a complainant does not appear due to unforeseen circumstances which are
out of their control and are no fault of their own.
PHA Policy
If the tenant does not appear at the scheduled time of the hearing, the hearing officer will wait up
to 20 minutes. If the tenant appears within 20 minutes of the scheduled time, the hearing will be
held. If the tenant does not arrive within 20 minutes of the scheduled time, they will be considered
to have failed to appear.
If the tenant fails to appear and was unable to reschedule the hearing in advance, the tenant must
contact the PHA within 24 hours of the scheduled hearing date, excluding weekends and holidays.
The hearing officer will reschedule the hearing only if the tenant can show good cause for the
failure to appear, or it is needed as a reasonable accommodation for a person with disabilities.
“Good cause” is defined as an unavoidable conflict which seriously affects the health, safety, or
welfare of the family.
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General Procedures [24 CFR §966.56(d), (e)]
At the hearing, the complainant must first make a showing of an entitlement to the relief sought and
thereafter the PHA must sustain the burden of justifying the PHA action or failure to act against which the
complaint is directed [24 CFR §966.56(d)].
The hearing is conducted informally by the hearing officer/panel. The PHA and the tenant must be given
the opportunity to present oral or documentary evidence pertinent to the facts and issues raised by the
complaint and question any witnesses. In general, all evidence is admissible and may be considered
without regard to admissibility under the rules of evidence applicable to judicial proceedings [24 CFR
§966.56(b), (d)].
PHA Policy
Any evidence to be considered by the hearing officer must be presented at the time of the
hearing. There are four categories of evidence:
−
Oral evidence: the testimony of witnesses
−
Documentary evidence: a writing that is relevant to the case, for example, a letter written to
the PHA. Writings include all forms of recorded communication or representation, including
letters, emails, words, pictures, sounds, videotapes or symbols or combinations thereof.
−
Police Reports are documentary evidence and will take the place of an officer’s
presence at the informal hearing.
−
Demonstrative evidence: Evidence created specifically for the hearing and presented as an
illustrative aid to assist the hearing officer, such as a model, a chart, or other diagram.
−
Real evidence: A tangible item relating directly to the case.
Hearsay Evidence is evidence based not on a witness’ personal knowledge. In and of itself, hearsay
evidence carries no weight when making a finding of fact. The hearing officer may include hearsay
evidence when considering their decision if it is corroborated by other evidence. Even though
hearsay evidence is generally admissible in a hearing, the hearing officer will not base a hearing
decision on hearsay alone unless there is clear probative value and credibility of the evidence, and
the party seeking the change has met the burden of proof.
If the PHA fails to comply with the discovery requirements (providing the tenant with the
opportunity to examine PHA documents prior to the grievance hearing), the hearing officer will
refuse to admit such evidence.
Other than the failure of the PHA to comply with discovery requirements, the hearing officer has
the authority to overrule any objections to evidence.
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PHA Policy
The hearing officer/panel must require the PHA, the complainant, counsel and other participants
or spectators to conduct themselves in an orderly fashion. Failure to comply with the directions of
the hearing officer/panel to obtain order may result in exclusion from the proceedings or in a
decision adverse to the interests of the disorderly party and granting or denial of the relief sought,
as appropriate.
The complainant or the PHA may arrange, in advance and at the expense of the party making the
arrangement, for a transcript of the hearing. Any interested party may purchase a copy of such transcript
[24 CFR §966.56(e)].
PHA Policy
If the complainant would like the PHA to record the proceedings by audiotape, the request must
be made to the PHA by 12:00 p.m. on the business day prior to the hearing.
The PHA will consider that an audio tape recording of the proceedings is a transcript.
Accommodations of Persons with Disabilities [24 CFR §966.56(f)]
The PHA must provide reasonable accommodation for persons with disabilities to participate in the
hearing. Reasonable accommodation may include qualified sign language interpreters, readers,
accessible locations, or attendants.
If the tenant is visually impaired, any notice to the tenant, which is required in the grievance process,
must be in an accessible format.
See Chapter 2 for a thorough discussion of the PHA’s responsibilities pertaining to reasonable
accommodation.
Limited English Proficiency (LEP) (24 CFR §966.56(g)
The PHA must comply with HUD’s LEP Final Rule in providing language services throughout the grievance
process.
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14-III.I. DECISION OF THE HEARING OFFICER/PANEL [24 CFR §966.57]
The hearing officer/panel must issue a written decision, stating the reasons for the decision, within a
reasonable time after the hearing. Factual determinations relating to the individual circumstances of the
family must be based on a preponderance of evidence presented at the hearing. A copy of the decision
must be sent to the tenant and the PHA. The PHA must retain a copy of the decision in the tenant’s
folder. A log of all hearing officer decisions must also be maintained by the PHA and made available for
inspection by a prospective complainant, their representative, or the hearing officer [24 CFR 966.57(a)].
PHA Policy
In rendering a decision, the hearing officer will consider the following matters:
−
PHA Notice to the Family: The hearing officer will determine if the reasons for the PHA’s
decision are factually stated in the notice.
−
Discovery: The hearing officer will determine if the family was given the opportunity to
examine any relevant documents in accordance with PHA policy.
−
PHA Evidence to Support the PHA Decision: The evidence consists of the facts presented.
Evidence is not conclusion, and it is not argument. The hearing officer will evaluate the facts
to determine if they support the PHA’s conclusion.
−
Validity of Grounds for Termination of Tenancy (when applicable): The hearing officer
will determine if the termination of tenancy is for one of the grounds specified in the HUD
regulations and PHA policies. If the grounds for termination are not specified in the
regulations or in compliance with PHA policies, then the decision of the PHA will be
overturned.
The hearing officer will issue a written decision to the family and the PHA no later than 10
business days after the hearing. The report will contain the following information:
−
Hearing Information:
•
Name of the complainant
•
Date, time, and place of the hearing
•
Name of the hearing officer
•
Name of the PHA representative(s)
•
Name of family representative (if any)
•
Names of witnesses (if any)
−
Background: A brief, impartial statement of the reason for the hearing and the date(s) on
which the informal settlement was held, who held it, and a summary of the results of the
informal settlement. Also includes the date the complainant requested the grievance
hearing.
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−
Summary of the Evidence: The hearing officer will summarize the testimony of each
witness and identify any documents that a witness produced in support of their testimony
and that are admitted into evidence.
−
Findings of Fact: The hearing officer will include all findings of fact, based on a
preponderance of the evidence. Preponderance of the evidence is defined as evidence which is
of greater weight or more convincing than the evidence which is offered in opposition to it;
that is, evidence which as a whole shows that the fact sought to be proved is more probable
than not. Preponderance of the evidence may not be determined by the number of
witnesses, but by the greater weight of all evidence.
−
Conclusions: The hearing officer will render a conclusion derived from the facts that were
found to be true by a preponderance of the evidence. The conclusion will result in a
determination of whether these facts uphold the PHA’s decision.
−
Order: The hearing report will include a statement of whether the PHA’s decision is upheld
or overturned. If it is overturned, the hearing officer will instruct the PHA to change the
decision in accordance with the hearing officer’s determination. In the case of termination of
tenancy, the hearing officer will instruct the PHA to restore the family’s status.
Procedures for Further Hearing
PHA Policy
The hearing officer may ask the family for additional information and/or might adjourn the
hearing in order to reconvene at a later date, before reaching a decision. If the family misses an
appointment or deadline ordered by the hearing officer, the action of the PHA will take effect and
another hearing will not be granted.
Final Decision [24 CFR §966.57(b)]
The decision of the hearing officer/panel is binding on the PHA which must take the action, or refrain
from taking the action cited in the decision unless the PHA Board of Commissioners determines within a
reasonable time, and notifies the complainant that:
•
The grievance does not concern PHA action or failure to act in accordance with or involving the
complainant’s lease on PHA policies which adversely affect the complainant’s rights, duties,
welfare, or status; or
•
The decision of the hearing officer/panel is contrary to Federal, state, or local law, HUD
regulations or requirements of the annual contributions contract between HUD and the PHA
PHA Policy
When the PHA considers the decision of the hearing officer to be invalid due to the reasons stated
above, it will present the matter to the PHA Board of Commissioners within 10 business days of
the date of the hearing officer’s decision. The Board has 30 calendar days to consider the decision.
14-27
If the Board decides to reverse the hearing officer’s decision, it must notify the complainant within
10 business days of this decision.
A decision by the hearing officer/panel, or Board of Commissioners in favor of the PHA or which denies
the relief requested by the complainant in whole or in part must not constitute a waiver of any rights, nor
effect in any manner whatever, any rights the complainant may have to a subsequent trial or judicial
review in court [24 CFR §966.57(c)].
14-28
EXHIBIT 14-1: GRIEVANCE PROCEDURE
The sample procedure provided below is a sample only and is designed to match up with the
default policies in the model ACOP. If your PHA has made further policy decisions after NMA has
provided you with this chapter, you would need Definitions applicable to the grievance procedure
[24 CFR 966.53].
I.
Introduction
Public housing tenants have the right to request a grievance hearing for any PHA action or failure
to act in accordance with the tenant’s lease.
Grievance procedures do not apply in the following circumstances:
A. Disputes between tenants not involving the PHA or class grievances [24 CFR 966.51(b)].
B. The grievance procedure is not intended as a forum for initiating or negotiating policy changes
between a group or groups of tenants and the PHA’s Board of Commissioners [24 CFR
966.51(b)].
C. When the PHA is in a HUD-declared due process state, HUD allows the PHA to exclude from
the PHA grievance procedure any grievance concerning a termination of tenancy or eviction
that involves:
i. Any criminal activity that threatens the health, safety or right to peaceful enjoyment of the
premises of other residents or employees of the PHA;
ii. Any violent or drug-related criminal activity on or off such premises; or
iii. Any criminal activity that resulted in felony conviction of a household member [24 CFR
966.51(a)(2)].
II.
Definitions [24 CFR 966.53]
A. Grievance: Any dispute a tenant may have with respect to PHA action or failure to act in
accordance with the individual tenant’s lease or PHA regulations that adversely affects the
individual tenant’s rights, duties, welfare, or status.
B. Complainant: Any tenant (as defined below) whose grievance is presented to the PHA or at
the project management office in accordance with the requirements presented in this
procedure.
C. Elements of due process: An eviction action or a termination of tenancy in a state or local
court in which the following procedural safeguards are required:
i. Adequate notice to the tenant of the grounds for terminating the tenancy and for eviction
ii. Right of the tenant to be represented by counsel
iii. Opportunity for the tenant to refute the evidence presented by the PHA, including the
right to confront and cross-examine witnesses and to present any affirmative legal or
equitable defense that the tenant may have
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iv. A decision on the merits of the case
D. Hearing officer: An impartial person or persons selected by the PHA other than the person
who made or approved the decision under review, or a subordinate of that person. Such
individuals do not need legal training.
E. Tenant: The adult person (or persons other than a live-in aide) who resides in the unit and
who executed the lease with the PHA as lessee of the dwelling unit, or if no such person now
resides in the unit, the person who resides in the unit and is the remaining head of the
household of the tenant family residing in the dwelling unit.
F. Resident organization: An organization of residents, which also may include a resident
management corporation.
III.
This grievance procedure [24 CFR 966.51]
This grievance procedure is included by reference in all tenant dwelling leases and will be
furnished to each tenant and all resident organizations [24 CFR 966.52 (b) and (d)].
Any changes proposed in this grievance procedure must provide for at least 30 days’ notice to
tenants and resident organizations, explaining the proposed changes and providing an
opportunity to present written comments. Comments will be considered by the PHA before any
revisions are made to the grievance procedure [24 CFR 966.52(c)].
IV.
Informal settlement of a grievance [24 CFR 966.54]
Any grievance request must be personally presented, either orally or in writing (including email),
to the PHA’s central office or the management office of the development in which the tenant
resides within 10 days after the violation.
As soon as the grievance request is received, it will be reviewed by the PHA to ensure it meets the
requirements for a grievance hearing. If the tenant is not entitled to a grievance, the PHA will
notify the tenant that they may instead seek judicial review and the procedures for requesting
such a review [24 CFR 966.4(l)(3)(i)(C)(v)(B)].
Otherwise, within 10 business days, the tenant will be contacted to arrange a mutually convenient
time to meet so the grievance may be discussed and settled without a hearing. At the informal
settlement, the tenant will present their grievance.
Within five business days following the informal settlement, the PHA will prepare and either hand
deliver, mail, or email to the tenant a summary of the discussion. The summary will specify the
names of the participants; the date of the meeting; the nature of the proposed resolution of the
complaint, with specific reason(s); and will specify the procedures by which a formal hearing under
this procedure may be obtained if the tenant is not satisfied [24 CFR 966.54]. A copy of this
summary will also be placed in the tenant’s file.
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V.
Requesting a formal grievance hearing
If the tenant is not satisfied with the outcome of the informal settlement, the tenant must submit
a written request for a hearing to the management office of the development where the tenant
lives no later than five business days after receiving the summary of the informal settlement.
The written request must specify the reasons for the request and the action or relief sought from
the PHA.
VI.
Selecting the hearing officer
A grievance hearing will be conducted by an impartial person appointed by the PHA as described
below:
A. The hearing officer will be appointed directly by the executive director.
B. The hearing officer will be someone who did not make or approve the decision under review
and who is not a subordinate of such persons [24 CFR 066.54(e)].
C. The PHA’s method for selecting a hearing officer will be included in the lease [24 CFR
966.54(e)].
VII.
Scheduling hearings [24 CFR 966.56(a)]
When a tenant submits a timely request for a grievance hearing, the PHA will immediately appoint
an impartial hearing officer.
Once the hearing has been scheduled, the tenant will receive written notice of the hearing, sent by
mail or email, return receipt requested.
Within 10 days of receiving the written request, the hearing will be scheduled. The tenant, PHA,
and hearing officer will be notified in writing of the date, time and location of the hearing. If the
hearing will be held remotely, the PHA will also include information on the remote hearing
process.
The tenant may request to reschedule a hearing once. Should the tenant need to reschedule a
second time, they may only do so for good cause, or if needed as a reasonable accommodation
for a person with disabilities. Good cause is defined as an unavoidable conflict which seriously
affects the health, safety, or welfare of the family. Requests to reschedule a hearing must be made
orally or in writing at least one day prior to the hearing date.
VIII.
Procedures governing the hearing [24 CFR 966.56]
The hearing will be held before a hearing officer as described above in Section VI. The tenant will
be afforded a fair hearing, which will include:
A. The opportunity to examine any PHA documents before the hearing, including records and
regulations, that are directly relevant to the hearing.
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The tenant must request to view and copy PHA documents relevant to the hearing by noon of
the day before the hearing. The tenant is allowed to copy any such document at no cost to the
tenant.
If the PHA does not make the document available for examination upon request by the tenant,
the PHA may not rely on such document at the grievance hearing.
B. The right to be represented by counsel or any other person chosen as the tenant’s
representative, at the tenant’s expense, and to have such person make statements on the
tenant’s behalf.
C. The right to a private hearing unless the tenant requests a public hearing.
D. The right to present evidence and arguments in support of the tenant’s complaint, to refute
evidence relied on by the PHA or project management, and to confront and cross-examine all
witnesses upon whose testimony or information the PHA or project management relies.
E. A decision based solely and exclusively upon the facts presented at the hearing [24 CFR
966.56(b)].
The hearing is conducted informally by the hearing officer. The PHA and the tenant must be given
the opportunity to present oral or documentary evidence that is relevant to the facts and issues
raised, and to question any witnesses.
The hearing decision will be based on the preponderance of the evidence, defined as evidence
which is of greater weight or more convincing than the evidence which is offered in opposition to
it; that is, evidence which as a whole shows that the fact sought to be proved is more probable
than not. Preponderance of the evidence may not be determined by the number of witnesses, but
by the greater weight of all evidence.
The tenant or the PHA may arrange in advance for a transcript or recording of the hearing at the
expense of the party making the arrangement.
The PHA must provide reasonable accommodation for persons with disabilities to participate in
the hearing. Reasonable accommodation may include qualified sign language interpreters,
readers, accessible locations, or attendants. If the tenant is visually impaired, any notice to the
tenant that is required under this procedure must be in an accessible format [24 CFR 966.56(f)].
The PHA must comply with HUD’s requirements regarding limited English proficiency (LEP). The
tenant has the right to request competent oral interpretation, free of charge. LEP requirements
can be found at: https://www.hud.gov/program_offices/fair_housing_equal_opp/promotingfh/lep-
faq
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IX.
Remote Hearings
The PHA has the authority to require that hearings be conducted remotely in certain situations.
X.
Failure to appear at the hearing
If the tenant does not arrive within 30 minutes of the scheduled time, it will be considered a
failure to appear, which means they have given up their right to a hearing.
Both the tenant and the PHA must be notified of the determination by the hearing officer. A
determination that the tenant has waived their right to a hearing will not constitute a waiver of
any right the tenant may have to contest the PHA’s disposition of the grievance in an appropriate
judicial setting [24 CFR 966.56(c)].
XI.
Decision of the hearing officer [24 CFR 966.57]
The hearing officer will prepare a written decision together with the reasons for the decision
within 10 business days after the hearing. A copy of the decision will be sent to the tenant and the
PHA. The PHA will retain a copy of the decision in the tenant’s file.
The hearing officer may ask the family for additional information and/or might adjourn the
hearing in order to reconvene at a later date before reaching a decision. If the family misses a
deadline ordered by the hearing officer, the hearing officer will make a decision based on the
evidence presented.
The decision of the hearing officer will be binding on the PHA unless the PHA’s Board of
Commissioners determines within a reasonable time and notifies the tenant of its determination
that:
A. The grievance does not concern PHA action or failure to act in accordance with or involving the
tenant’s lease or PHA regulations, which adversely affect the tenant’s rights, duties, welfare, or
status; or
B. The decision of the hearing officer is contrary to applicable federal, state, or local law, HUD
regulations, or requirements of the annual contributions contract (ACC) between HUD and the
PHA.
When the PHA considers the decision of the hearing officer to be invalid for either of the reasons
stated above, it will present the matter to the PHA Board of Commissioners within 10 business
days of the date of the hearing officer’s decision. The Board will have 30 calendar days to consider
the decision. If the Board decides to reverse the hearing officer’s decision, it must notify the tenant
within 10 business days of this decision.
A decision by the hearing officer or Board of Commissioners in favor of the PHA or which denies
the relief requested by the tenant, in whole or in part, will not constitute a waiver of nor affect in
any way the tenant’s right to a trial or judicial review in any court proceedings, which may be
brought in the matter later [24 CFR 966.57].
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Chapter 15
PROGRAM INTEGRITY
INTRODUCTION
The PHA is committed to ensuring that funds made available to the PHA are spent in accordance with
HUD requirements.
This chapter covers HUD and PHA policies designed to prevent, detect, investigate, and resolve instances
of program abuse or fraud. It also describes the actions that will be taken in the case of unintentional
errors and omissions.
Part I: Preventing, Detecting, and Investigating Errors and Program Abuse. This part presents
PHA policies related to preventing, detecting, and investigating errors and program abuse.
Part II: Corrective Measures and Penalties. This part describes the corrective measures the PHA
must and may take when errors or program abuses are found.
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PART I: PREVENTING, DETECTING, AND
INVESTIGATING ERRORS AND PROGRAM ABUSE
15-I.A. PREVENTING ERRORS AND PROGRAM ABUSE
HUD created the Enterprise Income Verification (EIV) system to provide PHAs with a powerful tool for
preventing errors and program abuse. PHAs are required to use the EIV system at annual reexamination
in accordance with HUD administrative guidance [24 CFR §5.233]. PHAs are further required to:
•
Provide applicants and residents with form HUD-52675, “Debts Owed to PHAs and Terminations”
•
Require all adult members of an applicant or participant family to acknowledge receipt of form
HUD-52675 by signing a copy of the form for retention in the family file
PHA Policy
The PHA anticipates that the vast majority of families and PHA employees intend to and will
comply with program requirements and make reasonable efforts to avoid errors.
To ensure that the PHA’s program is administered effectively and according to the highest ethical
and legal standards, the PHA will employ a variety of techniques to ensure that both errors and
intentional program abuse are rare.
•
The PHA will provide each applicant and resident with a copy of “Is Fraud Worth It?” (form
HUD-1141-OIG), which explains the types of actions a family must avoid and the penalties
for program abuse.
•
The PHA will provide each applicant and resident with a copy of “What You Should Know
about EIV,” a guide to the Enterprise Income Verification (EIV) system published by HUD as
an attachment to Notice PIH 2017-12. In addition, the PHA will require the head of each
household to acknowledge receipt of the guide by signing a copy for retention in the family
file.
•
The PHA will require mandatory orientation sessions for all prospective residents either
prior to or upon execution of the lease. The PHA will discuss program compliance and
integrity issues. At the conclusion of all program orientation sessions, the family
representative will be required to sign a program briefing certificate to confirm that all
rules and pertinent regulations were explained to them.
•
The PHA will routinely provide resident counseling as part of every reexamination interview
in order to clarify any confusion pertaining to program rules and requirements.
•
PHA staff will be required to review and explain the contents of all HUD- and PHA-required
forms prior to requesting family member signatures.
15-3
•
The PHA will place a warning statement about the penalties for fraud (as described in 18
U.S.C. 1001 and 1010) on key PHA forms and form letters that request information from a
family member.
•
The PHA will provide each PHA employee with the necessary training on program rules and
the organization’s standards of conduct and ethics.
•
At every regular reexamination the PHA staff will explain any changes in HUD regulations
or PHA policy that affect residents.
For purposes of this chapter the term error refers to an unintentional error or omission. Program abuse or
fraud refers to a single act or pattern of actions that constitute a false statement, omission, or
concealment of a substantial fact, made with the intent to deceive, or mislead.
15-I.B. DETECTING ERRORS AND PROGRAM ABUSE
In addition to taking steps to prevent errors and program abuse, the PHA will use a variety of activities to
detect errors and program abuse.
Quality Control and Analysis of Data
PHA Policy
The PHA will employ a variety of methods to detect errors and program abuse, including:
•
The PHA routinely will use EIV and other non-HUD sources of up-front income verification.
This includes the Work Number and any other private or public databases available to the
PHA.
•
At each annual reexamination, current information provided by the family will be
compared to information provided at the last annual reexamination to identify
inconsistencies and incomplete information.
•
The PHA will compare family-reported income and expenditures to detect possible
unreported income.
Independent Audits and HUD Monitoring
Notice PIH 2015-16 requires all PHAs that expend $750,000 or more in federal awards annually to have
an independent audit (IPA). In addition, HUD conducts periodic on-site and automated monitoring of PHA
activities and notifies the PHA of errors and potential cases of program abuse.
PHA Policy
The PHA will use the results reported in any IPA or HUD monitoring reports to identify potential
program abuses as well as to assess the effectiveness of the PHA’s error detection and abuse
prevention efforts.
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Individual Reporting of Possible Errors and Program Abuse
PHA Policy
The PHA will encourage staff, residents, and the public to report possible program abuse.
15-I.C. INVESTIGATING ERRORS AND PROGRAM ABUSE
When the PHA Will Investigate
PHA Policy
The PHA will review all referrals, specific allegations, complaints, and tips from any source
including other agencies, companies, and individuals, to determine if they warrant investigation. In
order for the PHA to investigate, the allegation must contain at least one independently verifiable
item of information, such as the name of an employer or the name of an unauthorized household
member.
The PHA will investigate when inconsistent or contradictory information is detected through file
reviews and the verification process.
Consent to Release of Information [24 CFR 960.259]
The PHA may investigate possible instances of error or abuse using all available PHA and public records.
If necessary, the PHA will require families to sign consent forms for the release of additional information.
Analysis and Findings
PHA Policy
The PHA will base its evaluation on a preponderance of the evidence collected during its
investigation.
Preponderance of the evidence is defined as evidence which is of greater weight or more convincing
than the evidence which is offered in opposition to it; that is, evidence that as a whole shows that
the fact sought to be proved is more probable than not. Preponderance of evidence may not be
determined by the number of witnesses, but by the greater weight of all evidence.
For each investigation the PHA will determine (1) whether an error or program abuse has
occurred, (2) whether any amount of money is owed the PHA, and (3) what corrective measures or
penalties will be assessed.
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Consideration of Remedies
All errors and instances of program abuse must be corrected prospectively. Whether the PHA will enforce
other corrective actions and penalties depends upon the nature of the error or program abuse.
PHA Policy
In the case of family-caused errors or program abuse, the PHA will take into consideration (1) the
seriousness of the offense and the extent of participation or culpability of individual family
members, (2) any special circumstances surrounding the case, (3) any mitigating circumstances
related to the disability of a family member, (4) the effects of a particular remedy on family
members who were not involved in the offense.
Notice and Appeals
PHA Policy
The PHA will inform the relevant party in writing of its findings and remedies within 10 business
days of the conclusion of the investigation. The notice will include (1) a description of the error or
program abuse, (2) the basis on which the PHA determined the error or program abuses, (3) the
remedies to be employed, and (4) the family’s right to appeal the results through an informal
hearing or grievance hearing (see Chapter 14).
15-6
PART II: CORRECTIVE MEASURES AND PENALTIES
15-II.A. UNDER- OR OVERPAYMENT
An under- or overpayment includes an incorrect tenant rent payment by the family, or an incorrect utility
reimbursement to a family.
Corrections
Whether the incorrect rental determination is an overpayment or underpayment, the PHA must promptly
correct the tenant rent and any utility reimbursement prospectively.
PHA Policy
Increases in the tenant rent will be implemented on the first of the month following a written 30-
day notice.
Any decreases in tenant rent will become effective the first of the month following the discovery of
the error.
Reimbursement
Whether the family is required to reimburse the PHA or the PHA is required to reimburse the family
depends upon which party is responsible for the incorrect payment and whether the action taken was an
error or program abuse. Policies regarding reimbursement are discussed in the three sections that
follow.
15-II.B. FAMILY-CAUSED ERRORS AND PROGRAM ABUSE
General administrative requirements for participating in the program are discussed throughout the
ACOP. This section deals specifically with errors and program abuse by family members.
An incorrect rent determination caused by a family generally would be the result of incorrect reporting of
family composition, income, assets, or expenses, but also would include instances in which the family
knowingly allows the PHA to use incorrect information provided by a third party.
Family Reimbursement to PHA
PHA Policy
In the case of family-caused errors or program abuse, the family will be required to repay any
amounts of rent underpaid. The PHA may, but is not required to, offer the family a repayment
agreement in accordance with Chapter 16. If the family fails to repay the amount owed, the PHA
will terminate the family’s lease in accordance with the policies in Chapter 13.
15-7
PHA Reimbursement to Family
PHA Policy
The PHA will not reimburse the family for any overpayment of rent when the overpayment clearly
is caused by the family.
Prohibited Actions
An applicant or resident in the public housing program must not knowingly:
•
Make a false statement to the PHA [Title 18 U.S.C. Section 1001].
•
Provide incomplete or false information to the PHA [24 CFR 960.259(a)(4)].
•
Commit fraud or make false statements in connection with an application for assistance or with
reexamination of income [24 CFR 966.4(l)(2)(iii)(C)].
PHA Policy
Any of the following will be considered evidence of family program abuse:
•
Offering bribes or illegal gratuities to the PHA Board of Commissioners, employees,
contractors, or other PHA representatives
•
Offering payments or other incentives to a third party as an inducement for the third party
to make false or misleading statements to the PHA on the family’s behalf
•
Use of a false name or the use of falsified, forged, or altered documents
•
Intentional misreporting of family information or circumstances (e.g., misreporting of
income or family composition)
•
Omitted facts that were obviously known by a family member (e.g., not reporting
employment income)
•
Admission of program abuse by an adult family member
The PHA may determine other actions to be program abuse based upon a preponderance of the
evidence, as defined earlier in this chapter.
15-8
Penalties for Program Abuse
In the case of program abuse caused by a family the PHA may, at its discretion, impose any of the
following remedies.
•
The PHA may require the family to repay any amounts owed to the program (see Section 15-II.B.,
Family Reimbursement to PHA).
•
The PHA may require, as a condition of receiving or continuing assistance, that a culpable family
member not reside in the unit. See policies in Chapter 3 (for applicants) and Chapter 13 (for
residents).
•
The PHA may deny admission or terminate the family’s lease following the policies set forth in
Chapter 3 and Chapter 13 respectively.
•
The PHA may refer the family for state or federal criminal prosecution as described in section 15-
II.D.
15-II.C. PHA-CAUSED ERRORS OR PROGRAM ABUSE
The responsibilities and expectations of PHA staff with respect to normal program administration are
discussed throughout the ACOP. This section specifically addresses actions of a PHA staff member that
are considered errors or program abuse related to the public housing program. Additional standards of
conduct may be provided in the PHA personnel policy.
PHA-caused incorrect rental determinations include (1) failing to correctly apply public housing rules
regarding family composition, income, assets, and expenses, and (2) errors in calculation.
The following policy is effective upon the PHA’s HOTMA 102/104 compliance date:
De Minimis Errors [24 CFR 5.609(c)(4); Notice PIH 2023-27]
The PHA will not be considered out of compliance when making annual income determinations solely
due to de minimis errors in calculating family income. A de minimis error is an error where the PHA
determination of family income deviates from the correct income determination by no more than $30
per month in monthly adjusted income ($360 in annual adjusted income) per family.
PHAs must take corrective action to credit or repay a family if the family was overcharged rent, including
when PHAs make de minimis errors in the income determination. Families will not be required to repay
the PHA in instances where the PHA miscalculated income resulting in a family being undercharged for
rent. PHAs state in their policies how they will repay or credit a family the amount they were overcharged
as a result of the PHA’s de minimis error in income determination.
PHA Policy
The PHA will reimburse a family for any family overpayment of rent, regardless of whether the
overpayment was the result of staff-caused error, staff program abuse, or a de minimis error.
15-9
Prohibited Activities
PHA Policy
Any of the following will be considered evidence of program abuse by PHA staff:
•
Failing to comply with any public housing program requirements for personal gain
•
Failing to comply with any public housing program requirements as a result of a conflict-of-
interest relationship with any applicant or resident
•
Seeking or accepting anything of material value from applicants, residents, vendors,
contractors, or other persons who provide services or materials to the PHA
•
Disclosing confidential or proprietary information to outside parties
•
Gaining profit as a result of insider knowledge of PHA activities, policies, or practices
•
Misappropriating or misusing public housing funds
•
Destroying, concealing, removing, or inappropriately using any records related to the public
housing program
•
Committing any other corrupt or criminal act in connection with any federal housing
program
•
Committing sexual harassment or other harassment based on race, color, religion, national
origin, familial status, disability, sexual orientation, or gender identity, either quid pro quo
or hostile environment
•
Allowing sexual harassment or other harassment based on race, color, religion, national
origin, familial status, disability, sexual orientation, or gender identity, either quid pro quo
or hostile environment, where the PHA knew or should have known such harassment was
occurring
•
Retaliating against any applicant, resident, or staff reporting sexual harassment or other
harassment based on race, color, religion, national origin, familial status, disability, sexual
orientation, or gender identity, either quid pro quo or hostile environment
15-II.D. CRIMINAL PROSECUTION
PHA Policy
15-10
When the PHA determines that program abuse by a family or PHA staff member has occurred and
the amount of underpaid rent meets or exceeds the threshold for prosecution under local or state
law, the PHA will refer the matter to the appropriate entity for prosecution. When the amount of
underpaid rent meets or exceeds the federal threshold, the case will also be referred to the HUD
Office of Inspector General (OIG).
Other criminal violations related to the public housing program will be referred to the appropriate
local, state, or federal entity.
15-II.E. FRAUD AND PROGRAM ABUSE RECOVERIES
PHAs who enter into a repayment agreement with a family to collect rent owed, initiate litigation against
the family to recover rent owed, or begin eviction proceedings against a family may retain 100 percent of
program funds that the PHA recovers [Notice PIH 2007-27 (HA)].
If the PHA does none of the above, all amounts that constitute an underpayment of rent must be
returned to HUD.
The family must be afforded the opportunity for a hearing through the PHA’s grievance process.
16-1
Chapter 16
PROGRAM ADMINISTRATION
INTRODUCTION
This chapter discusses administrative policies and practices that are relevant to the activities covered in
this ACOP. The policies are discussed in seven parts as described below:
Part I: Setting Utility Allowances. This part describes how utility allowances are established and
revised. Also discussed are the requirements to establish surcharges for excess consumption of
PHA-furnished utilities.
Part II: Establishing Flat Rents. This part describes the requirements and policies related to
establishing and updating flat rent amounts.
Part III: Repayment of Family Debts. This part contains policies for recovery of monies that have
been underpaid by families and describes the circumstances under which the PHA will offer
repayment agreements to families. Also discussed are the consequences for failure to make
payments in accordance with a repayment agreement.
Part IV: Public Housing Assessment System (PHAS). This part describes the PHAS indicators,
how PHAs are scored under PHAS, and how those scores affect a PHA.
Part V: Record-Keeping. All aspects of the program involve certain types of record-keeping. This
part outlines the privacy rights of applicants and participants and record retention policies the
PHA will follow.
Part VI: Reporting and Record Keeping for Children with Elevated Blood Lead Level. This part
describes the PHA’s reporting responsibilities related to children with elevated blood lead levels
that are living in public housing.
Part VII: Violence against Women Act (VAWA): Notification, Documentation, and
Confidentiality. This part contains key terms used in VAWA and describes requirements related
to notifying families about their rights and responsibilities under VAWA; requesting
documentation from victims of domestic violence, dating violence, sexual assault, stalking; and
human trafficking; and maintaining the confidentiality of information obtained from victims.
16-2
PART I: SETTING UTILITY ALLOWANCES
[24 CFR 965 Subpart E]
16-I.A. OVERVIEW
PHAs must establish allowances for PHA-furnished utilities for all check metered utilities and for resident-
purchased utilities for all utilities purchased directly by residents from a utility supplier [24 CFR
965.502(a)].
PHAs must also establish surcharges for excess consumption of PHA-furnished utilities [24 CFR 965.506].
The PHA must maintain a record that documents the basis on which utility allowances and scheduled
surcharges are established and revised, and the record must be made available for inspection by
residents [24 CFR 965.502(b)].
16-I.B UTILITY ALLOWANCES
The PHA must establish separate allowances for each utility and for each category of dwelling units the
PHA determines to be reasonably comparable as to factors affecting utility usage [24 CFR 965.503].
The objective of a PHA in establishing utility allowances for each dwelling unit category and unit size is to
approximate a reasonable consumption of utilities by an energy-conservative household of modest
circumstances consistent with the requirements of a safe, sanitary, and healthful living environment [24
CFR 965.505].
Utilities include gas, electricity, fuel for heating, water, sewerage, and solid waste disposal for a dwelling
unit. In addition, if the PHA does not furnish a range and refrigerator, the family must be granted a utility
allowance for the range and refrigerator they provide [24 CFR 965.505].
Costs for telephone, cable/satellite TV, and internet services are not considered utilities [PH Occ GB, p.
138].
Utility allowance amounts will vary by the rates in effect, size and type of unit, climatic location and sitting
of the unit, type of construction, energy efficiency of the dwelling unit, and other factors related to the
physical condition of the unit. Utility allowance amounts will also vary by residential demographic
characteristics affecting home energy usage [PH Occ GB, p. 138].
Chapter 14 of the PH Occupancy Guidebook provides detailed guidance to the PHA about establishing
utility allowances.
16-3
Air-Conditioning
“If a PHA installs air conditioning, it shall provide, to the maximum extent economically feasible, systems
that give residents the option of choosing to use air conditioning in their units.
The design of systems that offer each resident the option to choose air conditioning shall include retail
meters or check meters, and residents shall pay for the energy used in its operation. For systems that
offer residents the option to choose air conditioning but cannot be check metered, residents are to be
surcharged in accordance with 965.506. If an air conditioning system does not provide for resident
option, residents are not to be charged, and these systems should be avoided whenever possible.” [24
CFR 965.505(e)].
PHA Policy
The PHA has installed air-conditioning.
The United States Department of Housing and Urban Development (HUD) does not generally
allow Housing Authorities to include air conditioning as a part of the utility allowance for Public
Housing. Per 24 CFR 965.508 (Individual Relief), Public Housing Authorities may provide relief to
resident purchased utilities on reasonable grounds. Housing staff and the Public Housing
Authority Commission have determined that in Chandler, Arizona, the desert climate meets the
‘special factors’ criteria of a 'health and safety' (healthy living environment) and therefore grants
relief to the residents by providing Public Housing residents with a reasonable air conditioning
utility allowance. Every resident who signs a Public Housing Lease Agreement is deemed qualified
and therefore request an air conditioning utility allowance.
Utility Allowance Revisions [24 CFR 965.507]
The PHA must review at least annually the basis on which utility allowances have been established
and must revise the allowances, if necessary, in order to adhere to the standards for establishing
utility allowances that are contained in 24 CFR 965.505.
The review must include all changes in circumstances (including completion of modernization
and/or other energy conservation measures implemented by the PHA) indicating probability of a
significant change in reasonable requirements and changes in utility rates [24 CFR 965.507(a)].
The PHA must revise its allowances for resident-purchased utilities between annual reviews if
there is a rate change, and is required to do so if such change, by itself or together with prior rate
changes not adjusted for, results in a change of 10 percent or more from the rate on which the
allowance was based.
Adjustments to resident payments as a result of such changes must be retroactive to the first day
of the month following the month in which the last rate change taken into account became
effective. Such rate changes are not subject to the 60-day notice [24 CFR 965.507(b)].
PHA Policy
Between annual reviews of utility allowances, the PHA will only revise its utility allowances due to a
rate change, when required to by the regulation.
16-4
16-I.C. SURCHARGES FOR PHA-FURNISHED UTILITIES [24 CFR 965.506]
For dwelling units subject to allowances for PHA-furnished utilities where check meters have been
installed, the PHA must establish surcharges for utility consumption in excess of the allowances.
Surcharges may be computed on a straight per unit of purchase basis or for stated blocks of excess
consumption and must be based on the PHA’s average utility rate. The basis for calculating the
surcharges must be described in the PHA’s schedule of allowances. Changes in the amount of surcharges
based directly on changes in the PHA’s average utility rate are not subject to the advance notice
requirements discussed under 16-I.D.
For dwelling units served by PHA-furnished utilities where check meters have not been installed, the PHA
must establish schedules of surcharges indicating additional dollar amounts residents will be required to
pay by reason of estimated utility consumption attributable to resident-owned major appliances or to
optional functions of PHA-furnished equipment. The surcharge schedule must state the resident-owned
equipment (or functions of PHA-furnished equipment) for which surcharges will be made and the
amounts of such charges. Surcharges must be based on the cost to the PHA of the utility consumption
estimated to be attributable to reasonable usage of such equipment.
PHA Policy
The PHA does have PHA-furnished utilities (water only for family sites).
16-I.D. NOTICE REQUIREMENTS [24 CFR 965.502]
The PHA must give notice to all residents of proposed allowances and scheduled surcharges, and
revisions thereof. The notice must be given in the manner provided in the lease and must:
•
Be provided at least 60 days before the proposed effective date of the allowances, scheduled
surcharges, or revisions.
•
Describe the basis for determination of the allowances, scheduled surcharges, or revisions,
including a statement of the specific items of equipment and function whose utility consumption
requirements were included in determining the amounts of the allowances and schedule of
surcharges.
•
Notify residents of the place where the PHA’s documentation on which allowances and surcharges
are based is available for inspection.
•
Provide all residents an opportunity to submit written comments during a period expiring not less
than 30 days before the proposed effective date of the allowances, scheduled surcharges, or
revisions.
16-5
16-I.E. REASONABLE ACCOMMODATION AND INDIVIDUAL RELIEF [24 CFR 965.508]
On request from a family, PHAs must approve a utility allowance that is higher than the applicable
amount for the dwelling unit if a higher utility allowance is needed as a reasonable accommodation to
make the program accessible to and usable by the family with a disability [24 CFR 8 and 100, PH Occ GB,
p. 172].
Likewise, residents with disabilities may not be charged for the use of certain resident-supplied
appliances if there is a verified need for special equipment because of the disability [24 CFR 8 and 100,
PH Occ GB, p. 172].
See Chapter 2 for policies regarding the request and approval of reasonable accommodations.
Further, the PHA may grant requests for relief from charges in excess of the utility allowance on
reasonable grounds, such as special needs of the elderly, ill, or residents with disabilities, or special
factors not within control of the resident, as the PHA deems appropriate. The family must request the
higher allowance and provide the PHA with information about the additional allowance required.
PHAs should develop criteria for granting individual relief and to notify residents about the availability of
individual relief, and also to notify participants about the availability of individual relief programs
(sometimes referred to as “Medical Baseline discounts”) offered by the local utility company [Utility
Allowances GB, p. 19. 24 CFR 965.508].
16-6
PART II: ESTABLISHING FLAT RENTS
16-II.A. OVERVIEW
Flat rents are designed to encourage self-sufficiency and to avoid creating disincentives for continued
residency by families who are attempting to become economically self-sufficient.
Flat rents are also used to prorate assistance for a mixed family. A mixed family is one whose members
include those with citizenship or eligible immigration status, and those without citizenship or eligible
immigrations status [24 CFR 5.504].
This part discusses how the PHA establishes and updates flat rents. Policies related to the use of flat
rents, family choice of rent, flat rent hardships, and proration of rent for a mixed family are discussed in
Chapter 6.
16-II.B. FLAT RENTS [24 CFR 960.253(B) AND NOTICE PIH 2022-33]
Establishing Flat Rents
The 2015 Appropriations Act requires that flat rents must be set at no less than 80 percent of the
applicable fair market rent (FMR). Alternatively, the PHA may set flat rents at no less than 80 percent of
the applicable small area FMR(SAFMR) for metropolitan areas, or 80 percent of the applicable unadjusted
rents for nonmetropolitan areas.
For areas where HUD has not determined a SAFMR or an unadjusted rent, PHAs must set flat rents at no
less than 80 percent of the FMR or apply for an exception flat rent.
The 2015 Appropriations Act permits PHAs to apply for an exception flat rent that is lower than either 80
percent of the FMR or SAFMR/unadjusted rent if the PHA can demonstrate, through the submission of a
market analysis, that these FMRs do not reflect the market value of a particular property or unit and HUD
agrees with the PHA’s analysis. The market analysis must be submitted using form HUD-5880, “Flat Rent
Market Analysis Summary.”
PHAs must receive written HUD approval before implementing exception flat rents. PHAs with a
previously approved flat rent exception request may submit a written request to extend the approved
flat rents for up to two additional years, provided local market conditions remain unchanged. Detailed
information on how to request exception flat rents can be found in Notice PIH 2022-33.
PHAs are now required to apply a utility allowance to flat rents as necessary. Flat rents set at 80 percent
of the FMR must be reduced by the amount of the unit’s utility allowance, if any.
16-7
Review of Flat Rents
No later than 90 days after the effective date of the new annual FMRs/SAFMRs/unadjusted rent, PHAs
must implement new flat rents as necessary based changes to the FMR/SAFMR/unadjusted rent or
request an exception.
If the FMR falls from year to year, the PHA may, but is not required to, lower the flat rent to 80 percent of
the current FMR/SAFMR/unadjusted rent.
PHA Policy
If the FMR/SAFMR/unadjusted rent is lower than the previous year, the PHA will reduce flat rents
to 80 percent of the current FMR/SAFMR.
Applying Flat Rents
PHA Policy
The PHA will apply updated flat rents at each family’s next annual reexamination or flat rent
update after implementation of the new flat rents.
Posting of Flat Rents
PHA Policy
The PHA will publicly post the schedule of flat rents in a conspicuous manner in the applicable
PHA or project office.
Documentation of Flat Rents [24 CFR 960.253(b)(5)]
The PHA must maintain records that document the method used to determine flat rents, and that show
how flat rents were determined by the PHA in accordance with this method.
16-8
PART III: FAMILY DEBTS TO THE PHA
16-III.A. OVERVIEW
Families are required to reimburse the PHA if they were charged less rent than required because the
family either underreported or failed to report income. PHAs are required to determine retroactive rent
amounts as far back as the PHA has documentation of family unreported income [Notice PIH 2018-18].
This part describes the PHA’s policies for recovery of monies owed to the PHA by families.
PHA Policy
When an action or inaction of a resident family results in the underpayment of rent or other
amounts, the PHA holds the family liable to return any underpayments to the PHA.
The PHA will enter into repayment agreements in accordance with the policies contained in this
part as a means to recover underpayments.
16-III.B. REPAYMENT POLICY
Family Debts to the PHA
PHA Policy
Any amount owed to the PHA by a public housing family must be repaid. If the family is unable to
repay the debt within 30 days, the PHA will offer to enter into a repayment agreement in
accordance with the policies below.
Refusal to Enter into An Agreement
If the family refuses to repay the debt, does not enter into a repayment agreement, or breaches a
repayment agreement, the PHA will terminate the family’s tenancy.
PHA Policy
When a family refuses to repay monies owed to the PHA, in addition to termination of program
assistance, the PHA will utilize other available collection alternatives including, but not limited to,
the following:
Collection agencies
Small claims court
Civil lawsuit
State income tax set-off program
16-9
Repayment Agreement [24 CFR §792.103]
The term repayment agreement refers to a formal written document signed by a tenant or owner and
provided to the PHA in which a tenant or owner acknowledges a debt in a specific amount and agrees to
repay the amount due at specific time periods.
General Repayment Agreement Guidelines
Down Payment Requirement
PHA Policy
Before executing a repayment agreement with a family, the PHA will generally require a down
payment of 10 percent of the total amount owed. If the family can provide evidence satisfactory to
the PHA that a down payment of 10 percent would impose an undue hardship, the PHA may, in its
sole discretion, require a lesser percentage or waive the requirement.
Payment Thresholds
Notice PIH 2018-18 recommends that the total amount that a family must pay each month—the family’s
monthly share of rent plus the monthly debt repayment amount—should not exceed 40 percent of the
family’s monthly adjusted income, which is considered “affordable.” Moreover, Notice PIH 2018-18
acknowledges that PHAs have the discretion to establish “thresholds and policies” for repayment
agreements with families [24 CFR 982.552(c)(1)(vii)].
PHA Policy
If a family is paying less than 40 percent of its monthly adjusted income (MAI) in rent, the
minimum monthly payment amount will be the greater of the following two amounts:
The difference between 40 percent of the family’s MAI and the TTP at the time the agreement
is executed.
If a family can provide evidence satisfactory to the PHA that a monthly payment amount of $50
would impose an undue hardship, the PHA may, in its sole discretion, require a lower monthly
payment amount.
If the family’s income increases or decreases during the term of a repayment agreement, either
the PHA or the family may request that the monthly payment amount be adjusted accordingly.
16-10
The PHA has established the following thresholds for repayment of debts:
•
Amounts between $3,000 and more must be repaid within 18-36 months.
•
Amounts between $1,000 and $2,999 must be repaid within 12-18 months.
•
Amounts between $501 and $999 must be repaid within 6-10 months.
•
Amounts under $500 must be repaid within 3-6 months.
•
The minimum monthly amount of monthly payment for any payment agreement is $50.
Any payment agreement in excess of 36 months requires the approval from the Housing
Manager.
Execution of the Agreement
All repayment agreements must be in writing, dated, and signed by both the family and the PHA [Notice
PIH 2018-18].
PHA Policy
Any repayment agreement between the PHA and a family must be in writing, signed and dated by
the PHA and by the head of household and spouse/cohead (if applicable), include the total
retroactive rent amount owed, amount of lump sum payment made at time of execution, if
applicable, and the monthly repayment amount [PIH 2018-18].
Due Dates
PHA Policy
All payments are due by the close of business on the agreed upon date.
Late or Missed Payments
PHA Policy
If a payment is not received by the end of the business day on the date due, and prior approval for
the missed payment has not been given by the PHA, the PHA will send the family a delinquency
notice giving the family 14 days to make the late payment.
If the payment is not received by the due date of the delinquency notice, it will be considered a
breach of the agreement and the PHA will terminate tenancy in accordance with the policies in
Chapter 13.
If a family receives three delinquency notices for unexcused late payments in a 12-month period,
the repayment agreement will be considered in default, and the PHA will terminate tenancy in
accordance with the policies in Chapter 13.
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No Offer of Repayment Agreement
PHA Policy
The PHA will not enter into a repayment agreement with a family if there is already a repayment
agreement in place with the family, or if the amount owed by the family exceeds the federal or
state threshold for criminal prosecution.
Repayment Agreements Terms
All repayment agreements must be in writing, dated, signed by both the family and the PHA, include the
total retroactive rent amount owed, amount of lump sum payment made at time of execution, if
applicable, and the monthly repayment amount. Notice PIH 2018-18 requires certain provisions to be
included in any repayment agreement involving amounts owed by a family because it underreported or
failed to report income:
•
A reference to the items in the public housing lease that state the family’s obligation to provide
true and complete information at every reexamination and the grounds on which the PHA may
terminate assistance because of a family’s action or failure to act
•
A statement clarifying that each month the family not only must pay to the PHA the monthly
payment amount specified in the agreement but must also pay to the PHA the monthly tenant
rent
•
A statement that the terms of the repayment agreement may be renegotiated if the family’s
income decreases or increases
•
A statement that late or missed payments constitute default of the repayment agreement and
may result in termination of tenancy
16-12
PART IV: PUBLIC HOUSING ASSESSMENT SYSTEM (PHAS)
16-IV.A. OVERVIEW
The purpose of the Public Housing Assessment System (PHAS) is to improve the delivery of services in
public housing and enhance trust in the public housing system among PHAs, public housing residents,
HUD, and the general public by providing a management tool for effectively and fairly measuring the
performance of a public housing agency in essential housing operations.
16-13
16-IV.B. PHAS INDICATORS [24 CFR 902 SUBPARTS A, B, C, D, AND E]
The table below lists each of the PHAS indicators, the points possible under each indicator, and a brief
description of each indicator. A PHA’s performance is based on a combination of all four indicators.
Indicator 1: Physical condition of the PHA’s projects
Maximum Score: 40
• The objective of this indicator is to determine the level to which a PHA is maintaining
its public housing in accordance with the standard of safe, habitable dwelling units.
• To determine the physical condition of a PHA’s projects, inspections are performed
using the National Standards for the Inspection of Real Estate (NSPIRE). The
inspections are performed by an independent inspector arranged by HUD, and include
a statistically valid sample of the units in each project in the PHA’s public housing
portfolio
Indicator 2: Financial condition of the PHA’s projects
Maximum score: 25
• The objective of this indicator is to measure the financial condition of the PHA’s public
housing projects for the purpose of evaluating whether the PHA has sufficient financial
resources and is capable of managing those financial resources effectively to support
the provision of housing that is decent, safe, sanitary, and in good repair.
• A PHA’s financial condition is determined by measuring each public housing project’s
performance in each of the following sub-indicators: quick ratio, month’s expendables
net assets ratio, and debt service coverage ratio.
Indicator 3: Management operations of the PHA’s projects
Maximum Score 25
• The objective of this indicator is to measure certain key management operations and
responsibilities of a PHA’s projects for the purpose of assessing the PHA’s
management operations capabilities.
• Each project’s management operations are assessed based on the following sub-
indicators: occupancy, tenant accounts receivable, and accounts payable.
• An on-site management review may be conducted as a diagnosis and feedback tool for
problem performance areas, and for compliance. Management reviews are not
scored.
Indicator 4: Capital Fund
Maximum Score 10
• The objective of this indicator is to measure how long it takes the PHA to obligate
capital funds and to occupy units.
• The PHA’s score for this indicator is measured at the PHA level and is based on the
following sub-indicators: timeliness of find obligation and occupancy rate.
16-14
16-IV.C. PHAS SCORING [24 CFR 902 SUBPART F]
HUD’s Real Estate Assessment Center (REAC) issues overall PHAS scores, which are based on the scores
of the four PHAS indicators, and the sub indicators under each indicator. The PHA’s indicator scores are
based on a weighted average of the PHA’s public housing projects’ scores. PHAS scores translate into a
designation for each PHA as high performing, standard, substandard, or troubled.
A high performer is a PHA that achieves an overall PHAS score of 90 or greater and achieves a score of at
least 60 percent of the points available under the physical, financial, and management indicators and at
least 50 percent of the points available under the capital fund indicator.
A standard performer is a PHA that has an overall PHAS score between 60 and 89, and achieves a score
of at least 60 percent of the points available under the physical, financial, and management indicators
and at least 50 percent of the points available under the capital fund indicator.
A substandard performer is a PHA that has an overall PHAS score of at least 60 percent and achieves a
score of less than 60 percent under one or more of the physical, financial, or management indicators.
A troubled performer is a PHA that achieves an overall PHAS score of less than 60, or achieves less than
50 percent of the total points available under the capital fund indicator.
These designations can affect a PHA in several ways:
•
High-performing PHAs are eligible for incentives including relief from specific HUD requirements
and bonus points in funding competitions [24 CFR 902.71].
•
PHAs that are standard performers may be required to submit and operate under a corrective
action plan to eliminate deficiencies in the PHA’s performance [24 CFR 902.73(a)(1)].
•
PHAs that are substandard performers will be required to submit and operate under a corrective
action plan to eliminate deficiencies in the PHA’s performance [24 CFR 902.73(a)(2)].
•
PHAs with an overall rating of “troubled” are subject to additional HUD oversight and are required
to enter into a memorandum of agreement (MOA) with HUD to improve PHA performance [24 CFR
902.75].
•
PHAs that fail to execute or meet MOA requirements may be referred to the Assistant Secretary to
determine remedial actions, including, but not limited to, remedies available for substantial
default [24 CFR 902.75(g) and 24 CFR Part 907].
PHAs must post a notice of its final PHAS score and status in appropriate conspicuous and accessible
locations in its offices within two weeks of receipt of its final score and designation [24 CFR 902.64(b)(2)].
16-15
PART V: RECORD KEEPING
16-V.A. OVERVIEW
The PHA must maintain complete and accurate accounts and other records for the program in
accordance with HUD requirements, in a manner that permits a speedy and effective audit. All such
records must be made available to HUD or the Comptroller General of the United States upon request.
In addition, the PHA must ensure that all applicant and participant files are maintained in a way that
protects an individual’s privacy rights, and that comply with VAWA confidentiality requirements.
16-16
16-V.B. RECORD RETENTION
The PHA must keep the last three years of the Form HUD-50058 and supporting documentation during
the term of each assisted lease, and for a period of at least three years from the end of participation
(EOP) date [24 CFR 908.101].
The PHA must maintain Enterprise Income Verification (EIV) system Income Reports in the tenant file for
the duration of the tenancy but for a period not to exceed three years from the EOP date [Notice PIH
2018-18].
Notice PIH 2014-20 requires the PHA to keep records of all complaints, investigations, notices, and
corrective actions related to violations of the Fair Housing Act or the equal access final rule.
The PHA must keep confidential records of all emergency transfer requested under the PHA’s Emergency
Transfer Plan, and the outcomes of such requests, and retain the records for a period of three years, or
for a period of time as specified in program regulations [24 CFR 5.2002(e)(12)].
PHA Policy
The PHA will keep the last three years of Form HUD-50058 and supporting documentation, and for at
least three years after end of participation, all documents related to a family’s eligibility, tenancy, and
termination. The PHA will keep Enterprise Income Verification (EIV) system Income Reports in the tenant
file for the duration of the tenancy and for three years from the end of participation date.
In addition, the PHA will keep the following records for at least three years:
An application from each ineligible family and notice that the applicant is not eligible
Lead-based paint records as required by 24 CFR 35, Subpart B
Documentation supporting the establishment of flat rents and the public housing maximum rent
Documentation supporting the establishment of utility allowances and surcharges
Documentation related to PHAS
Accounts and other records supporting PHA budget and financial statements for the program
Complaints, investigations, notices, and corrective actions related to violations of the Fair Housing Act,
the equal access final rule, or VAWA
Confidential records of all emergency transfers related to VAWA requested under the PHA’s Emergency
Transfer Plan and the outcomes of such requests
Other records as determined by the PHA or as required by HUD
If a hearing to establish a family’s citizenship status is held, longer retention requirements apply for some
types of documents. For specific requirements, see Section 14-II.A.
16-17
16-V.C. RECORDS MANAGEMENT
PHAs must maintain applicant and participant files and information in accordance with the regulatory
requirements described below.
PHA Policy
All applicant and participant information will be kept in a secure location and access will be limited
to authorized PHA staff.
PHA staff will not discuss personal family information unless there is a business reason to do so.
Inappropriate discussion of family information or improper disclosure of family information by
staff will result in disciplinary action.
When discussing sensitive PII on the telephone, PHA staff will confirm that they are speaking to
the right person before discussing the information and inform him/her that the discussion will
include sensitive information. PHA staff will not leave messages containing sensitive PII on
voicemail.
PHA staff will avoid discussing sensitive PII if there are unauthorized personnel, contractors, or
guests in the adjacent cubicles, rooms, or hallways who may overhear their conversation.
When faxing sensitive PII, PHA staff will use the date stamp function, confirm the fax number,
verify that the intended recipient is available, and confirm that he/she has received the fax.
Before faxing sensitive PII information, PHA staff will coordinate with the recipient so that the
information is not left unattended on the receiving end.
PHA staff will request a written statement from the receiving PHA documenting that the intended
recipient is available to receive the fax and they understand the information will not be left
unattended on the receiving end.
PHA staff will not transmit sensitive PII via an unsecured information system (e.g., electronic mail,
internet, or electronic bulletin board) without first encrypting the information.
The City of Chandler does not have encrypting capabilities for information systems; therefore, PHA
staff will not use information systems (e.g., electronic mail, internet, or electronic bulletin board)
to transmit sensitive PII.
Privacy Act Requirements [24 CFR 5.212 and Form-9886]
The collection, maintenance, use, and dissemination of social security numbers (SSN), employer
identification numbers (EIN), any information derived from these numbers, and income information of
applicants and participants must be conducted, to the extent applicable, in compliance with the Privacy
Act of 1974, and all other provisions of Federal, State, and local law.
Applicants and participants, including all adults in the household, are required to sign a consent form,
HUD-9886, Authorization for Release of Information. This form incorporates the Federal Privacy Act
Statement and describes how the information collected using the form may be used, and under what
conditions HUD or the PHA may release the information collected.
16-18
Upfront Income Verification (UIV) Records
PHAs that access UIV data through HUD’s Enterprise Income Verification (EIV) system are required to
adopt and follow specific security procedures to ensure that all EIV data is protected in accordance with
federal laws, regardless of the media on which the data is recorded (e.g., electronic, paper). These
requirements are contained in the HUD issued document, Enterprise Income Verification (EIV) System,
Security Procedures for Upfront Income Verification (UIV) Data.
PHA Policy
Prior to utilizing HUD’s EIV system, the PHA will adopt and implement EIV security procedures
required by HUD.
Criminal Records
The PHA may only disclose the criminal conviction records which the PHA receives from a law
enforcement agency to officers or employees of the PHA, or to authorized representatives of the PHA
who have a job-related need to have access to the information [24 CFR 5.903(e)].
The PHA must establish and implement a system of records management that ensures that any criminal
record received by the PHA from a law enforcement agency is maintained confidentially, not misused or
improperly disseminated, and destroyed, once the purpose for which the record was requested has been
accomplished, including expiration of the period for filing a challenge to the PHA action without
institution of a challenge or final disposition of any such litigation [24 CFR 5.903(g)].
The PHA must establish and implement a system of records management that ensures that any sex
offender registration information received by the PHA from a State or local agency is maintained
confidentially, not misused or improperly disseminated, and destroyed, once the purpose for which the
record was requested has been accomplished, including expiration of the period for filing a challenge to
the PHA action without institution of a challenge or final disposition of any such litigation. However, a
record of the screening, including the type of screening and the date performed must be retained [Notice
PIH 2012-28]. This requirement does not apply to information that is public information or is obtained by
a PHA other than under 24 CFR 5.905.
Medical/Disability Records
PHAs are not permitted to inquire about the nature or extent of a person’s disability. The PHA may not
inquire about a person’s diagnosis or details of treatment for a disability or medical condition. If the PHA
receives a verification document that provides such information, the PHA should not place this
information in the tenant file. The PHA should destroy the document.
Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking Records
For requirements and PHA policies related to management of documentation obtained from victims of
domestic violence, dating violence, sexual assault, stalking, or human trafficking, see section 16-VII.E.
16-19
PART VI: REPORTING REQUIREMENTS FOR CHILDREN WITH ELEVATED BLOOD LEAD LEVEL
16-VI.A. REPORTING REQUIREMENTS [24 CFR §35.1130(E), NOTICE PIH 2017-13]
The PHA has certain responsibilities relative to children with elevated blood lead levels that are living in
public housing.
The PHA must report the name and address of a child identified as having an elevated blood lead level
(EBLL) to the public health department within 5 business days of being so notified by any other medical
health care professional. The PHA must also report each known case of a child with an EBLL to the HUD
field office.
PHA Policy
The PHA will provide the public health department written notice of the name and address of any
child identified as having an elevated blood lead level.
The PHA will provide written notice of each known case of a child with an EBLL to the HUD field
office, and to HUD’s Office of Lead Hazard Control (OLHCHH), within 5 business days of receiving
the information.
16-20
PART VII: VIOLENCE AGAINST WOMEN ACT (VAWA): NOTIFICATION, DOCUMENTATION, AND
CONFIDENTIALITY
16-VII.A. OVERVIEW
The Violence against Women Act (VAWA) provides special protections for victims of domestic violence,
dating violence, sexual assault, stalking, and human trafficking who are applying for or receiving
assistance under the public housing program. If your state or local laws provide greater protection for
such victims, those apply in conjunction with VAWA.
•
Although the VAWA 2022 statute does not specifically include human trafficking in the list of victims
protected under VAWA, in 2022 HUD began including human trafficking as part of the list of victims
protected under VAWA (as seen in Notices PIH 2022-06, PIH 2022-22, and PIH 2022-24). In the absence
of a final rule implementing VAWA 2022 and to mirror HUD’s recent usage, this policy includes human
trafficking in addition to domestic violence, dating violence, sexual assault, and stalking anywhere
such a list appears.
In addition to definitions of key terms used in VAWA, this part contains general VAWA requirements and
PHA policies in three areas: notification, documentation, and confidentiality. Specific VAWA requirements
and PHA policies are located in Chapter 3, “Eligibility” (Sections 3-I.C and 3-III.F); Chapter 5, “Occupancy
Standards and Unit Offers” (Section 5-II.D); Chapter 8, “Leasing and Inspections” (Section 8-I.B); Chapter
12, “Transfer Policy” (Sections 12-III.C, 12-III.F, and 12-IV.D); and Chapter 13, “Lease Terminations”
(Sections 13-III.F and 13-IV.D).
16-21
16-VII.B. DEFINITIONS [24 CFR 5.2003, FR NOTICE 8/6/13]
PHA Policy
As used in VAWA:
•
The term affiliated individual means, with respect to a person:
−
A spouse, parent, brother or sister, or child of that individual, or an individual to whom
that person stands in the position or place of a parent; or
−
Any individual, tenant, or lawful occupant living in the household of the victim of
domestic violence, dating violence, sexual assault, or stalking.
•
The term bifurcate means, with respect to a public housing or Section 8 lease, to divide a
lease as a matter of law such that certain tenants can be evicted or removed while the
remaining family members’ lease and occupancy rights are allowed to remain intact.
•
The term dating violence means violence committed by a person who is or has been in a
social relationship of a romantic or intimate nature with the victim; and where the
existence of such a relationship shall be determined based on a consideration of the
following factors:
−
The length of the relationship
−
The type of relationship
−
The frequency of interaction between the persons involved in the relationship
•
The term domestic violence includes felony or misdemeanor crimes committed by a current or former
spouse or intimate partner of the victim under the family or domestic violence laws of the jurisdiction
receiving grant funding, and in the case of victim services, includes the user or attempted use of
physical abuse or sexual abuse, or a pattern of any other coercive behavior committed, enabled, or
solicited to gain or maintain power and control over a victim, including verbal, psychological,
economic, or technological abuse that may or may not constitute criminal behavior, by a person who
is:
-
The current or former spouse or intimate partner of the victim, or person similarly situated to a
spouse or intimate partner of the victim
-
A person who is cohabitating or has cohabitated with the victim as a spouse or intimate partner
-
A person with whom the victim shares a child in common
-
A person who commits acts against an youth or adult victim who is protected from those acts
under the domestic or family violence laws of the jurisdiction
•
The term economic abuse means behavior that is coercive, deceptive, or unreasonably controls or
restrains a person’s ability to acquire, use, or maintain economic resources to which they are entitled,
including using coercion, fraud, and manipulation to:
-
Restrict a person’s access to money, assets, credit, or financial information
16-22
-
Unfairly use a person’s personal economic resources, including money, assets, and credit, for
one’s own advantage
-
Exert undue influence over a person’s financial and economic behavior or decisions, including
forcing default on joint or other financial obligations, exploiting powers of attorney, guardianship,
or conservatorship, or to whom one has a fiduciary duty
•
The term sexual assault means:
-
Any nonconsensual sexual act proscribed by Federal, tribal, or State law, including when the victim
lacks the capacity to consent
•
The term stalking means:
-
To engage in a course of conduct directed at a specific person that would cause a reasonable
person to fear for their safety or the safety of others or suffer substantial emotional distress.
•
The term technological abuse means an act or pattern of behavior that occurs within domestic
violence, dating violence, sexual assault, or stalking and is intended to harm, threaten, intimidate,
control, stalk, harass, impersonate, exploit, extort, or monitor another person, except as otherwise
permitted by law, that occurs using any form of technology, including but not limited to:
-
Internet enabled devices
-
Online spaces and platforms
-
Computers
-
Mobile devices
-
Cameras and imaging programs
-
Apps
-
Location tracking devices
-
Communication technologies
-
Any other emergency technologies
16-23
16-VII.C. NOTIFICATION [24 CFR 5.2005(A)]
The PHA adopts the following policy to help ensure that all actual and potential beneficiaries of its public
housing program are aware of their rights under VAWA.
PHA Policy
The PHA will post the following information regarding VAWA on its web site. It will also make the
information readily available to anyone who requests it:
•
A copy of Form HUD-5380, Notice of Occupany Rightsunder VAWA to public housing
program applicants and participants who are or have been victims of domestic violence,
dating violence, sexual assault, or stalking (Form HUD-5380, see Exhibit 16-1)
•
A copy of Form HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual
Assault, or Stalking and Alternate Documentation (see Exhibit 16-2)
•
A copy of the PHA’s emergency transfer plan (Exhibit 16-3)
•
A copy of Form HUD-5383, HUD’s Emergency Transfer Request for Certain Victims of
Domestic Violence, Dating Violence, Sexual Assault, or Stalking, Form HUD-5383 (Exhibit 16-
4)
•
The National Domestic Violence Hot Line: 1-800-799-SAFE (7233) or 1-800-787-3224 (TTY)
(included in Exhibit 16-1)
•
Contact information for local victim advocacy groups or service providers
Notification to Applicants and Tenants [24 CFR 5.2005(a)(1)]
PHAs are required to inform public housing applicants and tenants of their rights under VAWA, including
their right to confidentiality and the limits thereof when they are denied assistance, when they are
admitted to the program, and when they are notified of an eviction or termination of housing benefits.
The PHA must distribute a notice of VAWA rights, along with the VAWA self-certification form (HUD-5382)
at each of these three junctures.
PHA Policy
The VAWA information provided to applicants and participants will consist of the notices in Exhibit
16-1, Notice of Occupancy Rights under the Violence Against Women Act, and 16-2, Certification of
Domestic Violence, Dating Violence, Sexual Assault, or Stalking, and Alternate Documentation.
The PHA will provide all applicants with information about VAWA at the time they request an
application for housing assistance. The PHA will also include such information in all notices of
denial of assistance (see section 3-III.G).
16-24
The PHA will provide all tenants with information about VAWA at the time of admission (see
Section 8-I.B) and at annual reexamination. The PHA will also include such information in all lease
termination notices (see Section 13-IV.F).
The PHA is not limited to providing VAWA information at the times specified in the above policy. If the
PHA decides to provide VAWA information to a tenant following an incident of domestic violence, Notice
PIH 2017-08 cautions against sending the information by mail, since the abuser may be monitoring the
mail. The notice recommends that in such cases the PHA make alternative delivery arrangements that
will not put the victim at risk.
PHA Policy
Whenever the PHA has reason to suspect that providing information about VAWA to a public
housing tenant might place a victim of domestic violence at risk, it will attempt to deliver the
information by hand directly to the victim or by having the victim come to an office or other space
that may be safer for the individual, making reasonable accommodations as necessary. For
example, the PHA may decide not to send mail regarding VAWA protections to the victim’s unit if
the PHA believes the perpetrator may have access to the victim’s mail, unless requested by the
victim.
When discussing VAWA with the victim, the PHA will take reasonable precautions to ensure that no
one can overhear the conversation such as having conversations in a private room.
The victim may, but is not required to, designate an attorney, advocate, or other secure contact for
communications regarding VAWA protections.
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16-VII.D. DOCUMENTATION [24 CFR 5.2007]
A PHA presented with a claim for initial or continued assistance based on status as a victim of domestic
violence, dating violence, sexual assault, stalking, human trafficking, or criminal activity related to any of
these forms of abuse may—but is not required to—request that the individual making the claim
document the abuse. Any request for documentation must be in writing, and the individual must be
allowed at least 14 business days after receipt of the request to submit the documentation. The PHA may
extend this time period at its discretion. [24 CFR 5.2007(a)]
The individual may satisfy the PHA’s request by providing any one of the following three forms of
documentation [24 CFR 5.2007(b)]:
1) A completed and signed HUD-approved certification form (HUD-5382, Certification of Domestic
Violence, Dating Violence, Sexual Assault, or Stalking), which must include the name of the
perpetrator only if the name of the perpetrator is safe to provide and is known to the victim. The
form may be filled out and submitted on behalf of the victim.
2) A federal, state, tribal, territorial, or local police report or court record, or an administrative record
3) Documentation signed by a person who has assisted the victim in addressing domestic violence,
dating violence, sexual assault, stalking, or human trafficking, or the effects of such abuse. This
person may be an employee, agent, or volunteer of a victim service provider; an attorney; a
mental health professional; or a medical professional. The person signing the documentation
must attest under penalty of perjury to the person’s belief that the incidents in question are bona
fide incidents of abuse. The victim must also sign the documentation.
The PHA may not require third-party documentation (forms 2 and 3) in addition to certification (form 1),
except as specified below under “Conflicting Documentation,” nor may it require certification in addition
to third-party documentation [FR Notice 11/16/16].
PHA Policy
Any request for documentation of domestic violence, dating violence, sexual assault, stalking, or
human trafficking will be in writing, will specify a deadline of 14 business days following receipt of
the request, will describe the three forms of acceptable documentation, will provide explicit
instructions on where and to whom the documentation must be submitted, and will state the
consequences for failure to submit the documentation or request an extension in writing, by the
deadline.
The PHA may, in its discretion, extend the deadline for 10 business days. In determining whether
to extend the deadline, the PHA will consider factors that may contribute to the victim’s inability to
provide documentation in a timely manner, including cognitive limitations, disabilities, Limited
English Proficiency (LEP), absence from the unit, administrative delays, the danger of further
violence, and the victim’s need to address health or safety issues. Any extension granted by the
PHA will be in writing.
Once the victim provides documentation, the PHA will acknowledge receipt of the documentation
within 10 business days.
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Conflicting Documentation [24 CFR 5.2007(e)]
In cases where the PHA receives conflicting certification documents from two or more members of a
household, each claiming to be a victim and naming one or more of the other petitioning household
members as the perpetrator, the PHA may determine which is the true victim, by requiring each to
provide acceptable third-party documentation, as described above (forms 2 and 3). The PHA may also
request third-party documentation when submitted documentation contains information that conflicts
with existing information already available to the PHA. The PHA must honor any court orders issued to
protect the victim or to address the distribution of property. Individuals have 30 calendar days to return
third-party verification to the PHA. If the PHA does not receive third-party documentation, and the PHA
will deny or terminate assistance as a result, the PHA must hold separate hearings for the tenants [Notice
PIH 2017-18]
PHA Policy
If presented with conflicting certification documents (two or more forms HUD-5382) from
members of the same household, the PHA will attempt to determine which is the true victim by
requiring each of them to provide third-party documentation in accordance with 24 CFR 5.2007(e)
and by following any HUD guidance on how such determinations should be made. When
requesting third-party documents, the PHA will provide contact information for local domestic
violence and legal aid offices. In such cases, applicants or tenants will be given 30 calendar days
from the date of the request to provide such documentation.
If the PHA does not receive third-party documentation within the required timeframe (and any
extensions), the PHA will deny VAWA protections and will notify the applicant or tenant in writing
of the denial. If, as a result, the applicant or tenant is denied or terminated from the program, the
PHA will hold separate hearings for the applicants or tenants.
Discretion to Require No Formal Documentation [24 CFR 5.2007(d)]
The PHA has the discretion to provide benefits to an individual based solely on the individual’s statement
or other corroborating evidence—i.e., without requiring formal documentation of abuse in accordance
with 24 CFR 5.2007(b). HUD recommends documentation in a confidential manner when a verbal
statement or other evidence is accepted.
PHA Policy
If the PHA accepts an individual’s statement or other corroborating evidence (as determined by
the victim) of domestic violence, dating violence, sexual assault, stalking, or human trafficking ,
the PHA will document acceptance of the statement or evidence in the individual’s file.
Failure to Provide Documentation [24 CFR 5.2007(c)]
In order to deny relief for protection under VAWA, a PHA must provide the individual requesting relief
with a written request for documentation of abuse. If the individual fails to provide the documentation
within 14 business days from the date of receipt, or such longer time as the PHA may allow, the PHA may
deny relief for protection under VAWA.
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16-VII.E. CONFIDENTIALITY [24 CFR 5.2007(B)(4)]
All information provided to the PHA regarding domestic violence, dating violence, sexual assault, stalking,
or human trafficking, including the fact that an individual is a victim of domestic violence, dating violence,
sexual assault, stalking, or human trafficking, must be retained in confidence. This means that the PHA
(1) may not enter the information into any shared database; (2) may not allow employees or others to
access the information unless they are explicitly authorized to do so and have a need to know the
information for purposes of their work; and (3) may not provide the information to any other entity or
individual, except to the extent that the disclosure is (a) requested or consented to by the individual in
writing, (b) required for use in an eviction proceeding, or (c) otherwise required by applicable law.
PHA Policy
If disclosure is required for use in an eviction proceeding or is otherwise required by applicable
law, the PHA will inform the victim before disclosure occurs so that safety risks can be identified
and addressed.
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EXHIBIT 16-1: SAMPLE NOTICE OF OCCUPANCY RIGHTS UNDER THE VIOLENCE AGAINST WOMEN
ACT, FORM HUD-5380
City of Chandler Housing and Redevelopment Division
Notice of Occupancy Rights under the Violence Against Women Act
To all Tenants and Applicants
The Violence Against Women Act (VAWA) provides protections for victims of domestic violence, dating
violence, sexual assault, or stalking. VAWA protections are not only available to women but are available
equally to all individuals regardless of sex, gender identity, or sexual orientation. The U.S. Department of
Housing and Urban Development (HUD) is the Federal agency that oversees that public housing and
housing choice voucher is in compliance with VAWA. This notice explains your rights under VAWA. A
HUD-approved certification form is attached to this notice. You can fill out this form to show that you are
or have been a victim of domestic violence, dating violence, sexual assault, or stalking, and that you wish
to use your rights under VAWA.”
Protections for Applicants
If you otherwise qualify for assistance under public housing or housing choice voucher, you cannot be
denied admission or denied assistance because you are or have been a victim of domestic violence,
dating violence, sexual assault, or stalking.
Protections for Tenants
If you are receiving assistance under public housing or housing choice voucher, you may not be denied
assistance, terminated from participation, or be evicted from your rental housing because you are or
have been a victim of domestic violence, dating violence, sexual assault, or stalking.
Also, if you or an affiliated individual of yours is or has been the victim of domestic violence, dating
violence, sexual assault, or stalking by a member of your household or any guest, you may not be denied
rental assistance or occupancy rights under public housing or housing choice voucher solely on the basis
of criminal activity directly relating to that domestic violence, dating violence, sexual assault, or stalking.
Affiliated individual means your spouse, parent, brother, sister, or child, or a person to whom you stand
in the place of a parent or guardian (for example, the affiliated individual is in your care, custody, or
control); or any individual, tenant, or lawful occupant living in your household.
Removing the Abuser or Perpetrator from the Household
The City of Chandler Housing and Redevelopment Division (COCHRD) may divide (bifurcate) your lease in
order to evict the individual or terminate the assistance of the individual who has engaged in criminal
activity (the abuser or perpetrator) directly relating to domestic violence, dating violence, sexual assault,
or stalking.
If the COCHRD chooses to remove the abuser or perpetrator, COCHRD may not take away the rights of
eligible tenants to the unit or otherwise punish the remaining tenants. If the evicted abuser or
perpetrator was the sole tenant to have established eligibility for assistance under the program, COCHRD
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must allow the tenant who is or has been a victim and other household members to remain in the unit
for a period of time, in order to establish eligibility under the program or under another HUD housing
program covered by VAWA or find alternative housing.
In removing the abuser or perpetrator from the household, COCHRD must follow Federal, State, and local
eviction procedures. In order to divide a lease, COCHRD may, but is not required to, ask you for
documentation or certification of the incidences of domestic violence, dating violence, sexual assault, or
stalking.
Moving to Another Unit
Upon your request, COCHRD may permit you to move to another unit, subject to the availability of other
units, and still keep your assistance. In order to approve a request, COCHRD may ask you to provide
documentation that you are requesting to move because of an incidence of domestic violence, dating
violence, sexual assault, or stalking. If the request is a request for emergency transfer, the COCHRD may
ask you to submit a written request or fill out a form where you certify that you meet the criteria for an
emergency transfer under VAWA. The criteria are:
1) You are a victim of domestic violence, dating violence, sexual assault, or stalking. If
COCHRD does not already have documentation that you are a victim of domestic violence, dating
violence, sexual assault, or stalking, COCHRD may ask you for such documentation, as described
in the documentation section below.
2) You expressly request the emergency transfer. COCHRD may choose to require that you
submit a form or may accept another written or oral request.
3) You reasonably believe you are threatened with imminent harm from further violence if
you remain in your current unit. This means you have a reason to fear that if you do not
receive a transfer, you would suffer violence in the very near future.
OR
You are a victim of sexual assault and the assault occurred on the premises during the 90-
calendar-day period before you request a transfer. If you are a victim of sexual assault, then in
addition to qualifying for an emergency transfer because you reasonably believe you are
threatened with imminent harm from further violence if you remain in your unit, you may qualify
for an emergency transfer, if the sexual assault occurred on the premises of the property from
which you are seeking your transfer, and that assault happened within the 90-calendar-day period
before you expressly request the transfer.
The COCHRD will keep confidential requests for emergency transfers by victims of domestic violence,
dating violence, sexual assault, or stalking, and the location of any move by such victims and their
families.
The COCHRD’s emergency transfer plan provides further information on emergency transfers, and
COCHRD must make a copy of its emergency transfer plan available to you if you ask to see it.
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Documenting You Are or Have Been a Victim of Domestic Violence, Dating Violence, Sexual Assault
or Stalking
The COCHRD can, but is not required to, ask you to provide documentation to “certify” that you are or
have been a victim of domestic violence, dating violence, sexual assault, or stalking. Such request from
COCHRD must be in writing, and COCHRD must give you at least 14 business days (Saturdays, Sundays,
and Federal holidays do not count) from the day you receive the request to provide the documentation.
The COCHRD may, but does not have to, extend the deadline for the submission of documentation upon
your request.
You can provide one of the following to COCHRD as documentation. It is your choice which of the
following to submit if the COCHRD asks you to provide documentation that you are or have been a victim
of domestic violence, dating violence, sexual assault, or stalking.
•
A complete HUD-approved certification form given to you by COCHRD with this notice, that
documents an incident of domestic violence, dating violence, sexual assault, or stalking. The form
will ask for your name, the date, time, and location of the incident of domestic violence, dating
violence, sexual assault, or stalking, and a description of the incident. The certification form
provides for including the name of the abuser or perpetrator if the name of the abuser or
perpetrator is known and is safe to provide.
•
A record of a Federal, State, tribal, territorial, or local law enforcement agency, court, or
administrative agency that documents the incident of domestic violence, dating violence, sexual
assault, or stalking. Examples of such records include police reports, protective orders, and
restraining orders, among others.
•
A statement, which you must sign, along with the signature of an employee, agent, or volunteer of
a victim service provider, an attorney, a medical professional or a mental health professional
(collectively, “professional”) from whom you sought assistance in addressing domestic violence,
dating violence, sexual assault, or stalking, or the effects of abuse, and with the professional
selected by you, attesting under penalty of perjury that they believe that the incident or incidents
of domestic violence, dating violence, sexual assault, or stalking are grounds for protection.
•
Any other statement or evidence that the COCHRD has agreed to accept.
If you fail or refuse to provide one of these documents within the 14 business days, the COCHRD does
not have to provide you with the protections contained in this notice.
If the COCHRD receives conflicting evidence that an incident of domestic violence, dating violence, sexual
assault, or stalking has been committed (such as certification forms from two or more members of a
household each claiming to be a victim and naming one or more of the other petitioning household
members as the abuser or perpetrator), the COCHRD has the right to request that you provide third-
party documentation, within thirty 30 calendar days in order to resolve the conflict. If you fail or refuse to
provide third-party documentation where there is conflicting evidence, the COCHRD does not have to
provide you with the protections contained in this notice.
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Confidentiality
The COCHRD must keep confidential any information you provide related to the exercise of your rights
under VAWA, including the fact that you are exercising your rights under VAWA.
The COCHRD must not allow any individual administering assistance or other services on behalf of
COCHRD (for example, employees and contractors) to have access to confidential information unless for
reasons that specifically call for these individuals to have access to this information under applicable
Federal, State, or local law.
The COCHRD must not enter your information into any shared database or disclose your information to
any other entity or individual. The COCHRD, however, may disclose the information provided if:
•
You give written permission to COCHRD to release the information on a time limited basis.
•
The COCHRD needs to use the information in an eviction or termination proceeding, such as to
evict your abuser or perpetrator or terminate your abuser or perpetrator from assistance under
this program.
•
A law requires COCHRD or your landlord to release the information.
VAWA does not limit COCHRD’s duty to honor court orders about access to or control of the property.
This includes orders issued to protect a victim and orders dividing property among household members
in cases where a family breaks up.
Reasons a Tenant Eligible for Occupancy Rights under VAWA May Be Evicted or Assistance May Be
Terminated
You can be evicted, and your assistance can be terminated for serious or repeated lease violations that
are not related to domestic violence, dating violence, sexual assault, or stalking committed against you.
However, COCHRD cannot hold tenants who have been victims of domestic violence, dating violence,
sexual assault, or stalking to a more demanding set of rules than it applies to tenants who have not been
victims of domestic violence, dating violence, sexual assault, or stalking.
The protections described in this notice might not apply, and you could be evicted, and your assistance
terminated, if COCHRD can demonstrate that not evicting you or terminating your assistance would
present a real physical danger that:
1) Would occur within an immediate time frame, and
2) Could result in death or serious bodily harm to other tenants or those who work on the property.
If COCHRD can demonstrate the above, COCHRD should only terminate your assistance or evict you if
there are no other actions that could be taken to reduce or eliminate the threat.
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Other Laws
VAWA does not replace any Federal, State, or local law that provides greater protection for victims of
domestic violence, dating violence, sexual assault, or stalking. You may be entitled to additional housing
protections for victims of domestic violence, dating violence, sexual assault, or stalking under other
Federal laws, as well as under State and local laws.
Non-Compliance with the Requirements of This Notice
You may report COCHRD for violations of these rights and seek assistance, if needed, by contacting or
filing a complaint with Amy Jacobson, Housing and Redevelopment Manager or HUD’s Phoenix field
office.
For Additional Information
You may view a copy of HUD’s final VAWA rule at https://www.gpo.gov/fdsys/pkg/FR-2016-11-
16/pdf/2016-25888.pdf. Additionally, COCHRD must make a copy of HUD’s VAWA regulations available to
you if you ask to see them. For questions regarding VAWA, please contact your housing specialist.
For help regarding an abusive relationship, you may call the National Domestic Violence Hotline at 1-800-
799-7233 or, for persons with hearing impairments, 1-800-787-3224 (TTY). You may also contact 2-1-1
within Arizona or at https://211arizona.org/domestic-violence/
For tenants who are or have been victims of stalking seeking help may visit the National Center for
Victims of Crime’s Stalking Resource Center at https://www.victimsofcrime.org/our-programs/stalking-
resource-center.
For help regarding sexual assault, you may contact 2-1-1 within Arizona or at
https://211arizona.org/domestic-violence/.
Victims of stalking seeking help may contact 2-1-1 within Arizona or at https://211arizona.org/domestic-
violence/.
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EXHIBIT 16-2: CERTIFICATION OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR
STALKING AND ALTERNATE DOCUMENTATION,
FORM HUD-5382
CERTIFICATION OF U.S. Department of Housing OMB Approval No. 2577-0286
DOMESTIC VIOLENCE, and Urban Development Exp. 06/30/2017
DATING VIOLENCE,
SEXUAL ASSAULT, OR STALKING,
AND ALTERNATE DOCUMENTATION
Purpose of Form: The Violence Against Women Act (“VAWA”) protects applicants, tenants, and program
participants in certain HUD programs from being evicted, denied housing assistance, or terminated from
housing assistance based on acts of domestic violence, dating violence, sexual assault, or stalking against
them. Despite the name of this law, VAWA protection is available to victims of domestic violence, dating
violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation.
Use of This Optional Form: If you are seeking VAWA protections from your housing provider, your
housing provider may give you a written request that asks you to submit documentation about the
incident or incidents of domestic violence, dating violence, sexual assault, or stalking.
In response to this request, you or someone on your behalf may complete this optional form and submit
it to your housing provider, or you may submit one of the following types of third-party documentation:
(1) A document signed by you and an employee, agent, or volunteer of a victim service provider, an
attorney, or medical professional, or a mental health professional (collectively, “professional”) from
whom you have sought assistance relating to domestic violence, dating violence, sexual assault, or
stalking, or the effects of abuse. The document must specify, under penalty of perjury, that the
professional believes the incident or incidents of domestic violence, dating violence, sexual assault, or
stalking occurred and meet the definition of “domestic violence,” “dating violence,” “sexual assault,” or
“stalking” in HUD’s regulations at 24 CFR 5.2003.
(2) A record of a Federal, State, tribal, territorial or local law enforcement agency, court, or
administrative agency; or
(3) At the discretion of the housing provider, a statement or other evidence provided by the applicant or
tenant.
Submission of Documentation: The time period to submit documentation is 14 business days from the
date that you receive a written request from your housing provider asking that you provide
documentation of the occurrence of domestic violence, dating violence, sexual assault, or stalking. Your
housing provider may, but is not required to, extend the time period to submit the documentation, if you
request an extension of the time period. If the requested information is not received within 14 business
days of when you received the request for the documentation, or any extension of the date provided by
your housing provider, your housing provider does not need to grant you any of the VAWA protections.
Distribution or issuance of this form does not serve as a written request for certification.
Confidentiality: All information provided to your housing provider concerning the incident(s) of
domestic violence, dating violence, sexual assault, or stalking shall be kept confidential and such details
shall not be entered into any shared database. Employees of your housing provider are not to have
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access to these details unless to grant or deny VAWA protections to you, and such employees may not
disclose this information to any other entity or individual, except to the extent that disclosure is: (i)
consented to by you in writing in a time-limited release; (ii) required for use in an eviction proceeding or
hearing regarding termination of assistance; or (iii) otherwise required by applicable law.
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TO BE COMPLETED BY OR ON BEHALF OF THE VICTIM OF DOMESTIC VIOLENCE, DATING VIOLENCE,
SEXUAL ASSAULT, OR STALKING
1. Date the written request is received by victim: ________________________________________
2. Name of victim:__________________________________________________________________
3. Your name (if different from victim’s):______________________________________________
4. Name(s) of other family member(s) listed on the lease:_________________________________
5. Residence of victim: ______________________________________________________________
6. Name of the accused perpetrator (if known and can be safely disclosed):__________________
7. Relationship of the accused perpetrator to the victim:__________________________________
8. Date(s) and times(s) of incident(s) (if known):_________________________________________
10. Location of incident(s):___________________________________________________________
This is to certify that the information provided on this form is true and correct to the best of my knowledge
and recollection, and that the individual named above in Item 2 is or has been a victim of domestic violence,
dating violence, sexual assault, or stalking. I acknowledge that submission of false information could
jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or
eviction.
Signature __________________________________Signed on (Date) __________________________
Public Reporting Burden: The public reporting burden for this collection of information is estimated to
average 1 hour per response. This includes the time for collecting, reviewing, and reporting the data.
The information provided is to be used by the housing provider to request certification that the applicant
or tenant is a victim of domestic violence, dating violence, sexual assault, or stalking. The information is
In your own words, briefly describe the incident(s):
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
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subject to the confidentiality requirements of VAWA. This agency may not collect this information, and
you are not required to complete this form, unless it displays a currently valid Office of Management and
Budget control number.
EXHIBIT 16-3: EMERGENCY TRANSFER PLAN FOR VICTIMS OF DOMESTIC VIOLENCE, DATING
VIOLENCE, SEXUAL ASSAULT, OR STALKING
Attachment: Certification form HUD-5382
City of Chandler Housing and Redevelopment Division
EMERGENCY TRANSFER PLAN
FOR VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE,
SEXUAL ASSAULT, OR STALKING
Public Housing Program
Emergency Transfers
The City of Chandler Housing and Redevelopment Division (COCHRD) is concerned about the safety of its
tenants, and such concern extends to tenants who are victims of domestic violence, dating violence,
sexual assault, or stalking. In accordance with the Violence Against Women Act (VAWA), COCHRD allows
tenants who are victims of domestic violence, dating violence, sexual assault, or stalking to request an
emergency transfer from the tenant’s current unit to another unit. The ability to request a transfer is
available regardless of sex, gender identity, or sexual orientation. The ability of COCHRD to honor such
request for tenants currently receiving assistance, however, may depend upon a preliminary
determination that the tenant is or has been a victim of domestic violence, dating violence, sexual
assault, or stalking, and on whether COCHRD has another dwelling unit that is available and is safe to
offer the tenant for temporary or more permanent occupancy.
This plan identifies tenants who are eligible for an emergency transfer, the documentation needed to
request an emergency transfer, confidentiality protections, how an emergency transfer may occur, and
guidance to tenants on safety and security. This plan is based on a model emergency transfer plan
published by the U.S. Department of Housing and Urban Development (HUD), the federal agency that
oversees that the public housing and housing choice voucher (HCV) programs are in compliance with
VAWA.
Eligibility for Emergency Transfers
A tenant who is a victim of domestic violence, dating violence, sexual assault, or stalking, as provided in
HUD’s regulations at 24 CFR Part 5, subpart L, is eligible for an emergency transfer if the tenant
reasonably believes that there is a threat of imminent harm from further violence if the tenant remains
within the same unit. If the tenant is a victim of sexual assault, the tenant may also be eligible to transfer
if the sexual assault occurred on the premises within the 90-calendar- day period preceding a request for
an emergency transfer.
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A tenant requesting an emergency transfer must expressly request the transfer in accordance with the
procedures described in this plan.
Tenants who are not in good standing may still request an emergency transfer if they meet the eligibility
requirements in this section.
Emergency Transfer Request Documentation
To request an emergency transfer, the tenant shall notify the PHA’s management office and submit a
written request for a transfer to any PHA office. The PHA will provide reasonable accommodations to
this policy for individuals with disabilities. The tenant’s written request for an emergency transfer should
include either:
1. A statement expressing that the tenant reasonably believes that there is a threat of imminent
harm from further violence if the tenant were to remain in the same dwelling unit assisted under
the PHA’s program; OR
2. A statement that the tenant was a sexual assault victim, and that the sexual assault occurred on
the premises during the 90-calendar-day period preceding the tenant’s request for an emergency
transfer.
Confidentiality
The PHA will keep confidential any information that the tenant submits in requesting an emergency
transfer, and information about the emergency transfer, unless the tenant gives the PHA written
permission to release the information on a time-limited basis, or disclosure of the information is required
by law or required for use in an eviction proceeding or hearing regarding termination of assistance from
the covered program. This includes keeping confidential the new location of the dwelling unit of the
tenant, if one is provided, from the person or persons that committed an act of domestic violence, dating
violence, sexual assault, or stalking against the tenant. See the Notice of Occupancy Rights under the
Violence against Women Act for All Tenants for more information about the PHA’s responsibility to
maintain the confidentiality of information related to incidents of domestic violence, dating violence,
sexual assault, or stalking.
Emergency Transfer Timing and Availability
The PHA cannot guarantee that a transfer request will be approved or how long it will take to process a
transfer request. The PHA will, however, act as quickly as possible to move a tenant who is a victim of
domestic violence, dating violence, sexual assault, or stalking to another unit, subject to availability and
safety of a unit. If a tenant reasonably believes a proposed transfer would not be safe, the tenant may
request a transfer to a different unit. If a unit is available, the transferred tenant must agree to abide by
the terms and conditions that govern occupancy in the unit to which the tenant has been transferred.
The PHA may be unable to transfer a tenant to a particular unit if the tenant has not or cannot establish
eligibility for that unit.
If the PHA has no safe and available units for which a tenant who needs an emergency transfer is eligible,
the PHA will assist the tenant in identifying other housing providers who may have safe and available
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units to which the tenant could move. At the tenant’s request, the PHA will also assist tenants in
contacting the local organizations offering assistance to victims of domestic violence, dating violence,
sexual assault, or stalking that are attached to this plan.
Emergency Transfers: Public Housing (PH) Program
If you are a public housing resident and request an emergency transfer as described in this plan, the PHA
will attempt to assist you in moving to a safe unit quickly. The PHA will make exceptions as required to
policies restricting moves.
Emergency transfers for which you are not required to apply for assistance include the following:
•
Public housing unit in a different development
•
Public housing unit in the same development, if you determine that the unit is safe
At your request, the PHA will refer you to organizations that may be able to further assist you.
You may also request an emergency transfer to the following programs for which you are required to
apply for assistance:
•
HCV tenant-based program
•
HCV project-based assistance
•
Other programs administered by the PHA (such as state housing programs)
Emergency transfers will not take priority over waiting list admissions for these types of assistance. At
your request, the PHA will refer you to organizations that may be able to further assist you.
Safety and Security of Tenants
Pending processing of the transfer and the actual transfer, if it is approved and occurs, the tenant is
urged to take all reasonable precautions to be safe.
Tenants who are or have been victims of domestic violence are encouraged to contact the National
Domestic Violence Hotline at 1-800-799-7233, or a local domestic violence shelter, for assistance in
creating a safety plan. For persons with hearing impairments, that hotline can be accessed by calling 1-
800-787-3224 (TTY).
Tenants who have been victims of sexual assault may call the Rape, Abuse, and Incest National Network’s
National Sexual Assault Hotline at 1-800-656-HOPE, or visit the online hotline at
https://ohl.rainn.org/online/.
Tenants who are or have been victims of stalking seeking help may visit the National Center for Victims of
Crime’s Stalking Resource Center at https://www.victimsofcrime.org/our-programs/stalking-resource-
center.
16-39
EXHIBIT 16-4: EMERGENCY TRANSFER REQUEST FOR CERTAIN VICTIMS OF DOMESTIC VIOLENCE,
DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING, FORM HUD-5383
EMERGENCY TRANSFER U.S. Department of Housing OMB Approval No. 2577-0286
REQUEST FOR CERTAIN and Urban Development Exp. 06/30/2017
VICTIMS OF DOMESTIC
VIOLENCE, DATING VIOLENCE,
SEXUAL ASSAULT, OR STALKING
Purpose of Form: If you are a victim of domestic violence, dating violence, sexual assault, or stalking, and
you are seeking an emergency transfer, you may use this form to request an emergency transfer and
certify that you meet the requirements of eligibility for an emergency transfer under the Violence Against
Women Act (VAWA). Although the statutory name references women, VAWA rights and protections apply
to all victims of domestic violence, dating violence, sexual assault or stalking. Using this form does not
necessarily mean that you will receive an emergency transfer. See your housing provider’s emergency
transfer plan for more information about the availability of emergency transfers.
The requirements you must meet are:
(1) You are a victim of domestic violence, dating violence, sexual assault, or stalking.
If your housing provider does not already have documentation that you are a victim of
domestic violence, dating violence, sexual assault, or stalking, your housing provider may ask
you for such documentation. In response, you may submit Form HUD-5382, or any one of
the other types of documentation listed on that Form.
(2) You expressly request the emergency transfer. Submission of this form confirms that
you have expressly requested a transfer. Your housing provider may choose to require that
you submit this form, or may accept another written or oral request. Please see your housing
provider’s emergency transfer plan for more details.
(3) You reasonably believe you are threatened with imminent harm from further
violence if you remain in your current unit. This means you have a reason to fear that if
you do not receive a transfer you would suffer violence in the very near future.
OR
You are a victim of sexual assault and the assault occurred on the premises during the
90-calendar-day period before you request a transfer. If you are a victim of sexual
assault, then in addition to qualifying for an emergency transfer because you reasonably
believe you are threatened with imminent harm from further violence if you remain in your
unit, you may qualify for an emergency transfer if the sexual assault occurred on the
premises of the property from which you are seeking your transfer, and that assault
happened within the 90-calendar-day period before you submit this form or otherwise
expressly request the transfer.
Submission of Documentation: If you have third-party documentation that demonstrates why you are
eligible for an emergency transfer, you should submit that documentation to your housing provider if it is
safe for you to do so. Examples of third party documentation include, but are not limited to: a letter or
other documentation from a victim service provider, social worker, legal assistance provider, pastoral
16-40
counselor, mental health provider, or other professional from whom you have sought assistance; a
current restraining order; a recent court order or other court records; a law enforcement report or
records; communication records from the perpetrator of the violence or family members or friends of
the perpetrator of the violence, including emails, voicemails, text messages, and social media posts.
16-41
Confidentiality: All information provided to your housing provider concerning the incident(s) of
domestic violence, dating violence, sexual assault, or stalking, and concerning your request for an
emergency transfer shall be kept confidential. Such details shall not be entered into any shared
database. Employees of your housing provider are not to have access to these details unless to grant or
deny VAWA protections or an emergency transfer to you. Such employees may not disclose this
information to any other entity or individual, except to the extent that disclosure is: (i) consented to by
you in writing in a time-limited release; (ii) required for use in an eviction proceeding or hearing regarding
termination of assistance; or (iii) otherwise required by applicable law.
TO BE COMPLETED BY OR ON BEHALF OF THE PERSON REQUESTING A TRANSFER
1. Name of victim requesting an emergency transfer: ____________________________________
2. Your name (if different from victim’s)_______________________________________________
3. Name(s) of other family member(s) listed on the lease:_________________________________
4. Name(s) of other family member(s) who would transfer with the victim:___________________
5. Address of location from which the victim seeks to transfer: _______________________________________
6. Address or phone number for contacting the victim:___________________________________
7. Name of the accused perpetrator (if known and can be safely disclosed):__________________
8. Relationship of the accused perpetrator to the victim:__________________________________
9. Date(s), Time(s) and location(s) of incident(s):_________________________________________
10. Is the person requesting the transfer a victim of a sexual assault that occurred in the past 90
days on the premises of the property from which the victim is seeking a transfer? If yes, skip
question 11. If no, fill out question 11. ______________
11. Describe why the victim believes they are threatened with imminent harm from further
violence if they remain in their current unit._____________________________________________
12. If voluntarily provided, list any third-party documentation you are providing along with this
notice: ____________________________________________________________________________
This is to certify that the information provided on this form is true and correct to the best of my knowledge,
and that the individual named above in Item 1 meets the requirement laid out on this form for an
emergency transfer. I acknowledge that submission of false information could jeopardize program
eligibility and could be the basis for denial of admission, termination of assistance, or eviction.
16-42
Signature __________________________________Signed on (Date) ___________________________
Glossary-1
GLOSSARY
A.
ACRONYMS USED IN PUBLIC HOUSING
ACC
Annual contributions contract
ACOP
Admissions and Continued Occupancy
ADA
Americans with Disabilities Act of 1990
AIDS
Acquired immune deficiency syndrome
AMI
Area median income
AMP
Asset management project
BR
Bedroom
CDBG
Community Development Block Grant (Program)
CFP
Capital fund program
CFR
Code of Federal Regulations (published federal rules that define and implement laws;
commonly referred to as “the regulations”)
COCC
Central office cost center
CPI
Consumer price index (published monthly by the Department of Labor as an inflation
indicator)
EIV
Enterprise Income Verification
FDIC
Federal Deposit Insurance Corporation
FHA
Federal Housing Administration
FHEO
Fair Housing and Equal Opportunity
FICA
Federal Insurance Contributions Act (established Social Security taxes)
FMR
Fair market rent
FR
Federal Register
FSS
Family Self-Sufficiency (Program)
FY
Fiscal year
Glossary-2
FYE
Fiscal year end
GAO
Government Accountability Office
HA
Housing authority or housing agency
HCV
Housing choice voucher
HIP
Housing Information Portal
HOPE VI
Revitalization of Severely Distressed Public Housing Program
HOTMA
Housing Opportunity through Modernization Act of 2016
HUD
Department of Housing and Urban Development
HUDCLIPS
HUD Client Information and Policy System
IPA
Independent public accountant
IRA
Individual retirement account
IRS
Internal Revenue Service
IVT
Income Verification Tool
JTPA
Job Training Partnership Act
LBP
Lead-based paint
LEP
Limited English Proficiency
LIHTC
Low-income housing tax credit
MTW
Moving to Work
NOFA
Notice of funding availability
NSPIRE
National Standards for the Physical Inspection of Real Estate
OGC
HUD’s Office of General Counsel
OIG
HUD’s Office of Inspector General
OMB
Office of Management and Budget
PASS
Plan to Achieve Self-Support
PHA
Public housing agency
Glossary-3
PHAS
Public Housing Assessment System
PIH
(HUD Office of) Public and Indian Housing
QC
Quality control
QHWRA
Quality Housing and Work Responsibility Act of 1998 (also known as the Public Housing
Reform Act)
RAD
Rental Assistance Demonstration Program
REAC
(HUD) Real Estate Assessment Center
RFP
Request for proposals
RIGI
Regional inspector general for investigation (handles fraud and program abuse matters for
HUD at the regional office level)
ROSS
Resident Opportunity and Supportive Services
SSA
Social Security Administration
SSI
Supplemental security income
SWICA
State wage information collection agency
TANF
Temporary assistance for needy families
TR
Tenant rent
TTP
Total tenant payment
UA
Utility allowance
UFAS
Uniform Federal Accessibility Standards
UIV
Upfront income verification
URP
Utility reimbursement payment
VAWA
Violence Against Women Reauthorization Act of 2013
VCA
Voluntary Compliance Agreement
Glossary-4
B.
GLOSSARY OF PUBLIC HOUSING TERMS
Accessible. The facility or portion of the facility can be approached, entered, and used by persons with
disabilities.
Adjusted income. Annual income (as determined under 24 CFR 5.609), of the members of the family
residing or intending to reside in the dwelling unit less allowable HUD deductions and allowances.
Affiliated individual. With respect to an individual, a spouse, parent, brother, sister, or child of that
individual, or a person to whom that individual stands in loco parentis (in the position or place of a
parent), or an individual, tenant, or lawful occupant living in the household of the victim of domestic
violence, dating violence, sexual assault, or stalking.
Alternative non-public housing rent. A monthly rent equal to the greater of:
-
The applicable fair market rent, as defined in 24 CFR part 888, subpart A, for the unit; or
-
The amount of the monthly subsidy provided for the unit, which will be determined by adding
the per unit assistance provided to a public housing property as calculated through the
applicable formulas for the Public Housing Capital Fund and Public Housing Operating Fund.
Annual contributions contract (ACC). The written contract between HUD and a PHA under which HUD
agrees to provide funding for a program under the 1937 Act, and the PHA agrees to comply with HUD
requirements for the program.
Applicant (applicant family). A family that has applied for admission to a program but is not yet a
participant in the program.
As-paid states. States where the welfare agency adjusts the shelter and utility component of the
welfare grant in accordance with actual housing costs.
Assets. (See net family assets.)
Auxiliary aids. Services or devices that enable persons with impaired sensory, manual, or speaking
skills to have an equal opportunity to participate in, and enjoy the benefits of, programs or activities
receiving federal financial assistance.
Bifurcate. With respect to a public housing or Section 8 lease, to divide a lease as a matter of law such
that certain tenants can be evicted or removed, while the remaining family members’ lease and
occupancy rights are allowed to remain intact.
Ceiling Rent. The highest rent amount the PHA will require a family to pay, for a particular unit size,
when the family is paying an income-based rent.
Child. A member of the family other than the family head or spouse who is under 18 years of age.
Glossary-5
Childcare expenses. Amounts anticipated to be paid by the family for the care of children under 13
years of age during the period for which annual income is computed, but only where such care is
necessary to enable a family member to actively seek employment, be gainfully employed, or to
further their education and only to the extent such amounts are not reimbursed. The amount
deducted shall reflect reasonable charges for 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 citizen or national of the United States.
Cohead. An individual in the household who is equally responsible for the lease with the head of
household. A family may have a cohead or spouse but not both. A cohead never qualifies as a
dependent. The cohead must have legal capacity to enter into a lease.
Consent form. Any consent form approved by HUD to be signed by assistance applicants and
participants to obtain income information from employers and SWICAs; return information from the
Social Security Administration (including wages, net earnings from self-employment, and retirement
income); and return information for unearned income from the IRS. Consent forms expire after a
certain time and may authorize the collection of other information to determine eligibility or level of
benefits.
Covered families. Statutory term for families who are required to participate in a welfare agency
economic self-sufficiency program and who may be subject to a welfare benefit sanction for
noncompliance with this obligation. Includes families who receive welfare assistance or other public
assistance under a program for which federal, state, or local law requires that a member of the family
must participate in an economic self-sufficiency program as a condition for the assistance.
Dating violence. Violence committed by a person who is or has been in a social relationship of a
romantic or intimate nature with the victim; and where the existence of such a relationship shall be
determined based on a consideration of the following factors:
−
The length of the relationship
−
The type of relationship
−
The frequency of interaction between the persons involved in the relationship
Day laborer. An individual hired and paid one day at a time without an agreement that the individual
will be hired or work again in the future.
Dependent. A member of the family (which excludes foster children and foster adults) other than the
family head or spouse, who is under 18 years of age, or is a person with a disability, or is a full-time
student.
Dependent child. In the context of the student eligibility restrictions, a dependent child of a student
enrolled in an institution of higher education. The dependent child must also meet the definition of
dependent as specified above.
Glossary-6
Disability assistance expenses. Reasonable expenses that are anticipated, during the period for
which annual income is computed, for attendant care and auxiliary apparatus for a disabled family
member, and that are necessary to enable a family member (including the disabled member) to be
employed, provided that the expenses are neither paid to a member of the family nor reimbursed by
an outside source.
Disabled family. A family whose head, cohead, spouse, or sole member is a person with disabilities;
two or more persons with disabilities living together; or one or more persons with disabilities living
with one or more live-in aides.
Disabled person. See person with disabilities.
Disallowance. Exclusion from annual income.
Displaced family. A family in which each member, or whose sole member, is a person displaced by
governmental action, or a person whose dwelling has been extensively damaged or destroyed as a
result of a disaster declared or otherwise formally recognized pursuant to federal disaster relief laws.
Domestic violence. Felony or misdemeanor crimes of violence committed by a current or former
spouse or intimate partner of the victim under the family or domestic violence laws of the jurisdiction
receiving grant funding, and in the case of victim services, includes the user or attempted use of
physical abuse or sexual abuse, or a pattern of any other coercive behavior committed, enabled, or
solicited to gain or maintain power and control over a victim, including verbal, psychological,
economic, or technological abuse that may or may not constitute criminal behavior, by a person who
is:
- The current or former spouse or intimate partner of the victim, or person similarly situated to a
spouse or intimate partner of the victim
- A person who is cohabitating or has cohabitated with the victim as a spouse or intimate partner
- A person with whom the victim shares a child in common
- A person who commits acts against a youth or adult victim who is protected from those acts under
the domestic or family violence laws of the jurisdiction
Domicile. The legal residence of the household head or spouse as determined in accordance with
state and local law.
Drug-related criminal activity. The illegal manufacture, sale, distribution, or use of a drug, or the
possession of a drug with intent to manufacture, sell, distribute, or use the drug.
Earned income. Income or earnings from wages, tips, salaries, other employee compensation, and
net income from self-employment. Earned income does not include any pension or annuity, transfer
payments (meaning payments made or income received in which no goods or services are being paid
for, such as welfare, Social Security, and governmental subsidies for certain benefits), or any cash or
in-kind benefits.
Glossary-7
Economic abuse Behavior that is coercive, deceptive, or unreasonably controls or restrains a person’s
ability to acquire, use, or maintain economic resources to which they are entitile, including using
coercion, fraud, and manipulation to:
- Restrict a person’s access to money, assets, credit, or financial information
- Unfairly use a person’s personal economic resources, including money, assets, and credit, for one’s
own advantage
- Exert undue influence over a person’s financial and economic behavior or decisions, including
forcing default on joint or other financial obligations, exploiting powers of attorney, guardianship, or
conservatorship, or to whom one has a fiduciary duty
Economic self-sufficiency program. Any program designed to encourage, assist, train, or facilitate the
economic independence of assisted families, or to provide work for such families. Can include job
training, employment counseling, work placement, basic skills training, education, English proficiency,
Workfare, financial or household management, apprenticeship, or any other program necessary to
ready a participant to work (such as treatment for drug abuse or mental health treatment). Includes
any work activities as defined in the Social Security Act (42 U.S.C. 607(d)). Also see 24 CFR §5.603(c).
Effective date. The “effective date” of an examination or reexamination refers to: (i) in the case of an
examination for admission, the date of initial occupancy and (ii) in the case of reexamination of an
existing tenant, the date the redetermined rent becomes effective.
Elderly family. A family whose head, cohead, spouse, or sole member is a person who is at least 62
years of age; two or more persons who are at least 62 years of age living together; or one or more
persons who are at least 62 years of age living with one or more live-in aides.
Elderly person. An individual who is at least 62 years of age.
Eligible family (Family). A family that is income eligible and meets the other requirements of the 1937
Act and Part 5 of 24 CFR.
Employer identification number (EIN). The nine-digit taxpayer identifying number that is assigned to
an individual, trust, estate, partnership, association, company, or corporation.
Evidence of citizenship or eligible status. The documents that must be submitted as evidence of
citizenship or eligible immigration status. (See 24 CFR §5.508(b).)
Extremely low-income family. A family whose annual income does not exceed the federal poverty
level or 30 percent of the median income for the area, as determined by HUD, whichever number is
higher, with adjustments for smaller and larger families. HUD may establish income ceilings higher or
lower than 30 percent of median income if HUD finds such variations are necessary due to unusually
high or low family incomes. (See 24 CFR 5.603.)
Facility. All or any portion of buildings, structures, equipment, roads, walks, parking lots, rolling stock,
or other real or personal property or interest in the property.
Glossary-8
Fair Housing Act. Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing
Amendments Act of 1988.
Fair market rent (FMR). The rent, including the cost of utilities (except telephone), as established by
HUD for units of varying sizes (by number of bedrooms), that must be paid in the housing market
area to rent privately owned, existing, decent, safe, and sanitary rental housing of modest (non-
luxury) nature with suitable amenities. See periodic publications in the Federal Register in accordance
with 24 CFR Part 888.
Family. Includes but is not limited to the following, regardless of actual or perceived sexual
orientation, gender identity, or marital status, and can be further defined in PHA policy:
- A single person, who may be:
o
An elderly person, displaced person, disabled person, near-elderly person, or any other single
person;
o
An otherwise eligible youth who has attained at least 18 years of age and not more than 24
years of age and who has left foster care, or will leave foster care within 90 days, in accordance
with a transition plan described in section 475(5)(H) of the Social Security Act (42 U.S.C.
675(5)(H)), and is homeless or is at risk of becoming homeless at age 16 or older; or
- A group of persons residing together, and such group includes, but is not limited to:
o
A family with or without children (a child who is temporarily away from the home because of
placement in foster care is considered a member of the family);
o
An elderly family;
o
A near-elderly family;
o
A disabled family;
o
A displaced family; and
o
The remaining member of a tenant family.
Family self-sufficiency program (FSS program). The program established by a PHA within its
jurisdiction to promote self-sufficiency among participating families, including the coordination of
supportive services to these families (24 CFR 984.103).
Federal agency. A department of the executive branch of the federal government.
Flat rent. Rent that is based on the market rent charged for comparable units in the private
unassisted rental market, set at no less than 80 percent of the current fair market rent (FMR) 80
percent of the small area fair market rent (SAFMR), or 80 percent of the unadjusted rent, with utility
allowances applied as necessary. The unadjusted rent is the FMR estimated directly from source data
that HUD uses to calculate FMRs in nonmetropolitan areas.
Foster adult. A member of the household who is 18 years of age or older and meets the definition of
a foster adult under State law. In general, a foster adult is a person who is 18 years of age or older, is
unable to live independently due to a debilitating physical or mental condition and is placed with the
Glossary-9
family by an authorized placement agency or by judgment, decree, or other order of any court of
competent jurisdiction.
Foster child. A member of the household who meets the definition of a foster child under State law.
In general, a foster child is placed with the family by an authorized placement agency (e.g., public child
welfare agency) or by judgment, decree, or other order of any court of competent jurisdiction.
Foster childcare payment. A payment to eligible households by state, local, or private agencies
appointed by the state to administer payments for the care of foster children.
Full-time student. A person who is attending school or vocational training on a full-time basis
(carrying a subject load that is considered full-time for day students under the standards and
practices of the educational institution attended). (See 24 CFR §5.603)
Gender Identity. Actual or perceived gender-related characteristics.
Handicap. Any condition or characteristic that renders a person an individual with handicaps. (See
person with disabilities)
Head of household. The adult member of the family who is the head of the household for purposes of
determining income eligibility and rent.
Health and medical care expenses. Health and medical care expenses are any costs incurred in the
diagnosis, cure, mitigation, treatment, or prevention of disease or payments for treatments affecting
any structure or function of the body. Health and medical care expenses include medical insurance
premiums and long-term care premiums that are paid or anticipated during the period for which
annual income is computed.
Household. A household includes additional people other than the family who, with the PHA’s
permission, live in an assisted unit, such as live-in aides, foster children, and foster adults.
Housing agency (HA). See public housing agency.
HUD. The U.S. Department of Housing and Urban Development.
Human trafficking. A crime involving the exploitation of a person for labor, services, or commercial
sex. The Trafficking Victims Protection Act of 2000 and its subsequent reauthorizations recognize and
define two primary forms of human trafficking:
- Sex trafficking is the recruitment, harboring, transportation, provision, obtaining, patronizing, or
soliciting of a person for the purpose of a commercial sex act in which a commercial sex act is
induced by force, fraud, or coercion, or in which the person induced to perform such act has not
attained 18 years of age. See 22 U.S.C. § 7102(11)(A).
- Forced labor is the recruitment, harboring, transportation, provision, or obtaining of a person for
labor or services, through the use of force, fraud, or coercion for the purpose of subjection to
involuntary servitude, peonage, debt bondage, or slavery. See 22 U.S.C. § 7102(11)(B).
Imputed asset. An asset disposed of for less than fair market value during the two years preceding
examination or reexamination.
Glossary-10
Imputed asset income. When the value of net family assets exceeds $50,000 and the actual returns
from a given asset cannot be calculated, imputed returns on the asset based on the current passbook
savings rate, as determined by HUD.
Imputed welfare income. An amount of annual income that is not actually received by a family as a
result of a specified welfare benefit reduction but is included in the family’s annual income and
therefore reflected in the family’s rental contribution.
Income-based rent. A tenant rent that is based on the family’s income and the PHA’s rent policies for
determination of such rents.
Income information means information relating to an individual’s income, including:
−
All employment income information known to current or previous employers or other income
sources
−
All information about wages, as defined in the state's unemployment compensation law, including
any social security number; name of the employee; quarterly wages of the employee; and the
name, full address, telephone number, and, when known, employer identification number of an
employer reporting wages under a state unemployment compensation law
−
Whether an individual is receiving, has received, or has applied for unemployment compensation,
and the amount and the period received
−
Unearned IRS income and self-employment wages and retirement income
−
Wage, social security, and supplemental security income data obtained from the Social Security
Administration.
Income Validation Tool (IVT) Accessible through HUD's EIV system, provides validation of tenant
reported wages, unemployment compensation, and Social Security benefits by comparing the income
reported in IMS-PIC via form HUD-50058 to information received from the Department of Health and
Human Services’ (HHS) National Directory of New Hires (NDNH), and the Social Security
Administration (SSA) data sharing agreements.
Independent contractor. An individual who qualifies as an independent contractor instead of an
employee in accordance with the Internal Revenue Code Federal income tax requirements and whose
earnings are consequently subject to the Self-Employment Tax. In general, an individual is an
independent contractor if the payer has the right to control or direct only the result of the work and
not what will be done and how it will be done.
Individual with handicaps. See person with disabilities.
Jurisdiction. The area in which the PHA has authority under state and local law to administer the
program.
Lease. A written agreement between the PHA and a tenant family for the leasing a public housing
unit. The lease establishes the legal relationship between the PHA and the tenant family.
Glossary-11
Live-in aide. A person who resides with one or more elderly persons, or near-elderly persons, or
persons with disabilities, and who:
−
Is determined to be essential to the care and well-being of the persons;
−
Is not obligated for the support of the persons; and
−
Would not be living in the unit except to provide the necessary supportive services.
Local preference. A preference used by the PHA to select among applicant families.
Low-income family. A family whose income does not exceed 80 percent of the median income for the
area as determined by HUD with adjustments for smaller or larger families, except that HUD may
establish income limits higher or lower than 80 percent for areas with unusually high or low incomes.
Minimum rent. An amount established by the PHA of zero to $50.
Minor. A member of the family household other than the family head or spouse, who is under 18
years of age.
Mixed family. A family whose members include those with citizenship or eligible immigration status,
and those without citizenship or eligible immigration status.
Monthly adjusted income. One twelfth of adjusted income.
Monthly income. One twelfth of annual income.
National. A person who owes permanent allegiance to the United States, for example, as a result of
birth in a United States territory or possession.
Near-elderly family. A family whose head, spouse, or sole member is a person who is at least 50
years of age but below the age of 62; or two or more persons, who are at least 50 years of age but
below the age of 62, living together; or one or more persons who are at least 50 years of age but
below the age of 62 living with one or more live-in aides.
Glossary-12
Net family assets. (1) Net family assets is the net cash value of all assets owned by the family, after
deducting reasonable costs that would be incurred in disposing real property, savings, stocks, bonds,
and other forms of capital investment. (2) In determining net family assets, PHAs or owners, as
applicable, must include the value of any business or family assets disposed of by an applicant or
tenant for less than fair market value (including a disposition in trust, but not in a foreclosure or
bankruptcy sale) during the two years preceding the date of application for the program or
reexamination, as applicable, in excess of the consideration received therefor. In the case of a
disposition as part of a separation or divorce settlement, the disposition will not be considered to be
for less than fair market value if the applicant or tenant receives consideration not measurable in
dollar terms. Negative equity in real property or other investments does not prohibit the owner from
selling the property or other investments, so negative equity alone would not justify excluding the
property or other investments from family assets. (3) Excluded from the calculation of net family
assets are: (i) The value of necessary items of personal property; (ii) The combined value of all non-
necessary items of personal property if the combined total value does not exceed $50,000 (which
amount will be adjusted by HUD in accordance with the Consumer Price Index for Urban Wage
Earners and Clerical Workers); (iii) The value of any account under a retirement plan recognized as
such by the Internal Revenue Service, including individual retirement arrangements (IRAs), employer
retirement plans, and retirement plans for self-employed individuals; (iv) The value of real property
that the family does not have the effective legal authority to sell in the jurisdiction in which the
property is located; (v) Any amounts recovered in any civil action or settlement based on a claim of
malpractice, negligence, or other breach of duty owed to a family member arising out of law, that
resulted in a family member being a person with a disability; (vi) The value of any Coverdell education
savings account under section 530 of the Internal Revenue Code of 1986, the value of any qualified
tuition program under section 529 of such Code, the value of any Achieving a Better Life Experience
(ABLE) account authorized under Section 529A of such Code, and the value of any “baby bond”
account created, authorized, or funded by Federal, State, or local government. (vii) Interests in Indian
trust land; (viii) Equity in a manufactured home where the family receives assistance under 24 CFR
part 982; (ix) Equity in property under the Homeownership Option for which a family receives
assistance under 24 CFR part 982; (x) Family Self-Sufficiency Accounts; and (xi) Federal tax refunds or
refundable tax credits for a period of 12 months after receipt by the family. (4) In cases where a trust
fund has been established and the trust is not revocable by, or under the control of, any member of
the family or household, the trust fund is not a family asset and the value of the trust is not included
in the calculation of net family assets, so long as the fund continues to be held in a trust that is not
revocable by, or under the control of, any member of the family or household.
Noncitizen. A person who is neither a citizen nor national of the United States.
Non-public housing over-income family. A family whose income exceeds the over-income limit for 24
consecutive months and is paying the alternative non-public housing rent.
Over-income family. A family whose income exceeds the over-income limit.
Over-income limit. The over-income limit is determined by multiplying the applicable income limit for
very low-income family, as defined in 24 CFR 5.603(b), by a factor of 2.4.
PHA Plan. The annual plan and the 5-year plan as adopted by the PHA and approved by HUD.
Glossary-13
Participant (participant family). A family that has been admitted to the PHA program and is currently
assisted in the program.
Person with disabilities. For the purposes of program eligibility. A person who has a disability as
defined under the Social Security Act or Developmental Disabilities Care Act, or a person who has a
physical or mental impairment expected to be of long and indefinite duration and whose ability to live
independently is substantially impeded by that impairment but could be improved by more suitable
housing conditions. This includes persons with AIDS or conditions arising from AIDS but excludes
persons whose disability is based solely on drug or alcohol dependence. For the purposes of
reasonable accommodation. A person with a physical or mental impairment that substantially limits
one or more major life activities, a person regarded as having such an impairment, or a person with a
record of such an impairment.
Premises. The building or complex in which the dwelling unit is located, including common areas and
grounds.
Previously unemployed. With regard to the earned income disallowance, a person who has earned, in
the 12 months previous to employment, no more than would be received for 10 hours of work per
week for 50 weeks at the established minimum wage.
Public assistance. Welfare or other payments to families or individuals, based on need, which are
made under programs funded, separately or jointly, by federal, state, or local governments.
Public housing agency (PHA). Any state, county, municipality, or other governmental entity or public
body, or agency or instrumentality of these entities, that is authorized to engage or assist in the
development or operation of low-income housing under the 1937 Act.
Real property: Has the same meaning as that provided under the law of the State in which the
property is located.
Reasonable accommodation. A change, exception, or adjustment to a rule, policy, practice, or service
to allow a person with disabilities to fully access the PHA’s programs or services.
Recertification. Sometimes called reexamination. The process of securing documentation of total
family income used to determine the rent the tenant will pay for the next 12 months if there are no
additional changes to be reported.
Remaining member of the tenant family. The person left in assisted housing who may or may not
normally qualify for assistance on their own circumstances (i.e., an elderly spouse dies, leaving widow
age 47 who is not disabled).
Residency preference. A PHA preference for admission of families that reside anywhere in a specified
area, including families with a member who works or has been hired to work in the area (See
residency preference area).
Residency preference area. The specified area where families must reside to qualify for a residency
preference.
Glossary-14
Responsible entity. For the public housing the PHA administering the program under an ACC with
HUD.
Secretary. The secretary of Housing and Urban Development.
Seasonal worker. An individual who is hired into a short-term position and the employment begins
about the same time each year (such as summer or winter). Typically, the individual is hired to
address seasonal demands that arise for the particular employer or industry.
Section 8. Section 8 of the United States Housing Act of 1937. Refers to the housing choice voucher
program.
Security deposit. A dollar amount (maximum set according to the regulations) which can be used for
unpaid rent or damages to the PHA upon termination of the lease.
Sexual Assault. Any nonconsensual sexual act proscribed by federal, tribal, or state law, including
when the victim lacks capacity to consent (42 U.S.C. 13925(a)).
Sexual orientation. Homosexuality, heterosexuality, or bisexuality.
Single person. A person living alone or intending to live alone.
Social security number (SSN). The nine-digit number that is assigned to a person by the Social
Security Administration and that identifies the record of the person’s earnings reported to the Social
Security Administration. The term does not include a number with a letter as a suffix that is used to
identify an auxiliary beneficiary.
Specified welfare benefit reduction. Those reductions of welfare benefits (for a covered family) that
may not result in a reduction of the family rental contribution. A reduction of welfare benefits
because of fraud in connection with the welfare program, or because of welfare sanction due to
noncompliance with a welfare agency requirement to participate in an economic self-sufficiency
program.
Spouse. The marriage partner of the head of household.
Stalking. To follow, pursue, or repeatedly commit acts with the intent to kill, injure, harass, or
intimidate; or to place under surveillance with the intent to kill, injure, harass, or intimidate another
person; and in the course of, or as a result of, such following, pursuit, surveillance, or repeatedly
committed acts, to place a person in reasonable fear of the death of, or serious bodily injury to, or to
cause substantial emotional harm to (1) that person, (2) a member of the affiliated individual of that
person, or (3) the spouse or intimate partner of that person.
State wage information collection agency (SWICA). The state agency, including any Indian tribal
agency, receiving quarterly wage reports from employers in the state, or an alternative system that
has been determined by the Secretary of Labor to be as effective and timely in providing
employment-related income and eligibility information.
Glossary-15
Technological abuse. An act or pattern of behavior that occurs within domestic violence, dating
violence, sexual assault, or stalking and is intended to harm, threaten, intimidate, control, stalk,
harass, impersonate, exploit, extort, or monitor another person, except as otherwise permitted by
law, that occurs using any form of technology, including but not limited to:
- Internet enabled devices
- Online spaces and platforms
- Computers
- Mobile devices
- Cameras and imaging programs
- Apps
- Location tracking devices
- Communication technologies
- Any other emergency technologies
Tenant. The person or persons (other than a live-in aide) who executes the lease as lessee of the
dwelling unit.
Tenant rent. The amount payable monthly by the family as rent to the PHA.
Total tenant payment (TTP). The total amount the HUD rent formula requires the tenant to pay
toward rent and utilities.
Unearned income. Any annual income, as calculated under § 5.609, that is not earned income.
Utilities. Water, electricity, gas, other heating, refrigeration, cooking fuels, trash collection, and
sewage services. Telephone service is not included.
Utility allowance. (UA) If the cost of utilities (except telephone) and other housing services for an
assisted unit is not included in the tenant rent but is the responsibility of the family occupying the
unit, an amount equal to the estimate made or approved by a PHA or HUD of the monthly cost of a
reasonable consumption of such utilities and other services for the unit by an energy-conservative
household of modest circumstances consistent with the requirements of a safe, sanitary, and
healthful living environment.
Utility reimbursement. The amount, if any, by which the utility allowance for the unit, if applicable,
exceeds the total tenant payment (TTP) for the family occupying the unit.
Veteran. A person who has served in the active military or naval service of the United States at any
time and who shall have been discharged or released therefrom under conditions other than
dishonorable.
Glossary-16
Violence Against Women Reauthorization Act (VAWA) of 2013. Prohibits denying admission to the
project to an otherwise qualified applicant on the basis that the applicant is or has been a victim of
domestic violence, dating violence, sexual assault, stalking, or human trafficking.
Violent criminal activity. Any illegal criminal activity that has as one of its elements the use,
attempted use, or threatened use of physical force against the person or property of another.
Waiting list. A list of families organized according to HUD regulations and PHA policy who are waiting
for a unit to become available.
Welfare assistance.
I
Income assistance from federal or state welfare programs, including assistance provided under TANF
and general assistance. Does not include assistance directed solely to meeting housing expenses, nor
programs that provide health care, childcare or other services for working families. For the FSS
program (24 CFR 984.103), welfare assistance includes only cash maintenance payments designed to
meet a family’s ongoing basic needs. Does not include nonrecurring short term benefits designed to
address individual crisis situations, work subsidies, supportive services such as child care and
transportation provided to families who are employed, refundable earned income tax credits,
contributions to and distributions from Individual Development Accounts under TANF, services such
as counseling, case management, peer support, child care information and referral, financial
empowerment, transitional services, job retention, job advancement, and other employment-related
services that to not provide basic income support, amounts solely directed to meeting housing
expenses, amounts for health care, Supplemental Nutrition Assistance Program (SNAP) and
emergency rental and utilities assistance, SSI, SSDI, or social security, and child-only or non-needy
TANF grants made to or on behalf of a dependent child solely on the basis of the child’s need and not
the need of the child’s current non-parental caretaker.