Microsoft PowerPoint - Essentials of the HUD HandbookHandout2007

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					Anita Moseman                                                                                             3/17/2007

                HANDBOOK                                                    Sources
         Presented by Anita Moseman                              Handbooks (4350.3)
                                                                 Changes to Handbooks

                                                             1                                        2

                                  4350.3                              Important Language

                Brief descriptions of situations                   Must
                Reference charts, tables, technical info
                More detailed charts, samples of documents         Should
                Definitions of key terms
                Sample formats, forms, and instructions            May
                Paragraph and page references                3                                        4

                HUD’s Eligibility
                 Requirements                                         Income Eligible
                                                                                 236, RAP, Rent Supp,
                                                                                 202 without
           Income must not exceed                                                assistance, 202
                                                                                 PAC’s, 202/811
           program income limits                                                 PRAC’s (funded
                                                                                 1995) all allow
                                                                                 families to earn up to
                                                                                 80% of area median
                                                                                 income and be

                                                                                LOW INCOME            6

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Anita Moseman                                                                                                       3/17/2007

                   Income Eligible                                          Income Eligible
                                       Section 8 is has 2                               Post-
                                       categories:                                      Projects
                                                                                         • HAP Contracts
                                         Pre-Universe                                      effective on or after
                                         Projects                                          10/1/81
                                            • HAP Contracts effective                   Families can earn
                                              before 10/1/81                            up to 50% of area
                                          Families can earn up to                       median income
                                          80% of area median
                                                                                       VERY LOW
                                      LOW INCOME                                         INCOME
                                                                    7                                          8

                   Income Eligible                                          Income Eligible
                                          40% of new move-                              Cannot require
                                          ins & initial                                 a minimum
                                          certifications to                             income for
                                          Sec. 8 properties
                                                                                        applicants to
                                          Families must be at
                                                                                        move into
                                          30% of AMGI or
                                          less                                          Section 8, Rent
                                                                                        Sup, or RAP
                                       EXTREMELY                                        properties
                                       LOW INCOME
                                                                    9                                          10

         Who to Count When Determining
                                                                          HUD’s Eligibility
          Family Size for Income Limits                                    Requirements
         All household members living in the
         The following members not in the unit                          Social security number
           Children temporarily in a foster home
           Children in joint custody with 50% custody
           Children away at school
           Unborn children of pregnant women
           Children in process of being adopted
           Temporarily absent members still considered family
           Members temporarily in hospital or rehab facilities
           Persons permanently confined to a hospital or nursing
           home                                                11                                              12

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Anita Moseman                                                                      3/17/2007

         Social Security Numbers             Social Security Numbers

           Persons 6 & over that have          Certification must be
           been assigned a Social              signed for all members
           Security Number must                that claim they have not
           provide documentation to            been assigned a Social
           verify the number
                                               Security number

                                        13                                    14

                                                  HUD’s Eligibility
           Social Security Number                  Requirements
         Have 60 days
         to present
         documentation                         Authorization for Release
         60 more days if                       of Information
         over 62
         Limits to
                                        15                                    16

        Authorization for Release            Authorization for Release
             of Information                       of Information

           Who must sign                       Provisions for Refusal to
           • Head of Household                 Sign
             (regardless of age)               • Owner must deny assistance
           • Spouse or Co-head
                        Co-                      & admission to applicant
             (regardless of age)               • Owner must terminate
           • Any Other Family Member             assistance to tenant
             Who is 18 or Older
                                        17                                    18

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Anita Moseman                                                                   3/17/2007

                HUD’s Eligibility              HUD’s Eligibility
                 Requirements                   Requirements

           Only residence                    Applicant agrees to pay
                                             rent required

                                        19                                 20

                HUD’s Eligibility
                 Requirements                  Non-Citizen Rule

                                             Exceptions to Rule
           Compliance with non-              • Section 221(d)(3) BMIR
           citizen rule                      • Section 202 PAC
                                             • Section 202 PRAC
                                             • Section 811 PRAC
                                             • Section 202 Not Receiving
                                               Other Assistance            22

                HUD’s Eligibility              HUD’s Eligibility
                 Requirements                   Requirements

           All information subject to        May be additional
           verification                      program restrictions

                                        23                                 24

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Anita Moseman                                                                                                     3/17/2007

          Definitions for Eligibility                           Elderly Housing
           Definitions A-I Found in                  may reside
           Chapter 3 of 4350.3                       with an
            • Receipt of social security             otherwise
              disability payments is adequate        eligible
              verification of an individual’s
              disability status for programs
              listed in Figure 3-5 that use
                               3-                    family
              definition E for persons with
                                                25                                                           26

                                                     Determining Eligibility of Students
                Income Targeting                                            Co-
                                                        who are Head or Co-head
         For Section 8 properties                    Under the age of 24
                                                     Enrolled in an institution of higher
         40% of new move ins and                     education
         initial certification must be at
         30% of median income or less
         Median income published
         annually by HUD

                                                27                                                           28

         Determining Eligibility of Students         Determining Eligibility of Students
            who are Head or Co-head                                         Co-
                                                        who are Head or Co-head
         Is a veteran                                Must be of legal contract age under state law
                                                     Must have established a household separate from
         Is married                                  parents or legal guardians for at least 1 year prior to
                                                     application or meet definition of an independent student
         Has a dependent child                       Must not be claimed as a dependent by parents or legal
                                                     Must obtain a certification of amount of financial
                                                     assistance provided by parents, guardians or others
                                                     providing support. This is required even if no assistance
                                                     will be provided and must be counted as income.

                                                29                                                           30

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Anita Moseman                                                                                                                             3/17/2007

                                                                                     STUDENT INCOME
         INDEPENDENCE FROM PARENTS                                                      CALCULATION
         A student must meet one or more of the following
         criteria:                                                             24 or older student with
           Be at least 24 years old by 12-31 of the award year for which aid
           is sought
                                       12-                                     dependent children
           Be an orphan or a ward of the court through the age of 18             Don’t count financial aid as income
           Be a veteran of the U.S. Armed Forces
           Have legal dependents other than a spouse (for example,
           dependent children or an elderly dependent parent)
                                                                               All other students
           Be a graduate or professional student or                              Count amounts of scholarships,
           Be married
                                                                                 grants and work study in excess of
                                                                                 Don’t count student loans
                                                                          31                                                         32

                                   LEP                                                               LEP
         LEP Individuals - Persons who do not                                  Examples of should be considered LEP
                                                                                 Persons seeking housing assistance from a public
         speak English as their primary language                                 housing agency or assisted housing provider or are
         and who have a limited ability to read,                                 current tenants in such housing
                                                                                 Persons seeking assistance from a state or local
         write, speak or understand English                                      government for home rehabilitation
                                                                                 Persons who are attempting to file housing
         Final LEP guidance obligates affordable                                 discrimination complaints
         housing providers to provide translations                               Persons seeking supportive services to become first
                                                                                 time homebuyers
         of ‘vital documents’ and oral interpreters                                                 housing-
                                                                                 Persons seeking housing-related social services,
         free of charge to LEP persons                                           training, or any other assistance from HUD recipients
                                                                                 Parents and family members of the above

                                                                          33                                                         34

                                   LEP                                                               LEP
         Recipients are required to take reasonable                            The starting point is an individualized
         steps to ensure meaningful access to their                            assessment that balances the following 4 factors
         programs                                                                The number or proportion of LEP persons eligible to
                                                                                 be served or likely to be encountered by the program
                                                                                 or grantee
                                                                                 The frequency with which LEP persons come in
                                                                                 contact with the program
                                                                                 The nature and importance of the program, activity, or
                                                                                 service provided by the program to people’s lives
                                                                                 The resources available to the grantee/recipient and

                                                                          35                                                         36

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Anita Moseman                                                                                                                         3/17/2007

                           LEP                                           Application
         Oral Language Services                            None prescribed by HUD
           Competence of Interpreters
           Hiring Bilingual Staff
                                                           Good practice to define disability
           Hiring Staff Interpreters                       and ask if applicant qualifies
           Contracting for Interpreters                    Good practice to define
           Using Telephone Interpreter Line                reasonable accommodation &
           Using Community Volunteers
           Use of Family Members or Friends as
                                                           explain process
           Interpreters                                    Must record date & time
                                                           application is submitted
                                                      37                                                                         38

                       Wait List                                             Wait List
         Upon receipt of application owner                 Lists must include
                                                            Date & time applicant submitted
         must process for admission or                      application
         reject based on preliminary                        Name of head of household
         eligibility determination                          Annual income level
                                                            Identification of need for accessible unit
         Owner’s records must indicate the                  or features
         date and time the application was                  Preference status
         submitted                                          Unit size

                                                      39                                                                         40

                Managing Wait Lists                          Applicant Interview 4-24
                                 Lists can be opened
                                 or closed, based on             Confirm & update all information
                                 length of list, with            Explain program requirements, verification procedures,
                                 publication                     Obtain family income & composition information
                                 Cannot close list               Review financial information
                                 without publication             Sign 9887, 9887A & other verifications
                                                                 Obtain non-citizen forms
                                 Manual or electronic            Inform application of screening requirements
                                 Update the list                 Get certification of disposal of assets
                                 annually or semi-               Disclose and document SS#
                                 annually                        Advise that HUD will compare information
                                                                 Tell family final decision cannot be made until information is
                                 Removal of names                complete
                                 must be documented              Provide HUD fact sheet
                                 with time & date of             Inform family that discrimination is prohibited
                                 removal              41         Inform applicants of elderly or disable properties about pets   42

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Anita Moseman                                                                                            3/17/2007

                Rejecting Applicants                                  Calculations
                If applicant is ineligible:                Most frequent errors encountered in
                                                           reviews of annual and adjusted income fall
           Written notification of ineligibility is        in three categories
           required stating reasons for                       Applicants and tenants failing to fully
           rejection                                          disclose income information
           Applicant is given 14 days to                      Errors in identifying required income
           request a meeting                                  exclusions
           Management is given 5 business                     Incorrect calculations of deductions
           days upon the meeting to notify                    often resulting from failure to obtain
           applicant of final decision                        third-
                                                              third-party verification

                                                      43                                            44

                    Calculations                                             Assets
         Careful interviewing and
                                                              Applicants/residents are not
         thorough verification can
                                                              restricted from receiving Housing
         minimize the occurrence of
                                                              Assistance because of the type
         these errors                                         or amount of assets they own as
                                                              long as income produced does
                                                              not exceed eligible income
                                                      45                                            46

                            Assets                                           Assets

            Count assets of all family                        Exhibit 5-2

                                                      47                                            48

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Anita Moseman                                                                              3/17/2007

                 Imputed Assets                         Imputed Assets
         Disposes of for less than fair           Applicants/residents must
         market value                             declare whether an asset has
         Difference between amount                been disposed of for less than
         received and market value over           fair market value at each
         $1,000                                   certification and recertification
         Disposed of because of
         foreclosure, bankruptcy, divorce,
         separation etc. exempt              49                                       50

            Cash Value of Assets                  Determining Value of Assets

         Cash value of an asset is the            Market value - Reasonable
         amount a family would receive            costs = Cash value
         if the family turned a non-cash
         asset into cash

                                             51                                       52

                                                   Determining Income from
                Reasonable Costs
         Penalties for withdrawing                First calculate actual income
         funds before maturity                    on assets
         Broker/legal fees                        If total cash values of assets
                                                  are over $5,000, impute
         Settlement costs                         income using 2%
         Loans on the asset                       Use greater of actual income
                                                  or imputed income
                                             53                                       54

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Anita Moseman                                                                                                    3/17/2007

                 Annual Income                               Annual Income
         Annual income is the amount                      3-
                                                  Exhibit 3-1
         of income used to determine a
         family’s eligibility for

                                             55                                                             56

         Whose Income is Counted                  Whose Income is Not Counted

           Head                                      Foster child
           Spouse                                    Foster adult
           Co-Head                                   Live-in Attendant
           Other Adults
                                             57                                                             58

                   Allowances                               Unit Inspections
                                                  Move in inspections
                                                    Before executing lease, with applicant
           Dependent Allowance                      Any deficiencies must be corrected within 30 days
           Child Care Allowance                     Resident has 5 days to report additional deficiencies
                                                  Interim inspections
           Disability Assistance Allowance          Done on an annual basis
           Medical Allowance                      Move out inspections
                                                    Encourage Residents to attend
           Elderly Household Allowance              Required even if resident is not there

                                             59                                                             60

ADVANCED HOUSING CREDIT                                                                                                10
Anita Moseman                                                                                                                       3/17/2007

         CLAIMS FOR UNPAID RENT                                CLAIMS FOR UNPAID RENT
          AND TENANT DAMAGES                                    AND TENANT DAMAGES
           Damages must be due to tenant                                   52671-
                                                                 Form HUD 52671-1 showing calculation
           negligence or abuse                                   Evidence of reasonable steps to collect
                                                                    Certified letter to tenant detailing charges,
           Owner must submit claim within                           disposition of security deposit, demand for
                                                                    payment, & failure to pay will result in collection
           180 days from date unit is                               Documentation that appropriate security deposit
           available for occupancy                                  was collected (copy of original lease & move in
                                                                    Documentation that matter was turned over to
                                                                    collection & that agency has attempted to collect
                                                                    (copy of agency’s 1st demand letter)
                                                          61                                                                   62

        CLAIMS FOR VACANCY LOSS                                CLAIMS FOR VACANCY LOSS
             AFTER RENT UP                                          AFTER RENT UP
           Can claim 80% of contract rent for 60 days                    HUD- 52671-             HUD- 52671-
                                                                 Form HUD-52671-A, part 2, & HUD-52671-C,
           vacancy after unit is made ready & move-in,
                                                move-            showing calculation
           move-out dates have been submitted to
           move-                                                 Documentation of the status of the waiting list &
                                                                 outcome of applicant contacts
                                                                 Copy of the reconditioning unit log or other
           Owner must have complied with the AFHMP               maintenance record showing the move out date, start
           Owner must take all feasible actions to fill the      and finish of each process, date the unit was ready
           vacancy, including contacting any applicants          for occupancy, and date the unit was rerented
           on waiting list & advertising the availability of     If either move out or move in is a tenant transferring
           the unit                                              from another unit, claim period is limited to 60 days
                                                                 for all units
           Owner may not reject applicants, except for              Documentation stating reason for transfer
           good cause, & may not cause vacancy by 63                                                                           64
                                                                    Evidence of security deposit transfer or new security deposit

           Annual Recertifications                               Annual Recertifications
              Recertification Timetable:                       To enable owners
                                                               to give the tenant
         Initial Notice                                        30 day notice of
         1st Reminder Notice (120 days)                        any increase,
                                                               recert. should be
         2nd Reminder Notice (90 days)                         completed at least
         3rd Reminder Notice (60 days)                         35 days before the
                                                               recert. date.

                                                          65                                                                   66

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Anita Moseman                                                                                                                 3/17/2007

            Annual Recertifications                                         Interim Recertifications
         Must give copy of Resident Rights                               Residents must report the following
         and Responsibilities Brochure at
                                                                           Any member of the household moves out;
         move-in and annually at                                           Family proposes to move a new member into
         recertification.                                                  the unit
                                                                            • Owner must apply minimum screening
                                                                           Any adult who was unemployed, obtains a
                                                                           The family’s cumulative income increases by
                                                                           $200 or more per month.
                                                                    67                                                   68

            Interim Recertifications                                         Gross Rent Changes
         Management must conduct an interim                              Owners must provide the tenant a
         adjustment of the rent when the tenant reports a:               50059 reflecting all changes in rents,
           Change in family composition;                                 utility allowances, total tenant
           Increase in income by more than $200;                         payment, tenant rent, & assistance
           Increase in allowances;                                       payments
           Decrease in income; or                                        Tenants & owners need only sign the
           A change in citizenship or eligible immigration status        50059 if the gross rent change
           of any family members
                                                                         includes a change in the TTP and
                                                                         tenant rent

                                                                    69                                                   70

                Types of Verification                                         Types of Verification

            Third party verification                                       If 3rd party is not obtained
                Written                                                       Owner must document why
                Oral                                                          it’s not there
                                                                              Attempts made to obtain
            Review of Documents
            Applicant/Tenant Certification                                    That it’s been delayed

                                                                    71                                                   72

ADVANCED HOUSING CREDIT                                                                                                             12