1 Technical Assistance Workshop Provided By: Community Services Department - Office of Housing and Community Development Grants Management Affordable Housing

2 Introductions David Turkel Daphne Lemelle Elizabeth Winfrey Dwight Wolf Sally Bakko Gene Simeon Ernesto Hernandez Shelia Ward Dora Mata

3 To ensure compliance and performance in the delivery of affordable housing to the low and moderate income citizens of Harris County. Our Mission… 1.Conduct Desk Reviews 2.Conduct Monitoring Visits 3.Provide Technical Assistance Visits Telephone Letters E-news

4 Goals Today Develop professional working relationships with our subrecipients. Provide clarification on requirements under Harris County Affordable Housing Rental Programs. Highlight changes to policy and procedures Gain feedback on areas of concern. Provide useful guidance and an informative experience.

5 Overview Morning Session Calculating Income Utility Allowances Unit Inspections Tenant Income Certification Form Re-certification Process and Use of Self- Certification Afternoon Session Rental Housing Compliance Reports Affirmative Fair Housing Marketing Accessible Units Tenants Rights, Protection, & Participation Section 504 Self-Survey

6 Calculating Income Eligibility Adopted the Section 8 Part 5 Definition of calculating income for the our Programs

7 Income Limits HUD publishes income limits annually We forward to subrecipients with an effective date Available online

8 Income Limits 1 Prsn2 Prsn3 Prsn4 Prsn5 Prsn6 Prsn7 Prsn8 Prsn 30% % % % HUD Median Family Income Limits 2012 State: Texas Houston, TX PMSA Effective Date: February 9, 2012

9 Calculating Income Eligibility Source Documentation –Too little/Too much (Document! Document! Document!) –Forms on the CD –Contact Log

10 Calculating Income Eligibility Basic Guidelines –Anticipated Annual Gross Income –All Adult Members Count (18+) –All Sources of Income Count * –Value of Assets Must be Considered- Greater than $5, Calculating Household Income Guidebook and Procedures Manual * Applicable incomes per HUD guidance

11 Calculating Income Eligibility Basic Process –Determine Household Size –Determine Whose Income Counts –Determine Household Income –Determine Value of Assets

12 Calculating Income Eligibility EXERCISE I Dapper Household situation: Don (38) and Betty(29) are married and have two children, Sally (18) and Jason(16). Betty is 8 months pregnant with her third child. Household Size? Who’s income is counted?

13 Exercise I Don works full-time at CarEmporium making $8.00/hr. in make-ready and paid Bi- weekly. He receives a $ annual bonus and is not going to receive overtime. He is paid bi-weekly. $8.00 x 80 hrs./prd. x 26pyprds./yr. = $16, Bonus of $ = $16, Source Documentation: Three (3) months worth of paycheck stubs or a Verification of Employment.

14 Exercise I Betty baby sits for the neighbors every week during the summer, and they pay her cash in the amount of $ for her services. $300.00/wk. x 12wks./yr. = $3, Total Income = $3, Source Documentation: Three (3) months worth of paycheck stubs or a Verification of Employment.

15 Exercise I Sally works part-time at Music-4-Us while she is going to school for her sound engineering degree. Sally gets paid $7.25/hr. to oversee karaoke, and does not have a set schedule of hours. She also receives financial aid of $2, for school, and is enrolled part-time. ( ) = / 12 wks = hrs. $7.25 x hrs./wk x 52 wks./yr. = $9, Total Income = $9, Source Documentation: Three (3) months worth of paycheck stubs or a Verification of Employment.

16 Exercise I Jason works part-time at a daycare, assisting with recreational activities. He receives $7.25/hr. and works 15 hours a week year round with the exception of 3 weeks of break for school. $7.25 x 15 hrs./wk x 49 wks./yr. = $5, Total Income = $0.00 He is a Minor – None of his income counts! Source Documentation: Birth Certificate required to confirm his date of birth.

17 Exercise I Jason is 16 and his father (not Don) has been issued a court order to pay $ in child support each month. Betty has stated that she does not receive this each month… $300 x 12 mos. = $3, Total Income = $3, Source Documentation: Formal printout from TAG or other child support system showing a history of non-receipt.

18 Child Support Child support is one of most common sources of income beyond wages and disability. It must be counted regardless of whether or not it is actually received UNLESS a formal printout from TAG or other child support system showing a history of non-receipt is provided. A signed statement from the applicant that they are not receiving any DOES NOT count as sufficient documentation.

19 Exercise I Total Income Don - $16, Betty - $3, $3, Child Support Sally - $9, Jason -$0.00 TOTAL = $32, Source Documentation: Tenant Income Certification (TIC) along with applicable supporting documentation.

20 Exercise I Don and Betty hold two (2) joint accounts, one (1) checking and one savings. Checking: –Current Balance: $5, –3-Month Average: $2, Savings: –Current Balance: $3, –3-Month Average: $1, Source Documentation: Three (3) months of bank statements or Verification of Deposit on both accounts indicating the required balance.

Exercise I 21 Don’ s mother died six (6) months ago and he inherited her home and property. With the mother’s will and the death certificate, Don is able to establish ownership. He places the property in his name. The HCAD value of the property and home is $18, He and Betty have decided to hold onto the property for the time being and have not turned it into rental property. How does this inheritance effect the household’s income?

Exercise I To determine the cash value of the asset start with $18, If mortgaged, reduce it by amount owed ($0.00), deduct the cost for disposing of it (real estate commission, and other costs of sale)- $1,440.00, resulting in its cash value of $16, Don is not forced to convert the asset to cash; however, its value must be imputed as follows: $16, X 1%* (Pass Book rate) or $

Exercise I The use of a 1% Pass Book Rate for imputing the value of an asset is effective immediately. This new rate is based upon market issues and the fact that Harris County Housing Authority is utilizing this rate in its income determination. 23

Exercise I How does the evaluation of the property asset change if they disposed of the property just prior to the application for housing? What would be the effect of the asset on the household income if the property were disposed of more than (2) years ago? 24

25 Exercise I Cash Value of Assets: $2, $3, = $5, (Imputed) $5, x 1% = $54.00 Actual Income from Assets: $3, x 1.00% (annualized) = $32.00 $54.00> $32.00 Source Documentation: Three (3) months of bank statements or Verification of Deposit on both accounts indicating the required balance.

26 Exercise I Don and Betty have a car each which they use to drive to and from work. Sally has a motorcycle that she uses to get to and from work. Jason gets a ride with a friend. Source Documentation: No documentation required. Vehicles used for the purpose of transporting to/from work are not considered assets.

27 Exercise I Total Household Annual Income Total Annual Income = $32, Total Banking Assets = $54.00 Total Property Assets= $ TOTAL = $32, Source Documentation: TIC along with applicable supporting documentation.

28 Rent Determination Harris County has adopted : HUD annually published High and Low HOME rents HCHA annually published utility allowances When a unit receives both LIHTC and HOME funds, subrecipients are required to submit to CSD the LIHTC rent limit for each property, compare the two (2) rent schedules and use the lower rents as the rent limit for each unit

29 Rent Limits SRO*EFF1 BR2 BR3 BR4 BR5 BR6 BR Low High HUD HOME Program Rent Limits 2012 Effective Date: February 9, 2012 * 75% of Fair Market Rent for an Efficiency Unit.

30 Rent Increases In accordance the HOME regulations, 24 CFR , f, 3. A rent increase can occur during the life of the lease when- lease states rent can increase 30 days prior written notice given and approved by CSD

Utility Allowances The use of an alternative UA in lieu of HCCSD issued UA is allowable; however, it must be approved by HCCSD (supporting documentation required). In order to coordinate the use of alternative UA with HCCSD issued UA, HCCSD requests that these be received for review no later than April 1 of each year. 31

32 Utility Allowances HCHA Allowances for Tenant-Furnished Utilities: –Heating (Natural Gas or Electric) –Cooking (Natural Gas or Electric) –Other Electric –Air Conditioning –Water Heating (Natural Gas or Electric) –Water –Sewer –Range/Microwave –Refrigerator

33 Rent Floor If Rent Floor higher than the annual High or Low HOME Rent, utilize Rent Floor.

34 Calculating Rent Basic Calculation *Rent Limit minus Utility Allowance = Maximum Rent *Rent is dependant on the number of bedrooms in the unit and the income classification of the household. Maximum Rent = The maximum amount of rent that can be charged to a tenant residing in a HCCSD-assisted unit. Source Documentation: Tenant Income Certification along with Utility Allowance Schedule.

35 Calculating Rent-Exercise The Dapper household consists of 4 members; income is calculated at $31,963.20; they pay all applicable utilities. They would like to rent a three (3)bedroom unit. What is the max rent? –50%MFI family – Low HOME Rent –Low HOME Rent Limit = $870; Utility Allowance = $134 $870- $134 = Max Rent of $ Source Documentation: Tenant Income Certification completed with rent and utility allowance information.

36 Calculating Rent-Exercise The Spitt household consists of 5 members; upon re- certification of income, it was calculated at $44,800.00; they pay all applicable utilities. They move up to a 4-bedroom unit. What is the max rent? –Qualify 80% or less Income Household; thus High HOME Rent applicable –High HOME Rent Limit = $1,205.00; UA = $ $1, $161.00= Max Rent of $1, Source Documentation: Tenant Income Certification must be completed and must be reported as a High-unit.

Tenant Income Certification Form TIC form Summarize your household income calculations Determine the household classification by income Select the appropriate rent limit Apply the UA Determine maximum rent and assign rent amount Provide demographic information Head of household is declaring the information to be true and accurate. 37

Time Requirements Applicants: Source documentation can not be older than four (4) months. Full annual re-certification on income eligibility required unless property approved for self- certification. Re-certification must be completed by the first day of the anniversary month of move into the property. 38

Time Requirements Begin Recertification Process: 120 days out Send reminder every 30 days until the process is completed. In the event that a rent increase will occur with the re-certification at least 30 days prior notice is required. 39

Time Requirements Determining a Recertification Anniversary Date If a family moves in on December 1, its anniversary date is December 1 If a family moves in on December 15, its anniversary date is December 1 If a family moves in on December 30, its anniversary date is December 1 40

Time Requirements Determining Recertification Anniversary Date A unified recertification anniversary date may be assigned to all tenants in assisted units to better coordinate recertification and inspection activities. If you choose to take this path to compliance, you must notify HCCSD of your choice and provide the unified anniversary date. 41

Time Requirements Existing Tenants who are eligible for a HCCSD- assisted unit. Example- The Dapper household moves onto the property in April and is paying market rent (no assisted units were available at the time of move-in). The Park household moves out of a Floating HOME-assisted unit in December; thus creating a HOME-assisted vacancy for which the Dapper family qualifies. After household certification, their unit is designated as a HOME- assisted unit on January 15, Their recertification anniversary date is now January 1. 42

Property Inspections All assisted units must be inspected annually by HCIS staff and property management in order to insure that housing remains safe and decent. Housing Quality Standards (HQS) checklist is used to determine that the assisted units are in compliance Property Management can use HQS checklist; however, it is not required. In lieu of HQS, you must use a comprehensive checklist. The person doing the inspection must sign, date, and file the document in the tenant file. Property management is required to inspect a newly designated assisted unit prior to the eligible households’ occupancy. 43

Rental Housing Compliance Reports Submitted by the tenth day of the month after the end of the reporting period- quarterly, monthly, or as required. 44

Rental Housing Compliance Report Changes to the Compliance Report : A dding Female Head of Household Information Move-out Information- example is the Park household that moved out in December Effective Immediately 45

46 Affirmative Marketing Affirmative marketing requires: 5 (five) or more HOME assisted units Targeting least likely to apply for the housing Make aware of available affordable housing opportunities.

47 Affirmative Marketing Advertising Project sponsors must display the Equal Opportunity Logo Advertise media may include a variety of outlets

48 Affirmative Marketing Special Outreach Solicit applications from persons in the housing market who are least likely to apply without the benefit of special outreach efforts. Accessible Units in HOME-assisted properties must be offered first to persons with disabilities. How do you do this? Positioning Informational Flyers in Minority Neighborhoods Use of Minority-Specific Media Distribution of availability to community organizations such as places of worship, housing and social centers, organizations for the disabled or other minorities.

49 Use Multifamily Housing Form (HUD A) to document activities After Lease-Up, if affirmative marketing activities are conducted, a record of the activities, including copies of publications, must be kept in the property leasing office for monitoring. Affirmative Marketing

50 Accessible Units What steps do you take to insure an eligible individual fills a vacant accessible unit?

51 First, offer the unit to a current tenant who might require or benefit from the accessibility feature(s) of the unit. Second, offer the unit to a qualified applicant who requires accessibility feature(s) of the unit from your waiting list. Last, offer the unit to a non-disabled person. After all accessible units are filled, you are going to continue to receive applications from disabled person’s. What do you do? Accessible Units

52 Recommendation: When possible address this in the lease Accessible Units

53 HOME regulations, 24 CFR ,a & b require: Written Lease At least 12 months Never less than 30 days Specifies Prohibited lease clauses- Lease Addendum Harris County Must Approve All Leases Tenant Rights

54 Terminating the Lease Serious or repeated violation of the terms and conditions of the lease Violation of applicable federal, state, and local law Completion of the tenancy period Other good cause, as defined by the lease. Tenant Rights

55 Terminating the Lease Serve written notice Document the process Review of terminated leases may occur during annual monitoring Tenant Rights

56 Tenant Selection Procedures Must use objective criteria Must prohibit discrimination or favoritism towards friends or relatives, or conflicts of interest. Criteria can give preference to persons with special needs only Harris County approval. Tenant Selection

Must promptly notify a rejected applicant in writing with grounds for the rejection. Must maintain a file of the rejection letters for review at annual monitoring Must describe use of and maintain a waiting list. 57

58 Grievance Procedure Elements Must present written policy and be orally explained at entry Must be posted in a public location (leasing office) Address resolving disputes between tenants Address tenant’s grievances with management State who is to receive the complaint State who will investigate State time frame for management response to complainant Must include HCCSD Contact Number Tenant Protection

59 Harris County must approve CHDO’s required Grievance Policy & Procedures and Tenant Participation Plan Tenant Participation

60 All Subrecipients, regardless of funding source, must complete the Section 504 self- evaluation survey. The survey must be completed and filed at the property site for annual monitoring visit. Section 504 Self-Evaluation Survey

61 This is a Three (3) Part Form. If the Subrecipient has fifteen or more employees, all three parts must be completed. It is available at- 04/Section-504-Survey-Form.xls Section 504 Self-Evaluation Survey

62 Part I (Completed by all subrecipients) The Subrecipient will be answering these questions about its administrative office and the assisted housing project specifically. Section 504 Self-Evaluation Survey

63 Part I, B, C. Address policies and procedures for both administrative offices and for assisted housing project. If contracting property management, include their policies and procedures for the site. Section 504 Self-Evaluation Survey

64 Using the format provided, complete the Plan for implementing structural, procedural or policy changes identified in your Survey. Section 504 Transition Plan Format

65 Reference Information Resource sites: HUD- HCCSD- Housing Resource Center (HRC) : HUD’s Income Calculator: www. hud.gov/hfc/calculator/ Affirmative Marketing: Compliance in HOME Rental Projects: A Guide for Property Owners homerentalpo.pdf

66 Questions

67 Survey We want your feedback! Please take a few minutes to fill out our survey. This information will help us provide a more effective and efficient workshop in the future. Thank You!

68 Contact Information Harris County Community Services Department- Office of Housing and Community Services 8410 Lantern Point Houston, Texas Phone (713) Fax (713) Dwight Wolf xt hctx.net Gene Simeon xt – Sally Bakko xt Shelia Ward xt – Ernie Hernandez xt – Dora Mata