1. Key policies of PHAs
A Workshop for Commissioners of the Texas Housing Association
Presented by MaryAnn Russ

2. Commissioners establish all Policies of the PHA
The policies that PHAs must adopt are generally specified in State law and/or Federal regulations. When the Board agrees to enter into Federal programs (public housing, housing choice vouchers) they pledge to follow the applicable regulations. In return for PHA compliance, HUD promises funding (but often reneges). It is both a requirement and a good business practice to consult with interested residents in developing policies – no one has more of a stake in them. Policies (and many contracts) can only be adopted or revised by resolution of the Board at a properly called meeting. PHAs also have contracts with their jurisdictions called Cooperation Agreements. These contracts guarantee the permanent tax exemption of PH properties, promise equal City/County services and the PHA agrees to pay “payment in lieu of taxes”.

3. Public Housing Program Relationships
U.S. Department of Housing and Urban Development
City/County/Region (Activating Jurisdiction)
Public Housing Applicants
Annual Contributions Contract
Compliance with Rules & Laws
Operating Subsidy
Capital Fund Subsidy
ACOP
Fair and Equitable Practices
Tax Exemption Pledge of Equal Services
Cooperation Agreement
Payment in Lien of Taxes
Public Housing Authority
Board of Commissioners
Executive Director and Staff
Procurement Policy
Personnel Policy
Funding/Payment
Wages and Salaries
Goods & Services
Lease
Decent, Safe Affordable Housing
Quality Work
Rent/ Lease Compliance
Suppliers, Contractors and Vendors
Public Housing Authority Staff
Residents

4. The initial documents – How it all started
All public housing agencies came into being after a local jurisdiction (City, county or group of counties) passed a resolution or ordinance declaring the need for a PHA to function in accordance with the State’s housing authority law. This created the city, county or regional housing authority. The appointing authority (usually the Mayor for a City PHA) appointed the first Board of Commissioners and they adopted the “Articles of Incorporation”, that set up the PHA as a public body, corporate and politic with all the powers and responsibilities granted under the state housing authority law. Before HUD assisted housing could be developed, the PHA and City executed the Cooperation Agreement which spelled out exactly how many assisted units were to be built or acquired.

5. Developing Public Housing
From 1937 when the public housing program originated, into the late 1980s public housing was financed by the PHA’s sale of long term tax exempt bonds and notes that were guaranteed and repaid by the Federal government in annual contributions. Public housing never involved mortgages – there was no principle and interest coming due. The Federal government paid the entire development cost of public housing, which explains its long term interest in the way it is managed and maintained, exercised through the Declaration of Trust – a legal document for each property that guarantees its long term availability as housing for people of low income and forbids the PHA from selling, demolishing or borrowing against it without HUD’s prior permission.

6. Developing Public Housing
When the public housing development program was still active (up to 1996), the first step for a PHA was to execute an Annual Contributions Contract with HUD. Once this occurred, the Federal funding was committed and the PHA could begin development. In the earliest years of the program, most public housing was developed using the “conventional” method – the PHA bought land, hired and architect and developed the property. Later most public housing was developed using the “turnkey” method. The PHA advertised for a number and mix of units and developers submitted proposals. The PHA selected the winning developer and took the property when it was completed. Some current public housing was developed through the Section 23 leased housing program.

7. Annual Contribution Contract (ACC) with HUD
Part 1: Includes information specific to each individual PH property
Method of development (conventional, turnkey, leased housing)
Total development cost, $ bonds/note or grant, $ annual contribution by HUD to bondholders
Date of full availability and end of initial operating period
Legal description of real estate (meets and bounds)
Number, type and size of units included
Non-dwelling space included (e.g. maintenance area, office, community room)

8. Annual Contribution Contract (ACC) with HUD
Part 2, ACC: Terms and conditions
Consolidates all Part 1 into one ACC
Definitions of key terms
Mission of HUD
Mission of the housing authority
Covenant to develop and operate in compliance with applicable laws, rules, etc.
Cooperation agreement with local governing body required
Covenant against disposition and encumbrances
Declaration of trust

9. Annual Contribution Contract (ACC) with HUD
Part 2, ACC, continued: Terms and conditions
Depositary agreement
Pooling of funds
Operating budget
Civil Rights requirements
Insurance requirements
Employer requirements
Books of account, records and government access
Termination of a project under management
Rights and obligations of HUD while in possession of project(s)

10. Cooperation Agreement
Cooperation Agreement (with governmental entity that appoints Board)
Permanent exemption of public housing properties from real estate taxation;
Obligation for local governing body to provide public housing residents with a level of public services equal to that provided other residents (taxpayers);
Specifies number of units approved;
Payment in Lieu of Taxes:
1) How determined - usually 5 or 10 percent of annual rents billed less PHA-paid utilities,
2) How distributed – number of units approved for development or acquisition with pro-rata distribution to taxing authorities.

11. Major Contractual Documents
General Depositary Agreement (with every bank holding PHA deposits)
Requires full collateralization of PHA deposits to protect deposits over $100,000 (above FDIC or FSLIC insurance)
Permits HUD to take over PHA’s accounts if HUD determines PHA has substantially defaulted on ACC.

12. PHA Policies
Policies represent statements by the Board of Commissioners to the staff and public about what the PHA will do relative to a wide variety of actions. The staff typically take the Board’s policies and develop forms, methods and procedures and train their staff to ensure that those policies are implemented consistently and correctly. Many elements of the required policies mirror Federal and State laws and regulations. Putting them in the PHA policies reinforces the Board’s commitment to full compliance with those laws and regulations. Policies can only be adopted and revised at a public meeting where the agenda setting forth the policy has been properly advertised (per Open Meeting law). Further, policies can only be adopted by formal resolution of the Board.

13. Policies required by State Law and Federal regulations
Procurement Policy
Because PHAs are public agencies established under state law, they are bound by State procurement thresholds that establish when sealed bids or competitive proposals must be used for purchasing.
Also, PHAs are recipients of Federal funding so they must comply with the OMB Super-circular designed to ensure that all procurements are necessary, affordable and competitive.
Federal procurement rules require:
Recipient agencies are required to seek the lowest price from a qualified provider
For purchases of goods and services the type of procurement will vary based on cost and what is being bought
Price is NOT the only consideration in procurement

14. Procurement hierarchy
OMB Super Circular
Old HUD CFR “Part 85”
TEXAS State Law
HUD Procurement Handbook
PHA policy
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards aka “Super Circular” (issued December 26, 2013)
Administrative Requirements for Grants & Cooperative Agreements to State, Local & Federally Recognized Indian Tribal Gov’ts
TX state established purchasing thresholds
Most recently issued in 2007
Guides agencies in establishing policies
Often mirrors HUD handbook
THA has a sample policy on their website
BDO PHA Finance

15. Procurement Standards
The organization must maintain written policies and procedures over procurement that meet standards and any other applicable laws and regulations
Costs incurred must be necessary and cost-effective
All procurement transactions must provide full and open competition
The organization must maintain written standards of conduct covering conflicts of interest
The organization must maintain documentation addressing cost and price analysis, and vendor selection, as applicable for selected method of procurement

16. Types of Purchases Goods, Supplies & equipment Construction contracts
Office supplies
Maintenance and janitorial supplies
Expendable and non-expendable equipment BDO PHA Finance
Construction contracts
Building, demolishing or rehabilitating properties
Mod/construction contracts can be complex, but have a lot of boilerplate information
Professional services
Architects and engineers
Lawyers
Accountants and auditors
Consultants
Non competitive purchases
Utilities
Postage
Some emergency procurements

17. Types of Procurements BDO PHA Finance
1. Petty Cash
2. Micro Purchase
3. Small Purchase
4. Sealed Bid
5. Competitive Proposal
6. Qualifications-based selection
7. Non Competitive

18. Personnel Policy
The Annual Contributions Contract requires the PHA to adopt and adhere to a personnel policy that complies with Federal, State and local law and applicable collective bargaining and civil service requirements.
A good personnel policy will address:
Organization chart and lines of authority
Position descriptions and performance standards
Equal employment opportunity
Harassment and sexual harassment
Employment status
Position classifications
Recruiting and screening applicants

19. Personnel Policy, continued
Performance evaluations
Transfers, promotions, demotions, lay-offs, resignation, termination
Immigration control and registration act
Compensation and hours of work
Work scheduling
Time records and overtime
Exempt employees
Employee benefits – insurance, pension, types of leave, holidays
Family and Medical Leave
Travel on PHA business
Safety and Risk Management

20. Personnel Policy, continued
Protecting employee information
Employee conduct
Standards of ethics
Tardiness and absenteeism
Professionalism
Alcohol and drug abuse
Garnishments
Smoking
Social media policy
Employee discipline, appeals and complaints.
Alcohol and drug testing
Workplace violence

21. HUD-required Policies in the Public Housing program
Annual and Five Year Plan: Includes all other policies and lays out the overall goals for the year and five year periods; 24 CFR 903
Admissions and Continued Occupancy Policy (ACOP): governs eligibility, waiting list, income and rent, admissions, recertifications, and program definitions; see 24 CFR 5 and 960
Lease: The contract between the PHA and tenant. Covers parties and premises, terms and conditions, PHA and tenant obligations, termination and other conditions of occupancy; see 24 CFR 966(a)
Grievance Procedure: Administrative remedy for complaints by tenant against the PHA – not available to tenants being evicted for violent or drug-related criminal activity; see 24 CFR 966(b)
Pet Policy: Rules on pet ownership in public housing units; see 24 CFR 5 and 960
Community Service Policy: Requirement that certain adult residents contribute 8 hours per month in service. See 24 CFR 960

22. Annual and Five Year Plan
The 1998 QHWRA law required all PHAs to adopt and submit for HUD review Annual and Five Year plans. All PHAs with more than a combined total of 550 public housing and HCV units plus PHAs with failing PHAS or SEMAP scores with fewer than 550 units are required to submit Annual and Five Year plans; What HUD requires is that each PHA submit a “template” appropriate to the PHA annually and attach a variety of supporting material. In effect, no real planning is necessary, the PHA just fills out the questionnaire and electronically submits it with all the required attachments. The Five Year plan has even less substance than the Annual Plan, It’s more like motherhood and apple pie. The process of completing the Annual Plan is quite prescriptive.

23. Annual and Five Year Plan
Every PHA that is required to do the Annual and Five Year Plans must establish a “Resident Advisory Board” (RAB) with residents from all the PHA’s programs represented. The PHA is required to work with the every year in the preparation of the coming year’s Annual Plan. If the members of the RAB take the process seriously, this can be a real boon to the PHA. When the Annual Plan is in its final draft, it must be posted at all properties and the PHA’s offices for 45 days so interested parties may review it and submit written comments. To tell the truth, few people take the trouble to comment. When the 45-day comment period is complete and comments considered, the PHA Board holds a public meeting on the Plan, typically right before a regular Board meeting. Then the plan can be adopted by the Board and sent to HUD 75 days before the fiscal year begins. HUD has 60 days to review the plan.

24. Admissions and Continued Occupancy Policy
The ACOP and the HCV Administrative Plan are typically the biggest PHA policy documents because they cover such a wide range of issues. A good ACOP will include:
Civil rights, nondiscrimination and affirmatively furthering fair housing
Reasonable accommodations for people with disabilities
Assisting individuals with limited English proficiency
Eligibility for admission
Opening, closing and managing the wait list
Affirmative marketing
Income targeting
Qualifying for admission
Determining eligibility and notifying applicants
Admission preferences

25. ACOP, continued Records management Occupancy guidelines
Tenant Selection and Assignment Plan
Making unit offers
Applicants and transferees
Good cause rejection of unit offer
Accessible units
Leasing Policies
Additions to and deletions from the family and household
Visitors
Deconcentration
Transfer Policies
Types of Transfers
Priorities for Transfers

26. ACOP, continued
Cost of Transfers
Tenant in good standing
Annual Reexamination of income and family circumstances
Interim adjustments
Lease terminations
Utilities
Flat rents
Determining Income and Rent
Definitions
Community Service

27. The Public Housing Lease
The PHA’s lease is a critically important document – it defines and limits what the PHA can do to ensure a good quality of life for Public housing residents. If a “bad apple” is inadvertently admitted, the lease defines how you can try to get him/her to be a better neighbor and, if that does not work, how you can evict him/her (always a last resort). The lease must track the ACOP – they must set forth the same policies with no conflicts. Revising the lease has always required a 30 day posting period to give tenants a chance to comment before it is revised. Now the lease is a part of the annual plan and a 45 day comment period is required, plus a public hearing before adoption of any changes.

28. The Public Housing Lease
Every public housing lease must contain the HUD required provisions, may not contain any prohibited provisions, and may add any other “reasonable” wording the PHA desires.
At a minimum, the lease should address:
The PHA’s name and the names, ages and relationship of everyone who will live in the unit;
The unit address;
The effective date;
The initial and monthly rent;
The initial and monthly utility allowance;
Whether the tenant has chosen income-based or flat rent;
How and where rent is to be paid

29. The Public Housing Lease
Amount of security deposit
Utilities furnished by the PHA
Utilities billed directly to tenant
Appliances furnished by PHA & tenant
Accessibility features in unit (if any)
Spot for lease execution by tenant head, spouse/co-head
Lease attachments (if any)
When rent is due
Notice of rent adjustment
Charges in addition to rent
Non-smoking requirement
Annual and interim reexamination of rent and family circumstances

30. The Public Housing Lease
Utilities and appliances
General conditions for use and occupancy of the apartment
Transfers
PHA obligations
Tenant obligations
Changes in household
Entry of premises during tenancy
Defects hazardous to life, health or safety
Inspections
Parking
Notice procedures
Lease termination
Grievance procedures and requirements

31. The Public Housing Lease
Notice to post office
Lease modification and riders
Non-liability
Abandonment of the unit
Community service
Tax credit properties
Housekeeping standards
House rules

32. Grievance Procedure, 24 CFR 966.5
The Grievance procedure is an administrative mechanism for public housing tenants to resolve complaints about the PHAs actions or failures to act. It has been a requirement since the 1974 HCDA, and it can save PHAs legal fees when it’s not abused.
The Grievance Procedure:
Is applicable to individual grievances between a tenant and the PHA;
If HUD has issued a “due process determination” for the state, the PHA may exclude from the Grievance procedure a grievance due to an eviction for violent or drug-related criminal activity. The tenant still has an opportunity to object in court;
Is not applicable to disputes between tenants not involving the PHA or to class grievances;
Is part of each tenant’s lease, by reference and must be given to each tenant and tenant organization.

33. Grievance Procedure The Grievance Procedure has a series of steps:
The tenant must try to settle the grievance informally either at the PHA central office or the tenant’s project
If the informal settlement does not satisfy the tenant, the tenant may request a hearing within the number of days specified in the PHA’s grievance procedure;
The tenant is not eligible for a hearing if it is not requested timely;
If the tenant is grieving the amount of rent, the tenant must deposit into an escrow account the amount of rent due the first of the previous month;
No escrow deposit is required for tenants paying minimum rent;
The grievance hearing will be held before a hearing panel or a hearing officer per the PHA’s grievance procedure;

34. Grievance Procedure
Rules for the Hearing - The complainant has the right:
to examine all materials, documents, records and regulations relevant to the hearing;
To be represented by counsel or other persons (at complainant’s expense);
To a private hearing unless the complainant requests a public hearing;
To present evidence and arguments in support of the tenant’s complaint, to controvert evidence relied upon by the PHA and to confront and cross examine witnesses;
To a decision based solely and exclusively on the facts presented at the hearing;
The hearing officer or panel may render a decision without holding the hearing if the issue has been previously decided in another proceeding.

35. Grievance Procedure
The grievance hearing shall be conducted informally by the hearing officer or panel and oral or written evidence is not subject to the rules of evidence in judicial proceedings;
The complainant or PHA may arrange at the expense of the party requesting for a transcript of the hearing;
The PHA is required to provide accommodations for persons with disabilities or limited English proficiency;
The hearing officer or panel shall prepare a written decision in a reasonable time after the hearing. The decision is binding on the PHA unless:
The grievance does not concern the PHA’s acts or failure to act; or
The decision of the officer or panel is contrary to law, regulations or the ACC;
No decision by the hearing officer or panel deprives the complainant of his/her rights to a judicial review.

36. Pet Policy
Federal law has established two sets of rules related to animals owned by tenants:
An animal verified to be needed by a tenant with a disability, either as a service animal or as a companion/comfort animal, is not subject to the pet policy except that the animal must have necessary inoculations and the tenant must be able to care for (and clean up after) the animal;
Other animals owned by non-disabled tenants must comply with the Pet Policy;
The pet policy may set forth the type, number and size of pets permitted, and may require that tenants pay a pet fee and/or pet deposit that the PHA will use to resolve any problems in units caused by the pet;
The PHA may require pets to be spayed or neutered;
PHAs may not ban pets in properties for the elderly or disabled.
The PHA Pet Policy should mirror any local ordinances.

37. Community Service Policy
The 1998 QHWRA required non-exempt adults in public housing families to perform 8 hours per month of Community Service to remain lease compliant.
Many PHAs put their community service policy in their ACOP, which is perfectly fine.
“Exempt” individuals do not have to do community service:
62 years old or older;
Blind or disabled and certify that they cannot perform community service;
Primary caretaker of a blind or disabled individual;
Engaged in work activities more than X hrs/week;
Meets the requirements by complying with TANF or SNAP requirements
All other PH residents 18 or older must comply and perform 8 hrs/month of community service. This requirement does not apply to HCV.

38. Community Service Policy
What qualifies as community service? A wide range of activities that benefit the community at large:
Volunteering with an agency that serves low income children, the elderly or disabled persons like a community food bank or clothing bank;
Volunteering with a community service organization (e.g. Boys/Girls Club, scouts, 4H, PTA, summer meals program, recreation programs;
Pursuing ones’ education through college, vocational training, etc.;
Working as a volunteer with government programs such as meals on wheels, senior centers, RSVP, SCORE, Green Thumb, being a room parent in a school;
Political activity does not count (although everyone may engage in political activity);
Work cannot replace PHA staff work. PHA must be careful of liability assigning work at the PHA.

39. Community Service Policy
PHA may (but is not required to) permit people to concentrate their community service in a few months rather than over the year – e.g. Residents run a summer lunch program for children at the property since school lunches are not available.
If people fail to perform required community service it takes 2 years to enforce the lease:
At the end of the first non-compliant year the tenant must be given a chance to make up missed hours;
Only at the end of the second year when hours are still missing can the PHA refuse to renew the lease (this is the ONLY time this can happen) and evict the tenant.

40. HCV Administrative Plan
The Administrative Plan serves the same function for the Housing Choice Voucher (HCV) program as does the ACOP for public housing. The Admin Plan sets forth the Board’s (and HUD’s ) policies about:
Nondiscrimination and affirmatively furthering fair housing
Eligibility
Taking applications
Maintaining the waiting list
Determining income and computing rent and utility allowances;
Determining unit size
Issuing vouchers
Inspecting units
Conducting annual reexaminations and interim adjustments
Enforcing program rules
Terminating assistance

41. HCV Administrative Plan
In addition to those basic matters, the Admin Plan sets forth a series of policies unique to the HCV program:
Establishing the annual payment standards based on HUD’s fair market rents and local rental market conditions;
Informal reviews for denied applicants, informal hearings for participants;
Recruiting landlords to participate;
Screening landlords and enforcing the HAP contract;
Deciding when to permit biennial inspections instead of annual inspections;
Project-based assistance;
Special programs (e.g. VASH, FUP, Mainstream, Family Self Sufficiency, Homeownership;
Ethical precepts governing the program’s administration.

42. HCV Administrative Plan
A complete Admin Plan will typically contain the following material, although not necessarily in this order:
Nondiscrimination and affirmatively furthering fair housing;
Civil and disability rights laws;
Providing information to applicants, participants and owners;
Discrimination complaints;
Reasonable accommodations to individuals with disabilities;
Denial or termination of assistance;
Providing appropriate materials and services for persons with Limited English proficiency;
General administrative provisions
The Project-based program;
Eligibility Criteria
Criminal History Check for all applicants;

43. HCV Administrative Plan
Additional HUD eligibility criteria:
Other admission requirements (debts owed to a PHA);
Public housing and former HCV participants;
Admitting applicants to the program
When and how applications are accepted;
How the waiting list is organized;
The application;
Opening the waiting list (and affirmative marketing);
Selection from the waiting list;
Admission preferences;
Income targeting;
Applicant ineligibility and informal review;
Briefing applicants and issuing vouchers;
Promoting housing opportunities

44. HCV Administrative Plan
Term of vouchers and extensions;
Payment and Subsidy Standards
Payment standards (establishes maximum subsidy);
Family subsidy standards at admission;
Live-in aides;
Family subsidy standards during participation;
Separation or divorce;
Determination of family share of housing costs;
Minimum rent and exemption from minimum rent;
Adjustments to income and family rent;
Verification of information (income, assets and deductions);
Non-cash contributions
Maximum initial rent burden

45. HCV Administrative Plan
Utility allowance;
Utility reimbursements;
Request for Tenant Approval, Inspections and Leasing
Accepting the RFTA;
Term of the voucher and extensions;
Abatement of HAP payment
Rent Reasonableness determination;
HAP contracts with owners/landlords;
Monthly HAP payments;
Annual recertification;
Interim changes in income and family composition;
Earned income disallowances for disabled working adults;
Family absences from the unit;
Remaining family members;

46. HCV Administrative Plan
Family moves;
Overlapping HAP payments;
Owner termination of a participant’s lease: grounds;
Required notice for lease termination;
Change in ownership or property management;
Termination of assistance to participants
Special Programs, features and options
VASH;
Family Unification;
Mainstream;
Project-based vouchers;
Homeownership

47. HCV Administrative Plan
Termination of Assistance
Required terminations based on HUD program regulations;
Families wishing to voluntarily terminate;
No HAP paid for 180 days;
No family member is either citizen or eligible immigrant
An adult family member refuses to sign consent forms;
Any family member does not provide social security information;
Family moves out of its unit without proper written notice to PHA and landlord;
Family has failed to make verified payments due under the lease;
Family has not reimbursed any PHA for amounts owed;
Family has not reported change of income or family composition;
Family fails to recertify after two notices;
Adult family member engaged in violent or drug related criminal activity;

48. HCV Administrative Plan
VAWA protections;
Adult family member is subject to lifetime registration as sex offender;
Any family member has been convicted of manufacturing methamphetamines in Federally assisted housing
Any family member engages in illegal use of a controlled substance
Any family member abuses alcohol in a manner that threatens the health, safety or peaceful enjoyment of the premises by others;
Any household member illegally possesses weapons;
Any member of the Family misrepresents facts, bribes or commits any other corrupt or criminal act in any Federal housing program;
Any family member or guest of the family threatens PHA personnel or threatens abusive or violent behavior against PHA personnel;
All members of the family are absent from the unit for more than 14 consecutive days without PHA and landlord approval;

49. HCV Administrative Plan
A family is evicted for serious or repeated lease violations;
Any family member enters into a side agreement without PHA authorization;
Any family member or guest causes damage to the unit as verified by PHA inspection;
Any member of the family has violated any Family Obligation as outlined in 24 CFR ;
Any other HUD-allowed reason;
The PHA may require an individual who violated any family obligation to leave the unit and never reside there again. This will protect the rights of remaining family members to stay;
Required termination notification
The Violence Against Women Act
Terminating PHA HAP payments
Determining Income and Rent
Questions and Answers