1. May 2003Chapter 4: Basic Program Overview1 HUD RHIIP Training – PH/HCV Program Basics

2. May 2003Chapter 4: Basic Program Overview2 Learning Objectives Explain the legal relationships of a PHA Review family types which impact rent calculation Review the program basics of calculating income, assets, allowances and deductions and rent Apply correct program terminology

3. May 2003Chapter 4: Basic Program Overview3 Congress HUD Headquarters HUD Centers & Field Offices Local Government Families and Owners Local Housing Agency Governed by Board Administered by Executive Director

4. May 2003Chapter 4: Basic Program Overview4 PHA Structure PHAs receive their structure and powers under state law Public corporation w/board of directors –can be a department of a local entity Contract with HUD under an ACC for funding to operate the PH and HCV programs

5. May 2003Chapter 4: Basic Program Overview5 PHA Structures Are Different Vary State to State Titles differ within PHAs Scopes of responsibility differ BUT... All agencies that operate the HCV program must follow same HUD rules, and all agencies are rated under SEMAP and…

6. May 2003Chapter 4: Basic Program Overview6 PHA Structures Are Different All agencies that operate the Public Housing program must follow same HUD rules, and all agencies are rated under PHAS

7. May 2003Chapter 4: Basic Program Overview7 In Public Housing, families have to live in the building which has the subsidy attached to it Project-based Subsidy

8. May 2003Chapter 4: Basic Program Overview8 Legal Relationships Lease

9. May 2003Chapter 4: Basic Program Overview9 Type of Projects Mixed Population (Elderly & Disabled) Elderly Only Disabled Only General Occupancy

10. May 2003Chapter 4: Basic Program Overview10 Tenant- Based Subsidy Families can choose their unit

11. May 2003Chapter 4: Basic Program Overview11 Voucher HAP Contract Assisted Lease PHA/LOCAL ENTITY HUD FamilyOwner

12. May 2003Chapter 4: Basic Program Overview12 T/F Quiz 1. HUD’s role is to pass legislation. 2.PHAs are created by HUD. 3. PH is tenant-based assistance. 4.All PHAs are a department of the city.F F F F

13. May 2003Chapter 4: Basic Program Overview13 Mandatory References Statutes Regulations –Public Housing: 960 and 966 –HCV: 982 –Both: Subpart 5

14. May 2003Chapter 4: Basic Program Overview14 Mandatory References Current Notices –Have an expiration date –May be extended Handbooks Forms –Often have instructions in addition to form

15. May 2003Chapter 4: Basic Program Overview15 Optional References Guidebooks Letters from individual HUD staff giving guidance Notices which have expired (unless changed by mandatory reference) Handbooks which have expired (unless changed by mandatory reference)

16. May 2003Chapter 4: Basic Program Overview16 Role of Field Office Staff Answer questions based on mandatory references Refer to HUD Guidebooks but make sure staff know that if the guidance is used by the PHA, it should be included in the PHA’s policy (Admin Plan or ACOP)

17. May 2003Chapter 4: Basic Program Overview17 Family Report Form HUD-50058

18. May 2003Chapter 4: Basic Program Overview18 Understanding the Form The HUD-50058 is a primary document to review Therefore, the reviewer must: –Understand each line of the form affecting income and rent calculation applicable to the program being reviewed –Know where references can be located

19. May 2003Chapter 4: Basic Program Overview19 Form HUD-50058 Purpose is to provide HUD with data on who participates in subsidized housing programs HUD uses data to: –Analyze the housing programs –Monitor PHAs –Detect fraud –Provide information to Congress –Provide information to other interested parties

20. May 2003Chapter 4: Basic Program Overview20 Form HUD-50058 PHA responsibilities –Collect information –Electronically submit information to HUD –Review error analysis reports –Correct errors

21. May 2003Chapter 4: Basic Program Overview21 HUD-50058 Family Report 1.Agency 2.Action 3.Household 4.Background at Admission 5.Unit to Be Occupied 6.Assets 7.Income (Annual Income)

22. May 2003Chapter 4: Basic Program Overview22 HUD-50058 Family Report 8.Expected Income Per Year (Adjusted Income) 9.Total Tenant Payment 10.Public Housing only 11.Premerger Certificates (now used for project- based certificates only) 12.Sec 8 Voucher Rent Calculation 13.Section 8 Moderate Rehabilitation Program

23. May 2003Chapter 4: Basic Program Overview23 HUD-50058 Family Report 14.Manufactured Home Owner Renting the Space - Premerger Certificates (not used) 15.Sec 8 Homeownership (Vouchers) 16.Indian Mutual Help (IHAs only) 17.FSS/Welfare to Work Addendum

24. May 2003Chapter 4: Basic Program Overview24 Question Which sections will affect income and rent calculation the most?

25. May 2003Chapter 4: Basic Program Overview25 Form HUD-50058 References PIH Home Page: www.hud.gov/offices/pih/index.cfm PIC home page: www.hud.gov/offices/pih/systems/pic/index.cfm MTCS Forum: http://chatwrite.hud.gov/pih/pihboard/mtcs/pihboard.html Guidebooks and Tools: www.hud.gov/offices/pih/systems/pic/50058/pubs/

26. May 2003Chapter 4: Basic Program Overview26 Page Heading At the top of every page of the HUD-50058: –The head of household’s name –The head of household’s SSN –The date modified

27. May 2003Chapter 4: Basic Program Overview27 Section 1: Agency

28. May 2003Chapter 4: Basic Program Overview28 Family Composition Basic information about family composition and characteristics is important for: –Establishing the eligibility for admission and continued occupancy –The family’s qualifications for deductions and allowance –The appropriate unit size and type for family –The appropriate subsidy standard for the family (HCV)

29. May 2003Chapter 4: Basic Program Overview29 Section 3: Household

30. May 2003Chapter 4: Basic Program Overview30 Family Types

31. May 2003Chapter 4: Basic Program Overview31 Terms Household Family

32. May 2003Chapter 4: Basic Program Overview32 Definition of Family HUD defines: –elderly family –disabled family –displaced family Does not affect rent calculation

33. May 2003Chapter 4: Basic Program Overview33 Definition of Family The PHA defines what groups other than the HUD-defined groups constitute a family

34. May 2003Chapter 4: Basic Program Overview34 Elderly Family Family whose head, spouse or sole member is at least 62 years of age

35. May 2003Chapter 4: Basic Program Overview35 Disabled Family Family whose head, spouse or sole member is a person with disabilities

36. May 2003Chapter 4: Basic Program Overview36 Live-In Aide Person who resides in unit to care for family member who is: –disabled or –50 years of age or more

37. May 2003Chapter 4: Basic Program Overview37 Live-In Aide Criteria Live-in aide is: –essential to care/well being of person –not obligated for support of person –wouldn’t be living in unit except to provide necessary supportive services Must approve as reasonable accommodation for person with disability Live-in aide is a “household” member

38. May 2003Chapter 4: Basic Program Overview38 Employed Live-in Aide Live-in aides can, and often do, work outside the home –Because they are not ‘family’ members, all income is excluded

39. May 2003Chapter 4: Basic Program Overview39 Social Security Number Requirements All family members age six and over who have Social Security Numbers are required to disclose them

40. May 2003Chapter 4: Basic Program Overview40 Social Security Numbers If family member has no social security number and they are age 6 or older, they must sign certification –Parent or guardian signs for minor

41. May 2003Chapter 4: Basic Program Overview41 Social Security Number Requirements If family member has SSN but cannot verify, they sign certification –Individual has 60 days from date of certification to verify SSN –Elderly may be granted 60 day extension

42. May 2003Chapter 4: Basic Program Overview42 Failure to Disclose Social Security Number Applicants - denial of assistance Participants - termination of assistance

43. May 2003Chapter 4: Basic Program Overview43 T/F Quiz 1.Live-in aides can be employed outside the home 2. Households include live-in aides; families do not. 3. The definition for “disabled family” includes any family member who is a person with a disability T T F

44. May 2003Chapter 4: Basic Program Overview44 T/F Quiz 4. An i ndividual has 60 days from date of certification to provide verification of their SSN 5. “Family” is defined by HUD. T F

45. May 2003Chapter 4: Basic Program Overview45 Citizenship/Eligible Immigrant C/EI

46. May 2003Chapter 4: Basic Program Overview46 Restriction on Assistance to Noncitizens Purpose is to ensure that only citizens, nationals and eligible immigrants are assisted with HUD subsidy

47. May 2003Chapter 4: Basic Program Overview47 Eligibility for Assistance The eligibility of each individual in the family must be established Individuals will fall into one of these categories: –Citizens –Eligible immigrants 62 or older –Other eligible immigrants –Ineligibles, including noncitizen students on student visas

48. May 2003Chapter 4: Basic Program Overview48 Families will fall into one of these categories All members are citizens or eligible immigrants Some members are eligible and some are ineligible (Mixed Family) All members are ineligible

49. May 2003Chapter 4: Basic Program Overview49 Family Categories An ELIGIBLE family will be comprised of citizen(s), national(s) or noncitizen(s) with eligible immigration status An INELIGIBLE family is one in which no member is a citizen, national or eligible immigrant

50. May 2003Chapter 4: Basic Program Overview50 Mixed Family A MIXED family is comprised of citizen(s), or eligible immigrant(s), and those without citizenship or eligible immigrant status

51. May 2003Chapter 4: Basic Program Overview51 Procedures after Determining Family Status Eligible families are admitted with full subsidy Mixed families eligible for prorated assistance Ineligible families denied assistance or assistance is terminated

52. May 2003Chapter 4: Basic Program Overview52 Verification Requirements Verification of citizenship or national status is provided directly by the family by certification: –Persons who claim citizenship status –Persons 62 and older who claim eligible immigration status (verify age) –Persons who declare themselves ineligible or don’t contend status

53. May 2003Chapter 4: Basic Program Overview53 Verification Requirements Verification is required for all other noncitizens who claim eligible immigration status (except for persons 62+, who must sign declaration and provide proof of age) … …continued

54. May 2003Chapter 4: Basic Program Overview54 Verification Requirements Verification required…. –Signed declaration form –INS card or other INS document –Signed verification consent –Must use INS SAVE Note: SAVE system changing from telephone to online access

55. May 2003Chapter 4: Basic Program Overview55 Documentation Declaration of 214 Status Verification Consent Form Listing of Non-contending Family Members Notice of Section 214 Requirements

56. May 2003Chapter 4: Basic Program Overview56 Terms (Will define when covered) Annual Income Adjusted Annual Income Total Tenant Payment Utility Allowance Utility Reimbursement payment

57. May 2003Chapter 4: Basic Program Overview57 Terms (continued) (Will define when covered) Flat rent (PH) Ceiling Rent (PH) Tenant Rent (PH)

58. May 2003Chapter 4: Basic Program Overview58 HCV Terms Rent to Owner = total rent paid to owner Gross Rent = rent to owner plus Utility Allowance Total HAP = HAP plus Utility Reimbursement, if any … continued

59. May 2003Chapter 4: Basic Program Overview59 HCV Terms… Total Family Share: Family Rent to Owner + Utility Allowance Tenant Rent to Owner HAP to Owner = check sent to owner for PHA portion of rent to owner

60. May 2003Chapter 4: Basic Program Overview60 Annual Income

61. May 2003Chapter 4: Basic Program Overview61 Annual Income All amounts, monetary or not: –On behalf of the family –Anticipated over the next 12 months –Not excluded in 24 CFR 5.609(c) –Also includes income from assets to which family has access

62. May 2003Chapter 4: Basic Program Overview62 Computing Annual Income Total/Gross Income - Exclusions = Annual Income Formula

63. May 2003Chapter 4: Basic Program Overview63 Computing Annual Income PHAs are now required to show excluded income of family members on the HUD- 50058 5400 4920 480

64. May 2003Chapter 4: Basic Program Overview64 Converting Income Convert earned income to an annual wage Multiply hourly wages by the number of hours worked per year (2080 for full-time)

65. May 2003Chapter 4: Basic Program Overview65 Converting Income Multiply weekly wages by 52 Multiply bi-weekly wages by 26 Multiply semi-monthly wages by 24 Multiply monthly wages by 12 X=

66. May 2003Chapter 4: Basic Program Overview66 Annual Income Employment income –prior to payroll deductions –includes overtime, commissions, fees, and bonuses

67. May 2003Chapter 4: Basic Program Overview67 Seasonal Employment Presents a challenge for anticipating income Sometimes employer can’t give accurate estimation Many variables could affect work the schedule and subsequent income: –Weather conditions –Demand for work –Other interruptions

68. May 2003Chapter 4: Basic Program Overview68 Seasonal Employment If an employer cannot give estimate of anticipated income for next 12 months –May use last year’s income as best indicator of expected future income –May annualize income over shorter period, then conduct interim at the end of the shorter period or when changes occur

69. May 2003Chapter 4: Basic Program Overview69 Seasonal Employment PHAs should develop policies for calculation of seasonal income

70. May 2003Chapter 4: Basic Program Overview70 Seasonal Work Question Clyde Kunkel is a roofer –Works April through September –Can’t work in bad weather –Employer provides income over past 3 years, both regular and overtime How do we calculate Mr. Kunkel’s anticipated income?

71. May 2003Chapter 4: Basic Program Overview71 Possible Answers Use average number of regular hours over past 3 years times current regular pay rate PLUS Use average overtime hours from past 3 years times current overtime rate OR… Annualize current income and conduct an interim when there is a change Address treatment in PHA policies

72. May 2003Chapter 4: Basic Program Overview72 Adult Full Time Student For Head, Spouse or Co-Head full time students, count all employment income For Adult Full Time Students who qualify as dependents, count only the first $480 of employment income How do we determine the student is full time?

73. May 2003Chapter 4: Basic Program Overview73 Adult Full Time Student The educational institution determines the full time status of the student –Vocational Schools included

74. May 2003Chapter 4: Basic Program Overview74 Income of Minors Include any benefits or other non-earned income paid directly to minors Who is a minor?

75. May 2003Chapter 4: Basic Program Overview75 Military Pay Count all regular pay, special pay and allowances of member in armed forces Do not count special duty pay received for being exposed to hostile fire

76. May 2003Chapter 4: Basic Program Overview76 Gifts and Contributions Count regular contributions made to the family Would include the regular payment of a utility bill Don’t count sporadic gifts such as birthday presents

77. May 2003Chapter 4: Basic Program Overview77 Periodic Payments and Allowances Periodic payments –Social Security (gross - prior to Medicare deduction) –If benefits reduced to make up for prior overpayments by SS, count amount actually received

78. May 2003Chapter 4: Basic Program Overview78 Periodic Payments and Allowances –Annuities –Insurance policies –Pensions –Disability –Death benefits

79. May 2003Chapter 4: Basic Program Overview79 Periodic Payments and Allowances Alimony and child support –Count amounts awarded as part of divorce or settlement agreement unless otherwise verified applicant certification effort to collect amounts, including filing with courts or agencies responsible for enforcing payments

80. May 2003Chapter 4: Basic Program Overview80 Lump Sum Payments Income –Processing delays of periodic payments such as welfare or unemployment

81. May 2003Chapter 4: Basic Program Overview81 Lump Sum Payments Assets, not Income –Inheritances –Insurance payments such as worker’s comp –Capital gains –Settlements for personal and property losses –Deferred periodic payments of Social Security Disability or SSI

82. May 2003Chapter 4: Basic Program Overview82 Income From a Business Includes self-employment Count net: income minus expenses Expenses may include depreciation and interest payments on loans Expenses do not include expansion or capital improvements

83. May 2003Chapter 4: Basic Program Overview83 Public Assistance Temporary Assistance for Needy Families SSI General Assistance Imputed welfare income covered in case study during week

84. May 2003Chapter 4: Basic Program Overview84 Public Assistance Income in As-Paid States Only 3 States Special calculation of income for those states Also special calculation of TTP (total tenant payment) which includes Welfare Rent

85. May 2003Chapter 4: Basic Program Overview85 Payments in Lieu of Earnings –Unemployment –Workers compensation –Severance pay Figure for entire year when income for other weeks is not known

86. May 2003Chapter 4: Basic Program Overview86 Pop Question Which of the following is not considered to be “income” in the HUD definition? A.Wages from employment B.TANF benefits C.A lump sum inheritance D.Net income from a business

87. May 2003Chapter 4: Basic Program Overview87 Pop Question Which of the following is not considered to be “income” in the HUD definition? A.Wages from employment B.TANF benefits C.A lump sum inheritance D.Net income from a business

88. May 2003Chapter 4: Basic Program Overview88 Section 7: Income

89. May 2003Chapter 4: Basic Program Overview89 Section 7: Income Julie Karen Tony Eric 1 2 3 4 W W W S 10.25 x 2080 150 x 52 100 x 52 300 x 12 21,320 7,800 5,200 3,600 21,320 3,600 5,2000 4807,320 25,400 155 6j = 155 25,555

90. May 2003Chapter 4: Basic Program Overview90 Learning Activity 4-1 Calculating Annual Income

91. May 2003Chapter 4: Basic Program Overview91 Learning Activity 4-1 Answers Eric 1 N 600x12 7,200 7,200 Eve 2 W 6.25x2080 13,000 13,000 20,200

92. May 2003Chapter 4: Basic Program Overview92 Assets and Asset Income

93. May 2003Chapter 4: Basic Program Overview93 Assets Value of assets may affect annual income PHA must identify assets and verify market value of assets

94. May 2003Chapter 4: Basic Program Overview94 Assets Include Savings and checking accounts –PHAs establish policies for determining value of accounts –May elect to count current balances or average balances for a given period (2 months, 6 months, etc.)

95. May 2003Chapter 4: Basic Program Overview95 Assets Include Stock, bonds, money market funds Equity in property, other capital investments Cash value of trusts available to household Retirement savings accounts, less penalties for withdrawal

96. May 2003Chapter 4: Basic Program Overview96 Assets Include Contributions to company retirement/pension funds –Count only amounts family can withdraw without retiring or quitting –After retirement, count as income regular periodic payments

97. May 2003Chapter 4: Basic Program Overview97 Assets Include Assets which allow unrestricted access Lump sum receipts –Inheritances, capital gains, lottery winnings –Social security & SSI lump sum payments

98. May 2003Chapter 4: Basic Program Overview98 Assets Include Personal property held as investment –gems, jewelry, –coin collections, –antique cars, etc. Surrender value of life insurance policies

99. May 2003Chapter 4: Basic Program Overview99 Assets Do Not Include Personal property Assets not accessible to the family Interest in Indian Trust lands

100. May 2003Chapter 4: Basic Program Overview100 Income from Assets Assets can generate income Income from assets is counted in determining annual income

101. May 2003Chapter 4: Basic Program Overview101 Income from Assets: Examples Examples of income from assets –Interest –Dividends –Net income from real or personal property Asset income of minors is counted as income (Ex: interest on savings account)

102. May 2003Chapter 4: Basic Program Overview102 Income from Assets When net cash value of family assets are $5,000 or less, actual asset income is used When net cash value of family assets exceed $5,000, asset income is the greater of: –Actual asset income, or –Imputed asset income Net family assets x HUD-supplied passbook rate

103. May 2003Chapter 4: Basic Program Overview103 Section 6: Assets

104. May 2003Chapter 4: Basic Program Overview104 Section 6: Assets Julie Karen Tony 1 2 3 CD savings $3600-$1003500 2200 500 6200 90 44 7 141 025 155 2.5% 2.0% 1.3%

105. May 2003Chapter 4: Basic Program Overview105 Learning Activity 4-2 Calculating Assets and Asset Income

106. May 2003Chapter 4: Basic Program Overview106 Learning Activity 4-2 Answers Calculating Assets and Asset Income Eric 1 Savings 1,000 20 1,000 20 0225 0 20 1000 x.02 20

107. May 2003Chapter 4: Basic Program Overview107 Income Excluded under HUD Regulations

108. May 2003Chapter 4: Basic Program Overview108 Income Exclusions Listed on Fact Sheet Must be included on HUD-50058 form

109. May 2003Chapter 4: Basic Program Overview109 Income Exclusions Income of a live-in aide Amounts received under training programs funded by HUD

110. May 2003Chapter 4: Basic Program Overview110 Income Exclusions Resident service stipend –Modest amount (not to exceed $200 per month) received by a resident for performing a service for the PHA

111. May 2003Chapter 4: Basic Program Overview111 Income Exclusions Training income exclusions –Incremental earnings and benefits to any family member during participation in a qualified training program

112. May 2003Chapter 4: Basic Program Overview112 Income Exclusions- Example A family member receives $600 in TANF She enrolls in a qualified State training program and receives training income of $900 monthly TANF benefits stop –What amount of monthly income would be counted for this family member?

113. May 2003Chapter 4: Basic Program Overview113 Income Exclusions- Example (Answer) A family member receives $600 in TANF. She enrolls in a qualified State training program and receives training income of $900 monthly. TANF benefits stop. What amount of monthly income would be counted for this family member? – $600

114. May 2003Chapter 4: Basic Program Overview114 Income Exclusions Adoption assistance payments in excess of $480 per adopted child

115. May 2003Chapter 4: Basic Program Overview115 Income Exclusions Under Other Federal Statutes

116. May 2003Chapter 4: Basic Program Overview116 Federally-Mandated Income Exclusions Published periodically in the Federal Register –Most recent list published April 20, 2001 Listed on Fact Sheet Must be included on HUD-50058 form

117. May 2003Chapter 4: Basic Program Overview117 Learning Activity 4-3 Identifying income and assets Page 4-37

118. May 2003Chapter 4: Basic Program Overview118 Adjusted Income

119. May 2003Chapter 4: Basic Program Overview119 Adjusted Income Annual Income minus allowances –Dependents –Elderly/disabled allowance –Child care –Medical expenses –Disability expenses

120. May 2003Chapter 4: Basic Program Overview120 Permissive Deductions Public Housing Only A PHA may adopt additional deductions from annual income The PHA must establish a written policy for such deductions

121. May 2003Chapter 4: Basic Program Overview121 Permissive Deductions Public Housing Only These deductions should not –Duplicate amounts already deducted from annual income –Include amounts reimbursed to the family from other sources

122. May 2003Chapter 4: Basic Program Overview122 Section 8: Expected Income Per Year

123. May 2003Chapter 4: Basic Program Overview123 Section 8: Expected Income Per Year

124. May 2003Chapter 4: Basic Program Overview124 Learning Activity 4-4 Calculating Adjusted Income

125. May 2003Chapter 4: Basic Program Overview125 Learning Activity 4-4 Answers Line 8a $20,220 1 480 Line 8x $ 480 Line 8y $19,740

126. May 2003Chapter 4: Basic Program Overview126 Formula for TTP TTP is highest of: –30% monthly adj. Income –10% total monthly income –the welfare rent –minimum rent

127. May 2003Chapter 4: Basic Program Overview127 Section 9: Total Tenant Payment (TTP)

128. May 2003Chapter 4: Basic Program Overview128 Section 9: Total Tenant Payment (TTP) 1,525 2,130 213 30 458 0 25 458 350 N

129. May 2003Chapter 4: Basic Program Overview129 Learning Activity 4-5 Calculating TTP

130. May 2003Chapter 4: Basic Program Overview130 Learning Activity 4-5 Answers 1685 169 1645 30 494 0 25 494 Line 8a $ 20,220 Line 8y $ 19,740

131. May 2003Chapter 4: Basic Program Overview131 Utility Allowance PHAs are required to establish and maintain Utility Allowance schedules A Utility Allowance is that amount approved by the PHA for reasonable monthly costs of local utility consumption Families responsible for utility costs (excluding telephone) will see a Utility Allowance applied to their rent calculation

132. May 2003Chapter 4: Basic Program Overview132 Allowance for Tenant- Supplied Appliances- HCV Only For HCV participants, PHAs must also establish allowances for tenant-supplied appliances such as ranges & refrigerators –Only allowed when owner does not provide the appliance –Covers cost of the appliance itself, not energy used to operate the appliance

133. May 2003Chapter 4: Basic Program Overview133 Overview of Calculation of Public Housing Tenant Rent

134. May 2003Chapter 4: Basic Program Overview134 Definitions for Income Based Rent Tenant Rent – amount payable by the family as rent to the PHA Utility Reimbursement – amount by which utility allowance exceeds TTP Income Based Rent – rent based upon family income, allowances and deductions

135. May 2003Chapter 4: Basic Program Overview135 Calculation of TTP and Tenant Rent To get Tenant Rent, subtract the utility allowance (UA) from TTP If UA is greater than the TTP, Tenant Rent is zero and there is a Utility Reimbursement Payment (URP) –The URP is the difference between the TTP and the Utility Allowance –(Tenant credit on line 10f of HUD-50058)

136. May 2003Chapter 4: Basic Program Overview136 Section 10: Public Housing

137. May 2003Chapter 4: Basic Program Overview137 Utility Allowances TTP $80 - UA 50 Tenant Rent $30 TTP 40 - UA 50 Tenant Rent 0 URP$10

138. May 2003Chapter 4: Basic Program Overview138 Section 10: Public Housing 80 600 80 50 30 X

139. May 2003Chapter 4: Basic Program Overview139 Ceiling Rents Purpose –to set a maximum rent families will pay in PH, regardless of how high their income goes Used prior to 10/1/99 in lieu of Flat Rents

140. May 2003Chapter 4: Basic Program Overview140 Retaining Ceiling Rents As of 10/1/2002, ceiling rents must be adjusted to flat rent level

141. May 2003Chapter 4: Basic Program Overview141 Flat Rents Effective for families admitted or recertified on/after 10/1/99 Each PHA must establish a flat rent for each unit Flat Rent has no formula based limit on what tenant pays. Utility Allowances are not deducted. Flat Rent = THE RENT.

142. May 2003Chapter 4: Basic Program Overview142 Flat Rents Flat rent is: –based on PHA determination of rental value of the unit –designed to not create a disincentive for families to stay in PH as their income increases

143. May 2003Chapter 4: Basic Program Overview143 Flat Rents Recertifications are done not less than once every 3 years –annual reexamination of family composition

144. May 2003Chapter 4: Basic Program Overview144 Flat Rent Methodology Market value is rent which would allow the unit to be successfully rented if it wasn’t PH Acceptable methodology incorporates the same nine factors used in Section 8 Rent Reasonableness methodology

145. May 2003Chapter 4: Basic Program Overview145 Flat Rent Methodology Relevant factors must include: –Age –Location –Quality –Amenities –Size of Unit –Housing services –Maintenance –Utilities provided by PHA –Unit type

146. May 2003Chapter 4: Basic Program Overview146 Flat Rents: Family Choice Families elect annually whether to pay income-based or flat rent If family elects to pay income-based rent, family may not switch to flat rent until the next annual reexamination

147. May 2003Chapter 4: Basic Program Overview147 Flat Rents: Family Choice If family has elected to pay flat rent but has a hardship and is unable to pay, the PHA must allow the family to switch to income-based rent Income needs to be reviewed only every 3 years

148. May 2003Chapter 4: Basic Program Overview148 Switching Rent Determination Methods Allowable hardships to switch from flat to income-based rent –income decreased due to family circumstances loss or reduction of employment or other income death in the family

149. May 2003Chapter 4: Basic Program Overview149 Switching Rent Determination Methods Allowable hardships to switch from flat to income-based rent –expenses increased, due to changed circumstances medical costs child care transportation, education or similar items other situations in PHA policy

150. May 2003Chapter 4: Basic Program Overview150 Learning Activity 4-6 Calculating Tenant Rent

151. May 2003Chapter 4: Basic Program Overview151 Learning Activity 4-6 Answers X 494 700 494 45 449

152. May 2003Chapter 4: Basic Program Overview152 Payment Standards for Housing Choice Vouchers

153. May 2003Chapter 4: Basic Program Overview153 Payment Standard Used to calculate total subsidy for the family PS is maximum subsidy amount Must establish PS for each BR size and for each FMR area in PHA jurisdiction

154. May 2003Chapter 4: Basic Program Overview154 Overview of Calculation of HCV Subsidy and Family Share

155. May 2003Chapter 4: Basic Program Overview155 Formulas Rent Formula –Total Subsidy is lower of Gross Rent or Payment Standard –Minus TTP

156. May 2003Chapter 4: Basic Program Overview156 Family Share Vs. TTP When GR is equal to or less than PS, the family share is the TTP When GR is greater than PS, the family share is the TTP plus the amount that the GR exceeds the PS Gross rent minus total HAP = family share

157. May 2003Chapter 4: Basic Program Overview157 Section 12: Section 8 Vouchers

158. May 2003Chapter 4: Basic Program Overview158 Gross Rent More than PS ( Recertification) Family TTP = $25 PHA Payment Standard = $600 GR for unit selected by family = $680 $600 minus $25 = $575 total subsidy $680 (GR) minus $575 = $105 Family share = $105 Here family share is greater than TTP

159. May 2003Chapter 4: Basic Program Overview159 Section 12: Section 8 Vouchers 600 650 30 680 600 25 575 105 575 75

160. May 2003Chapter 4: Basic Program Overview160 Learning Activity 4-7 Gross Rent greater than the Payment Standard

161. May 2003Chapter 4: Basic Program Overview161 Learning Activity 4-7 Answers 750 725 50 775 750 494 256 519 256 469

162. May 2003Chapter 4: Basic Program Overview162 Gross Rent Less than PS Family TTP = $25 PHA Payment Standard = $600 GR for unit selected by family = $580 $580 minus $25 = $555 total subsidy $580 (GR) minus $555 = $25 Family share =$25 In this case Family Share is the TTP

163. May 2003Chapter 4: Basic Program Overview163 Section 12: Section 8 Vouchers 600 550 30 580 25 550 25 555 0 5

164. May 2003Chapter 4: Basic Program Overview164 Learning Activity 4-8 Gross Rent less than Payment Standard

165. May 2003Chapter 4: Basic Program Overview165 Learning Activity 4-8 Answers 750 625 675 50 494 181 494 181 444

166. May 2003Chapter 4: Basic Program Overview166 Maximum Initial Rent Burden When the gross rent exceeds the PHA’s payment standard upon the initial occupancy of a unit (new admissions and moves)… The family share cannot exceed 40% of the family’s adjusted monthly income

167. May 2003Chapter 4: Basic Program Overview167 Pop Question In which situation must the rent burden test be applied? A. Whenever an owner offers a new lease in the same unit B. When the gross rent exceeds the payment standard at initial lease-up C. When the owner increases the rent D. Only when a family moves

168. May 2003Chapter 4: Basic Program Overview168 Pop Question In which situation must the rent burden test be applied? A.Whenever an owner offers a new lease in the same unit B.When the gross rent exceeds the payment standard at initial lease-up * C.When the owner increases the rent D.Only when a family moves