1. Slide #1 Annie Stevenson Verification Techniques

2. Slide #2 Welcome to Lunch N Learn!  Upcoming topics for the occupancy series: 8/1/08: Factors of Eligibility (PH and HCV) 8/15/08: EIV 9/4/08: PH Denials and Terminations 9/5/08: HCV Reasonable Accommodation

3. Slide #3 Welcome to Lunch N Learn!  Today’s topics: Total tenant payment calculation Minimum rent Utility allowances Payment standards

4. Slide #4 Total Tenant Payment

5. Slide #5 Total Tenant Payment  TTP is highest of: 10% total monthly income 30% monthly adjusted Income the welfare rent minimum rent

6. Slide #6 How to Get TTP  Annual Income$ 2,000  4 children x $480 1,920  Adjusted Income$ 80  Annual divided by 12 = $167 (mo. inc.)  Adjusted divided by 12 = $7 (mo. adj. inc.)

7. Slide #7 How to Get TTP  10% of $167 = $17  30% of $7 = $2  Minimum Rent $25  Welfare Rent $0 (N/A)  TTP is ??????

8. Slide #8 TTP Calculation  Learning Activity 1  TTP Calculation on 50058 8a = $15,780 8y = $11,392 Minimum rent = $35

9. Slide #9 Learning Activity 1 Answers 1,315 132 285 N 949 30 35 0

10. Slide #10 Minimum Rent

11. Slide #11 Minimum Rents  PHAs may establish minimum rent $0 - $50  PHAs must adopt minimum rent hardship exemption policies

12. Slide #12 Minimum Rent Hardship Exemptions  Lost eligibility/awaiting determination for federal, state or local assistance program includes member who is noncitizen lawfully admitted for permanent residence who would be entitled to public benefits except for title IV of the Personal Responsibility and Work Opportunity Act of 1996

13. Slide #13 Minimum Rent Hardship Exemptions  Would be evicted as result of requirement  Family income decrease because of changed circumstances (unemployed)  Death in family  Other circumstances as determined by PHA or HUD

14. Slide #14 Minimum Rent Process  PHA notifies family if TTP = minimum rent  Family requests exemption

15. Slide #15 Minimum Rent Process  PHA suspends payment beginning of next month Family not required to pay minimum rent while PHA makes hardship determination PHA may request reasonable documentation of hardship

16. Slide #16 Minimum Rent Process  PHA must promptly determine if hardship exists whether temporary (PHA policy) or long term

17. Slide #17 Minimum Rent Process  If PHA determines no hardship under statute, minimum rent is imposed retroactively

18. Slide #18 Minimum Rent Process  If PHA determines the hardship is temporary, no minimum rent during 90 day suspension period Minimum rent imposed retroactively Reasonable repayment agreement offered

19. Slide #19 Minimum Rent Process  If PHA determines hardship of long-term duration exists, minimum rent is exempted retroactively to date of family’s request for exemption  Exemption continues until hardship no longer exists

20. Slide #20 PHA Procedures  PHA must have minimum rent hardship exemption policy  PHA must notify families of right to request hardship exemption hardship exemptions are subject to PHA’s informal hearing procedures

21. Slide #21 TTP Calculation: Minimum Rent Hardship Exemption  Learning Activity 2  TTP Calculation on 50058 8a = $900 8y = $55 Minimum rent = $50 Family requested and was granted exemption

22. Slide #22 Learning Activity 2 Answers 75 8 2 8 Y 5 30 0 0

23. Slide #23 Utility Allowance

24. Slide #24 Utility Allowance  PHAs are required to establish and maintain utility allowance schedules (see CFR 982.517)  A utility allowance is that amount approved by the PHA for reasonable monthly costs of local utility consumption

25. Slide #25 Utility Allowance  Families responsible for utility costs (excluding telephone) will see a utility allowance applied to their rent calculation

26. Slide #26 Payment Standards

27. Slide #27 Definitions  Payment standard: The maximum monthly assistance payment in the voucher program  Family unit size: The appropriate number of bedrooms for a family, as determined by the PHA under the PHA’s subsidy standards (voucher size)

28. Slide #28 Definitions  Subsidy standards: PHA established standards to determine the number of bedrooms and amount of subsidy for families of different sizes and composition

29. Slide #29 Payment Standard  Used to calculate total subsidy for the family  PHA’s payment standard is maximum subsidy amount

30. Slide #30 Payment Standards Schedule  HUD publishes fair market rents (FMRs) annually  PHA must adopt payment standards schedule for each FMR area in jurisdiction  Must establish payment standard for each bedroom size

31. Slide #31 Establishing PS Amounts  90 to 110% of FMR is basic range  HUD approval not needed for basic range  HUD must approve payment standard higher or lower than basic range

32. Slide #32 $850$830 Establishing PS Amounts  PHA may establish separate PS within basic range for designated part of FMR PHA must use this PS for any unit selected in this PS area

33. Slide #33 What Payment Standard to Use  PS to be used is lower of: PS for family unit size; or PS for size of unit selected

34. Slide #34 What Payment Standard to Use  During a HAP contract, payment standard for a family is: Payment standard as determined at most recent regular reexamination after beginning of HAP contract…

35. Slide #35 What Payment Standard to Use UNLESS the PHA has:  decreased the payment standard amount on their schedule  increased the payment standard amount on their schedule MORE….

36. Slide #36 What Payment Standard to Use  During a HAP contract, if PHA has decreased the payment standard: 1st regular reexam after decrease in PS amount  Use higher of old or new PS…

37. Slide #37 What Payment Standard to Use  2nd regular reexam after decrease in PS amount Use lower (new) PS amount  (unless PHA has increased PS since last regular reexam) MORE….

38. Slide #38 What Payment Standard to Use  During a HAP contract, if PHA has increased the PS:  Use the new, higher payment standard at the 1st regular reexam after the payment standard is increased MORE….

39. Slide #39 Change in Family Size/Composition  At next regular reexamination use: The PS for the new family unit size, regardless of any increase or decrease in the PS schedule

40. Slide #40 HUD Approval  HUD may approve exception PS in an area for all units... or units of a given size  Any PHA with jurisdiction may use the HUD approved exception PS amount

41. Slide #41 Exception PS Approvals by HUD  Local field office may approve up to 120% of FMR  Only HUD headquarters may approve over 120% of FMR

42. Slide #42 Exception PS Approvals by HUD  New! Notice PIH 2008-13  Facilitate process for approving exception PS as reasonable accommodation  Documentation required for HUD waiver  Included in session materials Download for reference

43. Slide #43 Payment Standards  HUD will monitor family rent burdens if 40% or more of families in any particular unit size are paying more than 30% of monthly adjusted income then HUD may require an increase in PHA payment standard

44. Slide #44 HCV Rent Calculation

45. Slide #45 Definitions  Rent to owner: Total monthly rent payable to the owner under the lease for the unit  Gross rent: The sum of the rent to owner plus any utility allowance

46. Slide #46 Definitions  Housing Assistance Payment (HAP): The monthly assistance payment paid by the PHA to the owner  Utility reimbursement: Amount by which HAP exceeds rent to owner PHA may pay to the family or directly to the utility supplier on behalf of the family

47. Slide #47 Definitions  Family share: The portion of rent and utilities paid by the family  Family rent to owner: The portion of rent to owner paid by the family

48. Slide #48 Formulas  Rent Formula Total subsidy is lower of:  Payment standard minus TTP or  Gross rent minus TTP

49. Slide #49 Facts about Rent Calculation  The family will not pay less than the TTP toward rent and utilities

50. Slide #50 Utility Reimbursement Payment  Family’s TTP (family share)$35  Utility allowance$45  Family rent to owner$ 0  Utility reimbursement payment$10

51. Slide #51 Gross Rent Below PS  Learning Activity 3  HCV calculation on 50058 TTP $ 220 Rent to Owner $ 730 PS $ 800UA $ 40

52. Slide #52 Learning Activity 3: Answer 800 730 40 770 220 550 220 550 180

53. Slide #53 Gross Rent Above PS  Learning Activity 4  HCV Calculation on 50058 TTP $ 220 Rent to Owner $ 765 PS $ 800UA $ 75

54. Slide #54 Learning Activity 4: Answer 800 765 75 840 800 220 580 260 580 185

55. Slide #55 Utility Reimbursement Payment  Learning Activity 5  HCV Calculation on 50058 TTP $ 125Rent to Owner $ 525 PS $ 675UA $175

56. Slide #56 Learning Activity 5: Answer 675 525 175 700 675 125 550 150 525 0 25

57. Slide #57 Maximum Family Share  At initial occupancy of a unit (new admissions and moves)  When the gross rent exceeds the payment standard for the family: The family share cannot exceed 40% of adjusted monthly income

58. Slide #58 Maximum Family Share  Annual Income$12,000  Adjusted Income$11,040/12 = $920/mo  40% Limit$920 x 40% = $368

59. Slide #59 Answer  If the gross rent exceeds the payment standard for the family, the family share cannot exceed $368

60. Slide #60 “Affordability” Example  40% limitation at Lease-Up Rent to owner750 Utility allowance35 PHA Payment Standard775 Monthly adjusted income1,300 Family Share400

61. Slide #61 “Affordability” Example  40% limitation at Lease-Up Rent to owner875 Utility allowance40 PHA Payment Standard775 Monthly adjusted income1,300 Family Share530

62. Slide #62 Proration of Assistance  Mixed families receive prorated assistance Calculate TTP as usual Prorate subsidy (HAP) Family must pay the difference

63. Slide #63 Proration Exercise  Learning activity 6 50058 lines 12ab through 12aj  2 family members are eligible; 1 is ineligible  TTP: $174  Payment standard: $540  Utility allowance: $0

64. Slide #64 Learning Activity 6: Answer 540 535 0 174 361

65. Slide #65 Learning Activity 6: Answer 361 2 3.67 242 293 0 242

66. Slide #66 NMA Lunch ‘n’ Learn Seminar NEXT TOPIC…

67. Slide #67 NMA Lunch ‘n’ Learn Seminar