1 enhanced vouchers. 2 housing conversion actions hud provides tenant-based rental assistance to...

11

Enhanced VouchersEnhanced Vouchers

22

Housing Conversion Actions

HUD provides tenant-based rental assistance to assist residents affected by Owner Actions Actions taken by HUD’s Office of Multi-family

Housing Programs

1-7

33


The type of event dictates the type of rental assistance provided HUD makes the determination

Could result in families being given HCV (traditional vouchers), or Enhanced vouchers

44


Preservation Prepayment Section 8 Opt-Outs HUD Enforcement Action Property Disposition

1-7 thru 1-9

55


Preservation Prepayment: Owner prepays HUD insured mortgage, or Terminates mortgage insurance

No rent or income limitations on the project

Eligible residents receive Enhanced Vouchers

1-7

66

Part 3: Key Players:Part 3: Key Players:An Overview of RolesAn Overview of Roles

1-10

77

HUD’s Role

HUD’s Office of Multifamily Housing Primary contact for owners during the

conversion process Responsibilities include:

Determining if owner has the right to prepay Ensuring owner fulfills the responsibilities

throughout the process

1-10

88

HUD’s Role

Office of Public Housing Selects PHA to administer the tenant-based

assistance Provide technical assistance and guidance Serves as the PHA point-of-contact

99

Owner’s Role

Comply with proper notice requirements Meet with tenants to explain process Provide tenant information to PHA Execute new lease with the families Comply with the HAP contract

1-11

1010

PHA Role

Screen families Certify families eligibility Conduct rent reasonableness Conduct HQS Inspections Approve units for leasing Execute HAP contracts

1111

Family’s Role

Family chooses whether to: Accept preservation voucher (stay in unit) or Move with a regular voucher

Provide necessary information to PHA

1212

Preservation Prepayment

Eligibility event date Effective date of the prepayment

Date the owner prepaid mortgage or terminated mortgage insurance

Target date Date owner can increase rent after

prepayment 60 days after the effective date to the prepayment

1-14 & 1-15

1313

Special Fees

Fees for extraordinary costs: $200 per unit occupied on the eligibility event

date (multifamily conversion only) Compensates PHAs for increased costs:

Overtime paid to staff Temporary services Owner outreach Informational meetings, interviews, briefings

1-16

1414

Tenant-based Program Tenant-based Program IssuesIssues

1-18

1515

Initial and Subsequent Use

All enhanced or non-enhanced vouchers provided for a housing conversion action are ‘special admission vouchers’ Must be used first to assist HUD listed,

specific families ‘Left over’ vouchers may be used by the PHA

to assist families on the PHA waiting list These vouchers are regular HCV, not enhanced

vouchers

1-18

1616

Tenant-based Nature of Assistance

Owner has no guarantee that any tenant-based assistance will be used at the property

Families may elect to move from the property with voucher

Families may move under portability

1717

PHA Screening of Families

By agreeing to administer the special admission voucher, PHAs are not relinquishing their authority to screen potentially eligible families

May deny admission in accordance with the regulations and PHA policies

1818

PHA Screening of families

Policies for screening and denial of admission must be the same as those used for waiting list admissions However, repayment agreements are

encouraged by HUD if the sole reason for denial is that the family owes the PHA money

1919

PHA Screening of Families

If family is ineligible as result of the interview or verification PHA must notify the applicant of:

Reasons why ineligible Right and how to request informal review

2020

Determining Tenant Income

PHA may use owner’s most recent family income examination if: Owner’s current certification is no more than

six months old, as of voucher issuance date, and

PHA determines owner certifications are acceptable after reviewing small sample for accuracy

1-19

2121

Determining Tenant Income

If PHA uses owner’s certification, annual reexamination requirements must be met Annual reexamination must be completed

within one year from date owner certification completed

Not date owner certification accepted

2222

Owner Certifications

Reexamination date if Owner Certifications used Owner Certification Date 2/1/07 Eligibility Event Date 5/15/07 PHA Voucher Issued 6/1/07 Lease up Date 8/1/07 Reexamination Date 2/1/08

2323

Owner Certifications

If owner certifications not used, regular rules apply Eligibility Event Date 5/15/07 PHA Voucher Issued 6/1/07 Lease up Date 8/1/07 Reexamination Date 8/1/08

2424

Voucher Issuance

Voucher issued in accordance with PHA policy Regular PHA subsidy standards apply HUD encourages PHA to provide families with

maximum search time reasonably required to locate housing

2525

PHA Tenancy Approval

To begin lease-up process, PHA receives: Request for Tenancy Approval (RFTA) Copy of the owner’s unexecuted lease with

tenancy addendum attached

2626


Unit must be eligible Unit must have passed HQS Lease must include the tenancy addendum Rent must be reasonable Rent must be affordable (regular voucher)

Does not apply to enhanced voucher

2727


Standard Rent Reasonableness policies apply PHA uses methodology from admin plan The rent to owner is not more than the rent

charged for: Comparable units in the private unassisted

market Comparable unassisted units in the premises

2828


Rent Reasonableness Based on “as is” condition of the unit and

premises If the rent is not reasonable, the family will

have to move to benefit from the voucher assistance

Family may not choose to pay unreasonable amount out of pocket

1-20

2929


Housing Quality Standards (HQS) The PHA must inspect the unit and ensure it

meets HQS May not make HAP payments to cover any period

prior to the date the unit passes HQS No HQS exceptions

3030

Contract Execution

Preservation prepayment: For families staying at the project, the HAP

contract may not be executed for a lease term effective prior to the target date

60 days after effective date of prepayment

For families moving from the property, the PHA may execute HAP contracts effective prior to the target date

3131

Contract Execution

HAPC must be executed no later than 60 days from beginning of the lease term

PHA may not pay HAP until HAPC executed If within 60 days of lease term, pay

retroactively If not executed within 60 days, contract is

void and cannot pay owner

3232

Part 6: Enhanced VouchersPart 6: Enhanced Vouchers1-22

3333

Enhanced VouchersEligibility

On the eligibility event date, the family must be Residing in the property, and Income eligible

3434

Income LimitsIncome Limits

Low Income80% of median

Very Low Income50% of median

Moderate Income95% of median

Median income for the area is determined by HUD

3535

Enhanced VouchersPreservation Eligibility

Income eligible Low-income family (80% or less) Moderate-income families (95% or less) will

qualify if they are: Elderly or disabled families, or Residing in a low vacancy area

3% or less vacancy rate HUD local office will determine

3636

Opt-Out after Prepayment

Properties where prepayment preceded the owner opt-out Special eligibility rules, family must:

Reside in a unit covered by the expiring contract Reside in the property on the effective date of the

prepayment Meet income requirements for prepayment

1-23

3737

Enhanced Vouchers and Income Targeting

Income targeting requirements do not apply to enhanced voucher admissions

Admission of these families is not counted in determining compliance with income targeting

3838

Family EligibilityNo Initial HAP

PHA must keep records on file if family is income-eligible for enhanced voucher, and There is no initial HAP (TTP exceeds gross

rent), and The family wishes to remain in the project

1-24

3939

Family EligibilityNo Initial HAP

If family income decreases or rent increases within 3 years of eligibility event PHA will execute a HAP contract

PHA must inform family of 3-year period Family is responsible to contact PHA if

situation changes When a voucher is available, eligible family

will receive the voucher

4040

Preservation Prepayments

Assisted and unassisted families may be eligible for enhanced voucher assistance Unassisted families are residents of a

preservation property Assisted families are residents, but are

receiving tenant based assistance

4141

Definitions

Stayers: Eligible families use their tenant-based

assistance to remain in the project

Movers: Eligible families take their tenant-based

assistance and move out of the project

1-25

4242

Enhanced Voucher Assistance

Enhanced voucher assistance is subject to most normal voucher program rules

Special requirements Payment standard Family unit size limitation Enhanced minimum rent requirement

1-25

4343

Payment Standards

Special Payment Standards are used for Enhanced Voucher family staying in the unit Payment standard (12j) = the greater of

Payment standard or the (new) gross rent If gross rent is less than PHA’s Payment

Standard, the regular payment standard rules apply

4444

Enhanced Voucher Enhanced Voucher Payment StandardPayment Standard

Payment standard for enhanced voucher stayers

Two bedroom unit

Rent = $650, UA = $50

Gross Rent = $700

PHA’s payment standard = $625

Payment Standard is? $700

4545

Enhanced Payment Standard

If gross rent increases, enhanced payment standard may increase

PHA must identify family as an enhanced voucher family even if initial gross rent does not exceed regular payment standard Enhanced payment standard may apply due

to subsequent rent increases

1-26

4646

Learning Activity: 1

Enhanced Voucher Payment Standard Page 1-30

4747

Enhanced Voucher Enhanced Voucher Requirements for Over-Housed Requirements for Over-Housed

FamiliesFamilies

1-26

4848

Over-housed families

Enhanced voucher size is issued based on PHA’s subsidy standards Not the actual size of the family’s unit

If the bedroom size of the family’s unit exceeds the enhanced voucher size the family is overhoused

4949


If an overhoused family wishes to stay in the project with enhanced voucher assistance, PHA must: Notify the owner that the family is in an

oversize unit Inform the owner of the appropriate size

under the PHA’s subsidy standards

5050


The owner will identify all appropriate size units available

Family must move to an available unit that is the appropriate size

Unit must meet program requirements including rent reasonableness and HQS

5151


If family moves: Lease and HAP contract are executed Enhanced voucher HAP calculation based on gross

rent of appropriate sized unit If family refuses to move:

HAP calculation based on regular voucher subsidy formula

Family responsible for amount of gross rent above HAP

1-27

5252


If no appropriate size units available PHA will execute a HAP for the oversized unit Family’s enhanced voucher subsidy

calculation will be based on the gross rent of the oversized unit

Until an appropriate size unit is available

1-28

5353


When an appropriate unit becomes available Owner must immediately notify family and

PHA Family must move in order to continue to

receive enhanced voucher assistance

5454


If the family moves Lease and HAP contract are executed Enhanced voucher HAP calculation based on the

gross rent of the appropriate sized unit If the family refuses to move

HAP calculation based on regular voucher subsidy formula

Family responsible for amount of gross rent above HAP

5555


If an enhanced voucher family subsequently becomes overhoused Decrease in family size or change in family

composition Policies regarding overhoused voucher

families apply

5656


If there are more overhoused families than appropriate size units, PHA determines who moves Use of lottery system; or Consider family circumstances

Age Frailty of family members

1-29

5757


If family moves out of project, the voucher becomes a Housing Choice Voucher

5858

Enhanced Voucher Enhanced Voucher Minimum Rent for StayersMinimum Rent for Stayers

1- 31

5959

Minimum Rent for Stayers

This minimum rent is different than the PHA’s minimum rent set between $0 - $50

Enhanced voucher families must pay no less in rent than what was being paid on eligibility event date

6060

Section 9: TTPSection 9: TTP

6161


Unassisted residents of preservation project Enhanced Voucher Minimum Rent = Gross

Rent (rent + utility allowance) at time owner pre-paid

Rent $325 Utility Allowance 25Enhanced Voucher Minimum Rent = $350

6262


Assisted families under a project-based contract Enhanced voucher minimum rent = Total

Tenant Payment (TTP) as of event date

6363


Assisted families under voucher program Enhanced voucher minimum rent = Family

share as of event date TFC (Total Family Contribution) is old term for

family share

6464

Total Family ShareTotal Family Share

750

680

20

700

700

400

300

400

300

380

6565

Minimum Rent for StayersRecap

So, Minimum Rent is Unassisted family: Gross Rent, on event date PB assisted family: TTP, on event date HCV assisted family: Family Share, on event date

Enhanced voucher minimum rent continues as long as the enhanced voucher family continues to reside at the property

6666

HCV Assisted Families

Residents receiving HCV assistance on date of preservation prepayment may choose Enhanced Voucher if: Family meets income requirements on date of

eligibility event Rent increases comply with lease and regs New gross rent is reasonable Family stays in the unit

1-32

6767


If HCV family chooses NOT to accept enhanced voucher assistance All regular HCV rules continue to apply

6868


Why would a HCV family choose an Enhanced Voucher? Payment Standard = new gross rent Example:

PHA Payment Standard = $500 New Gross Rent = $575 Enhanced Voucher Payment Standard = $575 Family will pay $75 less; PHA will pay $75 more

6969

Enhanced Voucher Funding

HUD will use funds appropriated for enhanced voucher assistance to amend the existing ACC to cover additional subsidy cost No new enhanced vouchers are provided

7070

Tenant Protection Funds

$200,000,000 funded Significant change is that HUD will fund every

unit that was occupied during any part of the 24 months prior to the eligibility event

Previously only funded units occupied at that time

Applies to any tenant protection actions funded from 2008 appropriations

Not in text

7171

Significant Decline in Family Income

Effect on Enhanced Voucher Minimum Rent If Enhanced Voucher family experiences a

15% + decrease in family’s gross income from eligibility event date

A new enhanced voucher minimum rent must be calculated

1-35

7272


Oh, my….. How tofigure out a decrease of

15%

7373


SUGGESTION: Calculate ‘threshold’ at time of enhanced

voucher eligibility determination What is family’s gross monthly income at

time of eligibility event date? $1,000 (gross monthly income at event date)

7474


Either: Multiply Old Gross monthly income by .15

(15%) $ 1,000 x .15 = $150 (threshold)

Then check: did gross monthly income decrease by at least $150?

7575


Or… Multiply Old Gross monthly income by .85

(85%) $ 1,000 x .85 = $850 (threshold) Check: Is the family’s gross monthly income

$850 or less?

7676


If gross monthly income meets threshold

Then new minimum rent percentage (%) must be calculated

7777


Enhanced Voucher Minimum rent changes from a dollar amount to a specific percentage

Will not revert back to a dollar amount

7878


Significant Decline in Family Gross Income Page 1-36

7979

Minimum Rent after Significant Decline

Unassisted Families: Enhanced Voucher Minimum rent is greater of:

(A) The percentage of adjusted monthly income paid for gross rent on eligibility event, or

(B) 30% of the family’s current adjusted monthly income

1-37

8080

Minimum Rent after Significant Decline

Assisted Families: Enhanced Voucher Minimum rent is greater of :

(A) The percentage of adjusted monthly income paid for TTP or total family share on eligibility event, or

(B) 30% of the family’s current adjusted monthly income

8181

Minimum Rent after Significant Decline – Recap Enhanced Voucher Minimum rent becomes

the greater of: 30% of family’s adjusted monthly income, or % of monthly adjusted income paid for

Gross rent (unassisted) TTP (Project base assisted) Family Share/TFC (HCV assisted)

on eligibility event date

8282

Converting Enhanced Voucher Minimum Rent to a

Percentage Step 1:

Determine percentage of adjusted monthly income family was paying for:

Gross rent TTP, or Family share

On the eligibility event date

8383


Percentage Step 1: Example

$400 (gross rent, TTP or family share) $1,000 adjusted monthly income $400 / $1000 = .40 = 40% 40% of adjusted monthly income was paid for gross

rent, TTP or family share so. . . 40% of adjusted monthly income is now the

enhanced voucher minimum rent percentage

8484


Percentage Step 2: Determine which percentage is

greater: Percentage of adjusted monthly income at

eligibility event date, or 30% of the family’s current adjusted monthly

income

8585


Percentage

8686

EV Minimum Rent - Family Assisted on eligibility event

Step 3: Apply % to find Enhanced Voucher Minimum Rent Family had a 25% decrease in GROSS income $750 (adjusted monthly income) x .40 (minimum rent percentage) $300 $300 is new enhanced voucher minimum rent

8787

Section 9: TTPSection 9: TTP

3009d x .4050

750

8888

Learning Activity: 3Page 1- 38

$$$$ to %%%% Does anyone have a calculator

8989

Learning Activity: 4Page 1- 40

OK… I think I’m ready for another one. OK… I think I’m ready for another one. Decrease in family monthly income, Decrease in family monthly income,

new minimum rent?new minimum rent?

9090

Calculating Total HAP for Stayers

Gross rent for the unit minus TTP (greater of): 30% of adjusted monthly income 10% of gross monthly income Welfare rent in “as paid” states PHA minimum rent Enhanced voucher minimum rent

1-41

9191


Calculating HAP for Stayers Page 1-42

9292


Enhanced Voucher Subsidy Calculations on the HUD-50058

Page 1-43

9393

Changes in Family Size

If unit becomes overcrowded due to increase in family size: Family must move to continue voucher

assistance PHA

Must assist family in housing search Must terminate HAP contract if family refuses

acceptable unit

9494


If unit becomes overcrowded due to increase in family size: Enhanced Voucher rules apply if family

moves to larger unit in project HCV rules apply if family moves out of project

9595


Family size decreases: If family moves to appropriate unit size in the

project enhanced voucher assistance continues

If family refuses to move to appropriate unit size in the project regular HCV rules apply

Family responsible for amount of the gross rent not covered by HAP

9696

Regular Rules For Movers

Family moves from project at any time Housing Choice Voucher rules apply

No enhanced payment standard No enhanced voucher minimum rent

9797

Part 7: EnhancementsPart 7: Enhancements

Information is in book

Part 8: Conversion of HCV to Enhanced Vouchers

9898

Additional Tools in Book

Developing an Action Plan for Housing Conversion Actions

Chart: Differences Between Preservation and Opt-

out Flow of Your Housing Conversion Action

1 enhanced vouchers. 2 housing conversion actions hud provides tenant-based rental assistance to...

Documents

nonenhanced vouchers

special admission vouchers

enhanced vouchers1

owner prepaid mortgage

prepayment date

owner actionsactions

pha point

prepayensuring owner