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Slide #1 Annie Stevenson Verification Techniques
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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
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Slide #3 Welcome to Lunch N Learn! Today’s topics: Total tenant payment calculation Minimum rent Utility allowances Payment standards
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Slide #4 Total Tenant Payment
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Slide #5 Total Tenant Payment TTP is highest of: 10% total monthly income 30% monthly adjusted Income the welfare rent minimum rent
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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.)
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Slide #7 How to Get TTP 10% of $167 = $17 30% of $7 = $2 Minimum Rent $25 Welfare Rent $0 (N/A) TTP is ??????
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Slide #8 TTP Calculation Learning Activity 1 TTP Calculation on 50058 8a = $15,780 8y = $11,392 Minimum rent = $35
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Slide #9 Learning Activity 1 Answers 1,315 132 285 N 949 30 35 0
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Slide #10 Minimum Rent
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Slide #11 Minimum Rents PHAs may establish minimum rent $0 - $50 PHAs must adopt minimum rent hardship exemption policies
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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
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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
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Slide #14 Minimum Rent Process PHA notifies family if TTP = minimum rent Family requests exemption
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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
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Slide #16 Minimum Rent Process PHA must promptly determine if hardship exists whether temporary (PHA policy) or long term
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Slide #17 Minimum Rent Process If PHA determines no hardship under statute, minimum rent is imposed retroactively
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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
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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
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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
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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
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Slide #22 Learning Activity 2 Answers 75 8 2 8 Y 5 30 0 0
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Slide #23 Utility Allowance
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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
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Slide #25 Utility Allowance Families responsible for utility costs (excluding telephone) will see a utility allowance applied to their rent calculation
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Slide #26 Payment Standards
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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)
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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
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Slide #29 Payment Standard Used to calculate total subsidy for the family PHA’s payment standard is maximum subsidy amount
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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
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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
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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
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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
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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…
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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….
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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…
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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….
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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….
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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
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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
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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
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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
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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
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Slide #44 HCV Rent Calculation
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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
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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
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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
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Slide #48 Formulas Rent Formula Total subsidy is lower of: Payment standard minus TTP or Gross rent minus TTP
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Slide #49 Facts about Rent Calculation The family will not pay less than the TTP toward rent and utilities
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Slide #50 Utility Reimbursement Payment Family’s TTP (family share)$35 Utility allowance$45 Family rent to owner$ 0 Utility reimbursement payment$10
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Slide #51 Gross Rent Below PS Learning Activity 3 HCV calculation on 50058 TTP $ 220 Rent to Owner $ 730 PS $ 800UA $ 40
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Slide #52 Learning Activity 3: Answer 800 730 40 770 220 550 220 550 180
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Slide #53 Gross Rent Above PS Learning Activity 4 HCV Calculation on 50058 TTP $ 220 Rent to Owner $ 765 PS $ 800UA $ 75
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Slide #54 Learning Activity 4: Answer 800 765 75 840 800 220 580 260 580 185
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Slide #55 Utility Reimbursement Payment Learning Activity 5 HCV Calculation on 50058 TTP $ 125Rent to Owner $ 525 PS $ 675UA $175
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Slide #56 Learning Activity 5: Answer 675 525 175 700 675 125 550 150 525 0 25
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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
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Slide #58 Maximum Family Share Annual Income$12,000 Adjusted Income$11,040/12 = $920/mo 40% Limit$920 x 40% = $368
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Slide #59 Answer If the gross rent exceeds the payment standard for the family, the family share cannot exceed $368
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Slide #60 “Affordability” Example 40% limitation at Lease-Up Rent to owner750 Utility allowance35 PHA Payment Standard775 Monthly adjusted income1,300 Family Share400
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Slide #61 “Affordability” Example 40% limitation at Lease-Up Rent to owner875 Utility allowance40 PHA Payment Standard775 Monthly adjusted income1,300 Family Share530
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Slide #62 Proration of Assistance Mixed families receive prorated assistance Calculate TTP as usual Prorate subsidy (HAP) Family must pay the difference
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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
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Slide #64 Learning Activity 6: Answer 540 535 0 174 361
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Slide #65 Learning Activity 6: Answer 361 2 3.67 242 293 0 242
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Slide #66 NMA Lunch ‘n’ Learn Seminar NEXT TOPIC…
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Slide #67 NMA Lunch ‘n’ Learn Seminar
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