HUD RHIIP Training – PH/HCV Program Basics
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Transcript of HUD RHIIP Training – PH/HCV Program Basics
May 2003 Chapter 4: Basic Program Overview 1
HUD RHIIP Training – PH/HCV Program Basics
May 2003 Chapter 4: Basic Program Overview 2
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
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Congress
HUD Headquarters
HUD Centers & Field Offices
Local Government
Families and Owners
Local Housing Agency
Governed by BoardAdministered by Executive Director
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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
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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…
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PHA Structures Are Different• All agencies that operate the Public Housing
program must follow same HUD rules, and all agencies are rated under PHAS
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In Public Housing, families have to live in the building which has the subsidy
attached to it
Project-based Subsidy
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Legal Relationships
Lease
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Type of Projects
• Mixed Population (Elderly & Disabled)
• Elderly Only
• Disabled Only
• General Occupancy
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Tenant-Based Subsidy
Families can choose their unit
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Vouch
erHAP Contract
Assisted Lease
PHA/LOCAL ENTITY
HUD
Family Owner
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T/F Quiz
1. HUD’s role is to pass legislation.
2. PHAs are created by HUD.
3. PH is tenant-based assistance.
5. All PHAs are a department of the city.
FF
FF
FF
FF
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Mandatory References
• Statutes• Regulations
– Public Housing: 960 and 966– HCV: 982– Both: Subpart 5
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Mandatory References
• Current Notices– Have an expiration date– May be extended
• Handbooks• Forms
– Often have instructions in addition to form
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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)
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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)
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Family ReportForm HUD-50058
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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
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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
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Form HUD-50058
• PHA responsibilities– Collect information– Electronically submit information to HUD – Review error analysis reports– Correct errors
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HUD-50058 Family Report1. Agency2. Action3. Household4. Background at Admission5. Unit to Be Occupied 6. Assets7. Income (Annual Income)
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HUD-50058 Family Report8. Expected Income Per Year (Adjusted Income)9. Total Tenant Payment10. Public Housing only11. Premerger Certificates (now used for project-
based certificates only)12. Sec 8 Voucher Rent Calculation13. Section 8 Moderate Rehabilitation Program
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HUD-50058 Family Report14. 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
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Question
• Which sections will affect income and rent calculation the most?
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Form HUD-50058 References
PIH Home Page:www.hud.gov/offices/pih/index.cfmPIC home page:www.hud.gov/offices/pih/systems/pic/index.cfmMTCS Forum:http://chatwrite.hud.gov/pih/pihboard/mtcs/pihboard.htmlGuidebooks and Tools:www.hud.gov/offices/pih/systems/pic/50058/pubs/
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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
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Section 1: Agency
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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)
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Section 3: Household
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Family Types
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Terms
• Household• Family
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Definition of Family
• HUD defines:– elderly family– disabled family– displaced family
• Does not affect rent calculation
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Definition of Family
• The PHA defines what groups other than the HUD-defined groups constitute a family
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Elderly Family
• Family whose head, spouse or sole member is at least 62 years of age
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Disabled Family
• Family whose head, spouse or sole member is a person with disabilities
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Live-In Aide
• Person who resides in unit to care for family member who is:– disabled or– 50 years of age or more
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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
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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
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Social Security Number Requirements• All family members age six and over who
have Social Security Numbers are required to disclose them
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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
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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
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Failure to Disclose Social Security Number• Applicants - denial of assistance• Participants - termination of assistance
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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
TT
TT
FF
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T/F Quiz
4. An individual has 60 days from date of certification to provide verification of their SSN
5. “Family” is defined by HUD.
TT
FF
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Citizenship/Eligible Immigrant
C/EI
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Restriction on Assistance to Noncitizens• Purpose is to ensure that only citizens,
nationals and eligible immigrants are assisted with HUD subsidy
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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
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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
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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
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Mixed Family
• A MIXED family is comprised of citizen(s), or eligible immigrant(s), and those without citizenship or eligible immigrant status
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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
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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
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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
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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
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Documentation
• Declaration of 214 Status• Verification Consent Form• Listing of Non-contending Family Members• Notice of Section 214 Requirements
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Terms(Will define when covered) • Annual Income• Adjusted Annual Income• Total Tenant Payment• Utility Allowance• Utility Reimbursement payment
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Terms (continued)(Will define when covered) • Flat rent (PH)• Ceiling Rent (PH)• Tenant Rent (PH)
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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
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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
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Annual Income
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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
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Computing Annual Income
Total/Gross Income - Exclusions = Annual Income
Formula
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Computing Annual Income• PHAs are now
required to show excluded income of family members on the HUD-50058
5400 4920 480
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Converting Income
• Convert earned income to an annual wage
• Multiply hourly wages by the number of hours worked per year (2080 for full-time)
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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 =
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Annual Income
• Employment income– prior to payroll deductions– includes overtime, commissions, fees, and
bonuses
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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
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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
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Seasonal Employment
• PHAs should develop policies for calculation of seasonal income
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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?
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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 rateOR…
• Annualize current income and conduct an interim when there is a change
• Address treatment in PHA policies
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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?
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Adult Full Time Student
• The educational institution determines the full time status of the student– Vocational Schools included
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Income of Minors
• Include any benefits or other non-earned income paid directly to minors
• Who is a minor?
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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
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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
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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
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Periodic Payments and Allowances
– Annuities– Insurance policies– Pensions– Disability– Death benefits
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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
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Lump Sum Payments
• Income– Processing delays of periodic payments such
as welfare or unemployment
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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
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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
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Public Assistance
• Temporary Assistance for Needy Families• SSI• General Assistance
• Imputed welfare income covered in case study during week
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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
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Payments in Lieu of Earnings
– Unemployment– Workers compensation– Severance pay
Figure for entire year when income for other weeks
is not known
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Pop Question
• Which of the following is not considered to be “income” in the HUD definition?A. Wages from employmentB. TANF benefitsC. A lump sum inheritance D. Net income from a business
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Pop Question
• Which of the following is not considered to be “income” in the HUD definition?A. Wages from employmentB. TANF benefitsC.C. A lump sum inheritance A lump sum inheritance D. Net income from a business
May 2003 Chapter 4: Basic Program Overview 88
Section 7: Income
May 2003 Chapter 4: Basic Program Overview 89
Section 7: Income
Julie
Karen
TonyEric
1
2
34
W
W
WS
10.25 x 2080
150 x 52
100 x 52300 x 12
21,320
7,800
5,2003,600
21,320
3,6005,200 0
4807,320
25,400
155
6j = 155
25,555
May 2003 Chapter 4: Basic Program Overview 90
Learning Activity 4-1
• Calculating Annual Income
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Learning Activity 4-1 Answers
Eric 1 N 600x12 7,200 7,200Eve 2 W 6.25x2080 13,000 13,000
20,200
20,200
May 2003 Chapter 4: Basic Program Overview 92
Assets and Asset Income
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Assets
• Value of assets may affect annual income
• PHA must identify assets and verify market value of assets
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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.)
May 2003 Chapter 4: Basic Program Overview 95
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
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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
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Assets Include
• Assets which allow unrestricted access• Lump sum receipts
– Inheritances, capital gains, lottery winnings– Social security & SSI lump sum payments
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Assets Include
• Personal property held as investment– gems, jewelry, – coin collections,– antique cars, etc.
• Surrender value of life insurance policies
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Assets Do Not Include
• Personal property• Assets not accessible to the family• Interest in Indian Trust lands
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Income from Assets
• Assets can generate income• Income from assets is counted in determining
annual income
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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)
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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
May 2003 Chapter 4: Basic Program Overview 103
Section 6: Assets
May 2003 Chapter 4: Basic Program Overview 104
Section 6: Assets
JulieKaren
Tony
12
3
CDsavings
savings
$3600-$100 35002200
500
6200
9044
7
141
025
155155
2.5%2.0%1.3%
May 2003 Chapter 4: Basic Program Overview 105
Learning Activity 4-2
• Calculating Assets and Asset Income
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Learning Activity 4-2 Answers
• Calculating Assets and Asset IncomeEric 1 Savings 1,000 20
1,000 200225 0
20
1000x .02 20
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Income Excluded under HUD Regulations
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Income Exclusions
• Listed on Fact Sheet
• Must be included on HUD-50058 form
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Income Exclusions
• Income of a live-in aide• Amounts received under training programs
funded by HUD
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Income Exclusions
• Resident service stipend– Modest amount (not to exceed $200 per
month) received by a resident for performing a service for the PHA
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Income Exclusions
• Training income exclusions– Incremental earnings and benefits to any
family member during participation in a qualified training program
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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?
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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$600
May 2003 Chapter 4: Basic Program Overview 114
Income Exclusions
• Adoption assistance payments in excess of $480 per adopted child
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Income Exclusions Under Other Federal Statutes
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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
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Learning Activity 4-3
• Identifying income and assets• Page 4-37
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Adjusted Income
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Adjusted Income
• Annual Income minus allowances– Dependents– Elderly/disabled allowance– Child care– Medical expenses– Disability expenses
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Permissive DeductionsPublic Housing Only• A PHA may adopt additional deductions from
annual income• The PHA must establish a written policy for
such deductions
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Permissive DeductionsPublic Housing Only• These deductions should not
– Duplicate amounts already deducted from annual income
– Include amounts reimbursed to the family from other sources
May 2003 Chapter 4: Basic Program Overview 122
Section 8: Expected Income Per Year
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Section 8: Expected Income Per Year
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Learning Activity 4-4
• Calculating Adjusted Income
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Learning Activity 4-4 Answers Line 8a $20,220
1
480 480
Line 8x $ 480Line 8y $19,740
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Formula for TTP
• TTP is highest of:– 30% monthly adj. Income– 10% total monthly income– the welfare rent– minimum rent
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Section 9: Total Tenant Payment (TTP)
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Section 9: Total Tenant Payment (TTP)
1,525
2,130
213
30
4580
25
458350
N
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Learning Activity 4-5
• Calculating TTP
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Learning Activity 4-5 Answers
1685
1691645
30 494
0 25
494
Line 8a $ 20,220Line 8y $ 19,740
May 2003 Chapter 4: Basic Program Overview 131
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
May 2003 Chapter 4: Basic Program Overview 132
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
May 2003 Chapter 4: Basic Program Overview 133
Overview of Calculation of Public Housing Tenant Rent
May 2003 Chapter 4: Basic Program Overview 134
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
May 2003 Chapter 4: Basic Program Overview 135
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)
May 2003 Chapter 4: Basic Program Overview 136
Section 10: Public Housing
May 2003 Chapter 4: Basic Program Overview 137
Utility Allowances
TTP $80- UA 50
Tenant Rent $30
TTP 40- UA 50
Tenant Rent 0
URP $10
May 2003 Chapter 4: Basic Program Overview 138
Section 10: Public Housing
80600
80
5030
X
May 2003 Chapter 4: Basic Program Overview 139
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
May 2003 Chapter 4: Basic Program Overview 140
Retaining Ceiling Rents
• As of 10/1/2002, ceiling rents must be adjusted to flat rent level
May 2003 Chapter 4: Basic Program Overview 141
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.
May 2003 Chapter 4: Basic Program Overview 142
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
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Flat Rents
• Recertifications are done not less than once every 3 years– annual reexamination of family composition
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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
May 2003 Chapter 4: Basic Program Overview 145
Flat Rent Methodology
• Relevant factors must include:– Age– Location– Quality– Amenities– Size of Unit
– Housing services– Maintenance– Utilities provided by
PHA– Unit type
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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
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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
May 2003 Chapter 4: Basic Program Overview 148
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
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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
May 2003 Chapter 4: Basic Program Overview 150
Learning Activity 4-6
• Calculating Tenant Rent
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Learning Activity 4-6 Answers
X
494700
49445
449
May 2003 Chapter 4: Basic Program Overview 152
Payment Standards for Housing Choice Vouchers
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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
May 2003 Chapter 4: Basic Program Overview 154
Overview of Calculation of HCV Subsidy and Family Share
May 2003 Chapter 4: Basic Program Overview 155
Formulas
• Rent Formula– Total Subsidy is lower of Gross Rent or
Payment Standard– Minus TTP
May 2003 Chapter 4: Basic Program Overview 156
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
May 2003 Chapter 4: Basic Program Overview 157
Section 12: Section 8 Vouchers
May 2003 Chapter 4: Basic Program Overview 158
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
May 2003 Chapter 4: Basic Program Overview 159
Section 12: Section 8 Vouchers
600
650
30
680600
25
575
105
575
75
May 2003 Chapter 4: Basic Program Overview 160
Learning Activity 4-7
• Gross Rent greater than the Payment Standard
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Learning Activity 4-7 Answers
750725 50
775750494256
519256
469
May 2003 Chapter 4: Basic Program Overview 162
Gross Rent Less than PSFamily 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
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Section 12: Section 8 Vouchers
600
550
30
580580
25
550
25
555
0
5
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Learning Activity 4-8
• Gross Rent less than Payment Standard
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Learning Activity 4-8 Answers
750625
675675
50
494181
494181
444
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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
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Pop Question
• In which situation must the rent burden test be applied?A. Whenever an owner offers a new lease in the
same unitB. When the gross rent exceeds the payment
standard at initial lease-upC. When the owner increases the rentD. Only when a family moves
May 2003 Chapter 4: Basic Program Overview 168
Pop Question
• In which situation must the rent burden test be applied?A. Whenever an owner offers a new lease in
the same unitB.B. When the gross rent exceeds the When the gross rent exceeds the
payment standard at initial lease-up *payment standard at initial lease-up *C. When the owner increases the rentD. Only when a family moves