Housing Quality Standard Inspections

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2 Housing Quality Standard Inspections

3 What is the purpose of HQS? To provide decent, safe and sanitary housing Helps to define standard housing Establishes the minimum criteria for the health and safety of program participants

4 General Requirements 1. Sanitary facilities 2. Food preparation refuse disposal 3. Space and security 4. Thermal environment 5. Illumination and electricity 6. Structure and materials 7. Interior air quality 8. Water supply 9. Lead-based paint 10. Access 11. Site and neighborhood 12. Sanitary condition 13. Smoke detectors

5 How is HQS enforced? Inspections are conducted by staff to ensure that potential and current units meet the minimum performance and acceptability criteria for each of the 13 key aspects. What happens if there are violations?

6 Judgment Calls Not all areas of HQS are exactly defined. The use of written policy is suggested. The inspector must make a decision, or judgment call, on whether or not a condition in the unit would fail HQS. For example, some potential hazards may apply only when small children are in the household. If an item has a cutting hazard, it may fail if small children could be injured.

7 Tenant Preference Some conditions that are not optimal, but do not fail HQS, are left up to tenant preference. For example, a water heater that appears too small for a family should be discussed but it is up to the tenant whether he/she is willing to accept the situation. You may, at times, have the family sign a statement that the existing condition(s) of the property are acceptable.

8 Common Reasons Units Fail Alerting property owners ahead of time of the most common reasons units fail can assist you with your inspections by allowing them time to address potential violations before you arrive. See handout for a list used by KHC s voucher program.

9 Bed Bugs What s your policy? Who is responsible for treatment? Always ask before entering a unit if there is a current bed bug infestation. Bed Bug Registry: bedbugregistry.com

10 Mold Mold is becoming a common complaint from program participants. (see EPA handout) HQS is a visual inspection If you see mold you should require it be addressed. The property owner should clean it up andfix the water problem. Health issues reported? What is your policy?

11 For Further Reference Chapter 10 of the HCV Guidebook HUD a (see handout) Mary Beth Smith (502) , extension 395

12 Subsidy and Income Calculations Payment Standards Utility Calculation Charts

13 Eligible Applicants Projects may not use KHC HOME funds to assist participants in the City of Owensboro, the merged governments of Lexington/Fayette and Louisville/Jefferson counties, and the consortia consisting of the cities of Covington, Ludlow, Bromley, Newport, Bellevue and Dayton. These areas receive their own allocation of HOME funds from HUD.

14 Tenant Selection Household income is determined using the Section 8 method found in 24 CFR Part 5. Includes all income and assets from all household members. 100 percent of households must be at or below 60 percent of AMI (Area Medium Income) when entering the program. In addition, 20 percent of households must be at or 50 percent AMI when entering program.

15 Income Eligibility Once in the program, if, at annual recertification, the household income rises above 80 percent of AMI, the household is no longer eligible for HOME TBRA assistance. Income refers to gross income adjusted by household size and deductions. Incomes are reverified annually during re-certification process. Begin re-certification process prior to prior to anniversary date of move-in.

16 Income Verification To verify income, use source documentation such as wage statements, award letters, bank statements, etc. Anticipate total income for upcoming year, not past year s income. Can verify income at application. If 6 months lapse prior to lease-up, need to re-verify.

17 Calculating Household Income Gather gross income data for all adult household members. Determine household size. Calculate Adjusted Income. Compare to HOME Income Limits. Exceptions to household size; do not include foster children or adults, live-in aides or their children. Also, do not include their income.

18 Annual Gross Income Anticipated income for next 12 months. Do not include income of minors (18 & under). Temporarily absent family members income counts, regardless of the amount they contribute to the household. Permanently absent family members income is optional. If they count toward family size, count income. If they do not count toward family size, do not include the income. Types of income to count: wages, overtime, tips, Social Security, disability, pensions, interest, dividends, unemployment, TANF, child support, alimony, informal support if it is a regular payment.

19 Annual Gross Income Types of income to exclude: income of minors, payments for care of foster children or adults, lump sum inheritance or insurance or lottery winnings, reimbursements for medical care, income of live-in aide, student financial assistance, temporary or sporadic gifts or income, food stamps, earned income tax credits. What to include as an asset: cash or non-cash item that can be converted to cash including bank accounts, equity in rental property, stocks, bonds, CDs, individual retirement accounts, cash value of insurance policies, lump sum inheritance or insurance or lottery winnings. What to exclude as asset: necessary personal property such as cars and furniture, term life insurance, assets that provide no income to family.

20 Calculating Adjusted Income Deductions from gross income: Elderly household: head, spouse or sole member is 62 or older. Disabled household: head, spouse or sole member has disabilities. Deduction of $ per household; elderly OR disabled, not both. Dependent: each member under age 18 or disabled or full-time student. Deduction of $ for each dependent. Child Care: reasonable child care of a child 12 or under IF the care enables a family member to work, seek work or further education AND expenses are not reimbursed. Document expenses. Allowable expense not to exceed generated income of member.

21 Calculating Adjusted Income Medical Expenses: allowable for elderly or disabled households anticipatedannual expenses of allmembers that exceed3% of gross annual income and are not coveredby insurance. Includes doctors, hospitals, medical insurance premiums, prescriptions, dental, glasses and eye exams, medical products such as hearing aid batteries, visiting nurses, periodic payments of past medical bills. Should not always use previous year s expenses as guide as situations may change. If unexpected costs arise, may request re-examination mid-year. Disability Assistance: allowable for disabled households for expenses that exceed 3% of gross annual income that enables a member to work and are not reimbursed by another source.

22 Calculating Adjusted Income Gross Annual Income Less $400 if Elderly/Disabled Household Less $480 for each dependent Less Child Care, Medical and Disability Assistance Deductions over 3% of gross Result is adjusted Annual Income used for subsidy calculations

23 Calculating Rental Subsidy Using the Section 8 Voucher model, calculate the difference between 30% of adjusted monthly income of the household and the payment standard. The gap is the amount of the rental subsidy provided by the agency. Households may choose to rent a unit either below or above the payment standard, but the subsidy remains constant.

24 Calculating Rental Subsidy Depending on the unit, the household may pay more or less than 30% of their income, but must pay at least 10% of gross monthly income. 30% Adjusted Income $ If chosen rent is $ Payment Standard $ Subsidy stays at $ Subsidy $ Household pays $ Household Portion $200.00

25 Tenant Rent Payments Agency must establish amount of minimum rental payment. Minimum rental payment may be a dollar figure or a % of income. Maximum rental payment is the difference between 30% of adjusted monthly income and the payment standard for the unit.

26 Length of Assistance All contracts with individual households are not to exceed 24 months. Contract can be shorter than 24 months. Contract can be renewable after 24 months if TBRA funds are available. Must have new client file.

27 Establish Payment Standards Payment standard is the amount of rent and utility calculation of moderately priced units that will pass HQS inspection by size. Agencies may develop their own payment standards based on a local market analysis. Agencies may use KHC s Payment Standards updated annually. Available for all counties.

28 Deposit Assistance TBRA funds may be used for rental and utility security deposit assistance. Rental security deposits may not exceed two months rent of the unit. One month rent is more typical. Utility security deposits may not include telephone or cable TV.

29 Utility Calculations KHC recommends using Utility Charts for East, Central and West Regions updated annually. Calculate only those utilities tenant must pay in addition to rent. Make sure to use the appropriate unit type and fuel source for each utility.

30 Utility Calculations Example: Contract Rent $ Rental Subsidy $ Utility Calculation $ Tenant Pays $ Agency Pays $ Instructions for Calculating Utility Allowance is available on website.

31 FORMS Payment Standards, Utility Calculation Charts, Instructions for Calculating Utility Allowances, Income Limits and Kentucky FMRs can all be found on the KHC website under the HCA Help Desk, HOME TBRA. Forms will be updated annually.

32 HOME TBRA Guidelines and Your Administrative Plan

33 2016 HOME TBRA Guidelines Next funding round tentatively set for February 2016 Competitive funding round, with approximately $1 million of HOME funds available for TBRA Capacity Scorecard

34 2016 HOME TBRA Guidelines Thresholds Unexpended TBRA funds from projects assigned TB13 or earlier, not eligible to apply TB14 projects, possibly percent expended TB15 projects, not eligible to apply

35 Your Administrative Plan Important documents to read: Application Guidelines specific to each funding round Application Administration Plan KHC HOME Policy Manual Funding Agreement

36 Your Administrative Plan Things to consider: Don t back your agency into a corner Leave room for extenuating circumstances, then add to your admin plan for consistency Try not to further restrict your program Living, breathing document for your program

37 Your Administrative Plan Occupancy Standards The agency should develop occupancy standards that specify the number of bedrooms needed based on household size and composition. Occupancy standards are used to provide consistent criteria for determining the unit size for which the household is eligible.

38 Your Administrative Plan The basic standard can be modified to take into consideration specific household composition and circumstances. Agencies are locking themselves into an occupancy standard. Leave room for the exception.

39 Your Administrative Plan Payment Standards The HOME Program offers three choices for setting the payment standard: Section 8 Existing Housing Fair Market Rent (FMR) Agency s own market analysis KHC s payment standards