Rent determination plan changes since the last submission Public Housing/Housing Choice Voucher
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1 Rent determination plan changes since the last submission Public Housing/Housing Choice Voucher Housing Choice Voucher Program and Public Housing: CHAPTER 6 Income and Subsidy Determinations Revised the language regarding removing income due to a medical leave of absence from 6 weeks to 30 calendar days: DMMHA will decrease family portion of rent by removing wages from the file for employed participants who take a medical leave of absence from employment when the medical leave of absence is thirty calendar (30) days or more. It is the family s responsibility to report to DMMHA in writing within 14 calendar days when the employment continues. Revised the language regarding employment from temporary agencies as follows: Employment income from a temporary agency is included in annual income unless the household provides a statement from the temporary agency that the household member has ended actual employment with the temporary agency, not just that the temporary assignment has ended. The income from temporary agency employment will not be counted in annual income if the household member provides verification that the income has not been received for at least thirty (30) calendar days. Revised language under Earned Income Disregard due to the Housing Opportunities through Modernization Act to read as follows: While qualification for the disallowance is the same for all families, calculation of the disallowance will differ depending on when the family member qualified for the EID. Participants qualifying prior to May 9, 2016, will have the disallowance calculated under the Original Calculation Method described below which requires a maximum lifetime disallowance period of up to 48 consecutive months. Participants qualifying on or after May 9, 2016, will be subject to the Revised Calculation Method which shortens the lifetime disallowance period to 24 consecutive months. Under both the original and new methods, the EID eligibility criteria, the benefit amount, the single lifetime eligibility requirement and the ability of the applicable family member to stop and restart employment during the eligibility period are the same. Revised Calculation Method (a) Initial 12-Month Exclusion The initial exclusion period of 12 consecutive months, the full amount (100 percent) of increase in income attributable to new employment or increased earnings is excluded. The initial EID exclusion period will begin on the first of the month following the date an eligible member of a qualified family is first employed or first experiences an increase in earnings. 1
2 (b) Second 12-Month Exclusion During the second exclusion period of 12 consecutive months, the DMMHA must exclude at least 50 percent of any ongoing or new increase in income attributable to employment or increased earnings. (c) Lifetime Limitation The EID has a two-year (24-month) lifetime maximum. The two-year eligibility period begins at the same time that the initial exclusion period begins and ends 24 months later. During the 24-month period, an individual remains eligible for EID even if they begin to receive assistance from a different housing agency, move between public housing and Section 8 assistance, or have breaks in assistance. Revised language regarding determining the value of a checking account to read as follows: In determining the value of a checking account, the DMMHA will use the average monthly balance, if indicated on the bank statement, and use the current balance if the average balance is not indicated on the bank statement. Revised language regarding alimony and child support payments to reflect no payments for 30 days instead of the previous 60 days. CHAPTER 7 VERIFICATIONS Added the following under Value of Assets and Asset Income: Value of Assets and Asset Income For families with net assets totaling $5,000 or less, the DMMHA will accept the family s selfcertification of the value of family assets and anticipated asset income when applicable. The family s declaration must show each asset and the amount of income expected from that asset. All family members 18 years of age and older must sign the family s declaration. Added under Documentation of Age that the following would also be accepted if an official record of birth cannot be obtained: SS, SSI, SSDI benefit letter that states the date of birth and name of the family member. Added that DMMHA would accept a self-certification as proof of marriage. Added under Assets and Income from Assets: The DMMHA will use third-party documentation for assets as part of the intake process, whenever family member is added to verify the individual s assets, and every three years thereafter 2
3 Housing Choice Voucher Program Added that Lump sum of child support or unemployment benefits are excluded from income 6-I.L. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b) (9); Notice PIH ] Added the following language per PIH Notice : Tuition and fees are defined in the same manner in which the Department of Education defines tuition and fees [Notice PIH ]. (i) Is the amount of tuition and required fees covering a full academic year most frequently charged to students. (ii) The amount represents what a typical student would be charged and may not be the same for all students at an institution. (iii) If tuition is charged on a per-credit-hour basis, the average full-time credit hour load for an academic year is used to estimate average tuition. (iv) Required fees include all fixed-sum charges that are required of a large proportion of all students. Examples include, but are not limited to, writing and science lab fees and fees specific to the student s major or program (i.e., nursing program). (v) Expenses related to attending an institution of higher education must not be included as tuition. Examples include, but are not limited to, room and board, books, supplies, meal plans, transportation and parking, student health insurance plans, and other non-fixed-sum charges. Revised the following language per PIH Notice Streamlining Administrative Regulations for Programs Administered by Public Housing Agencies, on a case-by-case basis, as a reasonable accommodation, a PHA may approve a payment standard amount up to 120 percent of the published fair market rent (FMR) without HUD approval. (Previously PHA s were only permitted to approve up to 110%). CHAPTER 7 Verifications Added under documentation of Social Security Numbers: If an applicant family includes a child under 6 years of age who joined the household within the 6 months prior to the date of voucher issuance, an otherwise eligible family may be admitted to the program and the family must provide documentation of the child s SSN within 90 calendar days of the effective date of the initial HAP contract. A 90-calendar day extension will be granted if the DMMHA determines that the applicant family s failure to comply was due to unforeseen circumstances and was outside of the family s control, such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency. 3
4 Added under Verification of Student Status: Independent Student [PIH Notice September 21, Eligibility of Independent Students for Assisted Housing under Section 8 of the U.S. Housing Act of 1937; Additional Supplementary Guidance] To qualify as an independent student, an individual must meet one of the following criteria: The individual is 24 years of age or older by December 31 of the award year The individual is an orphan, in foster care, or a ward of the court at any time when the individual was 13 years of age or older The individual is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual s state of legal residence The individual is a veteran of the U.S. Armed Forces or is currently serving active duty for other than training purposes The individual is a graduate or professional student The individual is married The individual has legal dependents other than a spouse The individual has been verified during the school year in which the application is submitted as either an unaccompanied youth who is a homeless child or youth, or as unaccompanied, at risk of homelessness, and self-supporting by a local educational agency homeless liaison; the director or designee of the director of a program funded under the Runaway and Homeless Youth Act, or of a program funded under Subtitle B of Title IV of the McKinney-Vento Homeless Assistance Act; or a financial aid administrator The individual is a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances The DMMHA will verify a student s independence from his/her parents to determine that the student s parents income is not relevant for determining the student s eligibility by doing all of the following: Reviewing and verifying previous address information to determine evidence of a separate household or verifying the student meets the U.S. Department of Education s definition of independent student. 4
5 Reviewing a student s prior year income tax returns to verify the student is independent or verifying the student meets the U.S. Department of Education s definition of independent student. Verifying income provided by a parent by requiring a written certification from the individual providing the support. Certification is also required if the parent is providing no support to the student. Financial assistance that is provided by persons not living in the unit is part of annual income, except if the student meets the Department of Education s definition of independent student. Revised language regarding zero income families to read: Families claiming to have no income will have to certify to this status by completing the DMMHA Zero Income Declaration when notified by the DMMHA. Added under Assets and Income from Assets: The DMMHA will use third-party documentation for assets as part of the intake process, whenever a family member is added to verify the individual s assets, and every three years thereafter. CHAPTER 11 Reexaminations Revised language that allows re-examinations to be conducted in person or by a mailed reexamination packet. Added the following to allow for future streamlining of annual re-examinations: STREAMLINED ANNUAL REEXAMINATIONS [24 CFR (b)] HUD permits PHAs to streamline the income determination process for family members with fixed sources of income. While third-party verification of all income sources must and will be obtained during the intake process and every three years thereafter by PHAs including DMMHA, in the intervening years the PHA may determine income from fixed sources by applying a verified cost of living adjustment (COLA) or rate of interest. The PHA may, however, obtain third-party verification of all income, regardless of the source. Further, upon request of the family, the PHA must perform third-party verification of all income sources. Fixed sources of income include Social Security and SSI benefits, pensions, annuities, disability or death benefits, and other sources of income subject to a COLA or rate of interest. The determination of fixed income may be streamlined even if the family also receives income from other non-fixed sources. The DMMHA may pursue streamlining the annual reexamination process. At such time as the DMMHA decides to pursue this, the DMMHA will do so by applying the verified COLA or interest rate to fixed-income sources. The DMMHA will document in the file how it made the determination that a source of income was fixed. Revised under Interim Re-examinations that they would be conducted for any increase of the amount of family income of $1000 or more per month (previously $500). 5
6 Public Housing Minimum Rent [24 CFR 5.630] - DMMHA has a minimum rent of $ CHAPTER 6 Income and Subsidy Determinations Under the EID original calculation method, a family currently paying flat rent that previously qualified for the EID while paying income-based rent and is currently within their exclusion period would have the exclusion period continue while paying flat rent as long as the employment that is the subject of the exclusion continues. A family paying flat rent could therefore see a family member s exclusion period expire while the family is paying flat rent. Under the EID revised calculation method, a family currently paying flat rent that previously qualified for the EID while paying income-based rent and is currently within their exclusion period would have the exclusion period continue while paying flat rent regardless whether the employment that is the subject of the exclusion continues. A family paying flat rent could therefore see a family member s exclusion period expire while the family is paying flat rent. Chapter 7 Verifications Under 7.I.D Third Party Written and Oral Verification removed the following: The DMMHA will use third party documentation for assets as part of the intake process and whenever a family member is added to verify the individual s assets and every three years annually thereafter. Under 7.II.B. Social Security Numbers added the following: If an applicant family includes a child under 6 years of age who joined the household within the 6 months prior to the date of program admission, an otherwise eligible family may be admitted and must provide documentation of the child s SSN within 90 days. A 90-day extension will be granted if the DMMHA determines that the applicant family s failure to comply was due to unforeseen circumstances and was outside of the family s control. The DMMHA will grant one additional 90-day extension if needed for reasons beyond the applicant s control, such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency. Under 7.II.D Family Relationships Revised as follows: Separation or Divorce The DMMHA will require the family to provide documentation of the divorce or separation if the document has an effect on household income or custody of children. 6
7 Removed the following: The DMMHA will require the family to provide documentation of the divorce or separation. A certified copy of a divorce decree, signed by a court officer, is required to document that a couple is divorced. A copy of a court-ordered maintenance or other court record is required to document a separation. If no court document is available, a notarized statement from a family member or nonfamily member verifying the separation will be accepted. Under 7.III.C Periodic Payments and Payments in Lieu of Earnings- added the following: For policies governing streamlined income determinations for fixed sources of income, please see Chapter 9. Under 7.III.D Alimony or Child Support revised as follows: If no alimony or child support payment is received for thirty (30) consecutive calendar days, DMMHA will not use child support in the family s income. Under 7.III.E Assets and Income from Assets FLAT RENTS Removed the following: The DMMHA will use third-party documentation for assets as part of the intake process, whenever a family member is added to verify the individual s assets, and every three years annually thereafter Once each year, the DMMHA must offer families the choice between a flat rent and an incomebased rent. The family may not be offered this choice more than once a year. The annual DMMHA offer to a family of the choice between flat and income-based rent will be conducted upon admission and upon each subsequent annual reexamination. The DMMHA will require families to submit their choice of flat or income-based rent in writing and will maintain such requests in the tenant file as part of the admission or annual reexamination process. Flat Rents are set at Fair Market Rents (FMR) for the Section 8 program as published annually by HUD, based on Bedroom size. 7
8 8
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