WELCOME. The Housing Authority of the City of Winston-Salem s SECTION 8 PROGRAM Owners Meeting

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1 WELCOME The Housing Authority of the City of Winston-Salem s SECTION 8 PROGRAM Owners Meeting

2 SECTION 8 HOUSING CHOICE VOUCHER OWNERS MEETING AGENDA Welcome, Opening Remarks and Introduction of Staff Purpose of Meeting and HCV Roles and Responsibilities Karen Durell Romonda Gaston Selecting a Family and Lease Agreements Karen Durell RFTA Procedures Shakerra Jones Rent Reasonableness Studies, Romonda Gaston and Inspection Criteria and Abatements Ernie Cherry City Inspections Issues Bruce Bailiff Annual Activities Romonda Gaston Terminations and Evictions Romonda Gaston Legal Issues Eric Ellison Miscellaneous Issues Romonda Gaston Questions and Answers Staff

3 Housing Authority of the City of Winston-Salem PURPOSE OF MEETING To provide an explanation of the policies and procedures of the Housing Authority of the City of Winston-Salem (HAWS) To acquaint you with the documentation and forms used for our program To provide information to help you understand how the program works and the advantage of participating as a Landlord in our program

4 WHAT IS THE HOUSING CHOICE VOUCHER PROGRAM? The Housing Choice Voucher Program (formerly known as the Section 8 program) was created by the Housing and Community Development Act of 1974, as amended, and is funded by the U.S. Dept. of Housing and Urban Development (HUD). This program provides rental assistance to extremely low and very low-income families by issuing vouchers to search for rental property in the private rental market. HUD, The Housing Authority of the City of Winston-Salem, the Landlord and the assisted family each have different roles and responsibilities. These are defined in the Code of Federal Regulations (24 CFR 982) and the Administrative Plan of the Housing Authority of the City of Winston-Salem. The partners involved (HUD, HAWS, the Landlord and the Family) are each important to the operation of the program. However, the Landlord is the key. Without your participation in providing affordable housing units for eligible families, the program would cease to exist.

5 HCV Continued The Housing Choice Voucher Program, provides funding for rent subsidies to eligible families for decent, safe, and affordable housing. Families can select housing within a neighborhood of their choice from a landlord willing to participate in the program. There are approximately 4,300 families receiving rent subsidies with HAWS and approximately 3,000 landlords currently participating in the Housing Choice Voucher Program. Rent subsidies allow families to pay a reasonable share of their income toward rent while the Housing Choice Voucher Program makes up the difference up to certain limitations.

6 THREE-WAY PARTNERSHIP PLUS ONE PHA Voucher FAMILY Annual Contributions Contract HUD OWNER The PHA has a contractual agreement with the Family Voucher The Family has a contractual agreement with the Owner Lease The Owner has a contractual agreement with the PHA HAP Contract HUD provides funding through a Annual Contributions Contract to the PHA

7 ROLES AND RESPONSIBILITIES HUD Allocate Housing Choice Voucher funds to HAWS Develop policy, regulations, handbooks, notices and other tools that implement and explain the housing legislation Contract with HAWS to administer the Housing Choice Voucher program Provide technical assistance and training to Housing Authorities. Monitor HAWS compliance with policies, regulations and program administration through reviews and audits

8 ROLES AND RESPONSIBILITIES HAWS Explain and disseminate information about program guidelines Receive and review applications from eligible families and conduct annual recertification's to determine continued eligibility and rental subsidies Issue Housing Choice Voucher Inspect and certify that the unit selected by the family meets Federal Housing Quality Standards (HQS) and approve unit for assistance Determine and pay Housing Assistance Payment (HAP) to the Landlord on behalf of the family Monitor program performance and compliance with Federal, State and Local laws Seek expanded opportunities for assisted families to locate housing outside areas of poverty concentration

9 ROLES AND RESPONSIBILITIES LANDLORD Select family and lease unit Enter Lease Agreement and Lease Addendum with participant Comply with the Lease Agreement and Lease Addendum requirements Enforce Lease and Lease Addendum Enter HAP contract with HAWS Comply with the Housing Assistance Payment (HAP) Contract Perform all management and renting functions Collect amounts due from family under the lease (rent, security deposit) Pay for owner-supplied utilities and services Perform all normal wear and tear maintenance Comply with equal opportunity and fair housing requirements

10 ROLES AND RESPONSIBILITIES FAMILY Enter agreement with HAWS by signing Housing Choice Voucher Find a suitable housing unit Provide income and family information needed to verify and certify eligibility for annual and interim reexaminations Allow HAWS to inspect the unit Enter Lease Agreement and Lease Addendum with Landlord Adhere to all lease and lease addendum requirements, including paying family portion of the rent Abide by all Family Obligations under the HCV program

11 SELECTING A FAMILY FOR YOUR UNIT Screening the family Credit report Police reports Current and previous landlords The PHA can provide names of any current or previous landlord who has rented to the family while they have been a participant in the HCV program Questions to Ask Previous Landlords -- Do they pay rent on time? -- Do they disturb neighbors? -- Do they take care of the unit (inside and outside)? -- Would you rent to them again?

12 Selecting a Family Continued Home Visits -- In some cases owners have found it useful to drive-by the applicant s current residence to see what it looks like. -- Some owners will require a home visit before agreeing to rent their unit to a prospective tenant. Other Suggestions?

13 LEASE AGREEMENTS Landlords need a good lease agreement At a minimum they must have the following to meet HCV guidelines: Names of owner and tenant Address of unit Term of lease (initial must be for at least a year) Renewal terms Monthly rent Specifies who provides utilities and appliances Other provisions to consider: Pets Late fees (NC General Statute - can charge the greater of $15.00 or 5% percent of tenant s portion of the rent) Notice period for entering unit House Rules

14 Leases Continued Security Deposits Prevailing market Cannot exceed (2) two months rent for a 1-year lease HAWS does not determine when paid, to whom it is paid, and when it is refunded Some owners collect a good faith portion of a deposit when they complete the RFTA

15 COMPLETING THE REQUEST FOR TENANCY APPROVAL (RFTA) The move-in process begins when the family returns the RFTA packet. This packet must be completed by the Landlord and the tenant in its entirety and include: Address of rental unit Requested beginning date of Lease Date unit will be ready for inspection Proposed rent amount (may be required to be reduced, and it must be determined rent reasonable) Amount of Security Deposit What utilities and appliances Owner will supply and what utilities and appliances the family will be responsible for Owner certification about lead base paint Signatures of both owner and participant.

16 Blank Request

17 Completed RFTA

18 Rent Reasonableness and Inspections

19 Rent Reasonableness of Unit Must be completed at new move-in and for any requested rent increase Compare assisted unit to other similar Market Rate units in the same geographical area Comparability system takes into consideration the following: Location Size Type Quality Age of unit Amenities Housing services Maintenance Utilities supplied by owner If PHA denies rent, owner is given opportunity to locate his/her own comparables (verified by Inspections Staff)

20 Initial and Transfer Inspections The unit should be inspected by a Section 8 Inspector and pass prior to occupancy by a new applicant or transferring tenant. For in-place rentals, HAP will not begin until the unit is inspected and passes a Housing Quality Standards (HQS) inspection. A new lease is required. No payments shall be made to the landlord without a Passed Housing Quality Standards (HQS) inspection. The payments begin on the day the unit passed inspection or the initial date of the lease agreement, whichever occurs later. Initial and transfer inspections are only good for 30 days from the passed date. Unit must also be determined Rent Reasonable.

21 Initial and Transfer Inspections Continued Owner completes the RFTA and submits to PHA RFTA reviewed by Section 8 Specialist for completeness Section 8 Specialist completes the rent computation based on rental amount and utility/appliance responsibilities as indicated on RFTA Family cannot pay over 40% of adjusted monthly income toward rent and utilities If unit meets rent test, RFTA is sent to Inspections Office Inspections Clerk contacts owner to schedule Inspection Inspector meets owner at unit and inspects unit

22 Initial and Transfer Inspections Continued Inspector will send a letter to the owner within 10 days of the inspection with a list of deficiencies that must be corrected. The letter instructs the owner to contact the Inspections Office when the repairs are completed and ready for re-inspection. The Inspections Office schedules a follow up appointment and informs the owner in writing if the unit passes. A rent comparability study must be performed prior to a Lease and HAP Contract being executed. The Inspector will contact the owner to negotiate the rent if he/she is unable to locate rent comparables. The Inspector and the owner will agree on a rent or the owner may choose not to rent the unit in the Section 8 Program.

23 Inspection Checklist

24 Annual Inspection Federal regulations require an annual inspection of the Section 8 units. Does not always coincide with annual re-exam process. An inspection notice is mailed to the tenant and landlord approximately 2 weeks before the scheduled inspection date. There must be an adult (18 years old or older) present at the time of the inspection. If the appointment needs to be rescheduled, the landlord, not the tenant, must contact the inspections department to reschedule. We encourage owners to be present for all inspections.

25 Special Inspections (Tenant Complaints) Tenants may request an inspection due to outstanding repairs in their unit. We ask tenants to allow owners a reasonable time to make repairs before requesting an inspection. A Section 8 Inspector will schedule an inspection if the landlord fails to make timely repairs. The inspection is usually scheduled with the tenant.

26 Quality Control Inspections The Inspection Supervisor monitors unit inspections by selecting random samples of annual, new admission, and transfer inspections that were completed recently by the inspectors. The purpose of these inspections is to ensure that HQS standards are being properly and consistently enforced by the Section 8 Inspectors.

27 Common 30-Day Deficiencies Windows not operating properly Toilets loose at base Stopped up drains General plumbing leaks Ungrounded and/or damaged outlets Exposed wiring Electrical panels with missing covers and knock-out holes Light fixtures with no bulbs and / or globes Interior doors not latching properly Chipping paint Trash and debris on property Gaps and caulking issues around windows and doors Missing handrails at steps Infestation

28 24-Hour Deficiencies Smoke Alarms not operating properly or located properly Exterior windows and doors that do not lock properly Utilities not in service Unsanitary conditions Heating system not operating properly

29 Failed Inspection Abatement Notification Abatement Procedures

30 Bruce Bailiff City Inspections Highlights and Changes to City Codes: Chapter 6 Animals Chapter 10 Minimum Housing Code Chapter 26 Sanitation trash and litter Chapter 42 Junked and Abandoned Vehicles Chapter 62 Sanitation vegetation, interior furniture Chapter 70 Signs in the right-of-way Chapter 74 House Numbers Residential Zoning enforcement - Occupancy - Rooming/boarding houses - Home occupations - Inoperative motor vehicles Questions

31 MISCELLANEOUS ACTIVITIES

32 Annual Activities Owners receive annual notice 120 days prior to participants anniversary date. Notice specifies: the tenant must recertify to confirm continued eligibility the unit must be inspected no assistance can be paid if the re-exam or inspection process has not been completed the process for owner to request an increase requests that you assist your tenant with keeping appointments Inspection notice sent approximately 90 days prior to anniversary date. Keep inspection appointment even if tenant says he/she is moving.

33 TERMINATIONS AND EVICTIONS BY OWNERS Owners may terminate the lease for lease violations. Owners may choose not to renew a lease. Eviction proceedings initiated by the Landlord must be in accordance with State and local laws. HAP payments will continue until a court ordered eviction (Writ of Possession) or actual eviction of the family s possession from the premises occurs. As long as the unit is in HQS compliance and the tenant remains eligible for the program. Landlord s can never evict a tenant for non-payment of HAWS portion of the rent amount, only for the family portion, unless the family has been terminated from the program and remains in your unit.

34 TERMINATIONS Families may be terminated from the HCV program if they commit any serious or repeated violation of the Lease or fail to comply with HUD and/or HAWS program requirements. Landlords may be terminated from participation in the HCV program for failure to comply with HUD and/or HAWS program requirements as stated in the HAP contract. HAWS requires that copies of termination and eviction notices served upon the Family be furnished to HAWS.

35 Participants wanting to move with Section 8 Assistance Process When participant requests a voucher to move, the specialist will review the file to confirm the family is eligible Lease term cannot move during the initial 12 months of the lease Any current evidence of outstanding payments to the owner. If okay, family is invited to attend the transfer briefing. At briefing, family is issued a transfer voucher, the RFTA, and they sign the 30-day notice to vacate. 30-day notice is sent to owner Tenant is eligible to move after 30-day notice

36 Families Leaving a Unit Owing Money for Rent and/or Damages If unpaid rent and/or damages exceed the security deposit, an owner must file a claim in small claims court. The PHA may give an owner the address of where the participant moved, if known. If monetary judgment received, send to PHA for assistance with enforcement.

37 Eric Serge Ellison Attorney at Law Ellison Law Firm 112 North Marshall Street Winston-Salem, NC Writ of possession Small claims court procedure for taking tenants to court Helpful hints

38 Issues Fraud in Connection with the Program -- Side Payments -- Unreported move outs Office of Inspector General (OIG) cases Change of Address, Ownership, or Bank Account Information

39 Helpful Links -- Owner Self Service (HAP history) -- Owner List Serv

40 Questions and Answers