PARKWAY EAST TENANT SELECTION PLAN. EFFECTIVE: May 15, 2017

Transcription

1 PARKWAY EAST TENANT SELECTION PLAN EFFECTIVE: May 15, 2017

2 Table of Contents SECTION 1. MARKETING 6 Statement of Nondiscrimination 6 Affirmative Marketing Practices 6 SECTION 2. COMPLETION OF APPLICATIONS, DETERMINATION OF ELIGIBILITY, SELECTION OF PARTICIPANT HOUSEHOLDS 6 Completion of Applications 6 Opening and Closing the Waiting List 6 Closing the Waiting List 7 Opening the Waiting List 7 Applicant Requests to be placed on Waiting List 7 Waiting List Priority 8 Selection of Tenants 8 Priority for selection for placement in an accessible unit: 9 Removing Names from the Waiting List 9 Reinstating Applicants to the Waiting List 10 Determining Eligibility 10 Initial Income Eligibility 10 General Eligibility 11 Full time Students Eligibility/Ineligibility 11 General Requirements 13 Rental requirements 14 Drug-related/Violent Criminal Activity 15 Other Grounds for Denial or Termination 17 SECTION 3. INCLUDED/EXCLUDED INCOME 17 Calculating Annual Income 17 Mandatory Earned Income Disregard 18 HOME/TC Units Only 18 SECTION 4. VERIFICATION OF HOUSEHOLD COMPOSITION AND INCOME 18 Picture Identification for Age 18 and Above 18 Identification of All Other Household Members 18 Valid/Assigned Social Security Numbers 19 Estrangements/Separations 19 Live-in aide 19 Verification of Income and Assets Acceptable Forms of Verification 20 Assets 20 HOME/TC units 21 TC Units 21 2

3 Assets Disposed of for Less Than Fair Market Value 21 Acceptable Asset Verification Hierarchy 21 Verification of Income 22 Employment Income 22 Self-Employment 22 Social Security, pensions, supplemental security income (SSI), Disability Income 23 TANF Benefits 23 Pensions and Annuties 23 Unemployment 23 Recurring Contributions to the Household 24 Unemployment Compensation 24 Income of Students 24 Alimony or Child Support 25 Documentation of Alimony/Child Support 25 Recurring Contributions to Household 25 SECTION 5. OCCUPANCY STANDARDS 25 SECTION 6. LEASING A UNIT 26 Execution of Lease Agreement 26 Cancellation of Lease agreement 26 Rental of Garage 27 SECTION 7. EVICTIONS 27 SECTION 8. SECURITY DEPOSITS 27 SECTION 9. RENT COLLECTIONS 27 SECTION 10. TENANT INCOME CERTIFICATIONS (TIC) 27 Tax Credit - Tenant Income Certifications (TIC) 27 Initial Certifications 28 Recertifications 28 HOME designated units - Tenant Income Certifications (TIC) 28 Initial Certifications 28 Annual Recertifications (HOME/TC units only) 28 SECTION 11. ANNUAL RECERTIFICATIONS OF HOUSEHOLD INCOME 28 HOME/TC Units - Annual Recertifications 29 Tax Credit Units - Annual Recertifications 29 SECTION 12. REPORTING AND INTERIMS 29 Tax Credit Units - Changes in Household Composition 30 Requests to Add New Household Member (First Six Months of Lease) 30 Request to Add Household Member (After First Six months of Lease) 30 Remaining Household Members 31 HOME Units - Changes in Household Composition 31 SECTION 13. TRANSFERS 31 Participants Wishing to Move from One Building to Another 31 Participants Wishing to Move to a Unit in a Different Building 32 3

4 HOME/TC Units - Transfers From One Unit to Another Within Same Building and/or From One Building to Another 33 Conditions for Approval of Transfers 33 Reasonable Accommodation Transfer Requests 33 Resident Requests to Move for Personal Reasons 34 Offer of Units 34 Security Deposits 34 Cost of Transfers 34 Transfers Will be Processed in the Following Order: 34 SECTION 14. INSPECTIONS 35 Inventory 35 Painting 35 Garbage Collection 35 Upkeep and Maintenance of Grounds 35 Tenant's Responsibility to Maintain Dwelling 35 SECTION 15. SMOKING 35 Enforcement Plan 36 SECTION 16. APPLICANT/PARTICIPANT MISREPRESENTATION/FRAUD 36 SECTION 17. DENIAL OF APPLICATION AND TERMINATION OF TENANCY 36 SECTION 18. UTILITY ALLOWANCES 37 SECTION COMPLIANCE 37 SECTION 20. DEFINITION OF TERMS 38 SECTION 21. VAWA ACT (VIOLANCE AGAINST WOMEN ACT) 41 Definitions Used in VAWA 41 VAWA Protections 42 Applicants 42 Tenants 43 Limitations of VAWA Protections 43 Actual and Imminent Threat 44 Request for Documentation 44 Forms of Documentation 44 Failure to Provide Documentation 45 Discretion to Provide Relief 45 Response to Conflicting Certification 46 Remedies 46 Lease Bifurcation 46 Court Orders 46 Emergency Transfers 47 Eligibility for Emergency Transfers 47 Emergency Transfer Request Documentation 47 Confidentiality 47 Emergency Transfer Timing and Availability 47 4

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6 SECTION 1. MARKETING Parkway East is managed by Salem Housing Authority, or SHA. Statement of Nondiscrimination Parkway East management does not discriminate against any person due to disability; race; color; religion; sex; source of income; familial status; national origin; or actual or perceived sexual orientation, gender identity, marital status and/or domestic partnership in accessing, applying for or receiving assistance, or in treatment or employment in any of its programs and activities. Complaints regarding accessibility to individuals with disabilities should be submitted in writing to Dominique Donaho, Salem Housing Authority, 360 Church St SE, Salem OR , Questions or comments may be made by phone at , or TDD Users dial 711. Requests for aid may also be directed to a SHA representative or other appropriate employee. Affirmative Marketing Practices Parkway East management will provide information pertaining to occupancy according to the Affirmative Fair Housing Marketing plan (AFHMP), to conduct outreach for the project. The AFHMP will be reviewed every 5 years and updated as needed to ensure compliance with 24 CFR Parkway East management will review the demographics of the project area and determine whether advertising efforts should be targeted to different groups, underrepresented racial or ethnic groups in the project area. The AFHMP will be revised when a substantial change takes place or when the local Consolidated Plan is updated. The AFHMP will be posted in the leasing offices at the project. SECTION 2. COMPLETION OF APPLICATIONS, DETERMINATION OF ELIGIBILITY, SELECTION OF PARTICIPANT HOUSEHOLDS Completion of Applications A waiting list will be maintained for Parkway East in date and time order and by bedroom size. Opening and Closing the Waiting List 6

7 The waiting lists for Parkway East will remain open to new applicants on an ongoing basis. Parkway East management will monitor the vacancies and the waiting list for Parkway East on a regular basis to ensure that there are enough applicants to fill the vacancies. Parkway East management will also monitor the waiting list to ensure that waits for units are not excessive. Closing the Waiting List The waiting list may be closed for one or more unit sizes when the average wait is excessive (i.e., one year or more). When Parkway East management closes the list, applicants will be advised that the waiting list is closed and that additional applications will not be accepted. Opening the Waiting List When one or more unit size waiting list has been closed, Parkway East management will determine when to once again accept applications and management will advertise the reopening of one or more waiting list per the advertising and outreach activities described in the AFHMP. Applicant Requests to be placed on Waiting List Families may request to have their name placed on the waiting list(s) in the following manner: Complete a Waiting List Request form; Contact the TDD line; Referral through an advocate for seniors or persons with disabilities; Referral through an outside agency (via partnerships); Internet; Telephone request; Fax or ; and/or Upon request a written waiting list request form will be mailed to interested families The waiting list request process involves two phases. The first is the initial request to be placed on the waiting list, which requires applicants to provide adequate family information that enables Parkway East management to determine basic eligibility without 7

8 requiring third party verification at this state. This first phase results in the family s placement on the waiting list. Applicant information is entered into a computerized housing database system by date and time of waiting list request or referral, and reviewed for accuracy. The computerized waiting list request becomes the final record of the request for placement on the list. Applicants are given confirmation acknowledging placement on the appropriate waiting list(s) indicating the date and time the request or referral was received, with the anticipated waiting period for each program. Applicants are instructed to notify Parkway East management of any changes in their household that could affect eligibility, such as changes in their mailing address, income, and family composition. The second phase of the waiting list request involves completing the "long application/certification." This application will be used as final documentation to determine eligibility. The long application/certification is completed when an applicant's name reaches the top of the waiting list. At that time Parkway East management ensures that verification of all eligibility factors is complete in order to determine the family s eligibility for placement. Waiting List Priority Selection of Tenants Selection will be made according to the type of unit to be filled (i.e. accessible or nonaccessible). In offering units, applicants will generally be selected by date and time order of application with oldest dated application being the first notified. If an applicant rejects the unit offered, the applicant's name will be removed from the active waiting list and the applicant will be notified of the need to submit a new application for placement on the waiting list. Current tenants requesting to move from one unit to another, for reasons other than for a verified for an accessible unit; will be notified that they must re-apply to the waiting list. When their name comes to the top of the waiting list; verification procedures will be completed and all income and assets will be verified to determine participant meets the initial income eligibility for the unit to which they wish to move. Current tenants who request to move to an accessible unit, as a verified reasonable accommodation, will be placed on a list by their date of approved request for consideration for the next available accessible unit. Parkway East management will also give priority to current tenants who need to transfer to another unit as an emergency transfer (e.g., due to hazardous conditions such as water damage or fire); however the tenant household is subject to the 8

9 requirements contained in this Tenant Selection Plan regarding unit transfers within the same building or to another building within the project. Priority for selection for placement in an accessible unit: First priority: Current tenants; in date and time order of their reasonable accommodation request and who are able to verify the need for an accessible unit as a reasonable accommodation; Second priority: Waiting list applicants; in in date and time of order of their waiting list request; who indicated and then verified a need for an accessible unit; and Third priority: All other applicants, in date and time order on the waiting list, who did not indicate the need for an accessible unit. Note: When placed, tenant will be required to sign a statement of understanding that if the need for the accessible unit arises, they agree to move to a non-accessible unit; with proper notice from Parkway East management, noting that they must be determined eligible for the unit in which they are moving; unless unit is a market unit with no income eligibility requirement. Final approval for placement into an accessible unit will be made by Parkway East management. Removing Names from the Waiting List Parkway East management will document removal of any name from the waiting list in the computer database, generating the date and time of removal. Applicant names will be removed from the waiting list when: - The applicant no longer meets the eligibility requirements for the property or program; - The applicant fails to respond to written notices such as notices for eligibility interview, or updating applicant information); - The applicant is offered and rejects one unit in the property; - Mail sent to the applicant s last known address is returned as undeliverable; - The type of unit needed by the applicant changes due to family size changes, and an appropriate size unit does not exist on the property. 9

10 Applicants who are determined to be ineligible for placement on the waiting list will be notified in writing of the reason for the denial and will be offered the option for an informal review of the determination. Parkway East management will periodically generate electronic waiting lists to show how the waiting list appeared before and after the removal of name(s). Reinstating Applicants to the Waiting List If an applicant is removed from the list, and Parkway East management later determines that an error was made in removing the applicant (for instance, an incorrect address was used to send mail to the applicant), the applicant will be reinstated at the original date and time of placement on the waiting list. Applicants may also be reinstated to the waiting list with their original place on the waiting list, if a reasonable accommodation has been requested and approved. Determining Eligibility To be eligible for placement on the waiting list for all units, the primary applicant(s) must be age 18 or over. All applicants age 18 and over must disclose and verify their valid, assigned social security numbers from the Social Security Administration (herein after referred to as a valid/assigned social security number). However, a social security number is not a requirement for residency. Initial Income Eligibility HOME/TC designated units Applicants must verify by third-party sources to have gross annual income not to exceed the 60% Area Median Income (AMI) limit for the HOME program or for the LIHTC program, whichever is more restrictive. Applicant s actual gross monthly income must be at least two times the rent charged for the unit with exception for households who are current Housing Choice Voucher holders. Note: IRS guidance has determined that unborn children can be included as part of the family to qualify the household under the current income limits, as well as to qualify a full-time student household. Tax Credit (TC) designated units 50% Income Restricted 10

11 Applicants must verify by third-party sources to have gross annual income not to exceed the 50% AMI limit as established by the Section 42 regulations which govern the Low Income Housing Tax Credit (TC) program. Applicant s actual gross monthly income must be at least two times the rent charged for the unit with exception for households who are current Housing Choice Voucher holders. Note: IRS guidance has determined that unborn children can be included as part of the family to qualify the household under the current income limits, as well as to qualify a full-time student household. Tax Credit (TC) designated units 60% Income Restricted Applicants must verify by third-party sources to have gross annual income not to exceed the 60% AMI limit as established by the Section 42 regulations which govern the Low Income Housing Tax Credit (TC) program. Applicant s actual gross monthly income must be at least two times the rent charged for the unit with exception for households who are current Housing Choice Voucher holders. Note: IRS guidance has determined that unborn children can be included as part of the family to qualify the household under the current income limits, as well as to qualify a full-time student household. General Eligibility Full time Students Eligibility/Ineligibility The LIHTC program prohibits the rental of set-aside units to entirely full-time student households not qualifying for a specific exception. Per the IRS Code, Section 42, student status must be addressed annually for each household applying for or currently residing in a TC unit.. Student Definition Internal Revenue Code Section 151(4) defines the term student as an individual who during each of five calendar months during the calendar year is a full-time student at an educational institution described in Code Section 170(b)(1)(A)(ii). Treas. Reg. Section (b) provides that a full-time student is one who is enrolled for some part of five calendar months for the number of hours or courses, which is considered to be full-time attendance. The five calendar months need not be consecutive. Per IRS guidance, the determination of student status as full or part-time is based on 11

12 the criteria used by the educational institution the student is attending. Full time attendance at an educational institution may include some attendance at night in connection with a full-time course of study. In addition, individuals pursuing a fulltime course of institutional on-farm training under the supervision of an accredited agency of such education organization, of a state or political subdivision of the state, are also deemed full-time students. Note: Individuals attending on-the-job training courses are not considered to be students. Educational institutions include colleges, universities, trade, technical and mechanical schools, as well as elementary, junior and senior high schools. Exemptions of Student Status As a general rule, units may not be occupied entirely by full-time students. Thus, if any one single individual in the household is not a full-time student, the application will not be disqualified due to student status. If all tenants are full-time students, the applicants may still qualify for residency if one of the following exemptions applies: Students are married and entitled to file a joint federal income tax return. (A married couple who has not filed a joint tax return but is eligible to do so will still qualify, but will need to submit a copy of their marriage certificate); or The household consists of an independent single parent and his/her children, all of whom are not dependents of a third party other than the absent parent; or At least one household member is enrolled in and receiving assistance under the Workforce Investment Act (WIA-formerly the Job Training Partnership Act) or other similar programs operated under Federal, State or local laws; or At least one household member previously received Foster Care Assistance under part B or E of Title IV of the Social Security Act (H.R. 3221, effective 07/03/08 forward). Note: IRS guidance has determined that unborn children can be included as part of the family to qualify the household under the current income limits, as well as to qualify a full-time student household. No Grandfather Rights Student status is not subject to any grandfather clauses. At no time during the lease or any extension thereof may the unit be occupied entirely by full-time students who 12

13 are not otherwise exempt. If the household qualified at move-in but later was comprised of entirely full-time students and did not meet any of the defined exemptions, the household, at that point, no longer qualifies to occupy a tax credit unit. Estrangement or Separation Applicants and tenants who are in the first 6 months of their lease who state that they are married but estranged from or in the process of a separation from their spouses must complete an estrangement/separation certification in order to prove that the spouse will not be residing in the unit. Pregnancy When an unborn child will be included in the household composition in order to qualify the unit, the household must certify their claims of eligibility by signing an Affidavit of Pregnancy. General Requirements Positive picture identification will be required for all household members age 18 and above. Positive identification will be required on all other household members, who can include, but not be limited to: birth certificate, valid proof of social security number, immunization record, school record or insurance identification card. A complete and accurate application listing the current and at least one previous rental reference with phone numbers will be required. Rental history must cover at least a 2 year period. Applicants must be at least 18 years of age, be able to enter a legal and binding contract, and must disclose and verify their valid/assigned social security number from the Social Security Administration, if they have one. Applicant Interviews Parkway East management must interview the applicant that is next in line to be considered for placement, based on their request to be placed on the waiting list (preliminary application); and is required to obtain current information about the family s circumstances (i.e., family composition, income, assets, and allowable expenses by completing a full application and conducting an eligibility interview. At the interview, Parkway East management must: Confirm and update all information provided on the application/certification (full application) which is then compared to the pre-application (Request to be Placed on the Waiting List) that was submitted, and confirm and update the 13

14 information. Obtain family income and composition information and other data needed to verify eligibility and compute the tenant s share of the rent. Obtain other necessary information pursuant to release forms to determine initial and ongoing eligibility. Rental requirements Home ownership is verified through the county tax assessor. If mortgage payments are delinquent, references and/or credit history will be used. Home ownership negotiated through a land sales contract is verified through the contract holder. FED/judgment free rental history will be required for the most recent 12-month period. For those applicants with FED s/judgments dated older than the most recent 12 months, if approved, an additional security deposit equal to one month s contract rent will be required. Rental history demonstrating residency, but not third party rental history (i.e., residency that is, or has been with parents, other family, student housing or military housing), may require an additional security deposit equal to a full months rent. Decision to charge an additional security deposit will be based solely at the discretion of the Property Management Supervisor. Rental history reflecting past due rent or an outstanding balance may be denied. This includes but is not limited to money owed to a current or previous landlord, property Management Company or public housing agency. Applicants who are able to verify through third party that they are current with a repayment agreement or who can verify that there are extenuating circumstances that need to be considered, on a case-by-case basis, may be approved, upon receipt of such verification, however if approved the applicant will be required to pay additional security deposit equal to a full month s contract rent. Rental history that reflects a record of disturbance of neighbors, destruction of property, negative behavior, living or housekeeping habits at prior residences, which may adversely affect the health, safety or welfare of other residents may be basis for denial of the application. Observed behavior that indicates that such behavior, may adversely affect the peaceful enjoyment of the property by current residents, may be basis for denial of the application. Applicants and tenants must be able to obtain utility services in their name in order to rent a unit. 14

15 Credit Requirements Outstanding bad debt up to $4,999 (excluding medical collections and/or vehicle repossessions) may require payment of an additional security deposit equal to one month s contract rent. Outstanding bad debt (excluding medical collections and/or vehicle repossessions) exceeding $5,000, will result in the application being denied, unless applicant can provide verifiable rental history. Upon providing verifiable rental history, Parkway East management may use its discretion to require applicant to pay an additional security deposit equal to one month s contract rent. For bankruptcy filings less than one year, approval may be granted if the bankruptcy was due primarily to medical debt and if proof of positive rental history for two or more years can be provided and upon payment of double security deposit. Two payments (no less than 45 days apart) can be made toward the security deposit. Drug-related/Violent Criminal Activity When an applicant initially applies for housing assistance (Waiting List Request), and when final eligibility is being determined (Long Application), management shall conduct a search of public records to determine whether the applicant or any proposed tenant has been engaged in, arrested or convicted of any crime. Drug or Criminal Activity Subject to Denial/Termination Violation Evicted from federally assisted housing for drug-related criminal activity Illegal drug use Current use or pattern of use of illegal drugs or abuse of alcohol that may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents Waiting Period Before Assistance Can Begin 3 years, unless SHA can verify completion of a supervised drug rehabilitation program, or the person who committed the crime is no longer living in the household 6 months SHA will consider all credible evidence, including record of convictions, arrests, evictions for illegal drugs or abuse of alcohol. A conviction will be given more weight than an arrest. SHA will consider evidence from treatment providers or community based organizations providing services to household members. 15

16 Manufacture of methamphetamine Lifetime registration under a state sex offender registry Manufacture, sale, distribution, or possession with intent to manufacture, sell, or distribute any illegal drug Manufacture, sale, distribution, or possession with intent to manufacture, sell, or distribution of marijuana Illegal use of a drug, or possession with intent to use an illegal drug Use or possession of marijuana Violent criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force substantial enough to cause, or be reasonably likely to cause, serious bodily injury or property damage, including: Armed Robbery, Robbery, Arson I, Assault I & II, Assault of a Public Safety Officer, Murder, Aggravated Murder, Attempted Murder, Sexual Assault, Domestic Violence without a Certificate Criminal activity that may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents or persons residing in the immediate vicinity, including: Burglary I or II, Kidnapping, Manslaughter Criminal activity that may threaten the health or safety of property owners and management staff, and persons performing contract administration functions or other responsibilities on behalf of SHA (including a SHA employee or a SHA contractor, subcontractor, or agent), including: Identity Theft Threatening or violent behavior against an SHA employee, contractor, subcontractor, or agent Lifetime denial, regardless of location of production Lifetime denial 5 years, except for manufacture of methamphetamine (lifetime denial) and manufacture, sale, distribution, or possession of marijuana (18 months) 18 months 3 years, except for marijuana (18 months) 18 months 5 years 3 years 3 years Lifetime denial The number of years that a family or individual is ineligible is based on the criteria set above and is not cumulative. For example, someone convicted of manufacture of illegal drugs and Burglary I would be ineligible for 5 years from the most recent incident date, not a combination of the two. Tenant/applicant shall provide, upon request, proof of criminal free record from Salem Police Department. 16

17 Other Grounds for Denial or Termination o o o o o o o Any information provided on the application that is incomplete, inaccurate or falsified, shall be grounds for denial of the application or subsequent termination of tenancy upon determining such falsified information. Application will be denied if applicant(s) fails to disclose any criminal activity for any household member on the application, and public record indicates otherwise. A family member has committed a drug/violent criminal activity per the Drug/Violent Criminal Activity Chart cited previously. Co-signers will not be allowed. An applicant or participant who is using an unauthorized or invalid social security number. An applicant or participant has not signed all release forms required by Parkway East management. If screening indicates that additional deposits will be required in more than one category (denied income, rental history, credit history and criminal arrests/convictions), the applicant will be denied. SECTION 3. INCLUDED/EXCLUDED INCOME Annual income is defined as the gross amount of income anticipated to be received by all members of the household, with some exceptions, during the twelve (12) months following the date of the certification or recertification. Income and assets will be determined per 24 CFR Part 5; HUD Handbook Rev. 1 Change4; the HUD Technical Assistance Guide for Determining Income and Allowances for the HOME Program and the Oregon Housing and Community Services (OHCS) LIHTC Compliance Manual. Calculating Annual Income When analyzing income, year to date income must be considered and compared to the wage/salary calculation. When annualizing year to date income Parkway East management will round the number of weeks to a whole week depending on what the result is with 2 significant digits beyond the decimal point (e.g would round to 13 weeks; would round to 14 weeks). Parkway East management will count the highest amount of income possible, unless the household is determined to be over the applicable income limit. At that point, 17

18 Parkway East management will analyze each source of income and determine if a lesser amount is more accurate. Parkway East management will follow up with the applicable third party source in order to make this determination. Income that cannot be anticipated for a full 12 months (such as unemployment compensation) will be calculated assuming the current circumstances will last a full 12 months unless there is a foreseeable change in the future that would cause the income calculation to be greater. Mandatory Earned Income Disregard HOME/TC Units Only Mandatory Earned Income Disregard is applicable for annual recertifications only. It is not applicable to initial placements. For disabled household member(s) who become employed, Parkway East management will determine if the Mandatory Earned Income Disregard applies; per Chapter 3 of the HUD Technical Assistance Guide for Determining Income and Allowances for the HOME Program. SECTION 4. VERIFICATION OF HOUSEHOLD COMPOSITION AND INCOME Picture Identification for Age 18 and Above All heads of household, spouses, and household members aged 18 and above will be required to provide picture identification. o Picture identification may include, but is not limited to: driver's license, motor vehicle identification card, passport, military identification card, or employment identification. o If head of household or spouse, or household member who is age 18 and above is unable to provide picture identification, two other forms of identification will be required in lieu of the picture identification. Parkway East will determine if the identification provided is acceptable. o Other forms of acceptable identification may include, but are not limited to: birth certificate, social security card, and insurance identification card. Identification of All Other Household Members All other household members are required to provide a form of identification which may include, but are not limited to: birth certificate, valid proof of social security number, insurance identification card, immunization card, or school record. 18

19 Valid/Assigned Social Security Numbers All household members age 18 and above must disclose and verify a valid/assigned social security number, if one has been assigned to them. Household members age 18 and above without valid/assigned social security numbers must verify their identity as described above. Estrangements/Separations If an applicant states that he/she is married but is estranged from or in the process of a separation from his/her spouse, tenant must complete management s estrangement/separation certification in order to prove the spouse will not be residing in the unit. Live-in aide In order to determine a household member s need for a live-in aide, Parkway East management must obtain third-party verification, in the format required by Parkway East management, from a healthcare professional that confirms that the live-in aide is: o o o Essential to the care and well-being of the household member; In no way obligated to support the household member, and Is only in the unit to provide supportive services to the tenant. Once third-party verification has been received establishing the need for as live-in care provider, Parkway East management will: o o Conduct a background screening for the individual intending to be the live-in care provider to ensure there is no criminal history that would prohibit them from being on the property or in the unit; and Have the live-in care provider sign a self-affidavit, in a format required by Parkway East management, declaring that he/she understand they have no rights to the unit, that they must follow the rules established within the lease signed by the resident household, and that the live-in aide will vacate the unit if the tenant no longer requires supportive services or moves out of the unit. Parkway East management will not: o o Consider the live-in aide s income with that of the household s annual income; Have the live-in aide sign the lease agreement, or 19

20 o Include the live-in aide on the Tax Credit TIC or HOME TIC (if applicable). Note: The children or other family members of a live-in aide s households are not allowed to reside in the unit. Verification of Income and Assets Acceptable Forms of Verification In all cases involving third-party verification of income, verification must be received prior to the execution of the Lease, Tenant Income Certification (TIC), HOME TIC, and the actual move-in, interim, or annual recertification effective date. Faxed verifications will be accepted as long as the verifiable source receives and re-submits the fax. Verifications must contain complete and detailed information and include, at a minimum, direct written information from all sources of income and income from assets. Verifications are required in order to establish a household s eligibility to reside in a LIHTC unit. If income and income from assets cannot be adequately verified, then eligibility of a household to reside in LIHTC unit has not been established. For all actions requiring third party verification the following applies: Effective term of verifications for determining initial and ongoing eligibility is valid for 120 days from the date of receipt by management. After this time, a new verification must be obtained. Attempt must be made to obtain written third party verification. Verification requests must be sent or faxed directly to and returned by the third-party source. If faxed, facsimiles should clearly show a header or footer indicating from where it originated and from where it was returned. Verifications will be dated stamped upon their receipt by management. Verbal verifications are only acceptable to clarify information already provided on the written documentation. Any other use of verbal verification is not acceptable. If written verification cannot be obtained, management will consider the household ineligible unless eligibility can be established through appropriate documentation. Verifications must never be altered. Whiteout should never be used. If verifications received from the third party source contains whiteout a follow up call to the third party source is required to document why the verification form was altered. When a verification needs clarification, a clarification memo will be placed in the file which includes the information clarified, the name, signature and date of the staff member obtaining the clarification, as well as the name of the person providing the requested clarification, their title, phone number, and the date and time of the call. Assets 20

21 HOME/TC units All assets must be verified through third-party sources, regardless of the dollar amount. TC Units The Owner/Agent must verify all asset income received/earned by household members occupying a LIHTC unit when the combined assets are $5,000 or more. If attempting third-party verification of assets is unsuccessful (proof must be kept in the tenant file showing the attempted verification), tenants can provide statements or other documentation (such as a current printout from the internet). The documentation collected must verify both the market value and cash value of the asset/s as applicable. For LIHTC only households, it is acceptable to use the Under $5,000 Asset Certification form to document household assets and income from assets when the combined household assets are less than $5,000. Assets Disposed of for Less Than Fair Market Value A certification must be completed and signed by the owner who disposed of the asset that verifies: Type of asset/s disposed of; Date the asset/s was disposed of; The amount received for the disposed of asset; and The market value of the asset at the time of disposal. Acceptable Asset Verification Hierarchy Written third-party verification of assets: 1. OHCS Asset Verification form must be used first to verify all assets for all household members. 2. Benefit letters or statements received from: a. Financial Institutions b. Stock Brokers c. Employers These documents must show the current value of the asset/s and document the penalties or reasonable costs incurred in order to convert the asset/s into cash. 3. Current copies of: a. Checking account statements (six months) b. Savings account statements c. Statements for CDs, Money Markets, Stocks, Bonds, IRAs, Keoghs and annuities, etc. d. Other financial statements completed by financial institutions e. Copies of trust documents 21

22 4. Real Estate Verification a. First choice, obtain third-party verification form filled out by a real estate professional that provides all of the required information. b. Second choices: 1. Tax Returns with all schedules (for rental property) 2. Sellers Agreement (when a property is on the market) 3. Tax assessment statements (when a property is not on the market) 4. Mortgage statements 5. Zillow (or other website) print outs should be used only as a last resort to show property value Verification of Income Employment Income o Employment verification form completed by the employer or a statement from the employer on company letterhead (which must include the anticipated income for the following 12 months); or o Statement from the employer on company letterhead (which must include the anticipated income for the next 12 months); or o Three months of current and consecutive pay check stubs from the employer showing gross income per pay period and frequency of pay; or o A copy of the most recent filed Federal Form 1040 signed by the applicant/tenant or copies of providing the amount of income, including income from tips and other gratuities, supported by current paycheck stubs from the employer. Self-Employment Parkway East management will follow the LIHTC Compliance Manual to determine selfemployment income. The following documents show income for the previous year. Management must consult with the applicant or resident and use this data to estimate income for the next 12 months: 1. Signed copy of individual federal income tax return (1040) including all schedules and attachments for the following: a. Schedule C for Small Business b. Schedule E for Rental Property Income c. Schedule F for Farm Income Note: If a resident is employed by a business owned by the resident s family, a copy of a recent paystub verifying year-to-date earnings is also 22

23 required. 2. Copy of Corporate or Partnership tax return (if applicable) 3. Audited or unaudited financial statement(s) of the business 4. If the resident has been in business for less than one year, the must complete an actual IRS Schedule C for the period of time the business has been in operation and Self-Employment Income Verification Form. The Schedule C profit and loss statement should be supported with valid business records such as receipts. The amount of net income will then be projected for the full 12 months for the certification. (See LIHTC Compliance Manual for acceptable business records.) Social Security, pensions, supplemental security income (SSI), Disability Income o An award or benefit notification letter prepared by the authorizing agency; o A benefit verification form completed by the agency providing the benefits; o Direct Debit Express Card balance statements. o Copies of checks, bank statements reflecting automatic deposits or deposit slips are not acceptable forms of verification. o If the Social Security Administration or other plan provider has published a Cost of Living Adjustment (COLA), the increase will be included as appropriate. TANF Benefits A verification form completed by the state agency or DHS office. ATM Slips Pensions and Annuties A verification form completed by the retirement account administrator. A current account statement. Unemployment o A verification form completed by the employment compensation agency. o Records from the unemployment agency stating payment dates and amounts. o The weekly benefit amount should be multiplied by 52 weeks regardless of how many weeks the applicant/tenant is entitled to collect unless there is an imminent change. 23

24 Recurring Contributions to the Household o A notarized statement or affidavit by the person providing the assistance. The statement should include the purpose, dates and value of the contributions or gifts. o A statement from the applicant/tenant providing the necessary information. The statement must include an explanation detailing why neither of the alternatives listed above could be obtained. Unemployment Compensation Frequency of payments and expected length of benefit term must be verified. o A verification form completed by the unemployment compensation agency; o Records from the unemployment agency stating payment dates and amounts; o Benefit notification letter from authorizing agency. o Unemployed applicants/tenants must complete an Income Status Certification. Income of Students All forms of student financial assistance (grants, scholarships, educational entitlements, work study programs and financial aid packages) are excluded from annual income except for students receiving Section 8 assistance. This is true whether the assistance is paid to the student or directly to the educational institution. For students receiving Section 8 assistance, all financial assistance a student receives (1) under the Higher Education Act of 1965, (2) from private sources, or (3) from an institute of higher education that is in excess of amounts received for tuition is included in annual income except if the student is over the age of 23 with dependent children or the student is living with his or her parents who are receiving Section 8 assistance. (HUD Handbook ). A full-time student s age, type of income he/she receives and household status will determine how the student s income will be treated. If the full-time student is: years or older and the head of household, co-head or spouse, include all income years or older and the dependent of one of the household members, include a) The lesser of actual income earned or $480.00, and b) All unearned income received, as well as any income earned from assets. 3. Under the age of 18 years (a minor), only count unearned income received along with income earned from assets. If employed, do not count any income 24

25 earned. Alimony or Child Support o Alimony or child support that is court ordered or otherwise supported by a written document must be included as income unless: o The receipt of the child support or alimony certifies the funds are not being received and are not expected to be receiving during the certification period; and o Reasonable efforts have been made to collect the amount due, including filing with courts or agencies responsible for enforcing payments. Documentation of Alimony/Child Support o A copy of a separation or settlement agreement, a divorce decree or verification from a clerk of the court stating the amount and type of support payment schedule; o A printout or statement from the Support Enforcement Agency (for child support verification) addressing support for all children in the household; o An affidavit from the person paying support; o As a last alternative, the applicants/tenants bank statements showing amount being received. Recurring Contributions to Household o A signed affidavit by the person providing the assistance. The statement should include the purpose, dates and value of the contributions or gifts; o A letter from the bank, attorney, or trustee providing the necessary information; or o A statement from the applicant/tenant providing the necessary information. The statement must include an explanation detailing why neither of the alternatives listed above could not be obtained. SECTION 5. OCCUPANCY STANDARDS Occupancy is based on the number of bedrooms in a unit. (A bedroom is defined as a space within the premises that is used primarily for sleeping, with at least one window and a closet for clothing). Maximum number of occupants in a 2-bedroom unit is five (5). 25

26 Maximum number of occupancy in a 3 bedroom unit is seven (7). Exceptions to the occupancy standards: o Applicants may request an exception to the above occupancy standards. Examples of exceptions are as follows, but not limited to: o An exception may be granted if a larger bedroom size is needed for medical equipment due to its size or function, or as a reasonable accommodation for a person with disabilities; or o An exception may also be granted for a smaller bedroom size in cases where the number of household members exceeds the maximum number of persons allowed for the unit size in which the family resides and the family does not want to transfer to a larger size unit. o When evaluating exception requests consideration will be given to the size and configuration of the unit. In no case will an exception be granted that is in violation of local housing or occupancy codes, regulations or laws. o All requests for exceptions to the occupancy standards must be submitted in writing. o Approval of all exception requests will be at the discretion of management. SECTION 6. LEASING A UNIT Parkway East management will enter into a Lease Agreement with each household. The Lease Agreement reflects the conditions governing occupancy including any and all lease addenda and House Rules. Execution of Lease Agreement All household members are required to be listed on the Lease Agreement. If at any time during the life of the Lease Agreement, any change in the household's status results in the need to change or amend any provisions of the Agreement, or Parkway East management desires to waive any provisions with respect to the household: (1) the existing Agreement is to be canceled and a new Agreement executed; or (2) an appropriate rider is to be prepared and made a part of the existing Agreement. The initial lease term will be for a minimum 12-month term. Cancellation of Lease agreement Cancellation of a household s Lease Agreement is to be in accordance with the provisions contained within the Lease Agreement. 26

27 Rental of Garage Garage units are available for rent under a separate agreement for tenants of Parkway East Apartments. SECTION 7. EVICTIONS Evictions will be issued within the provisions of the Tenant Lease/Rental Agreement, Oregon state law and the OHCS LIHTC Manual. All evictions must be for good cause. No cause evictions are not allowed. Good cause is determined by State or local law, and non-renewal of a lease agreement without good cause is prohibited. SECTION 8. SECURITY DEPOSITS A refundable Security Deposit will be required as follows: $350.00; or If additional deposit is required per Section 2 of this Policy, the refundable deposit will increase accordingly. Applicants are required to pay the security deposit on the date of lease signing, unless otherwise arranged by the tenant and management. SECTION 9. RENT COLLECTIONS Parkway East management will not permit partial rent payments unless an exception is made on a case-by-case basis by management. Prepayment of the monthly rent will not be encouraged; however it will be permitted when tenants are to be away from home when their rent is due. Tenants will be requested to mail or take their rent to the office in the form of a check, money order or cashier s check. Rent is to be paid per the tenant lease. Tenants are asked to pay rent with checks or money orders. Rents are due and payable on or before the first of each month per the rental agreement. If the tenant does not pay the full amount of rent by the end of the 5 th day of the month, Parkway East management may terminate the lease for non-payment of rent. SECTION 10. TENANT INCOME CERTIFICATIONS (TIC) Tax Credit - Tenant Income Certifications (TIC) 27

28 Initial Certifications After obtaining, verifying, and computing all income and asset information, a Tenant Income Certification (TIC) is prepared and all household members age 18 and above and a representative of Parkway East management are required to sign the TIC before signing the lease, but in no case more than ten (10) days prior to move-in. Recertifications All units must be certified annually on or before the anniversary of the move-in date. The original move-in date must be carried over onto all subsequent recertifications. Annual recertification TICs must be signed by all household members age 18 and above and a representative of Parkway East management any time after all verifications have been collected, but no later than the effective date. In no case can the TIC be signed more than 120 days prior to the effective date. HOME designated units - Tenant Income Certifications (TIC) Initial Certifications After obtaining, verifying, and computing all income and asset information, a TIC is prepared that covers both programs; and all household members age 18 and above, and all heads of household,spouses, and co-heads (regardless of age), and a representative of Parkway East management are required to sign the TIC before signing the lease, but in no case more than ten (10) days prior to move-in. Annual Recertifications (HOME/TC units only) All units must be recertified annually on or before the anniversary of the move-in date. After obtaining, verifying, and computing all income and asset information, a TIC is prepared that covers both programs, and all household members age 18 and above, and all heads of household, spouses, and co-heads (regardless of age), and a representative of Parkway East management are required to sign the TIC any time after all verifications have been collected but no later than the effective date. In no case can the TIC be signed more than 120 days prior to the effective date. SECTION 11. ANNUAL RECERTIFICATIONS OF HOUSEHOLD INCOME All households must have income certified annually. The certification is mandatory and the household will be notified by management of the date and time of interview. If a tax credit or HOME unit participant household s gross annual income exceeds 140% of median income at the time of annual/interim recertification, the next available unit of comparable or smaller size within the building will be filled with an income-eligible household. 28