HOUSING SUMMIT JANUARY 31, 2017 HCV SESSION

HOUSING SUMMIT JANUARY 31, 2017 HCV SESSION

HCV Landlord Workshop AGENDA: What is a Housing Authority? Role of the federal government Basics of the Housing Choice Voucher Program SHASC responsibilities Participant/Tenant responsibilities Landlord Responsibilities Payment Standards, Rent Reasonableness and Affordability Unit Standards and HQS Introduction of the Landlord Portal

What is a PHA? Operating Powers State Federal Creates PHA Appoints Governance City PHA Provides Funding

Federal Government - Key Players Congress HUD DC HUD State Creates legislation Authorizes annual appropriations Writes regulations Distributes appropriations Special initiatives Mixed Finance, MTW, Choice Neighborhood Monitors compliance Provides TA and oversight Approves routine operations

History of Housing Legislation 1937 Housing Act 1949 Housing Act FHA Mortgage Insurance 1965 Housing Act Created HUD Annual Appropriations QHWRA 1998 Converted Section 8 to Housing Choice Vouchers HCD Act of 1974 Creation of Section 8 2013 Sequestration HAP Funding at 96% PHA Administrative Fee at 69% Rental Assistance Demonstration Program

Funding System HUD SHASC Annual Contributions Contract (ACC) Federal Regulations Funding

Basics of Section 8/HCV Section 8 of the 1974 HCD Act Provided rental assistance under four programs: New Construction (private developers/owners) Substantial Rehab (private developers/owners) Moderate Rehabilitation (Local gov/pha s) Existing (PHA s only) Tenant pays 30% of income towards rent; subsidy pays balance of rent New construction/sub rehab/mod rehab terminated in 1990 s but HAP contracts still exist through continued renewals. Section 8 Existing (certificates) fully converted to Housing Choice Vouchers in 1998 PHA provides voucher to eligible families from waiting list Voucher authorizes families to lease a unit from a private owner Voucher size based on number of household members Family may lease larger but subsidy only for size of voucher Family may lease smaller unit if not overcrowded per HQS Maximum subsidy based on payment standards (90-110% of FMR) PHA inspects unit based on HQS (federal) standards PHA approves rent based on rent reasonableness/affordability

HCV Contractual Relationships PHA VHAP Contract Voucher Housing Choice Voucher Program Landlord Lease Agreement Participant Tenant

SHASC Responsibilities (HUD ACC; HAP Contract with Owner; Voucher with Family) The Housing Authority has the following major responsibilities: Determine initial and continued eligibility of families; Correctly calculate tenant rent and housing assistance payments; Certify that the units meet federal Housing Quality Standards and take action when units are not in compliance; Pay Housing Assistance to landlords and enforce compliance with the HAP contract; Take action when participants violate their family obligations; Administer the program in accordance with HUD regulations and SHA policies.

Family Responsibilities (Voucher and Lease Agreement) The Family has the following major responsibilities: Abide by the requirements of the lease: Pay rent on time, Maintain the unit and the yard (if single family unit) Not damage the unit beyond normal wear and tear; Provide income and family information to SHASC and report changes in income within 30 days Cooperate with SHASC in inspections and reexaminations; Secure permission of the landlord and SHASC before adding household members.

Landlord Responsibilities (HAP Contract and Lease Agreement) The Landlord has the following major responsibilities: Tenant selection and suitability; Compliance with the Housing Assistance Payments (HAP) Contract; Maintain the unit in accordance with the federal Housing Quality Standards; Collect the tenant portion of the rent Enforce the lease and take action when there are lease violations Cannot collect from tenant any amounts owed by the PHA

Subsidy Standards Subsidy standards determine voucher size and the number of bedrooms on which subsidy will be paid, not the family's actual living arrangements. Generally, one bedroom for each two persons in the household, except in the following circumstances: Persons of the opposite sex (other than head/co-head, life-partners) will be allocated separate bedrooms. Live-in aides will be allocated a separate bedroom but family members of the live in aide will not be allocated a separate bedroom. Single parent and infants under the age of 2 will be allocated a one bedroom. A pregnant individual with no other children will be allocated a one bedroom. Elderly, near elderly, disabled single persons will be allocated a one bedroom (and TBRA participants). All other single persons will be allocated a one bedroom.

Subsidy Standards This is the size of the voucher issued to the family

Payment Standards Fair Market Rents (FMR) published by HUD October 1 st each year PHA s must adopt payment standards between 90% and 110% of HUD FMR Payment Standards are gross rent: rent to the owner plus utility allowance for tenant paid utilities Utility allowances are county wide schedules based on average consumption data and usage for unit type Third party contractor conducts utility study annually, if rate change by 10% allowances must be revised. BR SIZE 0 1 2 3 4 HUD FMR 449 575 697 937 1065 PMT STDS 494 633 697 937 1065

Tenant Rent Tenant Rent Calculations Gross Annual Income $5,000 All household income from all sources (cash and non-cash) Deductions 960 HUD required deductions Adjusted Annual Income $4,040 Gross income less HUD deductions Monthly Adjusted Income 337 Annual adjusted divided by 12 Total Tenant Payment $101 30% of monthly adjusted income Less Utility Allowance 247 Allowance for tenant paid utilities from schedule Tenant Rent 0 Tenant pays no rent to landlord Utility Reimbursement Payment $146 Amount SHASC pays to tenant via check

HAP and Affordability HAP CALCULATIONS Rent to Owner 700 Rent owner asking for unit Utility Allowance 247 From schedule Gross Rent 947 Rent to owner plus utility allowance Payment Standard 878 3 bedroom payment standard HAP Payment to Owner 878 SHASC pays all rent to owner Tenant Rent to Owner 69 Tenant will have to pay each dollar above the payment standard Tenant Monthly Income 337 40% 135 Tenant Payment Required 170 LL would have to reduce rent 35 Affordability The total tenant payment cannot exceed 40% of monthly adjusted income.

Helpful Hints for Renting Rent based on three criteria: Reasonable Affordable Payment Standards Families can rent different size units than voucher size: Payment standard will be the smaller of the voucher size or unit size Utility allowance will always be actual size of unit Rent to families with a voucher size equal to unit size Rent increases must be requested 60 days prior to effective date of the change. Available units can be listed www.shasc.org. To list available units contact C. Wofford at SHASC

Unit Requirements and HQS Federal Goal of the Housing Choice Voucher (HCV) program: Provide decent, safe and sanitary housing at an affordable cost to low-income families. Housing Quality Standards: Define standard housing Establish minimum quality criteria Assure health and safety of program participants Consist of 13 key aspects of housing quality, performance requirements, and acceptability criteria to meet each performance requirement. HQS includes requirements for all housing types, including single and multi-family dwelling units.

Unit Requirements and HQS HQS 13 key aspects include: Sanitary facilities; Food preparation and refuse disposal; Space and security; Thermal environment; Illumination and electricity; Structure and materials; Interior air quality; Water supply; Lead-based paint; Access; Site and neighborhood; Sanitary condition; and Smoke Detectors

Inspections Three primary types of HQS inspections: 1. Initial Inspections all units must pass an inspection before a HAP contract can be executed. 2. Annual/Biennial Inspections- HUD requires the PHA to inspect each unit under lease at least annually or biennially, depending on PHA policy, to confirm that the unit still meets HQS. The inspection may be conducted in conjunction with the family's annual reexamination but also may be conducted separately. 3. Special Inspections - these are inspections in response to complaints or required quality control inspections. 4. Quality Control Inspections. HUD requires that a sample of units be inspected by a supervisor or other qualified individual to evaluate the work of the inspector(s) and to ensure that inspections are performed in compliance with the HQS.

HQS Enforcement Life/safety items must be completed within 24 hours from date of inspection All other repairs must be completed within 30 days Failure to make repairs results in abatement (prorated reduction of daily rate of rent for number of days unit is not in compliance with HQS) If no repairs after 30 days of abatement, HAP contract terminated Tenant issued voucher to locate new unit unless fail units are responsibility of the tenant.

Requirements to be a Landlord SHASC is required to confirm that housing assistance payments are issued to the legal owner or a legal representative of the owner. The following information is needed prior to approval of a HAP contract Social Security Card or Tax ID from IRS. Proof of ownership in the form of a deed or title to the property Copy of a management agreement if the property is managed by a third party management company or agent. (Proof of ownership is not required if management agreement is provided). Completed W-9 form Executed direct deposit authorization form.

Landlord Communication Welcome to the Landlord Portal We are pleased to announce our new Rent Café PHA Landlord Portal is available. This site will allow you to: a. Review unit information including current contract rent. b. Review caseworker info for each of your tenants. c. Review inspection details such as scheduled dates and inspection results. d. Review ledger payment history. e. Review EFT bank account details used for direct deposits. You can create your user account by visiting the link below. 1. Go to our website: http://www.rentcafe.com/apartments/sc/spartanburg/ sha-live/index.aspx 2. Click button link that says "Click here to register". 3. Enter your Registration code: (i.e- 2397-LV0002475) 4. Enter your email address: (i.e pamhmathis@gmail.com) 5. Enter your Tax ID/SSN without dashes..

Spartanburg Housing Authority HOUSING CHOICE VOUCHER PROGRAM Landlord Workshop QUESTIONS?