NYCHA MANAGEMENT MANUAL CHAPTER V ADMINISTRATION OF ...

NYCHA MANAGEMENT MANUAL ? CHAPTER V

ADMINISTRATION OF SECTION 8 PROJECT- BASED PROGRAM TABLE OF CONTENTS

I. A. B.

II. A. B.

III. IV.

A. B. C. V. VI. VII. VIII. A. IX.

A. B. C. D. X. XI. A. B. XII. A. B. C. XIII. A. B. C. XIV. A. B. C. D. E. F. G. H. XV.

Introduction .......................................................................................................................... 1 Background.......................................................................................................................... 1 Purpose ............................................................................................................................... 1 Applicable Developments .................................................................................................... 1 New Construction: ............................................................................................................... 2 Substantial Rehabilitation and Property Disposition: ........................................................... 2 Definitions ............................................................................................................................ 2 Required 50059/ 50009A and Subsidy Data Reporting ....................................................... 3 Monthly Voucher Submission Requirements ....................................................................... 4 Monthly Voucher Reconciliation...........................................................................................5 Correcting Discrepancies and Resubmission of Information................................................5 Section 8 Contract Administrators ....................................................................................... 5 Project Based Section 8 Service Provider ........................................................................... 6 NYCHA Section 8 Coordinator Responsibilities ................................................................... 6 Civil Rights and Nondiscrimination Requirements ............................................................... 7 General Provisions .............................................................................................................. 7 Eligibility Requirements for Assistance and Admission to Section 8 Project-Based Developments ...................................................................................................................... 7 Program Eligibility ................................................................................................................ 8 Project Eligibility...................................................................................................................8 Student Eligibility for Section 8 Assistance ..........................................................................9 Remaining Family Members .............................................................................................. 10 Waiting List and Tenant Selection .....................................................................................11 Marketing ........................................................................................................................... 11 Affirmative Fair Housing Marketing Plan............................................................................11 Fair Housing Poster ........................................................................................................... 12 Determining Income and Deductions ................................................................................. 12 Project Based Section 8 Income Review Exceptions.........................................................12 Determining Total Tenant Payment ................................................................................... 13 Calculations ....................................................................................................................... 13 Lease Requirements and Security Deposit........................................................................15 Unit Inspection Move-in Report..........................................................................................15 Applicable Leases and Attachments .................................................................................. 16 Security Deposit.................................................................................................................17 Annual Review and Interim Changes.................................................................................19 Scheduling ......................................................................................................................... 19 Annual Review Packet ....................................................................................................... 20 Third-Party Verification ...................................................................................................... 21 Annual Reviews for Ineligible Tenants ............................................................................... 22 Suspension or Termination of Section 8 Subsidy .............................................................. 22 Extenuating Circumstances ............................................................................................... 23 Retroactive Credits and Charges ....................................................................................... 26 Post Approval Signatures .................................................................................................. 27 Interim Rent Change Guidelines ........................................................................................ 27

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ADMINISTRATION OF SECTION 8 PROJECT- BASED PROGRAM TABLE OF CONTENTS

A. Tenant Reporting Requirements ........................................................................................ 28 B. Tenant Requests for Interim Rent Changes.......................................................................28 C. Mandatory Interim Rent Changes ...................................................................................... 28 D. Processing Interim Changes .............................................................................................. 29 E. Record Keeping ................................................................................................................. 30 XVI. Apartment Transfers and Move-Outs.................................................................................30 A. Tenant Selection & Assignment Plan (TSAP) System Overview ....................................... 30 B. Occupancy Standards........................................................................................................ 31 C. Requirement to Transfer to Appropriate Size Apartment ................................................... 31 D. Move-Out / Move-In Inspection Report .............................................................................. 31 E. Move- Out Balance Processing ......................................................................................... 31 F. Claims for Vacancy Loss after Move-Out...........................................................................32 G. Related Information on Transfers and Move-outs..............................................................35 XVII. Gross Rent Changes ......................................................................................................... 35 A. Submission Process .......................................................................................................... 35 B. Approval Process...............................................................................................................36 XVIII. Termination of Tenancy and Termination of Subsidy.........................................................36 A. Termination of Tenancy Proceedings ................................................................................ 37 B. Termination of Subsidy Proceedings ................................................................................. 38 C. Related Information on Termination of Tenancy ................................................................ 39 XIX. Tenant Folder Organization ............................................................................................... 39 A. Left Side of Folder ............................................................................................................. 39 B. Right Side of Folder ........................................................................................................... 40 XX. Related Forms ................................................................................................................... 41 A. NYCHA Forms ................................................................................................................... 41 B. HUD Forms ........................................................................................................................ 41

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I. Introduction

A. Background

Under the Project-Based Section 8 Program, the Department of Housing, and Urban Development (HUD) provides funding to NYCHA through a Housing Assistance Payment (HAP) contract. The Section 8 financial assistance provides a subsidy that bridges the gap between rents needed to operate a development and rents affordable to tenants.

Under this program, tenants pay a rent Payment based upon 30% of the familys adjusted income adjusted by the applicable utility allowance amount. The Total Tenant Payment is the tenant rent plus the applicable utility allowance, which is paid by HUD. NYCHA receives Housing Assistance Payments (HAP) from HUD each month, on behalf of the tenant, that is the difference between the HUD approved contract rent and the tenant rent/payment.

B. Purpose

This Chapter of the Management Manual explains the procedures for complying with HUDs Project-Based Section 8 Program requirements, including tenant eligibility, applicant priority, tenant income and rent determinations, prohibition of discrimination. This Chapter includes relevant procedures and requirements regarding:

Applicable Developments Contract Administrators Civil Rights and Nondiscrimination Eligibility for Assistance and Occupancy Procedures Waiting list and Tenant Selection Management Marketing Guidelines Determining Income and Rent Calculation Lease Requirements and Leasing Activities Recertification, Unit Transfers, and Gross Rent Changes Termination of Tenancy Procedures Subsidy Data Reporting Requirements

II. Applicable Developments

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This Chapter of the Management Manual applies to the following developments that are part of NYCHAs Project-Based Section 8 Program:

A. New Construction:

Bronxchester, Saratoga Square, and Campos Plaza I - Each development in this program is covered by a separate HAP contract

B. Substantial Rehabilitation and Property Disposition:

East 4th Street, East 120th Street, Milbank-Frawley, and Metro-North Rehabs Apartments. Each development is covered by a single HAP Contract.

III. Definitions

The following definitions are intended to provide a brief description of commonly used terms. For more detailed descriptions refer to the appropriate sections in Chapter V.

Contract Rent - The rent HUD or the HUD Contract Administrator has approved for each unit type covered under an assistance contract. The rent may be paid by the tenant, HUD, or both. Refer to the developments rental schedule (form HUD-92458) or Rental Assistance contract for exact amounts.

Gross Rent - The amount of rent that HUD or the HUD Contract Administrator has approved for each unit type covered under an assistance contract and utility allowances

Housing Assistance Payment (HAP) - The payment made by HUD to the owner of an assisted unit as provided in the contract. Where the unit is leased to an eligible family, the payment is the difference between the contract rent and the tenant rent.

Management Occupancy Review (MOR) - HUD Mandated On-site Review of development operation

Total Tenant Payment (TTP) - The amount a tenant is expected to contribute for rent and utilities Tenant Rent - The amount payable monthly by the family as rent to the owner:

Where all utilities (except telephone) and other essential housing services are supplied by the owner, tenant rent equals total tenant payment. 2 12/24/12

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Where some or all utilities (except telephone) and other essential housing services are not supplied by the owner, tenant rent equals total tenant payment less the utility allowance.

The Tenant Rental Assistance Certification System (TRACS) -TRACS collects certified tenant data and subsidy payment vouchers from owners and management agents of multifamily housing projects from the owners and electronically transmitted to the HUD System by TRACS.

IV. Required 50059/ 50009A and Subsidy Data Reporting

HUD requires all subsidy-related data to be transmitted into the HUD Tenant Rental Assistance Certification System (TRACS) through the use of HUD form 50059 for all annual reviews and interim changes and HUD form 50059A for all move-ins, move-outs, gross rent changes, and transfers. TRACS data includes tenant data, requests for payment of housing assistance, utility reimbursements, and special claims.

HUD requires a minimum accuracy reporting rate of 95% for HUD Forms 50059 and 50059A. In order to achieve NYCHAs objective of an accuracy reporting rate of 100%, Property Managers or designees must:

Ensure that all tenant data entries made in the Tenant Data System (TDS) are accurate. Respond to all Alert Messages indicated in reports from the HUD Enterprise Income Verification (EIV) System. Follow-up on all data in the HUD Enterprise Income Verification (EIV) System having a "Failed Status" or indicating a Multiple-Subsidy, i.e., individuals receiving assistance through multiple Federal housing programs. Development staff must enter all subsidy-related data in the Tenant Data System (TDS) and forward hard copies of HUD 50059 or 50059A form to the NYCHA Service Provider.

NOTE: For instructions on how to complete HUD forms 50059 and 50059A, refer to Instructions for HUD form 50059 in the NYCHA Forms and Reference Library, Other Publications section.

NYCHA Section 8 Coordinator coordinates HUD required subsidies through NYCHAs Information Technology Department and the NYCHA Service Provider.

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NOTE: Failure to correct Fatal Errors in TDS results in unprocessed HUD Forms 50059 and 50059A and may result in financial sanctions against NYCHA.

A. Monthly Voucher Submission Requirements

1. The Property Manager or designee of a Project-Based Section 8 property is responsible for submitting to the NYCHA Service Provider, on a monthly basis, for all tenants receiving Section 8 project-based assistance, the following Monthly Voucher documents:

a. Housing Assistance Payment (HAP) Voucher Request

NYCHA form 040.775, Monthly Voucher Request (EPS, Inc. HAP Voucher Request), initiates the voucher process. The Property Manager or designee forwards a signed and dated HAP Voucher Request form along with supporting documents by 5 p.m. on the first business day of each month to the NYCHA Service Provider.

The Property Manager must ensure that the HAP Voucher Request includes the following:

The date indicating the month and year of the next voucher preparation date for the development Development name, as it appears on the monthly HAP voucher HUD 50059 and/or HUD 50059A forms, indicating reported annual reviews, interim changes, move-ins, or unit transfers The number of HUD 50059 and/or HUD 50059A forms submitted for that month Changes in occupancy, i.e. move-outs, unit transfers and terminations Any reported Vacancies and Market Renters, including the correct unit types on the voucher HUD Form 50059 with signatures of all adult household members for new move-ins, Annual Reviews, or interim changes processed during the prior month Monthly Voucher Detail Report, NYCHA form 040.774 All Monthly Voucher documents for each tenant must be maintained in a file in the Property Managers Office.

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2. The NYCHA Service Provider is responsible for submitting to the HUD Contract Provider, on a monthly basis, for all tenants receiving program assistance, the following Monthly Voucher documents:

a. Form HUD-52670, Housing Owners Certification & Application for Housing Assistance Payments, properly supported by:

Form HUD-52670-A part 1, Schedule of Tenant Assistance Payments Due Form HUD-52670-A part 2, Schedule of Section 8 Special Claims Form HUD-52671-A through D, Special Claims Worksheets Form HUD-50059A- for all move-ins, move-outs, gross rent changes, and transfers

B. Monthly Voucher Reconciliation

On a monthly basis, the Property Manager or designee must reconcile the monthly voucher submissions for each account with the Voucher Payment Report received from the NYCHA Service Provider. Any payment discrepancies are to be resolved with the NYCHA Service Provider and the NYCHA Section 8 Project-Based Coordinator.

C. Correcting Discrepancies and Resubmission of Information

If HUD-TRACS finds errors in the transmission, the Project Based Section 8 Service Provider contacts the Property Manager requesting the correction of the error(s). Development staff must correct data errors before resubmission to Project Based Section 8 Service Provider

Resubmissions with corrected data follow the same procedure as the original submission.

Development staff must attempt to correct all tenant errors prior to the end of the voucher filing period.

V. Section 8 Contract Administrators

Section 8 Contract Administrators are agents under agreement with HUD to oversee HUDs Section 8 contracts. Subsidy contract administration involves a broad range of responsibilities, including program compliance functions to ensure that HUD-subsidized properties are serving eligible families at the correct level of assistance; asset management functions to ensure the physical and financial health of HUD-assisted properties, the review and transmission of

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monthly vouchers to HUD TRACS for subsidy distribution, and Management Occupancy Reviews (MOR).

Section 8 developments are required to post the name, address, and phone number of the contract administrators in the development and management office.

For further information about the Section 8 Contract Administrator, contact the NYCHA Section 8 Coordinator at 212-306-8550.

VI. Project Based Section 8 Service Provider

NYCHA utilizes a service provider who interacts with the Section 8 Contract Administrator on NYCHAS behalf and assists in the administration of Section 8 contracts by providing the following services to development staff:

Interact with development staff to collect documentation to submit Section 8 Monthly vouchers to HUD and the HUD Contract Administrator on NYCHAs behalf Upon receipt of a hard copy of the 50059 from development staff, processes and submits HUD 50059 forms electronically to HUD and submits copies to Contract Administrator for review

VII. NYCHA Section 8 Coordinator Responsibilities

The NYCHA Section 8 Coordinators responsibilities include coordinating all program compliance functions to ensure the continued payment of Housing Assistance Payments.

These responsibilities include, but are not limited to, the following:

Monitoring the processing of income reviews and subsidy billings in TRACS Initiating contract rent and utility allowance changes and HAP contract renewals Developing and updating HUD-approved Affirmative Fair Housing Marketing Plan to ensure compliance with 24 CFR 200.620 Identifying and updating all necessary NYCHAs Section 8 Project-Based Program forms Distributing HUD Section 8 Project-Based Program training materials and program updates to development staff and other departments as necessary, i.e., Notify IT of updated income limits Monitoring compliance with Contract Administrator audits

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