SECTION 8 MODERATE REHABILITATION ADMINISTRATIVE PLAN

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1 COLORADO HOUSING AND FINANCE AUTHORITY SECTION 8 MODERATE REHABILITATION ADMINISTRATIVE PLAN APRIL 15, 2008

2 Colorado Housing and Finance Authority Section 8 Moderate Rehabilitation Program Administrative Plan TABLE OF CONTENTS 1. Introduction Page 3 2. Single Room Occupancy (SRO) Housing 3. Equal Housing Opportunity Page 3 4. Tenant Selection Plan Page 6 5. Application Processing and Waiting List Page Briefing Page Occupancy Policies Page Housing Quality Standards Page Security Deposits Page Minimum Tenant Rent Page Annual Recertification Page Interim Adjustments of Rent and Assistance Page Denial or Termination of Assistance Page Tenant Appeals and Informal Hearing Page Lease and Lease Termination Page Voucher Processing Page Damage and Vacancy Claims Page Utility Allowance Page Special Rent Increase Page Collection Policy for HAP Overpayment Page Management and HQS Review Page Termination and Renewal of Housing Assistance Contract Page Mortgage Restructuring Page Amendments to Administrative Plan Page 29 CHFA Administrative Plan Page 2 April 2008

3 1. Introduction The Colorado Housing and Finance Authority ( CHFA ) is a Public Housing Authority ( PHA ) as defined by HUD. CHFA has entered into an Annual Contributions Contract with HUD to administer the Moderate Rehabilitation Program ( the Program ). As required, CHFA has prepared this Moderate Rehabilitation Administrative Plan (the Plan ) in accordance with the requirements of HUD Handbook 7420G and other directives of the HUD Office of Public and Indian Housing ( OPIH ). CHFA will administer its Program in accordance with this Plan and related HUD directives. This Plan includes CHFA s HUD-required policies and policies on matters in which CHFA has discretion. CHFA's objective in the administration of the Program is to provide affordable, safe, decent, and sanitary housing to very low-income families at properties participating in CHFA s Program. CHFA will administer its Program under the provisions of certain waivers which CHFA received from HUD on May 1984, April 1987 and August These waivers allow CHFA to delegate certain responsibilities to the owner of multifamily properties in the Program. CHFA has delegated these responsibilities through an Administrative Services Agreement with the owners of the properties participating in CHFA s Program. CHFA will assure compliance with this Agreement, this Administrative Plan and related Procedures through regular monitoring of management practices and through the periodic management reviews provided for in the Administrative Services Agreement. Owner s non-compliance could lead to suspension or termination of Section 8 rental assistance or of the Housing Assistance Contract. The delegated responsibilities including the following: Taking and processing applications Maintaining and administering the waiting list Determining Moderate Rehabilitation Program eligibility for applicants Verifying preferences Selecting tenants, providing Program Briefings Conducting certification and recertification of tenants Enforcing occupancy standards Conducting Housing Quality Standard inspections 2. Single Room Occupancy Housing Within its Moderate Rehabilitation Program CHFA has included properties under HAP contracts participating in the Single Room Occupancy (SRO) Program. CHFA will administer these contracts in accord with 24 CFR 882 Subpart H and CHFA Administrative Plan Page 3 April 2008

4 24 CFR 5, Subparts A, E, and F. This Administrative Plan will apply to these properties unless specifically stated otherwise. For purposes of this Plan, the term homeless or homeless individual does not include any individual imprisoned or otherwise detained pursuant to an Act of the Congress or a State law. 1. Temporary Relocation CHFA does not anticipate the displacement of any tenants in buildings designated for SRO housing. If displacement would be necessary, the provisions of 24 CFR H would be followed. 2. Outreach CHFA will work with owners of properties which have been accepted as recipients of federal funds for providing housing for homeless persons. These owners will be required to work with agencies which provide housing and other services for homeless persons in order to identify and refer applicants for the SRO program. 3. Supportive Services CHFA will encourage the owners of SRO properties to provide information on supportive services available to tenants. CHFA will monitor the performance of owners in this regard and will report on it in the Management Review. 3. Equal Housing Opportunity CHFA will administer the Section 8 Program in a manner that will ensure consistent and fair treatment of all persons interested in or actually participating in the Program. CHFA will not discriminate at any stage of the application or participation process because of race, color, national origin, religion, sex, age, handicap, familial status, political affiliation, or because the family receives income from public assistance. No preference will be shown to any applicant because of political affiliation or acquaintance with any public official at the Federal, State or local level. CHFA has established the following Objectives and Action Plans in order to carry out its commitment to providing equal housing opportunity. CHFA will work toward these Objectives through its direct actions and through its Administrative Services Contracts with the owners of properties participating in the Moderate Rehabilitation Program. Objective 1. Outreach to Eligible Families Action Plan CHFA Administrative Plan Page 4 April 2008

5 CHFA will require each property to have a HUD-approved Fair Housing Marketing Plan updated as needed but at least once every five years. This Marketing Plan will include the following: Use of local print media of general circulation and of targeted minority circulation to advertise the availability of moderate rehabilitation units in a given area. Contact with Public Housing Authorities, organizations, and persons involved in providing housing for low-income individuals for possible referrals. Outreach to persons least likely to apply will be through newspapers of general and particular circulations and through personal contact with agencies serving these populations. Objective 2. Promote Greater Housing Opportunities for Families Outside Areas of Low-Income and Minority Concentration Action Plan CHFA will continue to encourage the owners of the properties under Section 8 Moderate Rehabilitation contracts to remain in the Program. These properties are located in various locations throughout the state of Colorado to reflect the economic and social characteristics of the populations. Some of these properties are not located in areas of concentration of low-income and minority populations. Objective 3. Ensure Equal Opportunity to Applicants for Participation in CHFA's Moderate Rehabilitation Program Action Plan CHFA will ensure that all applicants are treated fairly when applying for participation in the Section 8 Moderate Rehabilitation Program by requiring each owner to develop and publicly display their Tenant Selection Criteria approved by CHFA. Applicants determined eligible for participation in the Program and will be placed on the waiting list by the owner of the property at which application is made. Placement on the waiting list will be in chronological order by date and time of the accepted application. Applicants will be notified in writing if their application is accepted or denied and will be informed as to their right to appeal a denial. CHFA will evaluate the owner's compliance with these procedures during its management review of the property. Program participants may apply and move to other properties under the Moderate Rehabilitation program and will CHFA Administrative Plan Page 5 April 2008

6 be assisted in continuing their participation as long as they have complied with Program requirements. Objective 4. Assist Families that Allege Discrimination During Their Housing Application and Residency at the Properties in its Program Action Plan CHFA will provide Owners with information for obtaining publications and forms through the Internet on matters related to Fair Housing such as HUD Form 903, Housing Discrimination Complaint and HUD's brochure, Live Where You Want to Live - Your Right to Fair Housing. CHFA will assist individuals in completing these forms and will instruct owners to do the same. CHFA, in accordance with 24 CFR , will assist families that claim illegal discrimination has prevented them from leasing a suitable unit within properties in the Program. CHFA staff will refer all discrimination complaints which it receives to the HUD Office of Fair Housing and Equal Opportunity. 4. Tenant Selection Plan The Colorado Housing and Finance Authority through its Administrative Services Agreement with the owners of properties under the Moderate Rehabilitation Program will require owners to establish and maintain a written tenant selection plan which must be approved by CHFA. The owners plan must include: A. Section 8 Program Eligibility Requirements B. CHFA established Preferences C. Disclosure of Social Security Numbers D. Authorization for the Release of Information/Privacy Act A. Section 8 Program Eligibility Requirements There are four factors which affect eligibility: 1) Family definition. Only applicants who meet CHFA s definition of family may participate in CHFA s Mod Rehab Program. 2) Income limits. The household s annual income may not exceed the applicable very low income limits as established by HUD. 3) Citizenship status. The applicant must meet the documentation requirements of citizenship or eligible immigration status. 4) Eviction for drug-related criminal activity. Persons evicted from public housing or any Section 8 program for drug-related criminal activity are ineligible for assistance for at least three years from the date of the eviction. CHFA Administrative Plan Page 6 April 2008

7 1) CHFA s definition of family A family is either a single person or a group of persons and includes: A household with or without children. A child who is temporarily away from home due to placement in foster care should be considered member of the family. An elderly family, which is defined as a family whose head, co-head, spouse, or sole member is at least 62 years of age; or two or more persons, each of whom are at least 62, living together; or one or more persons who are at least 62 living with one or more live-in aides; A disabled family, which means a family whose head, co-head, spouse, or sole member, is a person with disabilities; or two or more persons whose head, co-head, spouse, or sole member is a person with disabilities; or one or more persons whose head, co-head, spouse, or sole member is a person with disabilities with disabilities with one or more live-in aides. A displaced family, which is a family in which each member or the sole member is a person displaced by governmental action, or whose dwelling has been extensively damaged or destroyed as a result of a disaster declared or otherwise formally recognized by federal disaster relief laws. A remaining member of a tenant family is a family member of an assisted tenant family who remains in the unit when other members of the family have left the unit. Children under the age of 18 years will not be considered remaining member. A single person who is not an elderly or displaces person, or a person with disabilities, or the remaining member of a tenant family. One or more persons who are not an elderly or displaced person, or a person with disabilities, or the remaining member of a tenant family. 2) Income Limits Income limits are established by HUD by family size for the area in which the property is located. These are published annually by HUD and will be made available by CHFA to the owners. The very low-income limit, which is set at 50 percent of the area median income, is the income limit generally used to determine initial program eligibility. CHFA will ensure that 75 percent of admissions to its Program during its fiscal year ending December 31 are families whose incomes are at or below the extremely low-income limit, which is set at 30 percent of the area median income. Income eligibility for SRO Program (1) In general A homeless individual shall be eligible for assistance under any program provided by this chapter, only if the individual complies with the income eligibility requirements otherwise applicable to such program. CHFA Administrative Plan Page 7 April 2008

8 (2) Exception Notwithstanding paragraph (1), a homeless individual shall be eligible for assistance under title I of the Workforce Investment Act of 1998 [29 U.S.C et seq.]. 3) Citizenship Status CHFA will require owners to obtain the signature of every applicant household member 18 year of age or older on the Declaration of Citizenship form. Parent or guardian s signature will be obtained for minor children. Only U.S. citizens and applicants who have eligible immigration status will receive rental assistance under CHFA s Section 8 Program. Non-citizens claiming eligible immigration status must provide the required documentation by the time of the eligibility determination. If the family needs additional time to obtain the documentation, CHFA will provide an additional 30 days to obtain it. If all required documents have been provided by the family, assistance may not be denied or delayed solely because verifications or requested hearings have not been completed. If the required documents have not been submitted by all family members, the family will be considered a mixed family and only prorated assistance may be provided until the required documents have been submitted by all family members. The Colorado Housing and Finance Authority through its Administrative Services Agreement with the owners of properties under the Program will require owners to conduct primary verification of eligible immigration status through systems established by the U.S. Department of Homeland Security. CHFA will require the owners to complete secondary verification of eligible immigration status by requesting manual records search within ten days of the notice that such secondary verification is needed. CHFA will require the owner to complete the verification process until a determination of eligibility is made and the family is notified of the determination. 4) Eviction for drug-related criminal activity The Colorado Housing and Finance Authority through its Administrative Services Agreement with the owners of properties under the Program will require owners to conduct appropriate background checks pursuant to the 24 CFR Parts 5 et al. Screening and Eviction for Drug Abuse and Other Criminal Activity; Final Rule on every applicant household for and participating in CHFA s Program. A family may be denied assistance if there is a preponderance of evidence indicating that a family member has engaged in drug-related criminal activity or violent criminal activity as defined in 24 CFR Consideration of the circumstances and discretion may be used in these cases as provided in 24 CFR (f). CHFA Administrative Plan Page 8 April 2008

9 Persons subject to a state lifetime sex offender registration program or persons whose abuse or pattern of abuse of alcohol interferes with the health, safety, or right of peaceful enjoyment of the premises by other residents or owner or agent employees or contractors will not be eligible to participate in the Program. B. CHFA-established Preferences 1. Local Preferences The following local preferences have been adopted to respond to local housing needs and priorities. Not more than 30 percent of the applicants who are admitted to the projects in CHFA's Moderate Rehabilitation Program in any one-year period will be given assistance under these local preferences. Local Preference #1: Applicants with severe physical disability will be offered assistance before persons without such characteristics. This preference is applicable to Camelot II in Greeley, Colorado. Local Preference # 2: Applicants who are participating in a program which includes educational, training and job-readiness components will be offered assistance before persons who are not participating in such a program at North Haven Apartments in Boulder, Crabtree Apartments in Fort Collins. Local Preference # 3: Applicants who are 62 years of age or older or who are handicapped or disabled will be offered assistance before persons who do not match such characteristics. This preference is applicable to Columbine Towers (Denver), Garfield Apartments (Denver), Park West Apartments (Denver), and Tiara Apartments (Aurora). Local Preference # 4: Only single persons who are homeless will be offered rental assistance at the two Single Room Occupancy properties, The Forum Apartments and Golfers Way Apartments both in Denver. 2. Quality Housing and Work Responsibility Act of 1998 (QHWRA) The Admission and Occupancy Provisions of the Quality Housing and Work Responsibility Act of 1998 (QHWRA) for Multifamily Housing Programs allows for additional preferences not listed above. Owners of projects not listed above must receive CHFA's prior approval before admitting anyone under any preferences. QHWRA also requires that 40% of admissions in the fiscal year shall be to Extremely Low Income (ELI) families. CHFA will require property owners to comply with this requirement. CHFA Administrative Plan Page 9 April 2008

10 3. Disclosure of Social Security Numbers The Colorado Housing and Finance Authority through its Administrative Services Agreement with the owners of properties under the Program will require owners to require applicants and program participants to disclose Social Security numbers (SSN) of all family members six years of age or older as a condition of admission and continued assistance. CHFA will require owners to document the SSN disclosed by the family. 4. Authorization for the Release of Information/Privacy Act The Colorado Housing and Finance Authority through its Administrative Services Agreement with the owners of properties under the Program will require owners to require all adult applicants and participants 18 years of age and older to sign the Authorization for Release of Information/Privacy Act Notice (form HUD-9886) as a condition for admission and continued assistance. This requirement will be completed at move-in and at the annual recertification. 5. Application Processing and Waiting List CHFA will require owners to process applications and manage their waiting list to include the following. a. Applications Applications may be completed by any interested family at the property location or at any other location established by the owner and approved by CHFA. The applicant must complete an application with enough information for the owner to determine the applicant s eligibility for participation in the Program. The applicant must also provide any pertinent information for the owner to determine applicability of any preferences. Applications will be available at each property for that particular property or may be mailed by the owner upon request. Once the completed application is received by the owner, it will be stamped with the date and time of receipt in the property office. All applications will be reviewed to determine if the family meets all of the requirements for participation in CHFA s Moderate Rehabilitation program and for tenancy in the specific property. If the owner determines that an applicant is ineligible for the Program, the owner will notify the applicant in writing and will give the reasons for the determination and will advise the applicant of their right to request an informal review of the decision of ineligibility within 10 working days of the notification. Applicants with the Head of Household under the age of 18 years will be advised that their application is rejected. CHFA Administrative Plan Page 10 April 2008

11 If the owner determines that an applicant is eligible for the Program, the owner will place the applicant on the waiting list. b. Waiting List The family will be placed on the waiting list of the property at which the application was received by time, date and local preference. If the owner determines that the family is eligible, the owner will notify the applicant in writing and will state the approximate date that rental assistance may be available. The applicant will be advised of the possibility that the applicant might not be eligible at the time that rental assistance becomes available because of changes in the family s income or composition or other qualifying criteria. A written waiting list will be maintained for each property for all eligible families wishing to participate in the Moderate Rehabilitation Program within that property. All applications will be processed on a "first come, first served" basis on the date and time of application after consideration of the Preferences contained in this Administrative Plan. The waiting list will be purged periodically, but at least annually, by contacting the applicants at the most recent address shown on the waiting list in order to eliminate inactive applications, to reduce unnecessary administrative burden, and to ensure that the list remains representative of the needs of the community. Closing of the waiting list will be announced by posting a notice in a conspicuous place wherever applications are taken and by notice to all organizations or individuals listed in the property s Fair Housing Plan. Reopening of the waiting list will also be announced by posting a notice in a conspicuous place wherever applications are taken and by notice to all organizations or individuals listed in the property s Fair Housing Plan. The applicant must report changes in her or his income, family composition, address or telephone number to the property at which application was made. The owner will make note of these changes on the waiting list. CHFA Administrative Plan Page 11 April 2008

12 When the name of the applicant comes to the top of the waiting list and all required verifications have been completed, rental assistance may be offered to the applicant. The owner will make the final determination to accept the applicant as a tenant. The owner's selection should take into consideration such elements as the applicant's history as a tenant, criminal background check, and credit history. An applicant may not be offered housing rental assistance if the applicant owes money to any other public housing authority or owner of property subsidized by HUD and has not entered into a repayment agreement with such agency. CHFA will provide the family, upon admission into the Program, a written description of the following: Family obligations under the Mod Rehab Program; Grounds on which CHFA may terminate assistance because of family action or failure to act; and CHFA s hearing procedures as set forth in this Plan. A resident of a subsidized unit may not be offered rental assistance at another subsidized property until the resident has properly vacated the first unit and an End Participation action has been completed by CHFA. An internal transfer list will be maintained by the owner of each property. If a family requires a different size unit, based on the occupancy requirements, the family will have priority to such a vacant unit over applicants on the waiting list. A copy of the initial application should be included in the transfer unit s file. 6. Briefing CHFA will provide the owner with information on the Moderate Rehabilitation Program so that the owner adequately informs the families that will receive housing assistance. The owner will provide written confirmation that this information was given to each family at move-in by a signing a certification form provided by CHFA. This briefing for the families may be conducted with one family or with a group. The following must be covered at the briefing and the pertinent documents must be present in the briefing packet provided to the applicants: CHFA Administrative Plan Page 12 April 2008

13 Family and owner responsibilities under the lease, lease addendum, and Statement of Family Responsibility and HAP contract. Consequences to the Family or Owner if they fail to uphold their responsibility under the Mod Rehab program requirements. Applicable housing quality standards. Significant aspects of State and local laws. Significant aspects of Federal, State and local fair housing laws. Determination of Tenant Payment, Total Tenant Payment, the Housing Assistance Payment, and the Utility Allowance. Determination of Security Deposit. Term of lease. Annual and interim reexaminations. Assistance is project based. Family's options should the family be required to move due to change in size of family. 7. Occupancy Policies CHFA will assure that units are occupied by families of the appropriate size so that the usefulness of the units is maintained while preserving them from both excessive wear and tear and under-utilization for the Mod Rehab Program. The owner generally will assign a family to a unit so that two people will share a bedroom. The number of persons for each bedroom may be exceeded at the request of the family or to make reasonable accommodations for a person with disabilities or for emergencies. The owner and family must comply with local housing and zoning codes in making these decisions. If the owner or CHFA determines that the unit is not decent, safe, and sanitary due to the increase in family size or that a unit is larger than appropriate for the size of the family, the owner must offer the family a suitable alternative unit should one be available. The family will be required to move. If the property at which the family resides does not have a suitable unit available, the family will not be required to move nor will housing assistance payments under the contract be terminated. A family must follow the rules of the owner of the property concerning visitors. However, the owner and the family may not allow visitors to remain in the unit for more than 60 calendar days in one year beginning date of occupancy. Visitors remaining beyond this period of time may cause the family to be considered in violation of Program requirements and/or its lease and cause the visitors to be considered trespassers. Single Room Occupancy (SRO) units may be occupied only by one person. CHFA Administrative Plan Page 13 April 2008

14 For the properties under the Moderate Rehabilitation Single Room Occupancy Program the following definitions apply: The term homeless or homeless individual or homeless person includes (1) an individual who lacks a fixed, regular, and adequate nighttime residence; and (2) an individual who has a primary nighttime residence that is (A) a supervised publicly or privately operated shelter designed to provide temporary living accommodations (including welfare hotels, congregate shelters, and transitional housing for the mentally ill); (B) an institution that provides a temporary residence for individuals intended to be institutionalized; or (C) a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings. 8. Housing Quality Standards CHFA will assure that the owner certifies that a unit meets the minimum Housing Quality Standards (HQS) before requiring the family to sign the Statement of Family Responsibility and executing a lease. Owners must use the HQS Inspection Form provided by CHFA as the move-in and move-out inspection form. Each line item on the HQS Inspection Form must be descriptive and detailed to reflect the current condition of the unit. Housing Assistance Payments will not be made on behalf of a tenant until the unit meets HQS. The owner must inspect each unit at the time of the annual recertification to assure the units are being maintained in decent, safe and sanitary condition and determine if there are any damages caused by the tenant. During the Management Review CHFA will verify that the owner has conducted these HQS inspections. CHFA will also inspect a representative sample of the total number under contract using the HQS Inspection Form. CHFA will require Owners to correct all HQS violations that cause the unit to fail HQS within 72 hours and all other conditions within the reasonable timeframes. It will be the family s responsibility to correct and or to pay the owner for repairs for HQS violations which they or their guests caused. Copies of all inspection reports are required to be maintained for three years after the HAP contract has been terminated or expired and not renewed. In the event the owner does not complete 100% unit inspections at least annually, CHFA will conduct an HQS inspection and may suspend the rental assistance for failed units. CHFA Administrative Plan Page 14 April 2008

15 9. Security Deposits CHFA will assure that if an owner wishes to collect a security deposit from the family, the maximum amount will not exceed 30 percent of the family's adjusted income (Total Tenant Payment) or $50, whichever is greater. 10. Minimum Tenant Rent CHFA has established a minimum tenant rent of $25 and has provided for exceptions as noted below. A. Hardship Exemption The family may request an exemption from payment of the minimum rent requirement if the hardship is due to one of these described situations. When the family has lost eligibility or waiting for eligibility for a Federal, State, or local assistance program. When the family would be evicted due to non-payment of the minimum rent. When a decrease in income occurs due to changed circumstances (including loss of employment). When a death occurs in the family. Other circumstances determined by CHFA. When a family requests a Hardship Exemption, the owner must process the request and make a determination within ten days of the request. If the owner does not approve the family s request, the owner must notify the family in writing and provide CHFA with a copy of the refusal letter. The letter must tell the family the reason for the denial and must advise them of their right to an informal hearing in accord with the provisions of this Plan. a. Temporary Hardship If the Owner determines that a qualifying hardship is temporary, the Owner may not impose the minimum rent for a 90-day period beginning the month following the date of the family s request for a hardship exemption. At the end of the 90-day suspension, the Owner must reinstate the minimum rent from the beginning of the suspension. The family must be offered reasonable payment agreement, on terms and conditions established by the owner, for the amount of rent owed by the family. b. Long-Term Hardship If the Owner determines that a qualifying hardship is long-term, the Owner must exempt the minimum rent requirement so long as such hardship continues. The exemption shall apply from the beginning of the month until the end of the financial hardship. CHFA Administrative Plan Page 15 April 2008

16 11. Annual Recertifications CHFA will require owners to conduct annual recertifications to be effective on the anniversary of the family s move-in date. Owner must initiate the annual recertification process allowing ample time to complete the process 30 days prior to the effective date of the recertification. Owner must provide tenants a 30-day written notice of rent increase. If the tenant portion of rent is lowered, a 30-day notice is not required. If the tenant fails to cooperate in completing the annual recertification process then steps to terminate them from the program must be followed. The Owner s failure to submit an annual recertification on its scheduled month due to their action or failure to act will result in nonpayment of the HAP for that month and CHFA s investigation of the cause for delay. The Owner s failure to submit an annual recertification on its scheduled month due to the family s action or failure to act will result in the family s termination from the Program and CHFA s investigation of the cause for delay. 12. Interim Adjustments of Rent and Assistance CHFA will require owners to conduct interim adjustments to the rental assistance and tenant rent under circumstances noted below. The family will be required to report changes in its composition, income and/or any allowance which occur between the annual certifications. These changes must be reported to the owner as soon as the family becomes aware of the changes. The owner must process an interim recertification when the family reports these changes or when the owner otherwise becomes aware of these changes. The owner must verify only those factors which have changed since the last certification or which were not previously verified. The owner is not required to process an interim recertification if: 1. the resulting decrease in tenant rent was caused by the deliberate action of the family in order to avoid paying a higher rent. OR 2. the owner receives confirmation that the change will last less than one month. (For example, an employer confirms that the family member will be laid off for only two weeks.) The owner may delay, but not refuse, to process an interim recertification if the owner has confirmation that the family s income will be partially or fully restored CHFA Administrative Plan Page 16 April 2008

17 within two months. Processing may be delayed only until the new income is known. The owner must notify the family in writing of any change in the tenant rent or assistance payment resulting from the interim certification. If the family s rent increases, the owner must give the family 30-day advance notice of the increase. The effective date will be the first of the month commencing after the end of the 30-day period. If the family s rent decreases, the owner does not have to give the 30-day advance notice. The effective date of the decreased rent becomes effective on the first of the month following the action which caused the decrease. If the owner learns that the family s household has experienced one of the changes listed above, the owner must immediately notify the family in writing that they must complete an interim recertification. The owner s notice must state that the interim recertification is a requirement of the Program. It must also give the family ten (10) working days to respond to the notice and advise the family that the rental assistance may be terminated if the ten-day deadline is not met. If the family does respond within this timeframe and supplies the required information, the owner should process the interim recertification as outlined above. If the tenant responds after the prescribed time period, the owner should process the interim recertification effective on the first day of the month following the completion of the interim recertification. If the family does not respond within the ten days, the owner should terminate the assistance as of the first day of the month following the end of the ten-day period. 13. Denial or Termination of Assistance A. Denial of Admission to Program (i) CHFA will prohibit admission to the program of an applicant for three years from the date of eviction if a household member has been evicted from federally assisted housing for drug-related criminal activity. However, the PHA may admit the household if the PHA determines: (A) That the evicted household member who engaged in drug-related criminal activity has successfully completed a supervised drug rehabilitation program approved by the PHA; or (B) That the circumstances leading to eviction no longer exist (for example, the criminal household member has died or is imprisoned). (ii) CHFA will prohibit admission to the Program if: (A) The PHA determines that any household member is currently engaging in illegal use of a drug; CHFA Administrative Plan Page 17 April 2008

18 (B) The PHA determines that it has reasonable cause to believe that a household member's illegal drug use or a pattern of illegal drug use may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents; or (C) Any household member has ever been convicted of drug-related criminal activity for manufacture or production of methamphetamine on the premises of federally assisted housing. (iii) CHFA will prohibit admission to the program if any member of the household is subject to a lifetime registration requirement under a State sex offender registration program. In screening of applicants, CHFA will perform criminal history background checks necessary to determine whether any household member is subject to a lifetime sex offender registration requirement in the State where the housing is located and in other States where the household members are known to have resided. (iv) CHFA may prohibit admission of a household to the program if CHFA determines that any household member is currently engaged in, or has engaged in, during a five-year period prior to the date of the application: (1) Drug-related criminal activity; (2) Violent criminal activity; (3) Other criminal activity which may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents or persons residing in the immediate vicinity; or (4) Other criminal activity which may threaten the health or safety of the owner, property management staff, or persons performing a contract administration function or responsibility on behalf of the PHA (including a PHA employee or a PHA contractor, subcontractor or agent). If CHFA previously denied admission to an applicant because a member of the household engaged in criminal activity, CHFA may reconsider the applicant if CHFA has sufficient evidence that the members of the household are not currently engaged in, and have not engaged in, such criminal activity during a five-year period before the admission decision. (1) CHFA would consider sufficient evidence the household member s certification that she or he is not currently engaged in and has not engaged in such criminal activity during the specified period and provided supporting information from such sources as a probation officer, a landlord, neighbors, social service agency workers and criminal records, which the CHFA verified. (2) A household member is currently engaged in criminal activity if the person has engaged in the behavior recently enough to justify a reasonable belief that the behavior is current. CHFA Administrative Plan Page 18 April 2008

19 (3) Prohibiting admission of alcohol abusers. CHFA will prohibit admission to the program if CHFA determines that it has reasonable cause to believe that a household member's abuse or pattern of abuse of alcohol may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents. (d) Use of criminal record. If CHFA proposes to deny admission for criminal activity as shown by a criminal record, CHFA must provide the applicant with access to the source of the information. CHFA must give the family an opportunity to dispute the accuracy and relevance of that information, in the hearing process in accordance with CHFA will not pass along to the tenant the costs of a criminal records check nor allow owners to do so. CHFA may terminate assistance because of the participating family s action or failure to act. CHFA may also terminate assistance by refusing to enter into a HAP contract or by terminating housing assistance payments under an existing HAP contract. CHFA may terminate assistance with or without the consent of the owner. B. Termination of Assistance CHFA will immediately terminate assistance if it determines that a member of the family has ever been convicted of drug-related criminal activity for manufacture or production of methamphetamine (speed) on the premises of federally assisted housing; is fleeing to avoid prosecution, custody, or confinement after conviction, for a crime or an attempt to commit a crime that is a felony; is violating a condition of probation or parole imposed under federal or state law; has engaged in abuse of alcohol or a pattern of abusing alcohol that threatens the health, safety, or the right to peaceful enjoyment of the premises by other residents; or the right to peaceful performance of their duties by owner or management staff. In determining whether to terminate assistance for illegal drug use or alcohol abuse by a family member who is no longer using drugs or abusing alcohol, CHFA may consider whether the individual is participating in or has successfully completed a supervised drug or alcohol rehabilitation or has otherwise been successfully rehabilitated. CHFA may require the family member to submit evidence of current participation in, or successful completion of, a supervised rehabilitation program as a condition of continued assistance. CHFA may terminate assistance for the following reasons: CHFA Administrative Plan Page 19 April 2008

20 The family violates any family obligations as listed in the Statement of Family Responsibility; Any member of the family commits fraud, bribery, or other corrupt or criminal act related to any federal housing program; Family currently owes moneys to the PHA or another PHA for amounts in connection with the Mod Rehab program, housing choice voucher program, or public housing program; Family has not reimbursed any PHA for amounts paid to an owner under a HAP contract for rent, damages to the unit, or other amounts owed by the family under the lease; Family is in breach of a repayment agreement with any PHA; Family violates CHFA s policy on absence from a unit. The family may not be absent from their unit for sixty consecutive days without CHFA s prior written permission. CHFA may verify family occupancy through visits, calls, conversations with owners, neighbors, and other related parties; Any member of the family has been evicted from federal assisted housing in the last five years; A PHA has terminated assistance under the program for any member of the family; Family has engaged in or threatened abusive or violent behavior to CHFA, owner, or management personnel. Any member of the family has engaged in drug-related criminal activity or violent criminal activity; Any member of the family has engaged in criminal activity, regardless of whether the family member has been arrested or convicted. CHFA will provide the family with access to the source of the information before the hearing and will give the family an opportunity to dispute the accuracy and relevance of the record. If CHFA proposes to terminate assistance for criminal activity as shown by a criminal record, CHFA must notify the household of the proposed action to be based on the information and must provide the subject of the record access to the source of the information. CHFA will give the family an opportunity to dispute the accuracy and relevance of that information. Prior to terminating assistance, CHFA will give the family the opportunity to request a hearing. CHFA will consider the seriousness of the issue, the level or involvement of family members, mitigating circumstances related to the disability of a family member, and the effects of termination on non-involved family members. CHFA may permit some members of the family to continue receiving assistance while imposing a condition that the family member or members who engaged in wrongful activity will not reside with the assisted family. If the family includes a person with disabilities, CHFA s decision is subject to consideration of reasonable accommodation. CHFA Administrative Plan Page 20 April 2008

21 CHFA will give both the owner and the family written notice of termination of assistance that states: Reason for the termination; Effective date of the termination; and Family s right to request a hearing. CHFA may terminate Rental Assistance if a participant has moved from the property at which assistance is given and/or is living in another apartment/housing situation and keeps the subsidized unit as a secondary residence. If it becomes necessary for a participant to live somewhere else temporarily because of hospitalization, incarceration or other serious reason, CHFA will make the Housing Assistance Payment for a period of 60 days provided the participant notifies the owner of the absence and continues to pay his or her portion of the rent. Failure to advise the owner of an extended absence may be grounds for termination of the assistance. The owner must receive verification from the participant to substantiate the reason for the absence after the participant's vacancy of 30-days or more. After a 60 day absence, the HAP will not be made unless a request for a 30-day extension is recommended by the owner and approved by CHFA. The owner will make a determination on a case-by-case basis. In order for Owners to terminate the tenancy of a family during the family's lease term for any of the above reasons, they must comply with the lease and local requirements. All evictions must be carried out through state and local court action. CHFA must be notified in writing of any pending evictions once the court date is set. After a judgment has been rendered the Owner will notify CHFA of the outcome. These notifications may be submitted with the monthly vouchers. If an owner initiates an eviction action in accordance with the lease and the family continues to stay in the unit, CHFA must continue to make HAP payments to the owner until the family voluntarily moves or is evicted. Assistance may be denied or terminated if any family member has been evicted from any federally subsidized housing or terminated from a rental assistance program or has actually or threateningly manifested abusive or violent behavior toward the owner or owner s representative or CHFA personnel. (i) CHFA will terminate assistance for a family under the program if CHFA determines that: CHFA Administrative Plan Page 21 April 2008

22 (A) Any household member is currently engaged in any illegal use of a drug; or (B) A pattern of illegal use of a drug by any household member interferes with the health, safety, or right to peaceful enjoyment of the premises by other residents. (ii) CHFA will immediately terminate assistance for a family under the program if CHFA determines that any member of the household has ever been convicted of drug-related criminal activity for manufacture or production of methamphetamine on the premises of federally assisted housing. (iii) CHFA will terminate assistance under the program for a family if CHFA determines that any family member has violated the family's obligation under not to engage in any drug-related criminal activity. (iv) CHFA will terminate assistance under the program for a family if CHFA determines that any household member has violated the family's obligation under not to engage in violent criminal activity. (v) CHFA will termination of assistance for a family if CHFA determines that a household member's abuse or pattern of abuse of alcohol may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents. (vi) Evidence of criminal activity. CHFA may terminate assistance for criminal activity by a household member as authorized in this section if CHFA determines, based on a preponderance of the evidence, that the household member has engaged in the activity, regardless of whether the household member has been arrested or convicted for such activity. 14. Tenant Appeals and Informal Hearing Tenant Appeals CHFA will require owners to grant a family participating in the Mod Rehab Program the opportunity to appeal the owner s decisions of admission and continuation in the Program. The owner will review the appeal at the next higher level of authority than that of the person who made the decision. When all levels of owner authority have been exhausted, the family may request a hearing from CHFA. Grievance Procedure CHFA will afford each tenant an opportunity for a hearing on a grievance as defined in in accordance with the requirements, standards, and criteria contained in this subpart. CHFA Administrative Plan Page 22 April 2008

23 (a) CHFA s grievance procedure shall be included in, or incorporated by reference in, all tenant dwelling leases pursuant to subpart A of this part. (b) CHFA shall provide at least 30 days notice to tenants and resident organizations setting forth proposed changes in CHFA grievance procedure, and providing an opportunity to present written comments. Subject to requirements of this subpart, comments submitted shall be considered by CHFA before adoption of any grievance procedure changes by CHFA. (c) CHFA shall furnish a copy of the grievance procedure to each tenant and to resident organizations Definitions. For the purpose of this subpart, the following definitions are applicable: (a) Grievance shall mean any dispute which a tenant may have with respect to CHFA action or failure to act in accordance with the individual tenant's lease or CHFA regulations which adversely affect the individual tenant's rights, duties, welfare or status. (d) Hearing officer shall mean a person selected in accordance with of this subpart to hear grievances and render a decision with respect thereto Informal settlement of grievance. Any grievance shall be personally presented, either orally or in writing, to the office of the project in which the complainant resides or at the CHFA office so that the grievance may be discussed informally and settled without a hearing. A summary of such discussion shall be prepared within a reasonable time and one copy shall be given to the tenant and one retained in CHFA's tenant file. The summary shall specify the names of the participants, dates of meeting, the nature of the proposed disposition of the complaint and the specific reasons therefore, and shall specify the procedures by which a hearing under may be obtained if the applicant or tenant is not satisfied Procedures to obtain a hearing. (a) Request for hearing. The applicant or tenant shall submit a written request for a hearing to the project office or to CHFA within a reasonable time after receipt of the summary of discussion pursuant to (b) Selection of Hearing Officer. (1) A grievance hearing shall be conducted by an impartial person or persons appointed by CHFA, other than a person who made or approved CHFA action under review or a subordinate of such person. There will a Hearing Officer at the project office other than a person who made or approved CHFA action under review or a subordinate of such person. If the applicant or tenant is not satisfied with the decision of this Hearing Officer, he or she may request a hearing on the same issue with the Hearing Officer at CHFA. This Officer will be the person responsible for overseeing the project. If the applicant or tenant is not satisfied with the decision of this Hearing Officer, he or she may request a hearing on the same issue with the Hearing Officer s CHFA Administrative Plan Page 23 April 2008

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