OwnerAgent Orientation

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Greensboro Housing Authority
Housing Choice Voucher Program
Owner/Agent Orientation
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PROGRAM OUTLINE

• Admissions at a Glance
• Introduction
• Fair Housing Statement
• Responsibilities
• Becoming a Participating Landlord
• Obligations
• Terminations
• Program Benefits

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Introduction

• The Housing Choice Voucher Program (HCVP) is a
  federal housing assistance program administered
  through the Department of Housing and Urban
  Development (HUD) and the Public Housing
  Authority (PHA)
• It assists low-income families, seniors and
  person with disabilities to pay for decent, safe
  and affordable housing, and provides rental
  assistance in the private housing market through
  a subsidy which is based on household income
  and cost of housing

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Participant Eligibility
Must be a U.S citizen, national or non-citizen
with eligible immigration status.
Must have an active application on file.
Must meet the income guidelines as published by
HUD.
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Participant Eligibility (HUD has four factors)
Family Composition
Income Limits
Provision for Social Security Numbers
Other criteria for Admission that relates to
prior history on GHAs or any other federal
program, and Criminal History
.
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Fair Housing Policy Statement

• It is GHAs policy to comply fully with all
  Federal, State and local nondiscrimination laws,
  the Americans With Disabilities Act, and the U.S.
  Department of Housing and Urban Development
  regulations governing Fair Housing and Equal
  Opportunity in housing and employment

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Fair Housing Policy Statement (cont.)

• To further its commitment to full compliance with
  applicable Civil Rights, laws, GHA will provide
  Federal/State/local information to applicants for
  participation in the HCVP on discrimination and
  any recourse available to them should they feel
  they have been victims of discrimination

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Admissions at a Glance

• Pre-application completed
• Eligibility income determined
• Applicant placed on waiting list
• Selected from waiting list
• Preference, income allowance verified by third
  Party
• Applicant briefing held
• Housing Choice Voucher issued
• Housing search begins

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Owner Outreach
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Owner Outreach

• GHA will make personal contact in the form of
  formal or informal discussions or meetings with
  private property owners program requirements
  will be explained and printed material offered to
  acquaint the owner/agent with the opportunities
  available under the program
• GHA maintains a list of interested owner/agents
  available for the HCVP and updates this list
  daily. This is made available to prospective
  tenants

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GHA Responsibilities

• The HA obligations under the HAP contract
  include
• Inspect the unit, at least annually to assure
  that the unit meets HQS which includes
  supervisory quality control HQS inspections
• Inspect the units upon complaints received by the
  family in respect to HQS
• Must notify the owner of all deficiencies notated
  on inspections
• Must pay the HAP payment promptly when due

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Owner/Agent Responsibilities

• Perform all management and rental functions for
  the unit

• Participant screening and selection

• Collecting security deposits

• Collecting participants share of
  contract rent and other tenant charges for damage
  to the unit

• Initiating lease agreement with family

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Owner/Agent Responsibilities (cont.)
2. Maintain unit in accordance with Housing
Quality Standards (HQS)
3. Provide to the family information on the
status of lead-based paint in the unit
4. Comply with equal opportunity requirements
5. Comply with the Housing Assistance Payments
(HAP) Contract
6. Enforce the lease
7. Pay for owner supplied utilities and services
8. Responsible for provisions or modifications
to the unit as reasonable accommodations
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Suitability

• Owner/agents may screen the prospective tenants
  using factors such as
• Criminal report
• Credit report
• Prior rent history
• Outstanding debts owed to previous owner(s)
• History of damage to rental property
• Employment
• If requested GHA will furnish the owner with
• Current address of the tenant
• Present name of landlord
• Familys prior address

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Tenant Responsibilities

• Provide the PHA with complete and accurate
  information
• Find a place to live that is suitable for them
  and qualifies for the program
• Attend all appointments with PHA
• Responsible for the care of unit
• Comply with terms of their lease
• Comply with family obligations on their voucher

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Questions and Answers
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Becoming a Participating Landlord

• Step 1 Tenant Found
• Step 2 Tenant Approved by Owner
• Step 3 Tenancy and Unit Approved by PHA
• Step 4 Contract and Lease Signed
• Step 5 Housing Assistance Payments Made

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Step 1 Tenant Found

• When a family is determined to be eligible for
  the program and funding is available, the PHA
  issues the family a Housing Choice Voucher. The
  family receives the Voucher at the mandatory
  briefing and begin their housing search.

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2005 Payment Standard for Bedroom Size

• 0 bedrooms 522
• 1 bedroom 596
• 2 bedrooms 678
• 3 bedrooms 859
• 4 bedrooms 901
• 5 bedrooms 985
• Established Payment Standard is 90 of FMR (Fair
  Market Rent)

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Tenant Payment

• A family renting a unit below or above the
  payment standard pays as gross rent the highest
  of
• 30 of monthly adjusted income or
• 10 of gross monthly income or
• Housing Authority minimum rent (45)
• Note If above, family also pays any amount above
  the payment standard.

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INCOME LIMITS 2004
Greensboro Winston-Salem High Point
January 31, 2004 - 56,100 (Median Family)
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Step 2 Tenant Approved by Owner

• Review the voucher
• Screen the family
• Security deposits

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Step 3 Tenancy and Unit Approved by PHA

• Leasing Process
• Request for Tenancy Approval
• Tenancy Addendum

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FORMS

• SAMPLE HUD PROGRAM FORMS
• Housing Choice Voucher
• Request for Tenancy Approval
• Housing Assistance Payments (HAP) Contract for
  HCVP
• Tenancy Addendum for HCVP

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Leasing a Unit

• Request for Tenancy Approval the owner or
  agent MUST list on the RFTA
• Date on which you and the tenant wish the lease
  to begin
• Number of bedrooms in the unit
• Year constructed
• Type of unit
• Who is responsible for utilities
• Type of utilities being paid by the tenant/owner
• Requested rent for the unit

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Tenancy Addendum

• In addition to the RFTA, you must submit to the
  PHA your standard lease for unassisted tenants
  with the HUD-required Tenancy Addendum attached.
• (Note This Tenancy Addendum can be retrieved
  from the GHA website
• www.gha-nc.org

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Lease Requirements

• The owner and tenant must enter into a written
  lease for the unit. The lease must be executed
  by the owner and the tenant. If the owner uses a
  standard lease form for rental to unassisted
  tenants in the locality or the premises, the
  lease must be in such standard form (plus the
  HUD-prescribed tenancy addendum)

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Lease and Tenancy Addendum

• A copy of the proposed lease is to be submitted
  to the HA along with the RFTA
• The lease must be approved by the HA
• Owners use their own lease, but it must have the
  HUD tenancy addendum provided by GHA as part of
  the lease

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Lease and Tenancy Addendum (cont.)

• After GHA has reviewed the RFTA and lease,
  certified and documented rent reasonableness,
  conducted an inspection and passed the unit,
  checked the requested Contract Rent against the
  FMR and found it to be reasonable, GHA will
  approve the lease

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Lease and Tenancy Addendum (cont.)

• If the proposed, unexecuted lease does not meet
  GHAs requirements, GHA will explain the problems
  to the owner and suggest how they may be
  corrected by a specific date (usually within
  seven (7) working days)

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Housing Quality Standards Inspections(HQS)
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Housing Quality Standard Inspection (HQS)

• Inspection Process
• Meeting Housing Quality Standards (HQS)
• Prepare the Unit for Inspection
• Participate in the Inspection
• Make Repairs Promptly

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Housing Quality Standard Inspection (HQS)

• Areas Inspected
• Living room
• Kitchen
• Bathroom
• Other rooms used for living and halls
• Secondary rooms (i.e. laundry room)
• Building exterior
• Heating and plumbing
• General health and safety

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Housing Quality Standard Inspection (HQS) cont.

• Lead-Based Paint
• Requirements for pre-1978 with children under 6
• Access
• Site and Neighborhood
• Sanitary Condition
• Smoke Detectors

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HQS Fails Units under Contract

• The owner or participant will be given time to
  correct the failed items cited on the inspection
  report for a unit already under contract
• If the failed items endanger the familys health
  or safety, the owner or participant will be given
  24 hours to correct the violations.
• For less serious failures, the owner or
  participant will be given up to 30 days to
  correct failed item(s)

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Initial Inspections

• On an initial inspection, the owner will be given
  up to 30 days to correct the items that failed,
  depending on the extent of the repairs that are
  required to be made.
• No unit will be placed in the program until the
  unit meets the HQS requirements.

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HQS Ratings

• Pass - the conditions meets the minimum
  requirement
• Inconclusive more information is needed for the
  inspector to make a determination
• Fail condition does not meet the minimum
  requirement. All fail items must be corrected
  and approved prior to the execution of the HAP
  contract

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Rent Reasonableness
The rent must be comparable to rents charged for
similar units in the private unassisted market,
or rents charged by the owner for a comparable
unassisted unit in the building or premises.
The HA will not approve an initial rent or a rent
increase without determining that the rent amount
is reasonable.
39
PHA Disapproval of Owner

• HUD notifies PHA owner has been debarred,
  suspended or subject to limited denial of
  participation by HUD
• Violation of Fair Housing Policy
• Owner renting home to family member, unless the
  family member has disabilities and owner has
  provided reasonable accommodations

40
PHA Disapproval of Owner (cont.)

• Violated obligations under the Housing Assistance
  Payment Contract
• Committed fraud, bribery or any other corrupt or
  criminal act in connection with any HUD program
• Engaged in violent criminal activity
• Noncompliance with HQS for leased units
• Failing to terminate tenants

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Step 4 Contract and Lease Signed

• Once the lease and unit are approved, you will
  enter into a contract with the PHA, and you will
  sign a lease agreement with the family

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Step 5 Housing Assistance Payments

• Payments will continue as long as the following
  conditions are met
• Units meets HQS
• Tenant is eligible for assistance
• Tenant resides in the unit
• Owner is in compliance with the contract
• Note The family is responsible for paying the
  difference between the PHAs amount and the total
  rent to owner. The owner must collect any
  portion of the rent payable by the family.

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Obligations

• HUD-Required Annual Activities
• Recertification of Family
• Changes in Payment
• Annual Inspection of Units
• Abatement of Payments
• Voucher Program Rent Increases
• Other Changes in the Lease

44
Changes in Payment

• Owners must notify GHA of any changes in the
  amount of rent at least sixty (60) days before
  the changes go into effect.
• Any such changes are subject to GHA determining
  them to be reasonable
• Assistance shall not be continued unless GHA has
  a new tenancy in accordance with program
  requirements

45
Annual Inspection

• Unit must be inspected by the PHA each year
• Advance written notice to owner and family
• Results of inspection provided
• Fail reasonable time to repair
• Family is responsible for repair beyond normal
  wear and tear

46
Abatement

• When a unit fails to meet HQS and the owner has
  been given an opportunity to correct the
  deficiencies, but has failed to do so within the
  required timeframe, the rent for the dwelling
  unit will be abated.
• The abatement will begin the 1st day of the next
  month.

47
Abatement (cont.)

• The initial abatement period will not exceed 7
  days.
• If the corrections are not made within the 7 day
  timeframe, the abatement will continue until the
  HAP contract is terminated.
• If the corrections are made, GHA will end the
  abatement the day the unit passes inspection
• Rent will resume the following day and be paid
  the 1st day of the next month

48
Abatement (cont.)

• For tenant-caused HQS deficiencies, the owner
  will not be held accountable and the rent will
  not be abated
• The tenant is held to the same standard and
  timeframes for corrections as the owner
• If repairs are not made by the deadline, GHA will
  send a notice of termination to both the tenant
  and owner. The tenant will be given the
  opportunity to request an informal hearing

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Request for Rent Increases

• Owner/Agent will complete Rent Increase Form and
  send to Roni Johnson, Eligibility Coordinator for
  Section 8
• Once rent increase request is received, it is
  given to the HA Inspection Manager (Ricky Gilmer)
• Ricky Gilmer will give rent request to the
  Inspector who did the annual inspection to
  determine if owner/agent is justified in asking
  for rent increase
• If the unit has passed inspection, a rent
  increase will be considered

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Request for Rent Increase (cont.)

• If the unit has not passed inspection, no rent
  increase will be considered
• Inspector will do a rent reasonableness on all
  rent increases, based on neighborhood and rent
  from unassisted tenants.
• Rent increases are usually absorbed by the tenant
  and not GHA
• If owner/agent is already receiving the MAXIMUM
  amount of rent at time of initial inspection,
  then a rent increase is unlikely

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Changes in Lease

• If the participant and owner agree to any changes
  in the lease, all changes must be in writing and
  the owner must immediately give GHA a copy of the
  changes. The lease, including any changes, must
  be in accordance with the GHA Administrative Plan

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Changes in Lease (cont.)

• Changes in lease requirements governing tenant or
  owner responsibilities for utilities or
  appliances
• Any changes in the term of the lease
• Any moves from one unit to another (including
  moves to a different unit within the same complex
  or building)
• If PHA approves the new tenancy, a new lease and
  HAP contract will be required

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Family Obligations to Owner

• Provide Utilities
• Electricity, gas or water
• Appliances
• Stove and refrigerator (if not provided by owner)
• Damages
• Repairing any damages to the unit beyond normal
  wear and tear
• If family does not fulfill obligations to make
  repairs assistance may be terminated

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Family Obligations to PHA

• Required Information
• Social Security Numbers
• Truthfulness
• HQS Violations
• Unit Inspections
• Lease Violations
• Moving

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Family Obligations to PHA (cont.)

• Eviction
• Housing Use
• Family Composition
• Other Household Occupants
• Reduction in Family Size
• Profit Making Activities
• Subleasing

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Family Obligations to PHA (cont.)

• Assigning or Transferring
• Absences
• Ownership or Interest
• Corruption
• Crime
• Other Housing Assistance
• Alcohol or Substance Abuse

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Family Obligations to PHA (cont.)

• Eviction
• Housing Use
• Family Composition
• Other Household Occupants
• Reduction in Family Size
• Profit Making Activities
• Subleasing

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Owner Obligations to Family

• Nondiscrimination
• Reasonable Modifications for Disabilities

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Owner Obligations to PHA

• Program Integrity
• Common Owner Violations
• Failing to maintain a unit
• Accepting Payments for a Vacant Unit
• Demanding or Accepting Side Payments
• Contract Terminations
• Change of Ownership

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Owner Obligations to PHA (cont.)

• Contract Terminations
• Agreement between the owner and PHA
• Runs concurrently with the lease and terminates
  automatically when the lease terminates
• Ends when a familys income increases to the
  point that a PHA payment to the owner is no
  longer necessary

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Change of Ownership

• Owner may not assign the contract to a new owner
  without the prior written consent of the PHA
• New owner must complete W9 and provide proof of
  ownership
• Notify PHA if property is for sale

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Questions and Answers
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Grounds for Denial or Termination of Assistance
4. If any member of the family commits
drug-related or violent criminal activity or
if alcohol is abused
by a household member to the
extent that it interferes with
the health, safety, or right to
peaceful enjoyment of the premises
by other residents.
1. If the family violates any family obligation.
2. If any member of the family has ever
been evicted from public housing
3. If any Housing Authority has ever terminated
assistance under the certificate or voucher
program for any member of the family.
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Grounds for Denial or Termination of Assistance
(cont.)
5. If any member of the family commits fraud,
bribery or any act of corruption in connection
with any HUD program.
6. If the family currently owes rent or other
amounts to the Housing Authority or to any other
Housing Authority in connection with Section 8 or
public housing assistance under the 1937 act.
7. If the family has not reimbursed any HA for
amounts paid to an owner for rent damages or
other amounts due under the lease.
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Grounds for Denial or Termination of Assistance
(cont.)
8. If the family violates an agreement with a HA
to pay amounts owed to the HA or amounts paid to
any owner by a HA.
9. If the family has engaged in or threatened
abusive or violent behavior toward HA personnel.
This includes verbal as well as physical abuse or
violence use of expletives that are generally
considered insulting, racial epithets, or other
language, written or oral, which is customarily
used to insult or intimidate.
10. If the family has remained at zero
assistance for over six months.
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Greensboro Housing Authority Owner/Agent HCVP
Workshop May 6, 2004