Treatment of income from Guaranteed Income Pilot Programs for HUD housing programs

The United States Department of Housing and Urban Development (HUD has sent a letter to the California Department of Social Services regarding treatment of Guaranteed Income Pilot Programs for its programs.

HUD denied California’s request for a waiver that would allow disregard of Guaranteed Income Pilot Program payments as income for HUD programs.  However, HUD stated several possibilities regarding Guaranteed Income Pilot Programs payments.

Prior to January 1, 2024 (the implementation date of The Housing Opportunities Through Modernization Act of 2016) both public housing authorities and multifamily owners and operators can exclude Guaranteed Income Pilot Program payments as temporary income.  This can happen until the first income examination for the family on or after January 1, 2024.

Prior to January 1, 2024, public housing authorities may establish a permissive deduction for Guaranteed Income Pilot Program payments.

After January 1, 2024, both public housing authorities and multifamily owners and operators can exclude Guaranteed Income Pilot Program payments in the final year of the program if the Pilot Program will not provide payments after that.

After January 1, 2024, both public housing authorities and multifamily owners and operators may calculate family income using certain other programs determination of income, as long as those determinations are made are made during the previous 12 -month period by the other program as effective with the Housing Opportunities Through Modernization Act of 2016 changes effective on January 1, 2024.  Those other programs include CalWORKs; Medi-Cal; CalFresh; Earned Income Tax Credit; Women, Infants, and Children; and Supplemental Security Income.

After January 1, 2024, public housing authorities may establish or continue a permissive deduction for Guaranteed Income Pilot Program payments for public housing, Housing Choice Voucher, and Moderate Rehabilitation programs.  (Letter from HUD, no date given.)

Shared housing in the Housing Choice Voucher program

The United States Department of Housing and Urban Development (HUD) has issued guidance regarding use of Housing Choice Vouchers (HCV) in shared housing.  Public Housing Authorities (PHAs) may allow shared housing.  PHAs must allow shared housing as a reasonable accommodation to allow the HCV program to be used by persons with disabilities.

Assisted families can share a unit with either HCV assisted persons or unassisted persons.  The owner of the property can reside in the unit but housing assistance cannot be paid on the owner’s behalf.  A resident owner cannot be related to the assisted family by blood or marriage except as a reasonable accommodation for a person with a disability.  If approved by the PHA, a live-in aid may reside with the family to care for a person with disabilities.

The entire unit must meet Housing Quality Standards to be approved for shared housing.

The payment standard for a family in shared housing is the lower of the PHA’s payment standard for the family unit size or the pro-rata share of the PHA’s payment standard for the shared housing unit size.  The Housing Assistance Payment in shared housing is the lower of the payment standard minus the total tenant payment or the gross rent minus the total tenant payment.  The utility allowance for an assisted family in shared housing is the pro-rata share of the utility allowance for the shared housing unit.  (PIH Notice 2021-05, January 15, 2021.)

Public and subsidized housing extension to 30 days notice to pay rent or quit

The United States Department of Housing and Urban Development (HUD) has issued guidance regarding of extension of time to pay rent in public and federally subsidized housing.  The interim final rule ““Extension of Time and Required Disclosures for Notification of Nonpayment of Rent” amended HUD regulations to require that, during a national emergency, the HUD Secretary can determine that additional time is necessary for families to secure funding available because of the national emergency and therefore public housing authorities (PHAs) administering public housing programs and owners of project based rental assistance properties must give at 30 days notice of lease termination for nonpayment of rent.  This requirement would not apply to the Housing Choice Voucher program.

The HUD Secretary has determined that an extension of time is necessary to give tenants notice of available funding and to increase the likelihood that tenants will be able to secure such funding before lease termination. This determination will remain in effect until a subsequent HUD notice rescinds this determination.

PHAs are not required to amend their leases to reflect this requirement.  Instead, PHAs must notify tenants of the requirement for 30 days notice of termination of tenancy for nonpayment of rent.  PHAs can provide this notice in writing or by electronic communication.  (PIH Notice 2021-29, October 7, 2021.)

Funding and rules changes for CDSS housing program

The Budget Act of 2021 appropriated $795 million for CDSS housing programs and made changes to program rules.

The CalWORKs Housing Support Program is intended to foster housing stability for families experiencing homelessness in the CalWORKs program.  Housing Support Program funds must be used to support projects that follow evidence-based housing interventions, including rapid rehousing.  All state-funded housing program must follow the core components of Housing First.  The Budget Act amended the program to expand eligibility to families at risk of homelessness, including families who have not yet received an eviction notice.

The Bringing Families Home Program provides housing related services to families receiving child welfare services, increase family reunification, and prevent foster care placements.  Funds can be used for evidence-based housing interventions including rapid rehousing, supportive housing and/or subsidies to make rental housing affordable.  The Budget Act amended the program to expand eligibility to families where the living situation cannot accommodate the child or multiple children in the home, and that families at risk of homelessness can include families who have not yet received an eviction notice.  The Budget Act also exempts counties and tribes from the dollar-for-dollar match requirements for one-time funds awarded between July 1, 2021 and June 30, 2024.

The Housing and Disability Advocacy Program provides outreach, case management, disability benefits advocacy, and housing assistance.  The Budget Act amended the program to exempt counties and tribes from the dollar-for-dollar match requirements for one-time funds awarded between July 1, 2021 and June 30, 2024, that individuals at risk of homelessness can include families who have not yet received an eviction notice, and that the interim assistance reimbursement requirement is waived through June 30, 2024.

The Home Safe Program provides housing-related assistance using evidence-based practices for homeless assistance and prevention for persons involved in Adult Protective Services. The Budget Act amended the program to include that persons at risk of homelessness can include families who have not yet received an eviction notice, that persons in the process of Adult Protective Services intake and individuals served through a tribal social services agency who appeal to be eligible for Adult Protective Services, and that counties and tribes from the dollar-for-dollar match requirements for one-time funds awarded between July 1, 2021 and June 30, 2024.

The Budget Act appropriated an additional $150 million to continue Project Roomkey.  (ACWDL July 19, 2021.)

VAWA for Rural Development tenants

The United States Department of Agriculture has issued guidance regarding the Violence Against Women Act (VAWA).  This guidance applies to Section 515 Rural Rental Housing, Section 514/516 Farm Labor Housing, Section 538 Guaranteed Rural Rental Housing, and Section 533 Housing Preservation Grant programs.

VAWA protects domestic violence victims from being denied admission to, denied assistance under, termination from participation, or eviction from covered housing programs if the applicant or tenant otherwise qualifies for admission, assistance, participation, or occupancy.

Criminal activity directly related to domestic violence, dating violence, sexual assault, or stalking cannot be cause for termination of assistance, tenancy or occupancy rights of the victim.

Borrowers should allow extended absences per current policy including for the benefit of domestic violence survivors.

Borrowers must respond and consider allowing tenants to transfer another Rural Development unit if they reasonably believe they are facing an actual and imminent threat of domestic violence, dating violence, sexual assault, or stalking.  Rural Development will issue a letter stating the tenant may get priority placement in an available Rural Development unit.  Requests to transfer to an external unit when a Rural Development unit is not available must also be urgently handled.

Borrowers must distribute the HUD-5380 Notice of Occupancy Rights, and HUD-5382 Certification of Domestic Violence form to all applicants and tenants when an individual is denied residency, when assigned a unit, and with any notice of eviction or termination of assistance.

Borrowers should prioritize victims’ requests and process emergency transfers and lease bifurcations as quickly as possible.  This includes accepting verbal statements, or accepting self-certification of the domestic violence incidents.  Evictions, lease bifurcations, and terminations of assistance against victims because of an actual and imminent threat should only be used when there is no other action to reduce the threat.  When processing bifurcation, Borrowers should consider allowing more time to demonstrate eligibility for other programs.

Borrowers should consider adopting a preference for admission and make every effort to accept admission applications from victims at any time, even when the waiting list is closed.

Technology should be used to allow survivors to safely testify at hearings when their housing subsidy is at issue.  (United States Department of Agriculture Unnumbered Letter, November 23, 2020.)

COVID-19 Emergency Rental Assistance Program

The Emergency Rental Assistance Program in the Continued Assistance Act makes available $25 billion to assistant households that are unable to pay rent and utilities because of COVID-19.  Payments will be made directly to states, U.S. Territories, local governments with more than 200,000 residents, the Department of Hawaiian Home Lands, and Indian Tribes.  Not less than 90 percent of awarded funds must be used for direct financial assistance.  The remaining funds are available for housing stability services.

An eligible household is a renter household in which at lease one or more individuals 1) qualify for unemployment or has experienced a reduction in household income, incurred significant costs, or experienced financial hardship because or COVID-19, 2) demonstrates a risk of homelessness or housing instability, or 3) has a household income at or below 80 percent of the area median.

Eligible households that include an individual who has been unemployed for 90 days, and households with income at or below 50 percent of the area median are to be prioritized.

Eligible households may receive up to 12 months of assistance, plus an additional 3 months if the grantee determines the extra months are needed to ensure housing stability and grantee funds are available.

Payment of existing housing-related arrears that could result in eviction of an eligible household is prioritized.  Assistance must be provided to reduce an eligible household’s rental arrears before the household may receive assistance for future rent payments.  Once a household’s rental arrears are reduced, future assistance can be provided for only three months at a time.  Households can reapply for additional assistance at the end of the three-month period if needed and the overall time limit for assistance is not exceeded.

An application for rental assistance can be submitted to the grantee by either an eligible household or be a landlord on behalf of the household.  Funds will be paid directly to the landlords and utility service providers.  If a landlord does not want to participate, funds may be paid directly to the eligible household.  (Emergency Rental Assistance Program, United States Department of the Treasury.)