(3) Subsidy Standards, Payment Standards,
Minimum Rent, Total Tenant Payment, and Rent Calculation (24 C.F.R. Parts
5.628, 5.623, 982.201(b), 982.4, 982.501, 982.503, 505). The THDA compares the
annual income to the income limits and calculates the Total Tenant Payment. If
the THDA determines that there is funding available to fund the family, then
final eligibility will be determined.
(a)
Subsidy Standards.
1. Subsidy Standards
Definition (24 C.F.R. 982.4). The
criteria established by the THDA for determining the appropriate number of
bedrooms and amount of subsidy for families of different sizes and
compositions.
2. The THDA has
established subsidy standards which:
(i)
Provide for the smallest number of bedrooms needed to house the family without
overcrowding (24 C.F.R.
982.402(b)(1));
(ii) Comply with HQS space requirements
(24 C.F.R.
982.402(b)(2); and
(iii) Are applied consistently for all
families of the same size and composition, unless a defined exception exists
(24 C.F.R. 982.402(b)(3) and
(8)).
3. General. The subsidy standards (voucher
size), payment standards and minimum rent, as well as income, all contribute to
the rent calculation and total tenant payment (TTP) per HUD regulation.
(i) The income of every household member who
will reside or resides in the assisted unit, including members who are
temporarily absent, is included in the subsidy standard calculation when
calculating total tenant payment (TTP).
(ii) Subsidy Standards determine the unit
size (number of bedrooms) for which an applicant or participant qualifies. The
unit size determines the maximum amount of subsidy that will be paid through
the Payment Standard. The goal of determining unit size is to assign an
appropriate bedroom size allocation for the household that will require the
minimum commitment of housing subsidy.
(iii) The unit size is based on the household
composition (the number of persons, their sexes, ages, and relationship). The
unit size for which the household qualifies is shown on the voucher and is used
to determine the payment standard, unless the family chooses a unit that is
lower than the voucher size issued.
(iv) Housing Quality Standards (HQS) allow
two persons per living/sleeping room and allot for a maximum occupancy,
assuming a living room is used as a living/sleeping area.
(I) Maximum Occupancy or Unit Size Chart
I. 0 bedroom voucher size, maximum occupancy
is 2.
II. 1 bedroom voucher size,
maximum occupancy is 4.
III. 2
bedroom voucher size, maximum occupancy is 6.
IV. 3 bedroom voucher size, maximum occupancy
is 8.
V. 4 bedroom voucher size,
maximum occupancy is 10.
VI. 5
bedroom voucher size, maximum occupancy is 12.
VII. 6 bedroom voucher size, maximum
occupancy is 14.
4. Determining Unit Size and Subsidy
Standard.
(i) In the unit size determination,
the determination is figured without requiring applicants or participants to
use rooms other than bedrooms for sleeping purposes, i.e., the living room.
However, if the THDA approves the addition of other members to the household,
some members may have to sleep in the living room, in accordance with the
maximum occupancy chart, until the next annual recertification. Then the family
may move to larger unit if they are eligible according to all program
guidelines, including the relocation conditions.
(ii) For the purpose of determining subsidy
standards, an adult is defined as any person eighteen (18) years or older. A
minor is any person under the age of 18 years.
(iii) The maximum number of persons who may
share a sleeping room is two and the number of bedrooms allocated is determined
as follows:
(I) Two adults of the same or
opposite genders, with or without a familial relationship, will be issued a one
bedroom, except a high school student who turns 18 will not be subject to this
rule until the recertification after they graduate or should have
graduated;
(II) Two minors of the
opposite gender will be issued one bedroom until one of the minors reaches the
age of ten (10) years old;
(III)
Two minors of the same gender will be issued one bedroom regardless of
age;
(IV) A minor with a single,
custodial parent will be issued one bedroom until the child reaches the age of
four (4).
(V) A single, pregnant
head of household is considered a two-person family, but will be issued one
bedroom until the child reaches the age of four (4).
(VI) Minor children of any age will be issued
a bedroom separate from a non-custodial parent or other adult.
5. Other
considerations.
(i) If any of the above rules
for determining the unit size have not occurred as of the annual or interim
recertification, but would take place within thirty (30) calendar days of the
recertification, the determination should be made as if the event has occurred,
but only to the benefit of the participant, not the detriment.
(ii) Foster Children and Foster Adults are
included in determining unit size if the arrangement is existing at the time of
initial eligibility. Later, a Foster Child or Foster Adult may only be approved
as part of the household if the placement does not overcrowd the
unit.
(iii) A child absent because
of temporary placement in foster care outside of the home, as evidenced by
court order, is considered a member of the family, and therefore considered in
determining family size at initial eligibility. However, if the child continues
to be absent at any annual certification, then the child will be removed from
the household until the court places the child back with the household
permanently.
(iv) Space is not
provided for minors who live out of the unit more than fifty (50) percent of
the time. For example, if the tenant does not have custody of a child, but the
child visits on weekends, then a bedroom is not allocated.
(v) Live-in aides are provided a separate
bedroom, but not their families.
(vi) Space is not provided for a full-time
student who is away at school, but lives with the family during school
recesses.
(vii) Space is not
provided for a person who will be absent most of the time, such as a member who
is away in the military.
(viii) A
person who is confined to a medical facility for less than ninety (90 days),
who plans to return to the assisted unit after treatment, will be included in
the subsidy standard determination.
(ix) One-bedroom units, not zero-bedroom
units, are assigned to single person households because very few efficiency or
zero-bedroom units exist in the rental market. However, if the household
selects an efficiency or a zero-bedroom unit, the zero-bedroom payment standard
is used.
6. Reasonable
Accommodations. Persons requesting a reasonable accommodation of the THDA's
subsidy standards, may be approved for a larger unit if the need is verified by
a medical professional. See 0770-01-05-.21(3)(b) 5. When determining whether a
larger subsidy size request will be approved, the THDA must weigh the financial
and administrative burden granting the larger bedroom size will have on the
overall program and its' applicants and participants against the individual
household's need for the larger size.
(b) Payment Standards (24 C.F.R.
982.4, 982.503, 982.505). The Payment
Standard is the maximum monthly assistance payment for the family, before
deducting the Total Tenant Payment. A Payment Standard is used to calculate the
monthly housing assistance payment for a family.
1. HUD regulations require that a Payment
Standard schedule be established for each county where the program is
administered by bedroom size.
2.
Payment Standards for each bedroom must be established between 90 and 110
percent of the Fair Market Rent (FMR) for the county and published at least
annually as a payment standard schedule. The decision of where to set
individual payment standards by county is based upon funding available to serve
to the baseline of units and average rents in the county by bedroom
size.
3. Determination of Payment
Standard for the Family (24 C.F.R. 982.4). The
Payment Standard is the lower of the following:
(i) The payment standard amount (per the THDA
payment standard schedule for the county) for the family unit size;
or
(ii) The payment standard amount
for the size of the dwelling unit rented by the family; or
(iii) The gross rent of the unit.
4. Increase or Decrease in the
Payment Standard. The THDA does not respond individually to complaints about a
general policy change or class grievance. Therefore, if the THDA changes the
payment standards and applies it to all families uniformly, the THDA will not
individually respond to any complaint regarding the change.
(i) If the THDA determines that funding will
be insufficient to cover all occupied vouchers during a given funding term, the
THDA will request a waiver from HUD to allow the immediate application of a
payment standard decrease when such an action will allow the THDA to avoid
termination of assistance for families. The determination of the generally
applicable payment standard is not subject to appeal (24 C.F.R.
982.555(b)).
(ii) HUD may approve a Payment Standard
amount that is higher than the basic range (90-110%) for a designated part of
the FMR area if the field office determines that such approval is justified by
either the median rent method or 40th percentile rent.
5. Reasonable Accommodation of Payment
Standard Amount (Exception Standard) (24 C.F.R.
982.503(c)(2)(i)), (c)(3).
If an applicant or participant requests that a higher payment standard be used
as a reasonable accommodation to enable the applicant or participant to obtain
a unit that meets their special needs, the applicant or participant must
complete the THDA Request for Reasonable Accommodation form, and the THDA will
mail a medical certification form to a knowledgeable medical professional to
verify the need for the accommodation. If approved, the increase in the payment
standard cannot exceed 120% of FMR.
(i) HUD
has issued guidance, which allows the THDA to approve a payment standard of not
more than 120 percent of the FMR without HUD approval if required as a
reasonable accommodation for a household that includes a person with
disabilities. This provision allows the THDA to establish a payment standard
within limits, which were formerly permitted but designated for approval only
by a HUD Field Office (
24 C.F.R.
982.503(c)(2)(B)(ii)
).
(ii) The THDA must perform a
rent reasonableness determination in accordance with the section 8(o)(10) of
the U.S. Housing Act of 1937 and the HCV program regulations.
(iii) The THDA must maintain documentation
that the THDA performed the required rent reasonableness analysis.
(iv) In addition, the THDA must maintain
documentation that the unit has the feature(s) required to meet the needs of
the person with disabilities.
6. Effect of Decrease in Payment Standard
Amount During the Term of the HAP Contract (24 C.F.R.
982.505(c)(3)). If the
Payment Standard decreases during the term of a HAP Contract, the old higher
payment standard is used to calculate the monthly housing assistance payment
until the family's second regular recertification following the effective date
of the decrease in the payment standard amount. The lower payment standard
amount is used at the second annual recertification, unless the payment
standard has been subsequently increased.
7. Effect of Increase in Payment Standard
Amount during the Term of the HAP Contract (24 C.F.R.
982.505(c)(4)). If the
Payment Standard amount is increased during the term of the HAP contract, the
increased Payment Standard amount is used to calculate the monthly housing
assistance payment for the family at the effective date of the family's first
regular recertification on or after the effective date of the increase in
Payment Standard.
8. Change in
Family Unit Size during the HAP Contract Term (24 C.F.R.
982.505(c)(5)). If the
family unit size changes during the term of the HAP contract either due to a
change in family composition, a change in the THDA's subsidy standard, or a
THDA error, the new family unit size must be used to determine the Payment
Standard amount at the family's next annual recertification after the change in
family unit size occurs, regardless of any increase or decrease in the payment
standard schedule, but may be used sooner if specifically expressed for within
this Plan.
(i) During the annual
recertification period, if a family now qualifies for a smaller unit, the
family may choose to remain in the larger unit and pay the additional rent or
relocate to a smaller unit.
9. The utility allowance is the lesser of the
unit size actually selected and the size authorized on the voucher.
(c) Minimum Rent (24 C.F.R.
5.623). HUD requires the THDA to establish an appropriate minimum that may
range from $0 to $50 per month. It applies to all voucher families residing
within the THDA's jurisdiction, but only when it is the highest amount in the
TTP calculation.
1. The minimum rent
established by the THDA is $50.
2.
Minimum Rent Hardship Exception (24 C.F.R.
5.630).
(i)
The Quality Housing and Work Responsibility Act of 1998 (QHWRA) establishes
certain exceptions to the minimum rent requirements for hardship circumstances.
Financial hardship, for the purpose of determining a minimum rent exception,
includes the following situations:
(I) The
participant has lost eligibility or is awaiting an eligibility determination
for a Federal, State, or local assistance program (includes a member who is a
noncitizen lawfully admitted for permanent residence who would be entitled to
public benefits);
(II) The
household would be evicted as a result of the imposition of the minimum rent
requirement;
(III) The income of
the household has decreased because of changed circumstances, including loss of
employment;
(IV) A death in the
household has occurred; or
(V)
Other circumstances as determined by HUD.
(ii) If a household requests a minimum rent
exception, the minimum rent requirement is immediately suspended on the first
of the month following the receipt of the request until a determination is made
whether:
(I) The hardship meets the
requirements listed above; and
(II)
The hardship is temporary or long-term.
(iii) The following guidelines are followed
after the hardship is verified:
(I) If it is
determined that the reported hardship does not meet the criteria defined above,
the minimum rent is imposed retroactive to the date of the suspension. In this
case, a plan of repayment must be established to retrieve the previously
suspended tenant rent contribution.
(II) If it is determined that the reported
hardship meets the above-defined criteria, but is temporary in nature, the
minimum rent also is imposed retroactive to the date of the suspension. A plan
of repayment must be established to retrieve the previously suspended tenant
rent contribution. If the household at some point in the future demonstrates
that the financial hardship developed into a long-term situation, the
household's minimum rent requirement will be retroactively
reduced.
(iv) If it is
determined that the hardship is of a long-term basis, the household is exempted
from the minimum rent requirement retroactive to the first of the month
following the date the household's request was received.
(v) The THDA will not grant a minimum rent
hardship exception during a Housing Assistance Payment (HAP) shortfall period.
The THDA may reach shortfall status when the funding award for a particular
calendar year is insufficient to meet regular, ongoing monthly HAP expenses for
currently assisted families.
3. Verification. The household must verify
that the hardship exists within ninety (90) days of the event. During the
ninety-day verification period, the household's assistance may not be
terminated for nonpayment of rent.
(i) The
THDA will not consider requests for a minimum rent exception during a time when
funding is insufficient to cover current HAP expenses for current
participants.
(ii) Acceptable
verification includes, but is not limited to, the following:
(I) A death certificate for a household
member.
(II) A separation letter
from an employer.
(III) A
notification letter that benefits have been terminated or an award is pending
from the Social Security Administration or other social services
agency.
(d) Total Tenant Payment Calculation
(24 C.F.R.
5.628, 24 C.F.R. 982.4(b)). At initial
move-in, relocation, annual and interim reexaminations, an application (form
HUD-50058) is completed that includes a worksheet for calculating Total Tenant
Payment.
1. To calculate the TTP for a Housing
Choice Voucher, the following procedures are followed:
(i) The gross annual income is
calculated;
(ii) Any allowances
and/or expenses to determine the total annual deductions are
calculated;
(iii) The adjusted
annual income is calculated; and
(iv) The monthly gross income and the monthly
adjusted income are calculated.
(v)
The TTP is the higher of the following:
(I)
$50 minimum rent; or
(II) 10% of
gross monthly income; or
(III) 30%
of adjusted monthly income.
2. A copy of the 50058 form, which includes
the total tenant payment calculation is maintained in the tenant file and may
be viewed by the tenant at their request.
(e) Rent Calculation (24 C.F.R.
982.501).
1. A family who leases a unit with a gross
rent at or below the Payment Standard pays as gross rent the highest of 30
percent of the monthly adjusted income or 10 percent of the monthly gross
income or the minimum rent.
2. A
family that rents a unit with a gross rent that exceeds the Payment Standard
pays as gross rent the highest of 30 percent of the monthly adjusted income or
10 percent of the monthly income and any rent above the payment
standard.
3. There is no voucher
"shopping incentive" for a family who rents a unit that is below the Payment
Standard. When the total rent for a unit is less than the payment standard, the
family does not receive a discounted tenant portion.
4. Rental Subsidy Calculation for a Housing
Choice Voucher Holder. Only the Total Tenant Payment (TTP) and forty (40)
percent of the monthly adjusted income are calculated at the time a Housing
Choice Voucher is issued. The remainder of the calculation is completed after
the family has selected a specific unit.
(i)
The Total Tenant Payment (TTP) is calculated.
(ii) The family's maximum initial rent burden
is calculated, which is 40% of monthly adjusted income.