homelessness 101: managing hud continuum of care homeless assistance grants calculating resident...
Post on 23-Dec-2015
213 Views
Preview:
TRANSCRIPT
Homelessness 101: Managing HUD Continuum of Care Homeless
Assistance Grants
Calculating Resident RentSponsored by the U.S. Department of Housing and Urban
Development (HUD), Office of Community Planning and Development (CPD), San
Francisco Regional Office
Training provided by [Insert Agency Name Here]
Materials created by HomeBase/ The Center for Common Concerns, Inc.
Big Picture: What this Training Covers
There are specific rules that govern the amount of rent that can be charged of participants in HUD Continuum of Care Homeless Assistance Grant-funded programs. Rental amounts must becalculatedcorrectlyTHIS TRAINING COVERS TENANT RENTAL CALCULATIONS --
•NOT THE AMOUNT PAID TO THE LANDLORD TO LEASE THE PROPERTY AND
•NOT PROGRAM FEES
Overview: 6 Responsibilities
We have organized what you need to know about accurately calculating resident rent into 6 responsibilities:
1. Fix policies 4. Review rental amounts
2. Calculate rent 5. Use/account appropriately
3. Maintain documentation 6. Monitor
Responsibility 1: Rental Calculation Policies, Procedures, & Systems
Your agency should have • Published written policies and
procedures• Created systems to ensure compliance
with resident rent requirements.
Overcharging or Undercharging Rent Has Serious Consequences!
1A. Requirement to Charge Rent
• Not required, but may charge rentSupportive Housing Programs (SHP)
• RequiredShelter Plus Care (S+C) Section 8 Moderate Rehabilitation SRO
1B: Amount of Rent
Tenant rental amounts are the highest of30% of monthly adjusted income (specifically,
1/12th of annual adjusted income)10% of monthly gross incomeSection 8 Moderate Rehabilitation SRO or S+C
SRO: a minimum monthly payment (e.g., $25.00 to $50.00 a month) as the Housing Authority specifies, with one exception (refer to the manual for more information)
Exception (SHP only): If an SHP recipient charges rent, then the rental amount cannot exceed, but may be less than, the amount calculated above.
1C. Verified Information• The amount of rent will be a function of:
household composition anticipated income anticipated expenses anticipated “allowances” anticipated household-paid utilities
• Rental calculations must be based on “verified information”
• Residents must supply the necessary certifications, releases, information, or other documentation to verify information.
1D. Other PP&S
Your agency needs to have policies, procedures and systems supporting these other responsibilities:Calculating Rent (Responsibility 2)Proving Compliance (Responsibility 3)Reviewing Calculations (Responsibility 4)Managing Financial Obligations
(Responsibility 5)Monitoring Compliance (Responsibility 6)
Responsibility 2: Calculate Rental Amount
The goal – what is the highest of:30% of monthly adjusted income
(specifically, 1/12th of annual adjusted income)
10% of monthly gross incomeSection 8 Moderate Rehabilitation SRO or
S+C SRO: a minimum monthly payment (e.g., $25.00 to $50.00 a month) as the Housing Authority specifies, with one exception (refer to the manual for more information)
Step 1: Determine the Household’s Annual Income
• Identify household members• Categorize income sources as
“included” or “excluded” using Appendices C and D
• Input information into Rent Calculation Worksheet tab: “Included and Excluded Income”
• Determine whether Mandatory Earned Income Disallowance applies (SHP, Section 8 SRO projects only)
Step 2: Determine the Dependent Allowance
• $480 per dependent• Dependents are
minors; household members who are disabled or
handicapped; and full-time students
• But, dependents are NOT head of household or spouse; in SHP and S+C, a person living with the eligible
participant because he or she is important for the care of the eligible person; or
foster children
Step 3: Determine the Child Care Allowance
• Anticipated, unreimbursed, reasonable child care costs for children 12 years old and underneeded to permit a household member to
work; or needed to permit a household member to
pursue education.
• The deduction amount cannot exceed the income received from work.
Step 4: Determine the Disabled (Handicapped) Assistance Allowance
• The reasonable, unreimbursed expenses for eitherattendant care for a disabled household member
provided by a non-household member; or“auxiliary apparatus” that enables a disabled
household member or another household member to work.
• The amount that is deducted from income is the amount of the unreimbursed expense that exceeds 3% of gross income, up to the amount earned by the adult household
member(s) as a result of the Disabled Assistance.
Step 5: Determine Medical Expenses Allowance (Elderly or Disabled)
• Unreimbursed medical expenses exceeding 3% of annual income
• Incurred by the household’s head, co-head, spouse, or sole memberwho is at least 62 years of age; ordisabled
• The amount of this allowance depends on the amount of the Disabled Assistance expenses calculated in Step 4.
Step 6: Determine the Elderly/Disabled Household Allowance
• Any household with a head, co-head, spouse of sole member who is at least 62 years of age or disabled
• is entitled to a $400 per household allowance
Step 7: Determine the Amount of Resident Rent
What is the rental amount – highest of:• 30% of monthly adjusted income • 10% of monthly gross income• For SHP, your agency’s lesser rental
amount• For Section 8 Moderate Rehabilitation SRO
or S+C SRO, a minimum monthly payment, but . . .
hardships 40% of adjusted income
Step 8: Determine Household-paid Utilities Offset/Reimbursement
• Obtain verified information of the anticipated cost of utilities that the household must pay
• Assess reasonableness: compare to your public housing authority’s schedule of utility allowances
• If the cost of utilities is less than the permitted monthly rental amount, the amount of rent is reduced by the cost of utilities
• If the cost of utilities is more than the permitted monthly rental amount, the household receives a utility reimbursement
Responsibility 3: Maintain a Filing System and Documentation to Prove Compliance
• Documentation to keep in the tenant’s fileAll pieces of rent calculations Critical pieces to include
Verification of anticipated income Verification of anticipated expenses including
those relevant to allowances and utilities offset/reimbursement calculations
Rental calculation Notes regarding deviations and special
circumstances
Responsibility 4: Review Rental Amounts
• Review TimingMust occur at least annually.Interim reviews: a tenant may request if changes in
family or income occur that would decrease rent.
• Residents with Increased Income Programs may, but do not need to, increase rent
before the next scheduled (at least annual) review Program policies should apply to all tenants equally
Responsibility 5: Use of Program Income & Accounting for Rental Income
For SHP programs, rent = “program income.”• Program income should be
Treated as additional SHP funds subject to all applicable requirements for SHP
Used for previously approved eligible activities in the project (although rent can be put into client savings accounts)
Used before additional cash withdrawals are made from SHP funds
For S+C programs, ensure that each tenant pays rent on time and in the correct amount.
All grantees, ensure that rent is used per the grant agreement (pp. 23-24 of Calculating Resident Rent booklet)
Responsibility 6:Monitor for Compliance and Quality Control
HUD requires monitoring all policies and procedures to
ensure quality control, including compliance with HUD
requirements.
MOST IMPORTANT THINGS TO REMEMBER
Your agency must have policies and procedures that comply with HUD’s requirements.
Rent calculation errors have serious consequences.
Help is available if you have questions.
Document, document, document!
Other ResourcesA list of other resources can be found in
your Calculating Resident Rent booklet.
Grantees should call their local HUD representative with questions; sponsors should call their grantees.
For other support, you can also contact:
[Insert Contact Information]
For additional information, contact:
[Insert Contact Information]
Or visit HomeBase’s webpage to access the Calculating Resident Rent materials at: http://www.homebaseccc.org/pages/Hot_Topics/HUD_TAmaterials.html#HN101RentCalc
top related