For those of you who remember, the old handbook had 30 changes before it was scrapped altogether, and Mark Alper of the National Center for Housing Management has stated he's already heard that Changes 5 and 6 may already been in the works.
First, the bad news:
HUD has not changed their view on allowing housekeeping services as a deductible expense even when recommended / ordered by a physician. Housekeeping is allowable as a disability expense, but remember, disability expenses must necessitate employment.
HUD has not clarified the addition of adult children to a 202 PRAC versus a 202/8 (Paragraph 3-), so please continue to speak with Pam if you get these requests.
Now, the good news:
Most of the Change 4 revisions really just clarify items we already know about, but that weren't in the Handbook. Nothing earth-shattering in Change 4.
And now, the details.
What follows is a very brief analysis of Change 4.
CHAPTER 1 - INTRODUCTION
This chapter is an introduction to the subsidized housing programs funded by HUD. No major revisions here; HUD added a few of the programs to the list of the ones not covered by the 4350.3, revised some wording, and updated links.
CHAPTER 2 - FAIR HOUSING
There have been no significant changes to this Chapter.
CHAPTER 3 - ELIGIBILITY
HUD has added EIV into this Chapter, and given it its own paragraph detailing requirements with regard to eligibility.
HUD has also:
- clarified the rule on Social Security Numbers
- removed Foster persons from the "excluded from income" list, as we now do include some items for Foster persons.
- revised some wording to make requirements clearer
- clarified verification of disability
HUD has added EIV, VAWA, and Lifetime Sex Offender screening to the required topics to be covered in Selection Plans.
The HUD-92006 "Supplement to Application" is now noted as required to be included in the Application packet, which you should already be doing.
HUD has changed their wording regarding noting the file when an individual refuses to complete the Race and Ethnicity Form (Paragraph 4-14A4, page 4-34). Now, instead of saying that you "should" do this, HUD says you "may." Please note that EHM says that you "WILL" note the file. You simply need to include the form with your note on it that states that the resident declined to fill out the form. This should also be noted on subsequent Recertification Acknowledgement forms.
CHAPTER 5 - INCOME, ASSETS, EXPENSES, AND RENT CALCULATION
Here, HUD has largely just updated language to include EIV.
Language has been updated to clarify that in Section 8 units, delayed payments received in a lump sum from the Dept. of Veterans Affairs are excluded from income. Please note that NORMAL VA PAYMENTS ARE INCLUDED.
HUD has clarified that IRA, Keough, and other retirement accounts are considered assets, unless payments are periodic. They have not updated the language to clarify Required Minimum Distributions, so check with me if you have questions.
HUD has noted that legal custody of a child is not a requirement to have the child classified as a dependent (and get the $480 allowance).
Similarly for our purposes, in order to verify that a child is legally authorized to be there, you do not need proof of legal custody. A signed statement from the legal parent is fine.
Importantly, HUD notes in Paragraph 5-18D, page 5-61 that originals of Tenant-provided documents must be returned to the Tenant.
HUD has updated their language on allowable Medical Expenses in Exhibit 5-3. Notable items:
- Transportation to/from lodging is connection with medical treatment, as with any other medical expense, is not allowable if it is reimbursed from an outside source.
- The language about allowable personal expenses has been updated. (Exhibit 5-3, Page 1)
CHAPTER 6 - LEASING
Again, the changes here are really more about clarification.
HUD has updated language around VAWA and service animals.
CHAPTER 7 - RECERTIFICATIONS
Again, no real changes here; HUD has included information on EIV that has already been addressed in notices. The language here now reflects that included in HUD's Notice 2013-06.
One significant change is that HUD now says that Tenants in 202 PRAC and 811 PRAC programs WILL be evicted, rather than MAY be evicted for noncompliance with recertification requirements. Administrators in those properties should therefore keep their Regional Managers informed when Residents are not cooperating with their recertification.
The section on Interims because of a change in Household Composition now includes information on Lifetime Sex Offender checks and Social Security Number disclosure.
CHAPTER 8 - TERMINATIONS
Failure to sign or submit consent forms, and failure to disclose Social Security Numbers are now included in acceptable reasons to terminate tenancy.
HUD has clarified that you cannot evict a Tenant who was admitted prior to June 25, 2001, for presence on a Lifetime Sex Offender registry unless there is a lease violation or other criminal behavior.
Tenant repayment obligations are now limited to a five-year window; you cannot go back any further. Owners must have 50059s for the period during which they are claiming that subsidy was improperly collected by a Resident in order to pursue repayment.
CHAPTER 9 - EIV (FORMERLY BILLING AND SPECIAL CLAIMS)
This, in truth, is the biggest "change" in Change 4. The entire Chapter on Billing and Special Claims has been eliminated. The chapter is now solely devoted to EIV, and mirrors the language in HUD's 2013-06 notice.
This is especially of concern for 236 properties, since Chapter 9 was the location of the only reference to Excess Income Reporting. 236 sites (Hello, Frost Homestead) should keep a copy of the old Chapter 9 handy to refer to.
For Special Claims, Administrators should download a copy of the Special Claims Processing Guide, available here.
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So that's the skinny on Change 4. I strongly recommend that you attend or view online training regarding the Changes, but I understand that many sites have very limited training budgets. NCHM's online, 2-hour webinar is one of the most cost-effective options for Change 4 Training.
Discuss your site's budget and your training needs with your Regional Manager to determine what the best option is for you.
As always, feel free to contact Pam with questions
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