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HUD Housing Programs: Tenants’ Rights (The Green Book): 7.6.2.4 The Annual Contributions Contract

In 1995, HUD completely revised its standard Annual Contributions Contract (ACC) and required each PHA to execute the new ACC. The revision eliminated nearly all of the clauses that imposed specific management obligations on PHAs.160 The only clauses left that relate to management require PHAs to develop and manage developments in accordance with applicable statutes and regulations, as amended, to prepare an operating budget annually and to expend funds only in accordance with that budget.

HUD Housing Programs: Tenants’ Rights (The Green Book): 7.6.2.5 PHA Annual and Five-Year Plans

The PHA Plan process is a major development that should assist tenants in having a say in PHA management practices. For the sake of “local accountability” and to have PHA policies easily accessible to public housing residents and the public in general, every PHA is required to submit to HUD both Annual and Five-Year plans. The Five-Year Plan must describe the PHA’s mission, goals, and objectives. Subsequent Annual Plans must address the progress that the PHA has made regarding the goals set in the Five-Year Plan.162

HUD Housing Programs: Tenants’ Rights (The Green Book): 7.6.2.6 Other Sources of Management Responsibilities

The regulatory provisions governing the development of new public housing units require PHAs to develop a statement of all policies and practices that will be used in occupancy and operation. These policies must contribute to an objective of ending the social and economic isolation of low-income people and promoting their economic independence.163 There are no other regulatory provisions regarding good management practices.164

HUD Housing Programs: Tenants’ Rights (The Green Book): 7.6.2.7 Management Certification

Previously, HUD established a certification requirement for managers and assistant managers of public housing developments.165 HUD, however, removed this section of the regulations in 1995, on the ground that it was unnecessary.166 Significantly, HUD still makes available the Public Housing Manager Certification Program Handbook.167 If poor management practices and policies are an issue, the qualifications of the managers and assistant managers sho

HUD Housing Programs: Tenants’ Rights (The Green Book): 7.6.2.8.1 Overview

Some of the options available to enforce a PHA’s management responsibilities include participating in the PHA Plan Process, making complaints to the PHA’s board of directors, seeking administrative relief from HUD and litigation. The grievance procedure is also available for individual tenant complaints regarding poor management. See infra Chapter 10.

HUD Housing Programs: Tenants’ Rights (The Green Book): 7.6.2.8.2 Complaints to PHA Board of Directors

PHAs are ordinarily created by state law, and the authorizing legislation usually places the responsibility on the PHA board to oversee management actions.168 Whether a PHA board will be responsive to residents’ concerns about management will vary from jurisdiction to jurisdiction. Some boards and directors are responsive. When they are, complaints should be taken directly to them. The meetings of the board can provide a public forum for airing tenant complaints.

HUD Housing Programs: Tenants’ Rights (The Green Book): 7.6.3.1 Introduction

There are two major management issues for the Section 8 tenant-based housing program. One is the management of the housing unit by the owner and the other is the management of the Section 8 tenant-based program by the PHA. The Voucher program is subject to the PHA Plan process.202 As a result, management issues relating to the Voucher program could be raised and resolved in that process.

HUD Housing Programs: Tenants’ Rights (The Green Book): 7.6.3.2 Management Responsibilities of the Owner

The owner of a unit receiving a subsidy under the Voucher program is responsible for “performing all management and functions for the assisted unit.”203 Therefore, the owner is responsible for selecting the tenant; maintaining the unit; complying with equal opportunity requirements; providing information to the PHA; collecting security deposits, the tenant’s share of the rent and any charges for damages; enforcing tenant obligations under the lease and payment of any applicable utility bills.204

HUD Housing Programs: Tenants’ Rights (The Green Book): 7.6.3.4 Section 8 Administrative Fees

PHAs receive an administrative fee from HUD for the cost of administering the Voucher program, including assisting voucher families to secure housing, conducting Housing Quality Standards (HQS) inspections and terminating families. These fees are in addition to the funds made available to PHAs for housing assistance payments to landlords to cover a portion of tenants’ rent.

HUD Housing Programs: Tenants’ Rights (The Green Book): 7.6.4.1 Statutory and Regulatory Requirements for Good Management

The National Housing Act sets out the obligations of Section 236 and Section 221(d)(3) owners to manage their developments properly. The Section 221(d)(3) legislation includes a provision requiring that all owners eligible for mortgages insured under that section be regulated by the Secretary of HUD as to methods of operation that will effectuate the purposes of the statute.232 Such regulation may be by Regulatory Agreement or otherwise as the Secretary determines.

HUD Housing Programs: Tenants’ Rights (The Green Book): 7.6.4.2 The Real Estate Assessment Center (REAC)

To address financial and physical conditions at HUD-funded developments, HUD established the Real Estate Assessment Center (REAC) and the Departmental Enforcement Center (DEC), both located in the HUD Central Office. The REAC is responsible for evaluating the financial and physical condition of all the public and assisted housing developments funded by HUD. The DEC is responsible for taking aggressive action against troubled assisted housing developments that fail the financial and physical inspections standards.241

HUD Housing Programs: Tenants’ Rights (The Green Book): 7.6.4.3 Other Sources of Requirements for Good Management

Other management standards are set out in the Regulatory Agreements that bind owners under the Section 236 and Section 22l(d)(3) programs.251 Each of those agreements contains clauses requiring the development to be managed in a manner that is satisfactory to HUD and requiring HUD approval of management contracts. The management contracts must also give HUD the power to terminate them at will.

HUD Housing Programs: Tenants’ Rights (The Green Book): 7.6.4.4 Remedies to Correct Inadequate Management

When working on problems in poorly managed HUD-subsidized housing, there are a number of options to consider in selecting appropriate remedies. In almost any case, the essential ingredient for improving poor management will be a group of organized tenants with a clear picture of the major problems and the desired remedies. The first option is appealing directly to the management company and the owners for necessary management improvements.

HUD Housing Programs: Tenants’ Rights (The Green Book): 7.7.1 Introduction

This section discusses maintenance duties that PHAs and owners have under federal laws as well as how tenants may be able to address substandard conditions. Specifically, it covers PHAs’ and owners’ duties under leases and program contracts. The section also reviews possible claims under state law, such as those under the lease and program contracts, and federal law, including the Administrative Procedure Act and the False Claims Act. Finally, the section presents important remedies that may be available to tenants and advocates.

HUD Housing Programs: Tenants’ Rights (The Green Book): 7.7.2.2 Section 8 Vouchers

Owner’s Duties. In the Section 8 Voucher program, landlords may develop their own leases, provided that the leases are in writing, contain certain minimal information, and include the required tenancy addendum.299 HUD’s prescribed tenancy addendum,300 which must be attached to every Voucher lease and cannot be changed by agreement of the parties,301 provides that it prevails in case of conflict with any other lease provisi

HUD Housing Programs: Tenants’ Rights (The Green Book): 7.7.3.1 ACCs

Public housing. The United States Housing Act of 1937 empowers HUD to enter into Annual Contributions Contracts (ACCs) with local housing authorities to finance low-income public housing projects.342 The ACC then governs the relationship between HUD and the PHA. By statute, the ACC must include a provision whereby the PHA agrees to comply with such HUD-prescribed procedures and requirements to ensure “sound management practices” in project operation, including the following regarding maintenance:

HUD Housing Programs: Tenants’ Rights (The Green Book): 7.7.3.2 HAP Contracts

Under the other Section 8 programs (e.g., New Construction and Substantial Rehabilitation), HUD or a contract administrator enters into the HAP contracts with the Section 8 owners.352 These HAP contracts typically require the owner to comply with applicable regulations,353 including those governing maintenance, and also include an owner’s express covenant to maintain,354 and specify remedies for breach, such as abatement of the assistance