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HUD Housing Programs: Tenants’ Rights (The Green Book): 4.2.8.3 Section 236 Rental Assistance Program

The Section 236 Rental Assistance Program (RAP) provides a deep subsidy for tenants whose income is determined to be too low to permit them to pay the approved rent within 30% of adjusted monthly income.180 The few tenants still in this program have their rents set in a manner similar to the Project-Based Section 8 program, i.e., rent is set at the highest of 30% of adjusted monthly income, 10% of monthly income, or the welfare rent.181 See infra

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.2.9 Section 221(d)(3) BMIR

As with the Section 236 program and other “shallow subsidy” programs, the Section 221(d)(3) Below Market Interest Rate (BMIR) program sets rents based on project costs, which are usually below actual market value but not usually based on a percentage of household income. However, the tenant may receive other subsidies such as Project-Based Section 8 assistance or rent supplement that supports all or just some of the units at the property,183 which may then use income-based rents.

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.2.10 Rent Supplement Program

For the dwindling number of units that still have rent supplements, individual tenant rents are generally income-based, but there is a floor tenant share of rent set at the higher of 30% of monthly adjusted income or 30% of the gross rent (contract rent plus any allowance for tenant-paid utilities).186 Thus, at initial certification, higher-income tenants who need little assistance may be ineligible.187 Residents whose income increases after initial occupancy would simply receive a commensur

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.2.12 HOME Program

Participating jurisdictions may use HOME funds for the construction of units, or for tenant-based rental assistance.193 Each form of assistance has distinct rent rules. The HOME program is one of the programs utilizing the special earned income disregard for persons with disabilities,194 although it only helps those HOME tenants paying income-based rents.

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.6.2 Required Tenant Reporting of Changes in Income and Household Composition

Each HUD program has different rules governing tenants’ obligations to report changes between regular recertification. For the PHA-administered programs (public housing, Section 8 Voucher, Section 8 moderate rehabilitation), each PHA can establish its own policy. For the HUD multifamily housing programs, specific changes trigger a reporting obligation. For most programs, these are typically situations that would trigger a rent increase or eligibility for a lesser subsidy or smaller unit.

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.6.5 Special Rules for Section 8 Voucher Tenants

Because of the unique rent structure of Vouchers, tenants undergoing interim recertifications are governed by some additional rules and variables reviewed separately here.

If the family unit size increases or decreases during the HAP contract term (i.e., where the tenant does not move), the PHA should not adjust its payment standard or subsidy payment for the unit until the next regular recertification.691

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.7.1 Overview

Verification of income and other information relevant to eligibility for federally assisted housing is clearly important to confirm both the tenant’s rent and continued eligibility. HUD requires verification of Social Security numbers (if assigned) and status under its non-citizen rule. It also requires that all adult household members sign consent and release forms, authorizing third parties to verify information and for HUD to cross-check information with regard to wages, Social Security benefits, and tax returns.

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.7.2 Third-Party Verifications of Income and Assets

For all HUD housing programs, the PHA or owner must obtain third-party verification of reported family annual income, the value of assets, expenses related to deductions from annual income, and other factors that affect the determination of adjusted income or income-based rent.703 If third-party verification is not available, the PHA or owner must document the reason in the tenant file.704 The tenant must sign HUD-approved release and consent forms, authorizing any depository or private sour

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.7.3.1 Overview

Congress and HUD have established programs for sharing income data about assisted housing participants with various agencies, and requiring tenants to sign written consent forms authorizing the sharing of such information.714 HUD encourages PHAs and owners to maximize the use of these so-called “up front income verification methods” that rely on computer-generated data.715 From time to time, often in response to budget or political influences, Congress or HUD adopts new policies or practices

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.8.1 Overview

Tenants often experience problems with the recertification process or the duty to report certain changes in income and family composition. Those problems typically fall into the following categories: (1) failure to complete the recertification process, (2) failure to report interim changes as required, or (3) errors or discrepancies in the information provided. Each of these is reviewed in turn below.

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.8.4.1 Overview

Tenants and applicants often encounter problems that stem from errors in the information reported by the tenant or how that information is recorded or handled by the PHA or owner. These problems break down into three general areas: errors by the owner or PHA; unintentional errors by the tenant or cases where the tenant obtained no benefit from the error; and intentional misrepresentation or fraud to obtain benefits.

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.8.4.3 Inadvertent Error or Omission by Tenant, or No Benefit

Since both rent calculation and reporting requirements can be complicated, tenants can often make mistakes in reporting necessary information. In all cases involving tenant error, the initial inquiry should be whether the error resulted in any excessive subsidy being paid, or any other additional benefit flowing to the household. If the tenant received no additional benefit from the error, there is nothing to be repaid, and thus certainly the tenant should not lose assistance or be evicted.

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.8.4.4 Intentional Fraud or Misrepresentation by Tenant

In some cases, owners and PHAs will allege that the tenant actions constituted “fraud and abuse” and that either the subsidy should be terminated and the rent increased to market or the tenant should be evicted.817 To establish such claims, the PHA or owner should be required to show that the tenant conduct meets the elements of the regulatory or other legal definition of fraud, including a false representation or omission in reference to a material fact made with knowledge of its falsity and with intent to deceive, and with action taken in

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.9.1 Overview

This section reviews the overall rent charged for a unit under various HUD housing programs, an amount which often includes both the tenant portion and the subsidy. It also covers the process for increasing total unit rents. Because Voucher unit rents and adjustments are governed by distinct rules that have a direct impact on the amount of the tenant contribution, they are discussed elsewhere.828

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.9.2 Adopting and Revising Public Housing Flat Rent Schedules

In the public housing program, there is still no total rent concept for each unit, because the cost of any debt service and operating expenses are paid for the PHA’s entire inventory, not by unit, and these costs are paid from separate subsidy streams.832 Initially, HUD made annual contributions to a PHA to pay off bonds issued by the PHA to finance the construction or acquisition,833 later retiring this debt with capital grants in 1984.

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.9.3.1 Overview

Properties with HUD-subsidized mortgages do have total rents broken down by unit size. Many tenants face project-wide rent increases annually. The regulations allow owners to pass on rising operating costs and property taxes directly to tenants through rent increases, resulting in diminished affordability for many properties and tenants. This section briefly reviews the budget-based rent increase process.841