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Public Housing Authority Policy Update Copyrighted November4, 2019 City of Dubuque Action Items # 3. ITEM TITLE: Public Housing Authority Policy Update SUMMARY: City Manager recommending that the City Council consider updating the special housing Public Housing Authority Policy types accepted for Housing Choice Vouchers to include manufactured homes. RESOLUTION Approving PHA Policy updates for special housing types permitted forfamilies receiving Housing Choice Voucherassistance SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Adopt Resolution(s) ATTACHMENTS: Description Type Public Housing Authority Policy Update-MVM Memo City Manager Memo Staff Memo Staff Memo Administrati� Plan, Chapter 15, Special housing Supporting Documentation Resolution Resolutions Dubuque THE CITY OF � uI�AaMca cih DuB E � � I � � I Maste iece on the Mississi i Zoo�•zoiz•zois YP pp zoi�*zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Public Housing Authority Policy Update DATE: October 30, 2019 Housing and Community Development Director Alexis Steger recommends the City Council consider updating the special housing Public Housing Authority Policy types accepted for Housing Choice Vouchers to include manufactured homes. The definition of Manufactured Homes is as follows: "A manufactured home is a manufactured structure, transportable in one or more parts, that is built on a permanent chassis, and designed for use as a principal place of residence." For the City of Dubuque, this would include manufactured homes that are often referred to as mobile homes found in Table Mound Mobile Home Park, Alpine Park or Terrace Heights, among others. Should the City Council agree that manufactured home lot rent should be an allowable special housing type, the policy would state: Families will be permitted to use the following special housing types: 1) Single Room Occupancy (SRO) 2) Congregate Housing 3) Manufactured Homes (including manufactured home space rental) 4) Homeownership I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Alexis M. Steger, Housing and Community Development Director 2 Dubuque THE CITY OF � All•Ameriea Cily U� � nwnonn�c�i}aar:uui , � � ► Masterpiece on the Mississippi 2oi�*2o�9 TO: Michael C. Van Milligen, City Manager FROM: Alexis M. Steger, Housing and Community Development Director SUBJECT: Public Housing Authority (PHA) Policy Update DATE: October 29t", 2019 Background A Public Housing Authority (PHA) is required to adopt an administrative plan that details how it will run Section 8 programs. The City of Dubuque PHA adopted an administrative plan in 2016, with amendments that accommodated legislative changes in 2017. PHA Policy is supplemental to the Administrative Plan and provides guidance when the Administrative Plan allows for optional provisions, such as special housing types. The Dubuque City Council appoints the executive director of the Public Housing Authority, currently Housing & Community Development Director Alexis Steger, to develop and execute policy that is required for daily administration of Section 8 programs and to ensure compliance with updated/changing Federal Law. All optional policy decisions are approved through the City Council, with the Housing Commission being advisory to the City Council on such matters. Additionally, the definition of Manufactured Homes in 24 CFR 982.620 is as follows: "A manufactured home is a manufactured structure, transportab/e in one or more parts, that is built on a permanent chassis, and designed for use as a principa/p/ace of residence." For the City of Dubuque, this would include manufactured homes that are often referred to as mobile homes found in Table Mound Mobile Home Park, Alpine Park or Terrace Heights, among others. Per U.S. Department of Housing & Urban Development (HUD) definitions, mobile homes were constructed before 1976, yet the term is still commonly used for the same homes constructed after 1976 under higher construction standards. Discussion Chapter 15 of the City of Dubuque PHA's Administrative Plan currently defines the types of special housing that is permitted for families receiving Housing Choice Voucher (HCV) assistance, how to calculate payments and how to inspect each type of special housing. These are dwellings that do not meet the definitions of commonly rented structures such as single family homes, duplexes or multi-family housing. The special housing types listed as optionally allowed in the City of Dubuque PHA Administrative Plan are reviewed when a housing type becomes more popular among low- moderate income residents. Only special housing types that make sense for the City of Dubuque are adopted in the PHA Policy as permitted housing for HCV. Manufactured homes have been an affordable housing option in Dubuque for many years; however, the PHA Policy did not allow manufactured homes as a permitted special housing type. This was due to two factors; 1 . U.S. Department of Housing & Urban Development had regulations on using HCV on manufactured home space rental that did not make it feasible in Dubuque. 2. In 2016, regulations were updated which made the use of HCV feasible for manufactured home space rental; however, space rents were low enough that even low income residents would not receive assistance payments with a HCV. Within the past two months, numerous reports of increasing space rents for manufactured homes have been received by the City of Dubuque; therefore, the PHA Policy is being re- visited. At this time, the Housing & Community Development Department has verified monthly rent of up to $420 plus utilities. This more than qualifies low income residents that would be eligible for a voucher, to receive assistance payments under HUD calculations. The Executive Director of the Public Housing Authority is requesting the City Council review the PHA Policy regarding special housing types accepted for HCV. Currently the policy states: Families will be permitted to use the following special housing types: 1) Single Room Occupancy (SRO) 2) Congregate Housing 3) Homeownership Should the City Council agree that manufactured home lot rent should be an allowable special housing type, given the changing circumstances of that affordable housing option, the policy would state: Families will be permitted to use the following special housing types: 1) Single Room Occupancy (SRO) 2) Congregate Housing 3) Manufactured Homes (including manufactured home space rental) 4) Homeownership Should the City Council choose not to include manufactured home space rental as a special housing option, residents on the waitlist for HCVs that own manufactured homes would need to sell that home within 120 days or forteit the use of the voucher. 2 Recommendation I respectfully request the City Council consider updating the special housing PHA Policy to include manufactured homes space rental, by approving the attached resolution. Cc: Crenna Brumwell, City Attorney 3 Prepared by Alexis Steger, Housing & Community Devel., 350 W. 6th St. Suite 312, Telephone: 563-690-6072 Return to: Kevin Firnstahl, City Clerk Address: City Hall- 50 W. 13th St Telephone: (563) 589-4100 RESOLUTION NO. 395-19 RESOLUTION APPROVING PHA POLICY UPDATES FOR SPECIAL HOUSING TYPES PERMITTED FOR FAMILIES RECEIVING HOUSING CHOICE VOUCHER ASSISTANCE Whereas, the City of Dubuque is designated as a Public Housing Authority; and Whereas, the City of Dubuque maintains a comprehensive Public Housing Administrative Plan; and Whereas, the City of Dubuque adopts specific policy that is supplemental to the Public Housing Administrative Plan; and, Whereas, the Housing Commission is advisory to the City Council on policy updates; and. Whereas, the Housing Commission held a public meeting on Friday November 1st, 2019 to discuss policy for special housing types allowed by families receiving Housing Choice Voucher assistance. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA THAT: Section 1. The PHA Policy for special housing types be amended to include manufactured home space rental as a permitted special housing type in the City of Dubuque as allowed and defined in Chapter 15 of the Public Housing Administrative Plan. PassPri annrnvPri nnri nrinntPrl this 4th ripy of Nnvpmhpr gni Q j Attest: Kevisi S. Firnstahl, City Clerk Roy D. Buol, Mayor Chapter 15 SPECIAL HOUSING TYPES [24 CFR 982 Subpart M] INTRODUCTION The PHA may permit a family to use any of the special housing types discussed in this chapter. However, the PHA is not required to permit families receiving assistance in its jurisdiction to use these housing types, except that PHAs must permit use of any special housing type if needed as a reasonable accommodation for a person with a disability. The PHA also may limit the number of families who receive HCV assistance in these housing types and cannot require families to use a particular housing type. No special funding is provided for special housing types. PHA Policv Families will be permitted to use the following special housing types: 1) Single Room Occupancy (SRO) 2) Congregate Housing 3) Homeownership The PHA must permit use of any special housing type if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities in accordance with 24 CFR part 8 (24 CFR 982.601(b) (3). Special housing types include single room occupancy (SRO), congregate housing, group homes, shared housing, cooperative housing, manufactured homes where the family owns the home and leases the space, and homeownership [24 CFR 982.601]. This chapter consists of the following seven parts. Each part contains a description of the housing type and any special requirements associated with it. Except as modified by this chapter, the general requirements of the HCV program apply to special housing types. Part L Sin�le Room Occunancv Part IL Conare�ate Housin� Part III: Groun Homes Part IV: Shared Housin� Part V: Coonerative Housin� Part VL Manufactured Homes (includin�manufactured home snace rental) Part VIL Homeownershin 0 Cop}zight 2013 Nan McKay&Associates,Ina P�e 1 S-1 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. PART L• SINGLE ROOM OCCUPANCY [24 CFR 982.602 through 982.605] 15-LA. OVERVIEW A single room occupancy (SRO)unit provides living and sleeping space for the exclusive use of the occupant but requires the occupant to share sanitary and/or food preparation facilities with others. More than one person may not occupy an SRO unit. HCV regulations do not limit the number of units in an SRO facility, but the size of a facility may be limited by local ordinances. When providing HCV assistance in an SRO unit, a separate lease and HAP contract are executed for each assisted person, and the standard form of the HAP contract is used. 15-LB. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION The payment standard for SRO housing is 75 percent of the zero-bedroom payment standard amount on the PHA's payment standard schedule. The utility allowance for an assisted person residing in SRO housing is 75 percent ofthe zero- bedroom utility allowance. The HAP for an assisted occupant in an SRO facility is the lower of the SRO payment standard amount minus the TTP ar the gross rent for the unit minus the TTP. 15-LC. HOUSING QUALITY STANDARDS (HQS) HQS requirements described in Chapter 8 apply to SRO housing except as modified below. • Access: Access doors to the SRO unit must have warking locks for privacy. The occupant must be able to access the unit without going through any other unit. Each unit must have immediate access to two or more approved means of exit from the building, appropriately marked and leading to safe and open space at ground level. The SRO unit must also have any other means of exit required by State or local law. • Fire Safety: All SRO facilities must have a sprinkler system that protects major spaces. "Major spaces" are defined as hallways, common areas, and any other areas specified in local fire, building, or safety codes. SROs must also have hard-wired smoke detectors, and any other fire and safety equipment required by state or local law. Sanitary facilities and space and security standards must meet local code requirements for SRO housing. In the absence of local code standards the requirements discussed below apply [24 CFR 982.605]. 0 Cop}zight 2013 Nan McKay&Associates,Ina P�e 1 S-2 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. • Sanitary Faciliries: At least one flush toilet that can be used in privacy, a lavatory basin, and a bathtub or shower in proper operating condition must be provided for each six persons (or fewer)residing in the SRO facility. If the SRO units are leased only to men, flush urinals may be substituted for up to one half of the required number of toilets. Sanitary facilities must be reasonably accessible from a common hall or passageway, and may not be located more than one floor above or below the SRO unit. They may not be located below grade unless the SRO units are located on that level. • Space and Security: An SRO unit must contain at least 110 square feet of floor space, and at least four square feet of closet space with an unobstructed height of at least five feet,for use by the occupant. If the closet space is less than four square feet, the habitable floor space in the SRO unit must be increased by the amount of the deficiency. Eaterior doors and windows accessible from outside the SRO unit must be lockable. Because no children live in SRO housing, the housing quality standards applicable to lead- based paint do not apply. 0 Copyright 2013 Nan McKay&Associates,Ina P�e 1 S-3 City of Dubuque Adnunplan OS/2015 Unlimited copies may be made for interrtal use. PART IL• CONGREGATE HOUSING [24 CFR 982.606 through 982.609] 15-ILA. OVERVIEW Congregate housing is intended for use by elderly persons or persons with disabilities. A congregate housing facility contains a shared central kitchen and dining area and a private living area far the individual household that includes at least a living room, bedroom and bathroom. Food service for residents must be provided. If approved by the PHA, a family member or live-in aide may reside with the elderly person or person with disabilities. The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. When providing HCV assistance in congregate housing, a separate lease and HAP contract are executed for each assisted family, and the standard form of the HAP contract is used. 15-ILB. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION The payment standard for an individual unit in a congregate housing facility is based on the number of rooms in the private living area If there is only one room in the unit(not including the bathroom or the kitchen, if a kitchen is provided), the PHA must use the payment standard for a zero-bedroom unit. If the unit has two or more rooms (other than the bathroom and the kitchen), the PHA must use the one-bedroom payment standard. The HAP for an assisted occupant in a congregate housing facility is the lower of the applicable payment standard minus the TTP or the gross rent for the unit minus the TTP. The gross rent for the unit far the purpose of calculating HCV assistance is the shelter portion (including utilities) of the residenYs monthly housing expense only. The residents' costs for food service should not be included in the rent for a congregate housing unit. 15-ILC. HOUSING QUALITY STANDARDS HQS requirements as described in Chapter 8 apply to congregate housing except for the requirements stated below. Congregate housing must have (1) a refrigerator of appropriate size in the private living area of each resident (2) a central kitchen and dining facilities located within the premises and accessible to the residents, and (3)food service for the residents, that is not provided by the residents themselves. The housing quality standards applicable to lead-based paint do not apply. 0 Cop}zight 2013 Nan McKay&Associates,Ina P�e 15-4 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. PART IIL• GROUP HOME [24 CFR 982.610 through 982.614 and HCV GB p. 7-4] 15-IILA. OVERVIEW A group home is a state-licensed facility intended for occupancy by elderly persons and/or persons with disabilities. Except for live-in aides, all persons living in a group home, whether assisted or not, must be elderly persons or persons with disabilities. Persons living in a group home must not require continuous medical or nursing care. A group home consists of bedrooms for residents, which can be shared by no more than two people, and a living room, kitchen, dining area, bathroom, and other appropriate social, recreational, or community space that may be shared with other residents. No more than 12 persons may reside in a group home including assisted and unassisted residents and any live-in aides. If approved by the PHA, a live-in aide may live in the group home with a person with disabilities. The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. When providing HCV assistance in a group home, a separate lease and HAP contract is executed for each assisted family, and the standard form of the HAP contract is used. 15-IILB. PAYMENT STANDARD, UTILITY ALLOWANCE,AND HAP CALCULATION Unless there is a live-in aide,the family unit size for an assisted occupant of a group home must be zero- or one-bedroom, depending on the PHA's subsidy standard. If there is a live-in aide,the aide must be counted in determining the household's unit size. The payment standard used to calculate the HAP is the lower of the payment standard far the family unit size ar the prorata share of the payment standard far the group home size. The prorata share is calculated by dividing the number of persons in the assisted household by the number of persons (assisted and unassisted) living in the group home. The HAP for an assisted occupant in a group home is the lower of the payment standard minus the TTP ar the gross rent minus the TTP. The utility allowance for an assisted occupant in a group home is the prorata share of the utility allowance for the group home. The rents paid for participants residing in group homes are subject to generally applicable standards for rent reasonableness. The rent for an assisted person must not exceed the prorata portion of the reasonable rent far the group home. In determining reasonable rent, the PHA should consider whether sanitary facilities and facilities for food preparation and service are common facilities or private facilities. 0 Cop}zight 2013 Nan McKay&Associates,Ina P�e 15-5 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. 15-IILC. HOUSING QUALITY STANDARDS HQS requirements described in Chapter 8 apply to group homes except for the requirements stated below. • Sanitary Faciliries: A group home must have at least one bathroom in the facility, with a flush toilet that can be used in privacy, a fixed basin with hot and cold running water, and a shower or bathtub with hot and cold running water. A group home may contain private or common bathrooms. However, no more than four residents can be required to share a bathroom. • Food Prepararion and Service: Group home units must contain a kitchen and dining area with adequate space to store, prepare, and serve food. The facilities for food preparation and service may be private or may be shared by the residents. The kitchen must contain a range, an oven, a refrigerator, and a sink with hot and cold running water. The sink must drain into an approvable public or private disposal system. • Space and Security: Group homes must contain at least one bedroom of appropriate size for every two people, and a living room, kitchen, dining area, bathroom, and other appropriate social, recreational, or community space that may be shared with other residents. • Structure and Material: To avoid any threat to the health and safety of the residents, group homes must be structurally sound. Elevators must be in good condition. Group homes must be accessible to and usable by residents with disabilities. • Site and Neighborhood: Group homes must be located in a residential setting. The site and neighborhood should be reasonably free from hazards to the health, safety, and general welfare of the residents, and should not be subject to serious adverse conditions, such as: - Dangerous walks or steps - Instability - Flooding, poor drainage - Septic tank back-ups - Sewage hazards - Mud slides - Abnormal air pollution - Smoke or dust - Excessive noise - Vibrations or vehicular traffic - Excessive accumulations of trash - Vermin or rodent infestation, and - Fire hazards. The housing quality standards applicable to lead-based paint do not apply. 0 Cop}zight 2013 Nan McKay&Associates,Ina P�e 1 S-( City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. PART IV: SHARED HOUSING [24 CFR 982.615 through 982.618] 15-IV.A. OVERVIEW Shared housing is a single housing unit occupied by an assisted family and another resident or residents. The shared unit consists of both common space for use by the occupants of the unit and separate private space for each assisted family. An assisted family may share a unit with other persons assisted under the HCV program or with other unassisted persons. The owner of a shared housing unit may reside in the unit, but housing assistance may not be paid on behalf of the owner. The resident owner may not be related by blood or marriage to the assisted family. If approved by the PHA, a live-in aide may reside with the family to care for a person with disabilities. The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. When providing HCV assistance in shared housing, a separate lease and HAP contract are executed for each assisted family, and the standard form of the HAP contract is used. 15-IV.B. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION The payment standard for a family in shared housing is the lower of the payment standard far the family unit size ar the prorata share of the payment standard far the shared housing unit size. The prorata share is calculated by dividing the number of bedrooms available for occupancy by the assisted family in the private space by the total number of bedrooms in the unit. The HAP for a family in shared housing is the lower of the payment standard minus the TTP or the gross rent minus the TTP. The utility allowance for an assisted family living in shared housing is the prorata share of the utility allowance for the shared housing unit. The rents paid for families living in shared housing are subject to generally applicable standards for rent reasonableness. The rent paid to the owner far the assisted family must not exceed the pro-rata portion of the reasonable rent far the shared unit. In determining reasonable rent, the PHA should consider whether sanitary and food preparation areas are private or shared. 0 Cop}zight 2013 Nan McKay&Associates,Ina P�e 1 S-7 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. 15-IV.C. HOUSING QUALITY STANDARDS The PHA may not give approval to reside in shared housing unless the entire unit, including the portion of the unit available for use by the assisted family under its lease, meets the housing quality standards. HQS requirements described in Chapter 8 apply to shared housing except for the requirements stated below. • Faciliries Available for the Family: Facilities available to the assisted family, whether shared or private, must include a living room, a bathroom, and food preparation and refuse disposal facilities. • Space and Security: The entire unit must provide adequate space and security for all assisted and unassisted residents. The private space for each assisted family must contain at least one bedroom for each two persons in the family. The number of bedrooms in the private space of an assisted family must not be less than the family unit size. A zero-bedroom or one-bedroom unit may not be used for shared housing. 0 Cop}zight 2013 Nan McKay&Associates,Ina P�e 1 S-g City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. PART V: COOPERATIVE HOUSING [24 CFR 982.619] 15-V.A. OVERVIEW This part applies to rental assistance for a cooperative member residing in cooperative housing. It does not apply to assistance for a cooperative member who has purchased membership under the HCV homeownership option, or to rental assistance for a family that leases a cooperative housing unit from a cooperative member. A cooperative is a form of ownership (nonprofit corporation or association) in which the residents purchase memberships in the ownership entity. Rather than being charged "renY' a cooperative member is charged a"carrying charge." When providing HCV assistance in cooperative housing,the standard form of the HAP contract is used. 15-V.B. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION The payment standard and utility allowance are determined accordingto regular HCV program requirements. The HAP for a cooperative housing unit is the lower of the payment standard minus the TTP or the monthly carrying charge for the unit, plus any utility allowance, minus the TTP. The monthly carrying charge includes the member's share of the cooperative debt service, operating expenses, and necessary payments to cooperative reserve funds. The carrying charge does not include down payments or other payments to purchase the cooperative unit or to amortize a loan made to the family for this purpose. 15-V.C. HOUSING QUALITY STANDARDS All standard HQS requirements apply to cooperative housing units. There are no additional HQS requirements. 0 Cop}zight 2013 Nan McKay&Associates,Ina P�e 1 S-9 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. PART VL• MANUFACTURED HOMES [24 CFR 982.620 through 982.624] 15-VLA. OVERVIEW A manufactured home is a manufactured structure, transportable in one or more parts,that is built on a permanent chassis, and designed for use as a principal place of residence. HCV- assisted families may occupy manufactured homes in two different ways. (1) A family can choose to rent a manufactured home already installed on a space and the PHA must permit it. In this instance program rules are the same as when a family rents any other residential housing, except that there are special HQS requirements as provided in 15-VLD below. (2) HUD also permits an otherwise eligible family that owns a manufactured home to rent a space for the manufactured home and receive HCV assistance with the rent for the space. PHAs may, but are not required to, provide assistance for such families. 15-VLB. SPECIAL POLICIES FOR MANUFACTURED HOME OWNERS WHO LEASE A SPACE Family Income In determining the annual income of families leasing manufactured home spaces,the value of the family's equity in the manufactured home in which the family resides is not counted as a family asset. Lease and HAP Contract There is a separate Tenancy Addendum (Form 52642-a) and separate HAP Contract(Form 52642)far this special housing type. 15-VLC. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION Payment Standards The FMR for a manufactured home space is generally 40 percent of the published FMR for a two-bedroom unit or, where approved by HUD, the 40th percentile of the rental distribution of manufactured home spaces for the FMR area. The PHA may establish a payment standard for manufactured home spaces that is between 90-110 percent of the FMR for manufactured home spaces. Utility Allowance The PHA must establish utility allowances for manufactured home space rental. For the first 12 months of the initial lease term only, the allowance must include an amount for a utility hook-up charge if the family actually incurred a hook-up charge because of a move. This allowance will not be given to a family that leases in place. Utility allowances for manufactured home space must not include the costs of digging a well or installing a septic system. 0 Cop}zight 2013 Nan McKay&Associates,Ina Page 15-10 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. Space Rent The space rent is the sum of the rent to the owner far the manufactured home space, any charges for maintenance and management provided by the owner, and the utility allowance for tenant- paid utilities. Housing Assistance Payment The HAP for a manufactured home space under the housing choice voucher program is the lower of the payment standard minus the TTP or the (gross)manufactured home space rent minus the TTP. Rent Reasonableness Initially, and annually thereafter the PHA must determine that the rent for the manufactured home space is reasonable based on rents for comparable manufactured home spaces. The PHA must consider the location and size of the space, and any services and maintenance to be provided by the owner. By accepting the monthly HAP check,the owner certifies that the rent does not exceed rents charged by the owner for comparable unassisted spaces in the manufactured home park or elsewhere. 15-VLD. HOUSING QUALITY STANDARDS Under either type of occupancy described in 15-VLA above,the manufactured home must meet all HQS performance requirements and acceptability criteria discussed in Chapter 8 of this plan. In addition, the following requirement applies: Manufactured Home Tie-Down A manufactured home must be placed on the site in a stable manner, and must be free from hazards such as sliding or wind damage. The home must be securely anchored by a tie-down device that distributes and transfers the loads imposed by the unit to appropriate ground anchors to resist overturning and sliding. 0 Cop}zight 2013 Nan McKay&Associates,Ina Page 1 S-1 1 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. PART VIL• HOMEOWNERSHIP [24 CFR 982.625 through 982.643] 15-VILA. OVERVIEW [24 CFR 982.625] The homeownership option is used to assist a family residing in a home purchased and owned by one or more members of the family. A family assisted under this option may be newly admitted or an existing participant in the HCV program. The PHA must have the capacity to operate a successful HCV homeownership program as defined by the regulations. There are two forms of homeownership assistance a PHA may offer under this option: monthly homeownership assistance payments, or a single down payment assistance grant. PHAs may choose to offer either or both forms of homeownership assistance, or choose not to offer either. If a PHA offers both forms of assistance, a family must choose which form of assistance to receive. The PHA must offer either form of homeownership assistance if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. It is the sole responsibility of the PHA to determine whether it is reasonable to implement a homeownership program as a reasonable accommodation. The PHA must determine what is reasonable based on the specific circumstances and individual needs of the person with a disability. The PHA may determine that it is not reasonable to offer homeownership assistance as a reasonable accommodation in cases where the PHA has otherwise opted not to implement a homeownership program. The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. PHA Policy The PHA will offer the monthly homeownership assistance payments to qualified families. The Housing Choice Voucher Home Ownership Program permits eligible participants in the HCV Program, including participants with portable vouchers,the option of purchasing a home with their voucher assistance rather than renting. The home ownership option is available to newly admitted or existing participants, who do not owe monies to the City of Dubuque Housing Services or any other Housing Agency for any outstanding debts, and who meet the eligibility criteria set forth below. Additionally, participants who are in violation of their family obligations while receiving HCV assistance shall be ineligible for participation in the Section 8 Home Ownership Program. HCV home ownership assistance may be used to purchase the following type of homes within the City of Dubuque: new or existing single-family dwelling unit, condominium, cooperatives, or manufactured homes. The City of Dubuque Housing will also permit portability of HCV home ownership assistance to another jurisdiction, provided the receiving jurisdiction operates a HCV home ownership program for which the participant qualifies. 0 Cop}zight 2013 Nan McKay&Associates,Ina Page 15-12 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. 15-VILB. FAMILY ELIGIBILITY [24 CFR 982.627] The family must meet all of the requirements listed below before the commencement of homeownership assistance. The PHA may also establish additional initial requirements as long as they are described in the PHA administrative plan. • The family must have been admitted to the Housing Choice Voucher program. • The family must qualify as a first-time homeowner, or may be a cooperative member. • The family must meet the Federal minimum income requirement. The family must have a gross annual income equal to the Federal minimum wage multiplied by 2000, based on the income of adult family members who will own the home. The PHA may establish a higher income standard for families. However, a family that meets the federal minimum income requirement(but not the PHA's requirement) will be considered to meet the minimum income requirement if it can demonstrate that it has been pre-qualified or pre-approved for financing that is sufficient to purchase an eligible unit. • For disabled families, the minimum income requirement is equal to the current SSI monthly payment for an individual living alone, multiplied by 12. • For elderly or disabled families, welfare assistance payments for adult family members who will own the home will be included in determining whether the family meets the minimum income requirement. It will not be included for other families. • The family must satisfy the employment requirements by demonstrating that one or more adult members of the family who will own the home at commencement of homeownership assistance is currently employed on a full-time basis (the term 'full-time employment' means not less than an average of 30 hours per week); and has been continuously so employed during the year before commencement of homeownership assistance far the family. • The employment requirement does not apply to elderly and disabled families. In addition, if a family, other than an elderly or disabled family includes a person with disabilities,the PHA must grant an exemption from the employment requirement if the PHA determines that it is needed as a reasonable accommodation. • The family has not defaulted on a mortgage securing debt to purchase a home under the homeownership option • Except for cooperative members who have acquired cooperative membership shares prior to commencement of homeownership assistance, no family member has a present ownership interest in a residence at the commencement of homeownership assistance for the purchase of any home. • Except for cooperative members who have acquired cooperative membership shares prior to the commencement of homeownership assistance, the family has entered a contract of sale in accordance with 24 CFR 982.631(c). 0 Copyright 2013 Nan McKay&Associates,Ina Page 15-13 City of Dubuque Adnunplan OS/2015 Unlimited copies may be made for interrtal use. PHA Policv The PHA will not establish a higher minimum income standard for disabled and/or non- disabled families. The family must be financially capable to qualify for HA approved financing of the home and must be financially capable to provide at least 3% of the purchase price as a minimum homeowner down payment. The City of Dubuque Rehabilitation Activity shall review lender qualifications and the loan terms before authorizing home ownership assistance. The PHA requires that financing for purchase of a home under its HCV homeownership program complies with secondary mortgage market underwriting requirements; or complies with generally accepted private sector underwriting standards. Each family, except families with a disabled member, must be a first-time homeowner. A first-time homeowner means that no member of the household has had an ownership interest in any residence during the three years prior to the home ownership assistance. However, a single parent or displaced homemaker who, while married, owned a home with a spouse (or resided in a home owned by a spouse) is considered a first-time home owner for purposes of the Section 8 Home ownership Program. The Housing and Community Development Director may also consider whether and to what ea�tent an employment interruption is considered permissible in satisfying the employment requirement. Generally families will be considered "continuously employed" if the break in employment does not exceed two months. The Housing and Community Development Director may also consider self-employment to determine employment history. The employment requirement does not apply to an elderly or disabled family. In order to reasonably accommodate a family's participation in the program,families that include a person with disabilities may also be exempt from this requirement if an exemption is needed as a reasonable accommodation. Participants in the Housing Choice Voucher Program shall be ineligible for participation in the Home Ownership Program if any debt or portion of a debt remains owed to the City of Dubuque or any other Housing Authority. Additionally, participants who are in violation of their family obligations while receiving HCV assistance shall be ineligible for participation in the Home Ownership Program. If the head of household, spouse, or other adult household member who will execute the contract of sale, mortgage and loan documents has previously defaulted on a mortgage obtained through the HCV Home Ownership Program, the family will be ineligible to participate in the Home Ownership Program. 0 Cop}zight 2013 Nan McKay&Associates,Ina Page 15-14 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. 15-VILC. SELECTION OF FAMILIES [24 CFR 982.626] Unless otherwise provided (under the homeownership option), the PHA may limit homeownership assistance to families or purposes defined by the PHA, and may prescribe additional requirements for commencement of homeownership assistance for a family. Any such limits or additional requirements must be described in the PHA administrative plan. If the PHA limits the number of families that may participate in the homeownership option,the PHA must establish a system by which to select families to participate. 15-VILD. ELIGIBLE UNITS [24 CFR 982.628] In order for a unit to be eligible, the PHA must determine that the unit satisfies all of the following requirements: • The unit must meet HUD's "eligible housing"requirements. The unit may not be any of the following: - A public housing ar Indian housing unit; - A unit receiving Section 8 project-based assistance; - A nursing home, board and care home, or facility providing continual psychiatric, medical or nursing services; - A college or other school dormitory; - On the grounds of penal, reformatory, medical, mental, or similar public or private institutions. • The unit must be under construction or already exist at the time the family enters into the contract of sale. • The unit must be a one-unit property or a single dwelling unit in a cooperative or condominium. • The unit must have been inspected by the PHA and by an independent inspector designated by the family. • The unit must meet Housing Quality Standards (see Chapter 8). • For a unit where the family will not own fee title to the real property(such as a manufactured home), the home must have a permanent foundation and the family must have the right to occupy the site for at least 40 years. 0 Cop}zight 2013 Nan McKay&Associates,Ina Page 15-15 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. • For PHA-owned units all of the following conditions must be satisfied: - The PHA informs the family, both orally and in writing,that the family has the right to purchase any eligible unit and a PHA-owned unit is freely selected by the family without PHA pressure or steering; - The unit is not ineligible housing; - The PHA obtains the services of an independent agency to inspect the unit for compliance with HQS, review the independent inspection report, review the contract of sale, determine the reasonableness ofthe sales price and any PHA provided financing. All of these actions must be completed in accordance with program requirements. The PHA must not approve the unit if the PHA has been informed that the seller is debarred, suspended, or subject to a limited denial of participation. 15-VILE. ADDITIONAL PHA REQUIREMENTS FOR SEARCH AND PURCHASE [24 CFR 982.629] It is the family's responsibility to find a home that meets the criteria for voucher homeownership assistance. The PHA may establish the maximum time that will be allowed for a family to locate and purchase a home, and may require the family to report on their progress in finding and purchasing a home. If the family is unable to purchase a home within the maximum time established by the PHA,the PHA may issue the family a voucher to lease a unit or place the family's name on the waiting list for a voucher. PHA Policv The family will be allowed 120 days to identify a unit and submit a sales contract to the PHA for review. The family will be allowed an additional 120 days to close on the home. PHAs may grant ea�tensions to either of these periods for good cause. The length of the ea�tension(s)will be determined on a case-by-case, but in no case will an eatension exceed a total of 125 days. The maximum amount of time a family will be given to locate and complete the purchase of a home under the homeownership option is 365 days. During these periods,the family will continue to receive HCV rental assistance in accordance with any applicable lease and HAP contract until the family vacates the rental unit for its purchased home. The family will be required to report their progress on locating and purchasing a home to the PHA every 30 days until the home is purchased. All requests for eatensions must be submitted in writing to the PHA prior to the expiration of the period for which the eatension is being requested. The PHA will approve or disapprove the eatension request within 10 business days. The family will be notified of the PHA's decision in writing. If the family cannot complete the purchase of a unit within the maximum required time frame, and is not receiving rental assistance under a HAP contract at the time the search and purchase time period expires,the family will be issued a voucher to lease a unit. 0 Cop}zight 2013 Nan McKay&Associates,Ina Page 1 S-1( City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. 15-VILF. HOMEOWNERSHIP COUNSELING [24 CFR 982.630] Before commencement of homeownership assistance for a family, the family must attend and satisfactorily complete the pre-assistance homeownership and housing counseling program required by the PHA. HUD suggests the following topics for the PHA-required pre-assistance counseling: • Home maintenance (including care of the grounds); • Budgeting and money management; • Credit counseling; • How to negotiate the purchase price of a home; • How to obtain homeownership financing and loan pre-approvals, including a description of types of financing that may be available, and the pros and cons of different types of financing; • How to find a home, including information about homeownership opportunities, schools, and transportation in the PHA jurisdiction; • Advantages of purchasing a home in an area that does not have a high concentration of low- income families and how to locate homes in such areas; • Information on fair housing, including fair housing lending and local fair housing enforcement agencies; and • Information about the Real Estate Settlement Procedures Act(12 U.S.C. 2601 et seq.) (RESPA), state and Federal truth-in-lending laws, and how to identify and avoid loans with oppressive terms and conditions. The PHA may adapt the subjects covered in pre-assistance counseling(as listed)to local circumstances and the needs of individual families. The PHA may also offer additional counseling after commencement of homeownership assistance (ongoing counseling). If the PHA offers a program of ongoing counseling for participants in the homeownership option,the PHA shall have discretion to determine whether the family is required to participate in the ongoing counseling. If the PHA does not use a HUD-approved housing counseling agency to provide the counseling, the PHA should ensure that its counseling program is consistent with the counseling provided under HUD's Housing Counseling program. PHA Policv A family's participation in the home ownership program is conditioned on the family attending and successfully completing a home ownership and housing counseling program approved by the PHA prior to commencement of home ownership assistance. 0 Cop}zight 2013 Nan McKay&Associates,Ina Page 15-17 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. 15-VII.G. HOME INSPECTIONS, CONTRACT OF SALE, AND PHA DISAPPROVAL OF SELLER [24 CFR 982.631] Home Inspections The PHA may not commence monthly homeownership assistance payments or provide down payment assistance grants for a family until the PHA has inspected the unit and has determined that the unit passes HQS. An independent professional inspector selected by and paid for by the family must also inspect the unit. The independent inspection must cover major building systems and components, including foundation and structure, housing interior and eaterior, and the roofing, plumbing, electrical, and heating systems. The independent inspector must be qualified to report on property conditions, including major building systems and components. The PHA may not require the family to use an independent inspector selected by the PHA. The independent inspector may not be a PHA employee or contractor, or other person under control of the PHA. However, the PHA may establish standards for qualification of inspectors selected by families under the homeownership option. The PHA may disapprove a unit for assistance based on information in the independent inspector's report, even if the unit was found to comply with HQS. PHA Policv The unit must be inspected by a PHA inspector and pass inspection according to the City of Dubuque Housing Code. The unit must be inspected by an independent inspector and incipient code violations identified by the independent inspector. To assure the home complies with the City of Dubuque Housing Code, home ownership assistance payments must not commence until the PHA has inspected and approved the home. Another inspection must also be completed by a professional home inspector selected by the family and approved by the PHA. The independent inspection must cover major building systems and components, including foundation and structure, housing interior and eaterior, and the roofing, plumbing, electrical, and heating systems. The independent inspector must be qualified to report on property conditions, including major building systems. The independent inspector may not be a PHA employee or contractor, or other person under control of the PHA. The independent inspector must provide a copy of the inspection report both to the family and to the PHA. The PHA may not pay any Home ownership assistance for the family until the PHA has reviewed the inspection report of the independent inspector. Even if the unit otherwise complies with the City of Dubuque Housing Code, the PHA shall have discretion to disapprove the unit for assistance under the Home ownership program because of information in the inspection report. 0 Cop}zight 2013 Nan McKay&Associates,Ina Page 1 S-1 g City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. Contract of Sale Before commencement of monthly homeownership assistance payments or receipt of a down payment assistance grant, a member or members of the family must enter into a contract of sale with the seller of the unit to be acquired by the family. The family must give the PHA a copy of the contract of sale. The contract of sale must: • Specify the price and other terms of sale by the seller to the purchaser; • Provide that the purchaser will arrange for a pre-purchase inspection of the dwelling unit by an independent inspector selected by the purchaser; • Provide that the purchaser is not obligated to purchase the unit unless the inspection is satisfactory to the purchaser; • Provide that the purchaser is not obligated to pay for any necessary repairs; and • Contain a certification from the seller that the seller has not been debarred, suspended, or subject to a limited denial of participation under CFR part 24. PHA Policv Prior to execution of the offer to purchase or sales agreement, the financing terms must be provided by the family to the City of Dubuque Rehabilitation Activity for approval. The purchase or sales agreement must provide for inspection by the PHA and the independent inspector and must state that the purchaser is not obligated to purchase unless the inspections are satisfactory to the PHA. The purchase or sales agreement must provide that the purchaser is not obligated to purchase if the mortgage financing terms are not approved by the PHA. A copy of the purchase or sales agreement must be submitted to the City of Dubuque Rehabilitation Activity for approval. Disapproval of a Seller In its administrative discretion, the PHA may deny approval of a seller for the same reasons a PHA may disapprove an owner under the regular HCV program [see 24 CFR 982.306(c)]. 0 Cop}zight 2013 Nan McKay&Associates,Ina Page 15-19 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. 15-VILH. FINANCING [24 CFR 982.632] The PHA may establish requirements for financing purchase of a home under the homeownership option. This may include requirements concerning qualification of lenders, terms of financing, restrictions concerning debt secured by the home, lender qualifications, loan terms, and affordability of the debt. The PHA must establish policies describing these requirements in the administrative plan. A PHA may not require that families acquire financing from one or more specified lenders, thereby restricting the family's ability to secure favorable financing terms. PHA Policv The proposed financing terms must be submitted to and approved by the City of Dubuque Rehabilitation Activity priar to close of the financing. The Rehabilitation Activity shall determine the affordability of the family's proposed financing. In making such determination, the Rehabilitation Activity may take into account other family expenses, including but not limited to child care, unreimbursed medical expenses, and other outstanding debts. Certain types of financing, including but not limited to, balloon payment mortgages, are prohibited and will not be approved. Seller-financed mortgages through land contracts shall not be approved. Seller-financed mortgages through person- to-person mortgages will be considered on a case by case basis. If a mortgage is not FHA-insured,the PHA will require the lender to comply with generally accepted mortgage underwriting standards consistent with those of HUD/FHA, Ginnie Mae, Fannie Mae, Freddie Mac, the Federal Home Loan Bank, or other private lending institutions. The PHA may disapprove proposed financing, refinancing or other debit if it is determined that the debt is unaffordable, or if the lender or the loan terms do not meet the qualifications as set forth by the PHA. The buyer must be capable of providing at least 3% of the purchase price far the down payment. 15-VILL CONTINUED ASSISTANCE REQUIREMENTS; FAMILY OBLIGATIONS [24 CFR 982.633] Homeownership assistance may only be paid while the family is residing in the home. If the family moves out of the home,the PHA may not continue homeownership assistance after the month when the family moves out. The family or lender is not required to refund to the PHA the homeownership assistance far the month when the family moves out. Before commencement of homeownership assistance,the family must execute a statement in which the family agrees to comply with all family obligations under the homeownership option. The family must comply with the following obligations: • The family must comply with the terms of the mortgage securing debt incurred to purchase the home, or any refinancing of such debt. • The family may not convey or transfer ownership of the home, except for purposes of financing, refinancing, or pending settlement of the estate of a deceased family member. Use and occupancy ofthe home are subjectto 24 CFR 982.551 (h) and (i). 0 Cop}zight 2013 Nan McKay&Associates,Ina Page 15-20 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. • The family must supply information to the PHA or HUD as specified in 24 CFR 982.551(b). The family must further supply any information required by the PHA or HUD concerning mortgage financing or refinancing, sale ar transfer of any interest in the home, or homeownership expenses. • The family must notify the PHA before moving out of the home. • The family must notify the PHA if the family defaults on the mortgage used to purchase the home. • No family member may have any ownership interest in any other residential property. • The family must comply with the obligations of a participant family described in 24 CFR 982.551, except for the following provisions which do not apply to assistance under the homeownership option: 24 CFR 982.551(c), (d), (e), (�, (g) and (j). PHA Policv Before each annual recertification during the neat two years, the home will be inspected by a PHA inspector according to City of Dubuque Housing Code and must pass inspection to continue receiving home ownership assistance. If the PHA determines there are problems with maintaining the home in a safe and decent manner,the Housing and Community Development Director may require on-going inspections annually for the neat five years. A family must agree, in writing, to comply with all family obligations under the HCV Program and the PHA's home ownership policies. These obligations include (1) attending ongoing home ownership counseling, if required by the PHA; (2) complying with the mortgage terms; (3) not selling ar transferring the home to anyone other than a member of the assisted family who resides in the home while receiving home ownership assistance and who is approved by the PHA; (4) not refinancing or adding debt secured by the home without prior approval by the PHA; (5) not obtaining a present ownership interest in another residence while receiving home ownership assistance; (� supplying all required information to the PHA, including but not limited to annual verification of household income, notice of change in home ownership expenses, notice of move-out, and notice of mortgage default ('� allowing inspections of the home and maintaining the unit in a decent and safe manner; and (8)repairing any incipient code violations identified from the independent inspector's report within six (6)months of ownership. 15-VILJ. MAXIMUM TERM OF HOMEOWNER ASSISTANCE [24 CFR 982.634] Except in the case of a family that qualifies as an elderly or disabled family, other family members (described below) shall not receive homeownership assistance for more than: • Fifteen years, if the initial mortgage incurred to finance purchase of the home has a term of 20 years or longer; or • Ten years, in all other cases. The maximum term described above applies to any member of the family who: 0 Cop}zight 2013 Nan McKay&Associates,Ina Page 15-21 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. • Has an ownership interest in the unit during the time that homeownership payments are made; or • Is the spouse of any member of the household who has an ownership interest in the unit during the time homeownership payments are made. In the case of an elderly family, the exception only applies if the family qualifies as an elderly family at the start of homeownership assistance. In the case of a disabled family, the exception applies if at any time during receipt of homeownership assistance the family qualifies as a disabled family. If, during the course of homeownership assistance, the family ceases to qualify as a disabled or elderly family,the maximum term becomes applicable from the date homeownership assistance commenced. However, such a family must be provided at least 6 months of homeownership assistance after the maximum term becomes applicable (provided the family is otherwise eligible to receive homeownership assistance). If the family has received such assistance for different homes, or from different PHAs, the total of such assistance terms is subject to the maximum term described in this part. 15-VILK HOMEOWNERSHIP ASSISTANCE PAYMENTS AND HOMEOWNERSHIP EXPENSES [24 CFR 982.635] The monthly homeownership assistance payment is the lower of: the voucher payment standard minus the total tenant payment, or the monthly homeownership expenses minus the total tenant payment. In determining the amount of the homeownership assistance payment, the PHA will use the same payment standard schedule, payment standard amounts, and subsidy standards as those described elsewhere in this plan for the Housing Choice Voucher program. The payment standard for a family is the greater of(i) The payment standard as determined at the commencement of homeownership assistance for occupancy of the home, ar (ii) The payment standard at the most recent regular reexamination of family income and composition since the commencement of homeownership assistance for occupancy of the home. The PHA's housing assistance payment will be paid directly to the lender unless the mortgage company refuses to accept payments from more than one source. In such case,the PHA's housing assistance payment will be paid directly to the family. If the assistance payment exceeds the amount due to the lender, the PHA must pay the excess directly to the family. Homeownership assistance for a family terminates automatically 180 calendar days after the last homeownership assistance payment on behalf of the family. However, a PHA may grant relief from this requirement in those cases where automatic termination would result in eatreme hardship for the family. The PHA must adopt policies for determining the amount of homeownership expenses to be allowed by the PHA in accordance with HUD requirements. Homeownership expenses (not including cooperatives) only include amounts allowed by the PHA to cover: 0 Cop}zight 2013 Nan McKay&Associates,Ina Page 15-22 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. • Principal and interest on initial mortgage debt, any refinancing of such debt, and any mortgage insurance premium incurred to finance purchase of the home; • Real estate taxes and public assessments on the home; • Home insurance; • The PHA allowance for maintenance expenses; • The PHA allowance for costs of major repairs and replacements; • The PHA utility allowance for the home; • Principal and interest on mortgage debt incurred to finance costs for major repairs, replacements or improvements for the home. If a member of the family is a person with disabilities, such debt may include debt incurred by the family to finance costs needed to make the home accessible for such person, if the PHA determines that allowance of such costs as homeownership expenses is needed as a reasonable accommodation so that the homeownership option is readily accessible to and usable by such person; • Land lease payments where a family does not own fee title to the real property on which the home is located; [see 24 CFR 982.628(b)]. • For a condominium unit, condominium operating charges or maintenance fees assessed by the condominium homeowner association. PHA Policv The amount of the monthly assistance payment will be based on three factors: the voucher payment standard for which the family is eligible;the monthly home ownership expense; and the family's household income. The PHA shall pay a monthly Home ownership assistance payment directly to the lender on behalf of the family that is equal to the lower of: (1) The payment standard minus the total tenant payment; or (2) The family's monthly Home ownership expenses minus the total tenant payment. Home ownership expenses for a homeowner may include principal and interest on mortgage debt, any mortgage insurance premium incurred to finance the home, real estate taxes, any public assessments on the property, home insurance, PHA allowance for maintenance expenses and costs of repairs and replacements; and the PHA utility allowance. All participants in the HCV Home Ownership program shall be required to apply for the homestead tax exemption. The PHA will allow the following homeownership expenses: Monthly homeownership payment. This includes principal and interest on initial mortgage debt, taxes and insurance, and any mortgage insurance premium, if applicable. Utility allowance. The PHA's utility allowance for the unit, based on the current HCV utility allowance schedule. 0 Copyright 2013 Nan McKay&Associates,Ina Page 15-23 City of Dubuque Adnunplan OS/2015 Unlimited copies may be made for interrtal use. Monthly maintenance allowance. The monthly maintenance allowance will be the annual maintenance allowance, divided by twelve. The annual maintenance allowance will be set at .5 percent of purchase price of the home. Monthly major repair/replacement allowance. The monthly major repair/replacement allowance will be the annual major repair/replacement allowance divided by 12. The annual major repair/replacement allowance will be set as a percentage of the purchase price of the home, based on the age of the home at the time of purchase and/or reexamination. Age of Home % of purchase price allowed New to 20 years .5 21 to 30 years 1.0 31 years or more 1.5 Monthly co-op/condominium assessments. If applicable, the monthly amount of co-op or condominium association operation and maintenance assessments. Monthly principal and interest on debt for improvements. Principal and interest for major home repair, replacements, or improvements, if applicable. The PHA will provide the lender or Rehabilitation Activity with notice of the amount of the housing assistance payment prior to close of escrow and will pay PHA's contribution towards the family's homeowner expense directly to the family's designated account for the mortgage activity. The family will be responsible to submit the mortgage payment directly to the lender in a timely manner to allow the transfer of funds by the lender and/or mortgage servicer and within the terms of the mortgage loan agreement. A family's home ownership assistance may be changed during the annual recertification of the household income and at other times according to the PHA's policy of interim changes while the family is participating in the HCV Home Ownership Program. Participation in the HCV Home Ownership Program shall continue until such time as the assistance payment equals $0.00 for a period of 180 consecutive days and according to the term ofthe HCV Home Ownership Program. Homeownership expenses for a cooperative member may only include amounts allowed by the PHA to cover: • The cooperative charge under the cooperative occupancy agreement including payment for real estate taxes and public assessments on the home; • Principal and interest on initial debt incurred to finance purchase of cooperative membership shares and any refinancing of such debt; • Home insurance; • The PHA allowance for maintenance expenses; 0 Cop}zight 2013 Nan McKay&Associates,Ina Page 15-24 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. • The PHA allowance for costs of major repairs and replacements; • The PHA utility allowance for the home; and • Principal and interest on debt incurred to finance major repairs, replacements or improvements for the home. If a member of the family is a person with disabilities, such debt may include debt incurred by the family to finance costs needed to make the home accessible for such person, if the PHA determines that allowance of such costs as homeownership expenses is needed as a reasonable accommodation so that the homeownership option is readily accessible to and usable by such person. • Cooperative operating charges or maintenance fees assessed by the cooperative homeowner association. 0 Cop}zight 2013 Nan McKay&Associates,Ina Page 15-25 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. 15-VILL. PORTABILITY [24 CFR 982.636, 982.637, 982.353(b) and (c), 982.552, 982.553] Subjectto the restrictions on portability included in HUD regulations and PHA policies, afamily may exercise portability if the receiving PHA is administering a voucher homeownership program and accepting new homeownership families. The receiving PHA may absorb the family into its voucher program, or bill the initial PHA. The family must attend the briefing and counseling sessions required by the receiving PHA. The receiving PHA will determine whether the financing for, and the physical condition of the unit, are acceptable. The receiving PHA must promptly notify the initial PHA if the family has purchased an eligible unit under the program, or if the family is unable to purchase a home within the maximum time established by the PHA. 15-VILM. MOVING WITH CONTINUED ASSISTANCE [24 CFR 982.637] A family receiving homeownership assistance may move with continued tenant-based assistance. The family may move with voucher rental assistance or with voucher homeownership assistance. Continued tenant-based assistance for a new unit cannot begin so long as any family member holds title to the prior home. The PHA may deny permission to move to a new unit with continued voucher assistance: • If the PHA has insufficient funding to provide continued assistance. • In accordance with 24 CFR 982.638, regarding denial ar termination of assistance. • In accordance with the PHA's policy regarding number of moves within a 12-month period. The PHA must deny the family permission to move to a new unit with continued voucher rental assistance if: • The family defaulted on an FHA-insured mortgage; and • The family fails to demonstrate that the family has conveyed, or will convey,title to the home, as required by HUD, to HUD or HUD's designee; and the family has moved, or will move, from the home within the period established or approved by HUD. PHA Policy If the family defaults on an FHA-insured mortgage, the PHA will permit the family to move with continued Housing Choice Voucher rental assistance if the family demonstrates that it has (a) conveyed title to the home to HUD or its designee, as required by HUD or will convey, ritle to the home, as required byHUD, to HUD orHUD's designee; and (b) the family has moved from the home or will move within the period established or approved by HUD. If the family defaults on a mortgage that is not FHA-insured, the PHA may permit the family to move with continued Housing Choice Voucher rental assistance if the family demonstrates that it has (a) conveyed title to the home to the lender or to its designee, as may be permitted or required by the lender; and (b)moved from the home within the period established or approved by the lender. 0 Cop}zight 2013 Nan McKay&Associates,Ina Page 1 S-2( City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. However, the PHA shall not provide continued tenant-based assistance for occupancy of a new unit so long as any family member owns any title or other interest in the homeownership program unit. 0 Cop}zight 2013 Nan McKay&Associates,Ina Page 15-27 City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use. 15-VILN. DENIAL OR TERMINATION OF ASSISTANCE [24 CFR 982.638] At any time, the PHA may deny or terminate homeownership assistance in accordance with HCV program requirements in 24 CFR 982.552 (Grounds for denial or termination of assistance) or 24 CFR 982.553 (Crime by family members). The PHA may also deny or terminate assistance for violation of participant obligations described in 24 CFR Parts 982.551 or 982.633 and in accordance with its own policy. The PHA must terminate voucher homeownership assistance for any member of family receiving homeownership assistance that is dispossessed from the home pursuant to a judgment or order of foreclosure on any mortgage (whether FHA insured or non-FHA) securing debt incurred to purchase the home, or any refinancing of such debt. PHA Policy Home ownership assistance will only be provided while the family resides in the home. The home must be the family's only residence. If the family moves out of the home,the HA will not continue home ownership assistance commencing with the month after the family moves out. A participant in the HCV Home Ownership Program shall be entitled to the same termination notice and informal hearing procedures as set forth in the Administrative Plan for the City of Dubuque. In order far the PHA to consider granting relief from the requirement to automatically terminate homeownership assistance 180 days following the PHA's last housing assistance payment on behalf of the family, the family must submit a request to the PHA at least 30 days priar to the date of automatic termination. The request must include an explanation of the circumstances that will cause an eatreme hardship for the family (e.g., the imminent loss of income or employment) as well as documentation supporting the request. The PHA will determine on a case-by-case basis whether to grant relief from the requirement and for what period of time. In no case will the PHA postpone termination beyond an additiona190 days. The PHA will terminate a family's homeownership assistance if the family violates any ofthe homeowner obligations listed in Section 1, as well as for any ofthe reasons listed in Section 2 of form HUD-52649, Statement of Homeowner Obligations Housing Choice Homeownership Voucher Program. In making its decision to terminate homeownership assistance, the PHA will consider alternatives as described in Section 12-ILC and other factors described in Section 12- ILD. Upon consideration of such alternatives and factors, the PHA may, on a case-by- case basis, choose not to terminate assistance. Termination notices will be sent in accordance with the requirements and policies set forth in Section 12-ILF. 0 Cop}zight 2013 Nan McKay&Associates,Ina Page 1 S-2g City of Dubuque Adimnplan OS/2015 Unlimited copies may be made for interrtal use.