Indiana HPRP Training

1. Indiana HPRP Training Module 2: HPRP Program toolS

2. HPRP consists of two programs • Homelessness preventionto assist households not literally homeless, avoid becoming homeless • Rapid Re-housingfor those households who have become homeless to get them back into stable housing

3. HPRP Eligible Activities – Same for both program components • Financial Assistance • Short and medium term rental assistance • Security deposits • Utility deposits • Moving cost assistance • Hotel/motel vouchers • Housing Relocation and Stabilization • Case management • Outreach and engagement • Housing search and placement • Legal services • Credit repair

4. HPRP Eligible Activities (2) • Data Collection and Evaluation • HMIS • Evaluation • Administrative costs • Accounting for grant funds • Preparing HUD reports • Program audits • Staff costs associated with activities • Staff training • Not to exceed 5% of HUD grant; IHCDA retained 3%

5. Financial Assistance • Limitations: • No direct payments to program participants • Payments must go to 3rd parties: landlords and utilities • Assisted units may not be owned by grantee, subgrantee, or parent, subsidiary or affiliated organization of subgrantee

6. Rental Assistance • Short term up to 3 months • Must be evaluated at the end of 3 months prior to receiving continuing assistance • Medium term cannot exceed 4-18 months • (Special procedures in Indiana for rental assistance in excess of 12 months) • Re-evaluated for assistance every 3 months • Assistance limited to actual rental costs • Months of rental assistance do not have to be consecutive • All rents assisted must meet HUD’s rent reasonableness requirements, not FMR.

7. Rental Assistance (2) • No double dipping: no assistance for same cost types that are covered by any other federal, state or local housing subsidy program • It can pay for deposits or utilities if participant is not receiving assistance with these cost types from any other program • Participants are required to pay rent – Indiana program • Tenant share must be the greater of: 30% of adjusted income or 10% of gross income • Up to 6 months of rent arrears may be paid • Arrearages paid count toward 18 month limit • Can be paid if it allows participant to remain in unit or move to another unit

8. Security and Utility Deposits • Deposits can cover same period and unit as other subsidy program • HUD emphasizes use of deposits to assist veteran-headed households receiving VASH assistance • Programs should track deposits and make good faith effort to secure return • Notify landlord and/or utility to whom deposit should be returned

9. Utility Payments • Payments can be made for up to 18 months • In Indiana, waiver required to receive utility payments for longer than 12 months • Can provide up to 6 months of arrearages payments. No time limit on when arrearage occurred. • Must have responsibility for debt • Utility account in name of participant or member of household • Evidence of prior payments such as cancelled checks or receipts from utility

10. Moving Cost Assistance • Reasonable moving costs • Truck rental, moving company • Storage fees for belongings • Maximum of 3 months or • Until participant is in housing

11. Motel and Hotel Vouchers • Indiana: only permitted when appropriate housing is already identified but will not be available for a period not to exceed 30 days • Costs must be reasonable and appropriate

12. Housing Relocation and Stabilization • Services can only be provided for up to 18 months for participants • Services include: • Case management • Outreach and engagement • Housing search and placement • Legal services • Credit repair

13. Case Management • Use uniform assessment tool • Arranging, coordinating, monitoring services all targeted toward achieving and maintaining housing stability • Counseling – related to achieving housing permanency. • Working with client to develop and maintain housing and services plan

14. Outreach and Engagement • Allow people who are homeless or at risk of homelessness to be aware of HPRP services • Recognizes that engagement may require multiple contacts and allows for innovative strategies • In Indiana, largely the responsibility of each Continuum of Care.

15. Housing Search and Placement • Outreach and support to landlords to secure participation • Tenant counseling – responsibilities, understanding leases • Assisting clients locate housing, obtain utilities, moving arrangements • Representative payee services for rent and utilities

16. Legal Services • Eviction prevention • Related services to keep tenants in their homes • Cannot assist in resolving mortgage or foreclosure issues • Not to be used for general debt concerns

17. Credit Repair • No payment of personal financial obligations • Skills training in budgeting and money management • Support in resolving credit issues

18. Data Collection • Eligible use of HPRP funds • Must use HMIS for data collection • Eligible costs: • Purchase of HMIS software/user licenses. IHCDA has a 1% fee. • Leasing/purchasing computers • Data collection, entry and analysis • Ineligible • Planning and developing HMIS systems • Development of new software systems • Replacing state/local funding for existing HMIS

19. Administrative Costs • Accounting for use of grant funds • Preparing reports for HUD • Program audits • Similar costs related to administering grant post-award • Training specific to learning about HPRP • Do not include: • Costs of issuing financial assistance • Providing services • Carrying out housing inspections, etc.

20. HPRP Program Eligibility • Any individual/family receiving financial assistance must at least have initial consultation with case manager • Household income cannot exceed 50% AMI • All participants must be documented to be: • Homeless • HUD definition – streets, shelters, places not meant for human habitation • People being imminently discharged from publically funded institutions (health care, foster/youth care programs, corrections) • Graduating or timing out of transitional housing • Domestic violence victims or • At Risk of Homelessness • And meet both of following: • No appropriate subsequent housing options are identified • Household lacks financial resources and support networks to obtain immediate housing or remain in its existing housing

21. Two Eligibility Paths

22. Quarterly Certification • Eligibility must be re-certified quarterly for all participants receiving financial assistance • Income eligibility • Continuing need for financial assistance • Likelihood of sustaining housing at end of HPRP assistance

23. Documentation of Homelessness • All participants who are eligible for assistance because of their homeless status must have documentation of status: • Letterhead from shelter, outreach provider, etc. • Documentation from institution that discharge is imminent • Outreach team documentation • Documentation should indicate that household lacks resources or support in community to obtain housing without HPRP support

24. Homeless Prevention Eligibility • Risk of homelessness must be documented • Responsibility for debt must be established prior to HPRP payments • Participant must be legal resident of premises prior to obtaining short or medium term rental assistance • Participant must be responsible for paying rent or utility bills • Named on lease • Named on utility account • Evidence (receipts, etc.) that participant has paid these bills in the past • As part of evidence of risk of homelessness, documentation should exist that required payments have not been made or participant lacks resources to make necessary payment

25. Determination of Risk of Homelessness • Risk of losing housing • No housing options identified • No financial resources and/or support networks to remain in housing or locate other housing • Would client become homeless but for this assistance • Can be used to assist persons graduating or timing out of transitional program to obtain permanent housing

26. Changed homeless definition in HEARTH Act • “Homeless” will also include: • Imminent risk of homelessness • Must leave current housing in the next 14 days • No place to go • No support network or resources to obtain housing • Family or unaccompanied youth is living ‘unstably’ • Defined as homeless under other Federal programs (DOE Education for Homeless Youth and Children) • Have lived for a long period without living independently in permanent housing • Have moved frequently • Will continue to experience instability because of disability, history of domestic violence or abuse, or multiple barriers to employment

27. Assessment must document risk of homelessness • Risk factors include: • Eviction in 2 weeks from private dwelling • Discharge in 2 weeks from institution • Sudden and significant loss of income • Sudden and significant increase in utility costs • Mental health and substance abuse issues • Severe housing burden • Homeless in last 12 months • Young head of household • Current or past child welfare involvement • Pending foreclosure of rental housing • Extremely low income • High overcrowding

28. Risk Factors (Cont) • History of institutional care (corrections, treatment, hospital) • Recent traumatic event to household (illness, death) • Credit problems that preclude access to housing • Significant medically-related debt

29. Risk of Homelessness in HEARTH Act • Income below 30% of AMI • Move frequently for economic reasons • Live doubled up • Face eviction • Live in hotel/motel • Live in severely overcrowded housing • Exiting an institution

30. Ineligible Uses of Funds • Cannot use HPRP to move a household into transitional housing • Cannot support transitional housing programs • Operating costs for any program are ineligible • Prohibited activities and expenditures • Construction or rehabilitation • Credit cards, consumer debt, • Car repair or transportation • Food • Medical/dental care and medications • Pet care • Entertainment • Work or education materials

31. Ineligible Activities (Continued) • Development of discharge plans from institutions • Can provide assistance to persons being discharged • Cash assistance to program participants • Child care • Employment training • Clothing/grooming • Fees cannot be charged to program participants

32. Accessing HPRP Assistance – Homeless Participants

33. Homeless Participants – Requirements for Housing Unit

34. Prior to Receiving Rental Assistance • Housing must be inspected • Prior to assisted household occupying unit • Every 12 months • Unit must meet HPRP standards or repaired/re-inspected • If the participant is not moving to a new unit, the current unit does not need to be inspected prior to receiving rental assistance. • Must be re-inspected if assistance goes over 12 months • State and local building and housing codes should be considered when deciding to provide rental assistance • Any unit that will house a child under 6 years old must be visually assessed for lead based paint hazards • Documentation of inspection must be maintained • A lease must be in place and the program participant must be on the lease to receive rental assistance

35. Overview of Lead Based Paint Requirements • Exemptions from requirements • Any unit constructed after January 1, 1978 • All 0-BR, Studio units • For non-exempt units that will be occupied by children 6 and under: • Visual assessment must be performed by HPRP agency • If deteriorated paint surface is found: • Paint stabilization must be performed using ‘safe work practices’ • Occupant protection • Specialized cleaning after hazard reduction activities • If abatement work occurs, unit must be visually assessed again to verify that hazard has been removed • Must be re-assessed every 12 months and anytime a new household occupies unit

36. Rent Reasonableness • Rental assistance cannot exceed actual rental cost • Must comply with rent reasonableness • Cannot exceed rents charged by owner for comparable units • Must be reasonable when compared to the costs of comparable units in the community • Location, quality, size, type and age of unit • Amenities, services and utilities provided by owner • Go Section8 software will allow easy determination of rent reasonableness.

37. Double Dipping • No rental assistance from HPRP if: • Payments are being received from another federal, state or local program for same cost types • Rent • Security deposits • Utility deposits • Utility payments • Moving cost assistance

38. Time Limits on Assistance • Housing relocation and stabilization (including case management) limited to 18 months/program participant • Rental Assistance cannot exceed 18 months • Up to 6 months of rent arrearages in 18 month limit • Indiana: participants may only receive 12 months of rent assistance unless term is extended

39. Participants must pay rent • Use HUD methodology • Tenant rent payment can be used to pay utilities (up to utility allowance) • If tenant rent exceeds utility allowance, balance must be paid to landlord • If tenant rent is less than utility allowance, HPRP can pay balance of utilities (up to allowance) directly to utility • NO PAYMENTS CAN BE MADE DIRECTLY TO PARTICIPANTS

40. Tenant rent payment • Every person receiving rental assistance (short or medium term) supported by HPRP must pay as rent (the higher of): • 30% of adjusted income • 10% of gross income

41. Process of determining tenant rent • Step 1: Calculate Annual Income – including and excluding required amounts • Step 2: Adjust income for allowable deductions • Step 3: Determine which approaches produces the highest tenant payment and calculate subsidy amount

42. Annual Income Includes • All amounts to all family members • Anticipated over upcoming year • Amounts obtained from assets • Regs: 24 CFR 5.609

43. Sources of income to include • Wages and salaries • Net income from business/profession • Interest and dividends • Social security, annuities, retirement, pensions • Unemployment, worker’s comp • Welfare payments • Alimony & child support • Armed forces pay

44. Income that is not included by HUD • Income from employment of children under 18 years • Payments for foster children • Lump sum additions (inheritances, insurance, capital gains) • Funds for medical expense reimbursement • Income of live-in aide • Student financial aid provided to student • Hostile fire pay (armed forces) • Amounts received under HUD funded training programs • Temporary, non-recurring, or sporadic income (incl. gifts) • Reparation payments • Earnings over $480 for full-time student 18 or older

45. Income not included (Cont.) • Adoption assistance payments over $480/adopted child • Deferred periodic amounts from SSI/SSD • Rebates of property taxes • Payments on behalf of developmentally disabled family member living at home • Food stamps • Domestic volunteer service payments (VISTA) • LIHEAP payments • Earned income tax credit • Payments under Job Training Partnership Act • Native American/Alaskan Native claim settlement

46. Income Deductions • 24CFR5.611 • $480/dependent • $400/elderly or disabled family member (1/household only) • Expenses greater than 3% of annual income for: • Unreimbursed medical expenses • Unreimbursed attendant and equipment • Reasonable child care to permit family member to work or further education

47. Treatment of Assets • Cash value of all assets must exceed $5000 to be considered • Income from assets must be included in annual income – not assets • Greater of actual income or imputed income from assets • Income should be imputed based on passbook rate applied to cash value of assets • Cash value = market value minus cost of converting asset to cash

48. Income Verification • Wages and Salaries: • Pay stubs, earnings statement, W-2 form • Signed and dated statement from employer • Statement from employer based on phone or in-person contact • Tips/Self-employment • Tax returns • Notarized statement from applicant (tip: have or locate a notary)

49. Income Verification – 2 • Assistance benefits (TANF, Workers Comp, SS, unemployment, etc.) • Copy of benefit check • Copy of award letter • Verification form from agency • Child support payments • Copy of court records • Copy of payment check

50. Income Verification – 3 • Interest/Dividends • Passbook/bank statement • Income tax return • Assets • Passbook/bank statement • Tax assessment or appraisal of real property