Portability: It’s A Balancing ActAbsorbing vs Billing Texas Housing Association Conference August 13, 2019 Selarstean M. Mitchell, Presenter
Portability Resources • HUD Final Rule, Housing Choice Voucher Program: Streamlining the Portability Process, Published August 20, 2015 • HUD PIH Notice 2016-09 (HA)
Portability Overview • How much do you really know? • Details…………… • Let’s refresh
Briefing • Required oral briefing and information packet. • How portability works. • Advantages to moving to areas with low concentration of low income families. • Information on selecting a unit. • Voucher term. • List of landlords or other resources.
Suspension of the term of the voucher When family submits Request for Tenancy Approval, the term of the voucher is suspended until PHA notifies the family in writing whether tenancy has been approved or denied. Requirement to suspend applies to receiving PHA only.
Denying Family Requests to Move • Mandatory denial. • Discretionary denial. • Violence Against Women Act (VAWA)
Insufficient Funding • If PHA approves a family’s request to move and then experiences a funding shortfall, the PHA may only rescind the voucher if the family would be allowed to remain in its current unit. • If the family cannot remain in the unit, the PHA must not rescind the voucher. The family must be allowed to lease a new unit.
Denying a Move Due to Insufficient Funding • The move is to a higher cost unit. • The receiving PHA is not absorbing the voucher. • The PHA would be unable to avoid termination of current participants in order to remain within its budgetary authority.
Higher Cost Unit • A unit which requires a higher subsidy amount due to an increase in the gross rent for the new unit. • A PHA may not deny requests to move due to insufficient funding if the subsidy for the new unit is equal to or less than the current subsidy being paid for the family.
Higher Cost Area • An area where the PHA would have to pay a higher subsidy amount due to higher payment standards or more generous subsidy standards of the receiving PHA. • A PHA may not deny requests to move due to insufficient funding if the area the family has selected is not a higher cost area.
Notifying Local PIH Field Office • Financial analysis that demonstrates insufficient funds are projected to meet the current year projection of expenses. • A statement certifying the PHA has ceased issuing vouchers and will not admit families from their waiting list. • A copy of the PHA’s policy stating how the PHA will address families who have been denied moves.
Initial PHA Responsibilities • Determining HCV program eligibility of applicant families. • Determining eligibility to move. • Selecting the receiving PHA. • Contacting the receiving PHA. • Voucher issuance.
Initial PHA Responsibilities • Advising family how to contact the receiving PHA. • Notifying the receiving PHA. • Providing portability information. • Providing information for special purpose vouchers.
Receiving PHA responsibilities • Requirement to administer assistance. • Denial or termination of assistance. • Responding to the initial PHA. • Expired initial PHA voucher. • Determining the unit size. • Voucher issuance. • Voucher extensions.
Receiving PHA Responsibilities • Reexaminations. • Family decides not to lease in the receiving PHA’s jurisdiction. • Notifying the initial PHA. • Absorption of the ported voucher.
Receiving PHA Ongoing Responsibilities • Special purpose vouchers. • Failure to send updated 50058. • Family decides to port to another jurisdiction.
Administrative Fees • Initial PHA reimburses the receiving PHA for the lesser of 80% of the initial PHA’s ongoing administrative fee or 100% of the receiving PHA’s ongoing administrative fee. • Initial and receiving PHAs may agree on a different administrative fee amount. • Proration due to insufficient administrative fee funding will apply to the amount the receiving PHA may bill the initial PHA.
Billing the Initial PHA • Form HUD 52665. • Initial billing deadline. • Late initial billings. • Mid-month moves. • Changes in the billing amount.
Challenges • Small Area Fair Market Rents. • Various payment standards. • Rent increases. • Shortfall status.
Resources • Budget/Utilization Forecasting Tool • Interlocal agreements with neighboring PHAs
Absorb or Bill???? • Funding issues- Bill • Shortfall- Bill • Need to lease up- Absorb • Want simplicity- Absorb