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Chapter XVI: Portability

Effective: May 1, 2009

Introduction

The U.S. Department of Housing and Urban Development (HUD) allows Housing Choice Voucher (HCV) holders the right of portability. Thus, an HCV holder can move anywhere in the United States that has a Public Housing Agency (PHA), that administers the HCV program.

Effective January 1, 2010, the Michigan State Housing Development Authority (MSHDA) will absorb all incoming portability applicants or participants moving to MSHDA’s jurisdiction from another PHA until further notice.

All MSHDA personnel and contracted agents must know the following general portability information when working with portability participants:

  1. Policies of the Receiving PHA (rPHA) supercede all policies established by the Initial PHA (iPHA).
  2. Portability relates to moves inside/outside of MSHDA’s jurisdictional boundary (generally out of state), while Transfers relate to participant moves between MSHDA Housing Agents (HAs) and/or counties. Refer to Chapter XV for Transfer procedures.
  3. MSHDA will accept ports from other Michigan PHAs only if the participant is moving outside the jurisdictional boundaries of the other Michigan PHA.
    1. An exception to this rule may occur, when a conflict of interest arises within another Michigan PHA that forces the PHA to transfer the participant away from their PHA’s administration. MSHDA may decide to administer these vouchers depending on the situation.
    2. Otherwise, exceptions (e.g. no conflict of interest exists or iPHA requests absorption) require written approval from MSHDA’s Director of Housing Voucher Programs.
  4. The option for portability does not extend to participants who are residing in developments participating in the Moderate Rehabilitation Program (MRP) or MRP Single Room Occupancy Program.
  5. Family Self-Sufficiency (FSS) participants may port their FSS Contract of Participation to another PHA in or outside of Michigan under the FSS program portability eligibility conditions.
  6. Participants planning to port to MSHDA’s jurisdiction should be directed to the Portability Coordinator (PC). The PC will verify whether the participant meets preliminary qualifications to port to MSHDA’s jurisdiction before assigning the participant’s case to a MSHDA Housing Agent (HA).
  7. Voucher issuance and expiration dates have strict parameters:
    1. Incoming portability participants must receive the same issuance and expiration dates provided by the iPHA. Only the PC may extend the voucher issuance period. Voucher issuance extensions will be given for reasonable accommodation only.
    2. Outgoing portability participants will receive a 60-day voucher. No extensions will be granted by MSHDA, however, a rPHA may choose to extend a voucher. If a rPHA extends the voucher issuance period, it must inform the iPHA of the extension and ensure that the extension leaves sufficient time to complete the participant move, execute a HAP Contract, and meet the HUD billing deadline dates.
  8. Due to the cost of portability, the iPHA’s may want to know MSHDA’s plans to absorb or administer the vouchers before incoming portability participants can consider porting to Michigan.

Section A: Incoming Portability (Administering)

1. Initial PHA (iPHA) Procedures

For participants moving to MSHDA’s jurisdiction, HUD requires the iPHA to provide MSHDA with the following information:

  1. Family Portability Information form (HUD-52665). A completed Page 1 must be signed by an official of the iPHA to certify that the participant is in good standing;
  2. Current voucher (HUD-52646) issued to the participant by the iPHA.
  3. Current Family Report form (HUD-50058); if a participant, or
  4. Income verification(s) corresponding with the current HUD-50058 form if an applicant.
  5. Where in Michigan, i.e. which city or county, the participant wishes to move;
  6. Contact telephone number for the participant;
  7. Copies of proof of birth and Social Security number for all members of the household.
    1. If the iPHA does not supply copies of the proofs of birth or Social Security numbers, the PC will return the portability packet to the iPHA and inform them the portability will not be accepted.
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2. Incoming Portability Coordinator (PC) Procedures for Applicants
  • Applicants who exercise portability are subject to rPHA income limits.
  • PC will verify that the applicant head of household or spouse already had a legal residence in the jurisdiction of the iPHA at the time when the family first submitted an application for participation in the program to the iPHA and if not, the portability must be denied
  • PC will verify that the applicant meets income eligibility and will then follow Steps 2 through 9 below for incoming portability applicants when portability cases are going to be administered by MSHDA.
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3. Incoming Portability Coordinator (PC) Procedures for Participants

Participants from another PHA are not subject to rPHA income limits. The PC will perform the following for Incoming portability participants when portability cases are going to be administered by MSHDA:

  • Verify whether or not the portability participant is in good standing. Participants who maintain their program responsibiilties (pay off any debts or remain current with their repayment agreement) with the iPHA can exercise their portability rights. A participant who exercises portability rights and subsequently becomes past due or delinquent in their repayment obligations can be terminated for violation of their program responsibilities. All PHAs have the authority to terminate a participant who owes a debt to another PHA.
  • Verify whether or not if the portability participant is on FSS with the iPHA.
    1. Provide the Resource Specialist with the Incoming Portability Information Checklist.
    2. If the participant is on FSS, contact the iPHA to see whether or not they are willing to transfer the Escrow funds to MSHDA.
    3. If the iPHA will not transfer the balance, then the transfer for FSS is not allowed.
    4. If the iPHA is willing to transfer the balance, all FSS paperwork and a check with the total amount of the Escrow should be sent with the Portability packet.
  • Verify the portability applicant/participant does not plan to move into the same jurisdiction from which they ported. This is critical when the applicant/participant ports from another Michigan PHA.
    1. If the participant plans to move within the iPHA boundaries and no conflict of interest or Director approval is identified, return the applicant/participant’s voucher to the iPHA.
  • Verify all adult members of an incoming portability applicant/participant’s household pass the criminal/sexual offense screenings criteria if Michigan residents. If out of state residents, perform a criminal screening for Michigan and request documentation of successful out of state criminal screening.
    1. If the head of household fails, the PC denies the portability and notifies the applicant/participant and the iPHA. PC sends MSHDA 1634 to tenant with copy to iPHA and HA.
    2. If another adult (not the head of household) fails the screening, the PC
      1. Denies the right of the failed member to move into the household,
      2. Notifies the applicant/participant of the denial, and
      3. Forwards this information to the HA with the paperwork received from the PHA.
      4. PC sends MSHDA 1634 to tenant with copy to HA and iPHA.
  • Verify proofs of birth and Social Security numbers for all household members of an incoming portability household are included in the portability packet from the iPHA.
  • Notify the iPHA that MSHDA intends to administer the case for the incoming applicant/portability participants:
    1. No later than 60 days following the voucher expiration date (set by the iPHA) and within 10 days of the date the HAP contract is signed, whichever occurs first.
    2. If the applicant/participant does not find suitable housing, the PC must notify the iPHA.
    3. Failure to timely notify the iPHA can result in MSHDA being forced to absorb the incoming portability participant.
  • Assign eligible incoming portability applicant/participants to a HA and forward the paperwork received from the iPHA. If the iPHA is in Michigan, inform the HA of its jurisdictional boundaries.
  • The PC will tickler the portability packet until the PC receives a response from the assigned HA that the participant needs to be set up in Elite.
  • The PC will approve cases in Elite for all administered portability applicants/participants. The PC will receive any correspondence regarding portability participants from the HA and iPHA.
    1. A chargeable error will be counted against the HA if any HCV transactions (e.g. Annual Reexaminations, etc) are not sent directly to the PC.
  • Check PIC to verify the iPHA processed a Portability Move-Out.
    1. If a Portability Move-Out was not transmitted to PIC by the iPHA, the PC must contact the iPHA and have them transmit it.
    2. If an End of Participation was transmitted to PIC by the iPHA for an administered participant, the PC must contact them and request that the End of Participation be voided and a Portability Move-Out be transmitted in its place.
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4. Administered Portability HA Procedures

The HA must not process incoming portability participants received directly from another PHA. All incoming portability participants must be processed through MSHDA’s Lansing office to identify their eligibility prior to receiving portability rights into MSHDA’s jurisdiction. The HA performs the following for incoming portability participants (MSHDA’s policy as the rPHA supersedes the iPHA’s policy):

  1. Determine the voucher issuance size based on criteria contained in the PPM, Chapter III, Selection and Issuance.
  2. Issue a MSHDA voucher to the head of household, which reflects the same issuance and expiration date as the iPHA voucher.
    1. MSHDA cannot change the expiration date of the voucher without prior consent of the iPHA. If an extension is needed, notify the PC to request the extension from the iPHA. This must be requested prior to Voucher expiration. Voucher issuance extensions will be given for reasonable accommodation only.
    2. A countable error will be charged to the HA if the voucher issuance and expiration dates are changed without the PC’s approval.
  3. Issue a Briefing Packet and Voucher to the incoming portability household either by U.S. mail or in person. The head-of-household must sign the cover page of the Briefing Packet and Voucher.
  4. Verify the portability participant does not plan to move into the same jurisdiction from which they ported. This is critical when the participant ports from another Michigan PHA.
    1. If the participant plans to move within the iPHA boundaries and no conflict of interest or Director approval is identified, notify the PC and deny the portability until further notice from the PC.
  5. When the HA has a HAP Contract effective date, the HA will notify the PC to set the participant up in Elite.
    1. To assist in meeting the HUD imposed deadline, the HA should wait until the landlord has signed and returned the contract prior to signing the contract him/herself.
  6. After entering the necessary information for the participant into Elite, all agents, including those who approve their own cases, must submit necessary paperwork for the Portability Move-In to the PC within five working days of executing (signing) the HAP contract for approval and for billing the iPHA.
    1. Any HCV transaction (e.g. annual or interim reexaminations, moves,) that the HA administers on behalf of a portability participant must be sent to the PC.
    2. The Date of Admission in Elite should be the same date as the Date of Admission on the 50058 (page 1: 2h) from the iPHA. Refer to the Elite User Guide for further instructions.
    3. All HA’s, including those who approve their own cases, will maintain a working file. The PC will maintain the permanent file.
  7. If the incoming portability applicant/participant does not find suitable housing by the expiration of their voucher, the HA must complete a MSHDA 1634 and send to applicant/participant with a copy to the PC.
  8. The denied applicant/participant's file must be retained for three years.
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