MSHDA - Office of Housing Voucher Programs Policy and Procedures Manual

Chapter II: Waiting List Management

Effective: December 2009

Introduction

MSHDA has established an application and selection process to ensure that anyone who expresses an interest in receiving help to pay their rent are given an equal opportunity to apply for Housing Choice Voucher (HCV) rental assistance, in a way that treats applicants fairly and consistently, and provides an effective method for determining eligibility. Outreach and maintaining an up-to-date and well-managed waiting list ensure needy applicants receive assistance as quickly as possible and helps MSHDA attain/sustain a high leasing rate.

Section A: Opening A Waiting List

1. Determination to Open a List

When determining whether a waiting list should be opened, consider the number of applicants on the list. If all the applicants on the waiting list will be notified of the availability of rental assistance within the next 12 months, the list should be opened and applications accepted.

2. Request for Advertising

To open a waiting list, the Request for Advertising – Waiting Lists (MSHDA 141) must be completed in its entirety and submitted to the appropriate Resource Specialist (RS) (along with a sample advertisement) for approval at least 60 days in advance of the projected open date. If the waiting list will be open for an indefinite period of time, check the “Indefinite” box, Item 3d. If the waiting list will open for a specified time period, enter the waiting list closure date.

3. Approval/Denial of Opening a Waiting List

• After reviewing the completed MSHDA 141, the RS approves or denies the request to open the waiting list. If denied, the RS returns the MSHDA 141 to the Housing Agent (HA) with an explanation. If approved, the RS forwards the MSHDA 141 to the Administrative Assistant to the division Director who initiates the advertising process with the contracted agency identified by MSHDA’s Office of Communications. Before the ad is placed, the Administrative Assistant to the Division Director sends the advertising proof to the RS and HA for final review and approval.
• HA’s may, with RS approval, place additional advertisements at their own expense.

4. Public Announcement

• When a waiting list is opened, the opening must be publicly announced in a newspaper of general circulation, as well as through the appropriate service agencies and media most likely to reach low income and minority groups in the county. Other special outreach efforts must be considered to advise target populations such as a notice on the MSHDA website, public service announcements, posted notices in county buildings, utility bill inserts, Department of Human Services (DHS) notices, etc. All proposed public announcements must be reviewed and approved by the assigned Resource Specialist (RS).
• The first come, first served method is utilized for all open waiting list periods of one week or more. In a smaller non-metropolitan county, the waiting list is usually opened for an indefinite period of time. The public announcement would identify that applications are being accepted.
• The lottery (random computer generated ordered list) method is utilized for all open waiting list periods of less than one week. In a large metropolitan county, the published announcement(s) should include both the beginning and ending dates that applications will be accepted.

Section B: Outreach

Outreach for applicants must be conducted for an open waiting list any time all the applicants on the waiting list will be notified of the availability of rental assistance within the next 12 months.

1. Announcing Opening of a Waiting List

• At a minimum, the HA should notify the following agencies of the intention to open the waiting list by using a letter or via a presentation at a local Continuum of Care (CoC) meeting:
  1. The County Department of Mental Health;
  2. The County Department of Human Services;
  3. The County Office or Commission on Aging;
  4. The County Department of Public Health; and
  5. Agencies dealing with Elderly and Disabled populations.
• The above-identified State-affiliated agencies may invite other associated groups and may forward MSHDA application materials.
• The RS should notify MSHDA staff, other HA’s, MRP/SRO Developments if appropriate, and other local PHA’s in the area where the waiting list will be opening and the dates that applications will be accepted.

2. Informational Meeting

• At least one month prior to opening a closed waiting list, an informational session must be held at a monthly local CoC meeting to provide additional information on the application completion requirements. The intent of this session is to instruct outside agency representatives on the application requirements so they can assist their clients in properly completing the application (MSHDA 322) and obtaining the appropriate verification documents. The informational meeting must be scheduled at least 30 days in advance of the advertisement each time a closed list is opened. After the meeting, HA may provide additional applications, brochures, posters, etc. to any agency upon request.
• In general, the information shared at the CoC meeting must include:
  1. how to complete a MSHDA 322 and related verification documents,
  2. a brief explanation of the outreach plan,
  3. procedures for registering complaints (i.e. contacting the assigned RS to discuss); and,
  4. distribution of copies of the MSHDA 322.
• A copy of the minutes from the CoC meeting must be kept by the HA and a copy provided to the MSHDA RS to show attendance.
• At least seven days prior to closing an indefinitely opened waiting list, notify members of the CoC either by letter or during a CoC meeting of the official closing date.
• Applications completed by staff members from any of the above-identified agencies or their designated representatives are accepted on behalf of eligible applicants provided the applicant has signed the document. Space is provided on the MSHDA 322 to identify the staff person and agency assisting the applicant. If the MSHDA 322 is incomplete, notify both the applicant and the identified staff person of any deficiencies via the Application Status Letter (MSHDA 1634a) (use the blank line at the bottom of the form to note the deficiency).
• When the applicant has a designated representative and a MSHDA 322 requires updating or when their name is pulled from the waiting list, notify both the applicant and the designated representative (if any).

3. Waiting List Opening Dates Placement on the MSHDA Website

The RS is responsible for notifying the Office of Housing Voucher Programs web coordinator of the dates of the waiting list opening for announcement on the MSHDA official website.

Section C: Application Distribution Procedures

• Applications must be distributed in person or via the U.S. Mail beginning on the published opening date and ending on the published closing date.
• The HA will enter the name of the county on page 1 of the MSHDA 322, and enter the return address in the appropriate box on the MSHDA 322 prior to mailing/ distributing.
• The application process must be accessible to persons with disabilities. If the application site is not accessible, MSHDA must offer a reasonable accommodation that provides full access to the application process.
• If the application is received prior to the published opening date, hold the document and post its receipt in the order it was opened at the end of the first day the list opened.
• Mailed applications must be postmarked on or before the due date. This applies to a waiting list that has a published closing date.
• When applications are received, the HA must complete the information in the MSHDA Use Box of the application, including gross/adjusted annual income, income type, and household size. Indicate if the applicant has a designated representative.

Section D: Application Review Procedures

Before placement on the waiting list the HA must review received applications for eligibility. Review applications for the following:

1. Program Eligibility Income Limit Qualification

• Applications will only be accepted from families with gross incomes that are 50% area median income (AMI). See Appendix for current income limits.
• Elite will calculate the gross annual income from information provided by the applicant on the MSHDA 322. If income information cannot be determined (i.e. left blank), notify the applicant of the deficiency via a MSHDA 1634a requesting an income estimate within 14 days. Deny the application if the information is not provided within the designated time frame. An applicant name cannot be added to the waiting list without income information, as required income targeting information is not available.
• Enter all new applicants in Elite pre-application entry.
• When determining income eligibility for a single pregnant adult (one household member), income limits for one person apply.
• If the household gross income is above the appropriate income limit level, the applicant must be denied placement on the waiting list. Notify applicant of the denial using an Application Denial/Program Termination form (MSHDA 1634b). An informal review cannot be requested by the applicant.

2. Student Eligibility

• A full-time student (18+, high school or college) is eligible for HCV assistance when the student:
  1. Lives with his/her parent/guardian(s); and
  2. Is claimed as a dependent by their parent/guardian(s), and
  3. Eligibiity for the HCV program is based on the income of the parent/guardian(s) (the parents jointly or independently) and all other members of the family.
• All other part or full-time students enrolled as a student at an institution of higher education are eligible for housing assistance under Section 8 of the United States Housing Act of 1937 if he/she can show independent status from parent/guardian(s) for at least one year prior to applying to the waiting list or the individual meets the U.S. Department of Education definition of an independent student, and they meet any of the following criteria.
  1. 24 years of age or older;
  2. A veteran of the U.S. Military;
  3. Married;
  4. Has a dependent child.
• If the applicant does not meet the criteria, the applicant must be denied placement on the waiting list. Notify applicant of the denial using a MSHDA 1634b.

3. Delinquency Check

• If the applicant's name appears in Elite as delinquent or the applicant has a known debt with another PHA and they applicant is current on a scheduled Repayment Agreement, the application must be accepted.
• If the applicant is delinquent or has refused to sign a Repayment Agreement, the application must be denied unless the applicant pays the total debt, brings the debt current, or signs a Repayment Agreement, whichever is applicable, within 14 days. Once denied, the applicant may reapply to an open waiting list provided the negative delinquency status has changed. Denial notification is sent/issued via the MSHDA 1634b.

4. Incomplete Applications

If an application is incomplete, i.e. unsigned application, missing information; notify the applicant of the deficiency via a MSHDA 1634a requesting the missing information within 14 days. Deny the application if the information is not provided within the designated time frame. Notify applicant of the denial using a MSHDA 1634b.

5. Receipt of Application for a Closed Waiting List

If an application is received for a county with a closed waiting list, the HA will notify the applicant that the application is denied because they applied to a closed waiting list. Denial notification is sent/issued via the MSHDA 1634b. An informal review cannot be requested by the applicant.

6. Receipt of Application for Different County

• If an application is received for a different county with an open waiting list, the HA must forward the application to the requested county for processing/notification. The receiving HA must E-mail the HA in the new county advising that an application is en route.
• If an application is received for a different county with a closed waiting list, the HA will notify the applicant that the application is denied because they applied to a closed waiting list. Denial notification is sent/issued via the MSHDA 1634b. An informal review cannot be requested by the applicant.

7. Receipt of Application and applicant is already on another county waiting list

Notify applicant they are denied because they can only be on one waiting list. Denial letter must advise applicant to contact HA in original county of application.

Section E: Waiting List Placement Procedures

Once it has been determined that an application meets eligibility criteria, the HA will place the applicant on the waiting list using one of the following methods:

1. First Come, First Served Placement Method

(Used with open waiting list periods of one week or more)

When the application is received, the date and time of application receipt must be entered in the MSHDA Use box on the application. Date/time stamps may be used. The application is entered into Elite using the date and time the application was received.

2. Random Sort/Lottery Placement Method

(Used with open waiting list periods of less than one week)

• After all applications are received during the time the waiting list is opened, MSHDA will assign positions on the waiting list to new applicants using an Elite generated random sort. When the random sort is performed, it shall replace date and time of application for the purpose of structuring the order in which applications are considered.
• The HA requests the MSHDA Elite Tech to allow access to Elite to enter applications. The HA enters all applications using the same date and time. It is recommended you use the deadline date and 12:00 pm. For example, you would use June 17 and 12:00 pm for all applications. After all applications are entered into Elite, the HA notifies the MSHDA Elite Tech to perform a random sort. The Elite system performs the random sort and MSHDA Elite Tech closes access to the county waiting list. After the sort, all applicants will be given a position number. In the MSHDA use box place the actual date received and time received for random sorts only. Place sequence date and time in MSHDA use box.
• In situations where large numbers of applications are received, MSHDA will determine the total number to be placed on the waiting list; i.e. 8,000 applications may be received but MSHDA may decide to place only 5,000 on the waiting list (lottery placement). All 8,000 applications are entered into Elite and a random sort by Elite is performed. All applications numbered 5,001 and above after the random sort will be denied placement on the waiting list and those applicants will receive a MSHDA 1634b denying placement on the waiting list.
• The number of accepted applications must be stated in the waiting list announcement.
• If name is already on waiting list when a random sort is conducted, HA should contact an Elite administrator to ensure proper sort procedures are followed.

3. Determining Residency at Time of Application

• The applicant (head, spouse, or co-head of household ) must either reside in, be working in, or hired to work in the County of application to be eligible for the residency preference. Residency preference must be verified at the time of application and match the application address. The residency preference applies to the entire county and must be granted to all households who, at the time of application and again at the time the application is pulled, verify they reside in the county of application, or the applicant (head, spouse, or co-head) works or has been hired to work in the county of application.
• If an applicant is homeless and is staying in a Shelter located in a different county because there is no Shelter located in the county of application, the original county of residence can be used for residency preference if an original letter from lead agency, shelter, or service provider on agency stationery is provided. The letter must state the applicant is homeless in the county of application. For example, a Roscommon County resident is temporarily receiving shelter in a homeless shelter located in Otsego County (nearest shelter and no shelter is located in Roscommon County). The applicant would be able to receive a residency preference in Roscommon County if the applicant provides a letter on the Otsego County shelter stationery stating that the individual is temporarily being housed in Otsego County and is a resident of Roscommon County. The proof of residency verification must be submitted with the case material when the case is finalized.
• Examples of proof of residency would include the following: a copy of a lease with the applicant’s name on it, driver’s license, state ID card, Medicaid card with address, utility bill with applicant’s name on it, a Social Security printout, voter’s registration card, or other proof of residence address. Proof of employment in a county would be a completed Verification of Earnings (MSHDA-49), a letter from the employer stating the applicant (head, spouse, or co-head) is employed (or will be including a start date) in that county, or a paycheck stub with the employer’s address showing the business is located in that county.

  Note: Return envelopes/county postmarks/notarized statements are NOT considered adequate proof of residency.

• If the applicant verifies residency in a county and then moves to another residence in the same county, the applicant does not need to verify residency again. The applicant must notify the HA of the move/address change.
• If the residency verification for the application address is incomplete, the HA must notify the applicant of the deficiency and their placement on the non-resident waiting list via a MSHDA 1634a. If residency verification for the application address is provided within the 14-day deadline provided on the 1634a, the applicant will be considered a resident as of the date of application. The HA will transfer the applicant to resident status on Elite and notify the applicant via a new MSHDA 1634a.
• If the applicant did not provide the proof of residency within the 14-day deadline, they remain as a non-resident status. If the residency verification is later received after the deadline on the 1634a, the HA shall classify the applicant as a resident as of the date the verification was actually received whether the waiting list is open or closed.
• The HA does this by changing the sequence date and time and residency status in Elite. The HA must document this on a 1634a to be sent to the tenant. A note must be made on the application use box that the residency date is being changed due to the date of proof of residency. The new sequence date and time must be placed on the application with HA initials.
• When the proof of residency is verified after the 14-day deadline due to an applicant’s disability and approved reasonable accommodation, the applicant’s status as a resident will be effective the date of application. See Chapter XVII Reasonable Accommodation.

  For example, a family who lives in Wayne County applies to an open Ionia County waiting list. The family is placed on the Ionia County waiting list as a non-resident. The applicant will always remain classified as a non-resident. If the Wayne County applicant later notifies the HA of a move to Ionia County, the applicant would be classified as resident status on the Ionia County waiting list effective the date the verification of the move to Ionia County is received.

Note: When changes are needed to a closed waiting list, notify Elite troubleshooter for assistance.

Section F: Notice of Application Acceptance Procedures

• Each applicant must receive written notice of the receipt of his or her application and residency status on the waiting list or a determination of ineligibility. Acceptance notification is provided via the Application Status Letter (MSHDA 1634a). The Cross Listing Notice is required in certain counties. Refer to Section P of this Chapter entitled Cross Listing Notice for MRP/SRO for more information.
• Notification letters must be sent within 30 days if the waiting list is only opened for a specific period of time or within 14 days if the list is opened indefinitely/continuously. If unable to process the Notification letters within the 14/30 day timeframe, discuss time extension requests and submit a notification of extension by E-mail to the RS.
• Waiting list for the HUD VASH program and HUD FUP program have waiting lists for he vouchers established by outside agencies as determined by the funding.

Section G: Waiting Lists for Special Programs

• If a county utilizes vouchers for any of the following special programs, separate waiting lists are also established and maintained for each of these voucher programs, which include:
  1. Affordable Assisted Housing Program (AAHP),
  2. Homeless Assistance Recovery Program (HARP), or
  3. Project-Based Voucher (PBV) program.
  4. Mainstream
  5. VASH
  6. FUP (when vouchers awarded by HUD)
  7. Non-elderly disabled (when vouchers awarded)
• Applicants may be on only one county HCV waiting list, but may be on more than one waiting list within that county as appropriate. For example, the applicant may be on the Kalamazoo County HCV waiting list as well as PBV and the HARP waiting lists for Kalamazoo County.
• With the exception of the PBV program, waiting lists are not divided by bedroom size.
• For specific waiting list procedures regarding each of these programs refer to the appropriate policy and procedures manual chapter:
  • AAHP - Chapter XIX
  • HARP - Chapter XXI
  • PBV - Chpater XXII
• Waiting list for the HUD VASH program and HUD FUP program have waiting lists for the vouchers established by outside agencies (i.e., VA, DHS) as determined by funding.

Section H: Enter Data in Elite

Applications received for an open waiting list should be entered into Elite within 10 working days.

Enter data on the waiting list for head of household. The HA may choose to enter data for head of household only as long as all the family member information is entered prior to briefing. If entering head of household information only, enter the following information: head of household name, gender, address, date of birth, Social Security Number, ethnicity, the total number of persons in the household, and total family gross income. If the head of household information is being entered and the spouse or co-head is checked disabled on the application, code the head of household as disabled in Elite.

When entering application data on Elite, enter all income under the Head of Household so income eligibility will be calculated correctly by Elite.

Refer to the Elite User Guides for the Waiting List Module, Full Application Entry, for additional instructions.

Section I: Printing the Waiting List

Print the Waiting List Report using the status “currently on the waiting list” and the status “after preliminary draw” on a monthly basis following the HAP generation report and after the opening of a waiting list. A copy of the page(s) of the waiting list report that lists the applicant and two prior names must be included in every file. Send the previous waiting list page if necessary to show the placement of names on the waiting list.

Section J: Application Ranking Preferences

Ranking preferences are used when selecting among applicants. An applicant who qualifies for a ranking preference receives priority placement over applicants without one. Within the ranking preference (i.e. residency), the sequence date then determines an applicant's placement on the waiting list. MSHDA ranks its preferences in the following order of priority:

1. Participants transferring from another Housing Agency as portability vouchers receive immediate assistance. See Chapter XVI, Portability.
2. Residency Preference - applies to every type of application over non-residency
   1. A residency preference applies to the entire county and must be granted to all households who verify they reside in the county of application, or the applicant (head, co-head, or spouse) works or has been hired to work in the county of application, at the time of application and again at the time the application is pulled from the waiting list.
   2. For example, assume that a family residing in Oakland County applied for the open Wayne County waiting list in July 2001 and a family residing in Wayne County applied for and verified residency for the open Wayne County waiting list in December 2001. The Oakland County family does not live or work in Wayne County and would be considered a non-resident on the waiting list. Even though the Oakland County family applied first, the Wayne County household would receive assistance before the Oakland County household because they resided in Wayne County at the time of application and would be considered a resident on the waiting list and receive the residency preference.
3. Homeless Preference in Select Counties.
   1. Homeless with HOME Tenant Based Rental Assistance (TBRA) receive priority ranking on the HARP waiting list.
   2. Homeless without HOME TBRA.

Section K: Changes While on the Waiting List

1. Changes in Family Information

• All changes (name, telephone number, address, family composition, income, etc.) must be reported by the applicant to the HA in writing. If desired, use the Application Status Update (MSHDA 155) to identify the changes. Upon receipt of the written notice, a MSHDA 1634a must be forwarded to the applicant acknowledging the change (use the blank line at the bottom of the form to note the change). Note: When applicable, the address/telephone number change box may be checked in lieu of using the blank lines.
• Enter all changes in Elite. See Elite User Guide for instructions.

2. Transfers to a Different County

• Applicants with residency preference who desire to transfer from one county to another prior to reaching the top of the waiting list in the originally-requested county may do so. The applicant must provide written notice to the HA in the original county requesting to transfer their MSHDA 322 to another county.
• When an applicant wishes to transfer their application to a different county, the date of the verification of residency requirements in the new county becomes the sequence date for placement on the new county waiting list.
• HA in the receiving county must place name on waiting list as resident or non-resident.
• All applicants on a waiting list with a residency preference retain a residency preference when they transfer to a new county if the applicant provides verification of residency or employment in the new county.
• All applicants with a non-residency preference in any county who wish to transfer to a county with an open waiting list must verify their move to (residency) or employment in the new county to receive a residency preference in the new county with an open waiting list. The date of the verification of residency requirements in the new county becomes the effective date for placement on the new county waiting list. If they cannot prove residency in the new county they would be classified as non-residency status.
• Applicants with a non-residency preference in a county who wish to transfer to a county with a closed waiting list cannot transfer their application to the new county.
• For example, an applicant on the Wayne county waiting list with residency expresses a desire to transfer their application to an open Ionia county waiting list. The applicant is placed on the Ionia County waiting list as a non-resident because they cannot prove residency in Ionia County. When the Wayne County resident later notifies the HA of a move to or employment in Ionia County, the applicant would be changed to resident status on the waiting list effective the date the verification of the move to or employment in Ionia County is received.
• When a transfer request is received, the sending HA in the original county must:
  1. Forward a MSHDA 1634a to the applicant with a copy to the receiving agent (and manager of the waiting list if applicable) showing the change.
  2. Forward the MSHDA 322 and any other related information to the new (receiving) county office where the waiting list is maintained (including residency preference documentation if applicable).
  3. E-mail the receiving HA advising that an application is en route.
  4. E-mail the Elite Tech requesting the Elite Tech to make the change. (Note: This is not de-activating the applicant.
  5. Be responsible for answering all inquiries until the file is physically transferred.
• The receiving HA must:
  1. Enter changes in Elite. See Elite User Guides for detailed instructions.

3. Applicant Transfers Out of State

If the applicant with residency status moves out of the State of Michigan and has employment in the State of Michigan, their residency status may remain as a resident and they may stay on the waiting list. If the applicant with residency status moves out of the State of Michigan and does not have employment in the State of Michigan, their residency status must be changed to non-resident.

Section L: Waiting List Pulls

1. Confirmation of Residency

The HA must confirm that the residency preference is correct at the time the name is pulled from the waiting list. If at the time of the waiting list pull the applicant continues to be a resident of the county, proceed with application processing.

2. Family Expresses Desire to Transfer Their Assistance at Time of Wait List Pull

• Once the applicant's name reaches the top of the waiting list and their name is pulled and they express a desire to transfer to another county; the initial HA would make a determination if the family is eligible in accordance with residency and the program eligibility income limits. If the family meets eligibility requirements, they may relocate within MSHDA’s jurisdiction (the state of Michigan). The applicant family would be eligible to transfer if they are:
  1. Income eligible in the desired county; and
  2. The payment standard in the new county is equal to or less than the current payment standard the applicant is eligible to receive in the waiting list county, OR,
  3. The family has obtained employment in the new county (and can provide employment verification via the Verification of Earnings, MSHDA 49 or a letter from the employer verifying employment;) OR,
  4. The family has requested and received a reasonable accommodation due to a disability to justify the move.

  Note: If the payment standard exceeds the applicant county's payment standard, the applicant is NOT eligible to transfer to the new county

• If the applicant meets the above criteria, the applicant may transfer. If the applicant does not meet the above criteria, the applicant must stay in their current county or move to another county where they meet the eligibility requirements.
• The initial HA forwards an e-mail to the Portability Coordinator (PC) to request the transfer of the applicant to the appropriate HA. The PC will determine who will be the receiving HA and if the receiving HA has an available increment for the transfer, and notify the parties. The initial HA will perform the voucher issuance in Elite, then PC transfers the applicant to the receiving HA. If the receiving HA does not have an available increment, the MSHDA staff person responsible for increment assignment will transfer an available increment from the initial HA to the receiving HA.
• The initial HA provides the applicant with appropriate documents and instructions for forwarding the information to the receiving HA.

3. Family Expresses Desire to Exercise Portability Rights out of Michigan

• Once the applicant’s name reaches the top of the waiting list and their name is pulled, an applicant is eligible to exercise portability rights outside of MSHDA’s jurisdiction (out of the state of Michigan) if:
  1. Their income qualifies according to both MSHDA and the receiving PHA’s income limits at the time the application is pulled from the waiting list, and
  2. The head of household or spouse resided in Michigan at the time of application. If an applicant head of household or spouse did not live in Michigan at the time of application, they must receive assistance (on a HAP Contract) within MSHDA’s jurisdiction for at least 12 months before qualifying to port to another PHA’s jurisdiction.
• The initial HA is responsible for answering all inquiries until the file is physically transferred or referred to the Portability Coordinator. Refer to Chapter XVI, Portability for more information regarding portability.

4. Applicant has moved to another County prior to the Wait List Pull

• When the resident applicant’s name is pulled from the waiting list and the applicant has moved to another county prior to the pull and the applicant did not notify MSHDA of the move and desires assistance in the new County; the MSHDA 322 must be transferred to the county waiting list where the applicant moved.
• The original county HA must notify the MSHDA Elite Tech by e-mail and request the application be transferred in Elite to the appropriate county. If the waiting list is open or closed in the new county and the physical move to or employment in the new county is documented, a residency preference must be granted in the new county effective the date verification proof of residency is received. No briefing will take place in the new county until the application is pulled based on the date the verification of residency in the new county is received.

5. Preliminary Income Eligibility

• At the time of a waiting list pull, the applicant’s adjusted income must be at or below 30% area median income (AMI) to be eligible. The HA has the option of verifying adjusted income by using one of the following methods:
  1. Following the complete third party income verification process, or
  2. Initially confirming preliminary income eligibility by sending a Self-Certification of Income (MSHDA 1891) to the applicant for completion, and if deemed eligible, following with the complete third party income verification process.
• It is MSHDA's admission eligibility criteria that 85% of new admissions must be at or below 30% AMI and up to 15% of new admissions must be at or below 50% AMI.
• If the HA determines that adjusted income is above 30% AMI but below 50% AMI, the family may be assisted. Denial notification is sent using the MSHDA 1634b. The HA removes the family from the waiting list. Applicants cannot request an informal review.

Section M: Removing Applicant Names from a Waiting List

• Applicant names must be removed from the waiting list when the applicant:
  1. Requests removal from the waiting list(s); or
  2. Refuses to accept a voucher when offered; or
  3. Is determined to be ineligible for any reason; or
  4. Has been issued a voucher and the issuance time has expired. (The applicant cannot postpone acceptance of the voucher); or
  5. Did not respond, or their designated representative did not respond, to request(s) for verification and/or updates.
• The HA may not remove the name of any disabled applicant from a waiting list whose failure to respond was a result of their disability. A reasonable accommodation must be provided by MSHDA when requested by a disabled applicant. A disabled applicant has up to six months to request an appeal if their name has been removed for no response. An informal meeting with the­ assigned HA will be conducted to evaluate reinstatement. During the meeting, the applicant must prove that the reason for their failure to respond was directly related to their disability. Once verified, the applicant's name must be reinstated on the waiting list according to their original application date and time.
• Do not prematurely remove names from a waiting list. Any other deviation regarding removing/reinstating names must be for "good cause" (i.e. verified hospitalization). Submit notification of “good cause” to the RS.

Section N: Purging/Updating the Waiting List

• To keep waiting list data current, the waiting list should be updated on an as-needed basis. An up-to-date waiting list minimizes the number of “no-shows” and ineligible determinations, and helps prevent delays in leasing activities.
• Waiting lists must be updated if they contain applications over two years old.
• For large counties with large waiting lists that are seldom open, exceptions to purging the entire waiting list may be discussed with the assigned RS.
• Send each applicant a MSHDA 155. Allow 14 days for a response. Note on the Application that a “MSHDA 155 was sent on xx/xx/xx date.”
• If a completed MSHDA 155 is returned, retain the name on the waiting list. If applicable:
  1. Send a 1634a noting any changes.
  2. Update Elite with appropriate changes.
• If a MSHDA 155 is returned “addressee unknown” or “return to sender”; or a response is not received within the 14-day period, send a MSHDA 1634b, record the action on the Application and remove the name from the Elite waiting list. (See the Elite User Guides for instructions). The removal should be carefully documented to prevent any disputes. If the letter is returned because the addressee couldn't be located, it is recommended the returned letter be placed in the file.

Section O: Closing An Open Waiting List

1. Decision to Close a Waiting List

When determining whether a waiting list should be closed, consider the number of applicants on the list. Suspension of taking applications (i.e. closing the list) cannot occur unless the waiting list review determines that it is unlikely all applicants on the list will be served within the next 12-month period or there are more than 75 applicants/20% of the county allocation on the waiting list. Closing a list eliminates unnecessary application processing costs, allows staff to devote time to other important program activities, and prevents false hope among families that assistance will be available in the near future.

2. Procedures to Close an Open Waiting List

• At such time that an “open” list will be closed, the MSHDA 141 must be completed and forwarded to the appropriate RS at least 60 days in advance of the projected close date.
• Upon approval, the RS will notify MSHDA Office of Housing Voucher Programs staff, MSHDA Office of Rental Development and Homeless Initiatives (ORDHI), the Continuum of Care, and designated lead agency of the effective date of the waiting list closure.

3. Public Announcement/Request for Advertising

MSHDA’s Office of Communications is responsible for actually placing the advertisements for all counties. All proposed public announcements must be reviewed and approved by the RS.

Section P: Cross Listing Notice for MRP/SRO

• Use of the Cross Listing Notice (MSHDA 1634d) pertains to residents of Ingham, Kalamazoo, Kent , and Wayne counties only because the Moderate Rehabilitation Program (MRP) and Single Room Occupancy (SRO) Programs are located in those counties.
• In the four counties that have a MRP/SRO program and an open waiting list, the Applicant must be notified of the available unit-based rental assistance programs and offered the ability to be on both waiting lists via the MSHDA 1634d. If the applicant chooses, they may be placed on both tenant- and unit-based (MRP/SRO) waiting lists in those counties.
• If the applicant living at an MRP/SRO development reaches the top of a county waiting list for a tenant-based HCV, the HA must determine if the tenant has been receiving the MRP/SRO subsidy for at least one year. If the tenant has resided at the MRP/SRO property for one year and the tenant desires to relocate, the HA will advise the tenant of their obligation under the MRP/SRO lease agreement to give the MRP/SRO development 30 days advance written notice to terminate the existing lease (copy to HA) OR execute a Mutual Termination Agreement (MSHDA 96). Failure of the tenant to follow the conditions may result in denial of a HCV at a new address.
• If the applicant has lived in the MRP/SRO unit for less than one year, the HA will contact the development to determine their willingness to mutually terminate the lease agreement. If the development refuses to allow an early termination, the tenant “waits” on the county HCV list until the initial lease term is completed.
• If Ingham, Kalamazoo, Kent , or Wayne Counties have a closed waiting list, the HA is responsible for notifying the MRP/SRO Development in advance when the waiting list is opening. The management agent at the MRP/SRO Development is then responsible for notifying the Development’s waiting list applicants of the opening of the county waiting list for tenant-based assistance.

Section Q: Application Maintenance

The HA must file all applications in alphabetical order and retain them in one central location that assures confidentiality and access only by authorized staff. Files should be marked confidential and in a locked area if possible.

Section R: File Retention

As mandated by HUD, application notices to and responses from applicants must be retained for at least three years after the application withdrawal date. Applications from participants admitted to the program must be retained in the permanent non-purge section of the MSHDA file.

Section S: Portability

Refer to Chapter XVI for more information regarding portability.

Section T: Special Admissions

• Applicants can be admitted for participation in the program as a Special Admission in certain circumstances. Special Admissions allow assistance to a family who is not on the waiting list or to families without regard to their waiting list position. It is often used when HUD awards funding that is targeted for families living in specified units, i.e., housing conversion actions. The funding must be used to assist the specified families.
• The following are examples of types of special admissions:
  1. A family displaced because of demolition or disposition of a public housing project;
  2. A family residing in a multifamily rental housing project when HUD sells, forecloses or demolishes the project;
  3. A family displaced because of mortgage prepayment or voluntary termination of a mortgage insurance contract (as provided in 24 CFR 248.165);
  4. A family residing in a project covered by a project-based Section 8 HAP contract at or near the end of the HAP contract term; or
  5. For housing covered by the Low Income Housing Preservation and Resident Homeownership Act of 1990.

Section U: Applicable Forms List