MSHDA - Office of Housing Voucher Programs Policy and Procedures Manual

Chapter V: Denials

Issued: April 2009
Effective: June 1, 2009

Introduction

Denials of assistance to an applicant for Housing Choice Voucher (HCV) occur when the family does not meet eligibility or criminal screening criteria, or when:

• MSHDA denies placement on a waiting list;
• MSHDA denies or withdraws a Voucher;
• MSHDA refuses to enter into a HAP contract;
• MSHDA refuses to approve a tenancy;
• MSHDA refuses to process or provide assistance under portability procedures; or
• The family’s actions are unacceptable, in that they fail to act or comply with Program requirements.

MSHDA will consider relevant circumstances when making the determination whether to deny an applicant because of actions or failure to act by members of a family. Consideration will be given to the seriousness of the case, the extent of participation or culpability of individual family members, mitigating circumstances related to the disability of a family member, and the effects of the denial on other family members who were not involved in the action or failure to act. In determining whether to deny assistance for illegal use of drugs or alcohol abuse by a household member who is no longer engaged in such behavior, MSHDA will consider whether the household member has successfully completed, or is currently participating in a supervised drug or alcohol rehabilitation program. The applicant or family member would be required to provide verification of the household member's successful participation in the supervised drug or alcohol rehabilitation program approved by MSHDA. An approved supervised drug or alcohol rehabilitation program does not include self-help treatment programs i.e., Alcoholics Anonymous. See [24 CFR 982.552 (c)(2)].

Section A: Definitions

Actively and Successfully Participating In: Proof in the form of record of attendance, and compliance with all rules of the assisting Program, including no further criminal activity.

Adult: A person who is 18 years of age or older.

Applicant: An applicant is defined as an individual or a family:

• Applying for or on the waiting list, or
• Pulled from the waiting list and not yet under contract (i.e., Housing Assistance Payments have not been made on their behalf).

Credible Evidence: Includes documentation of drug raids, arrest warrants, or other information obtained from police, court records, and other sources.  Witness testimony can be considered as evidence.

Currently Engaging In: With respect to behavior such as illegal use of a drug or other criminal activity, currently engaging in is defined by MSHDA as having occurred within the last twelve months.

Dating Violence: Violence committed by a person who is or has been in a social relationship of a romantic or intimate nature with a victim based on length or type of relationship or frequency of interaction between the persons.

Domestic Violence: Crimes of violence committed by the current or former spouse of the victim; person similarly situated to a spouse of the victim; person with whom a victim shares a child in common; person who cohabits with or has cohabited with the victim; or by any other person against an adult or youth victim, who is protected from that person’s acts under the domestic or family violence laws of the jurisdiction.

Drug: A controlled substance as defined in Section 102 of the Controlled Substances Act [21 U.S. C. 802].

Drug-Related Activity: The illegal manufacture, sale, distribution, or use of a drug, or the possession of a drug with intent to manufacture, sell, distribute, or use the drug.

Federally Assisted Housing: Housing assisted under any of the following programs:

• Public Housing;
• Housing received project-based or tenant-based assistance under Section 8 of the U.S Housing Act of 1937 [42 U.S.C. 1437f];
• Housing insured, assisted, or held by HUD or by a State or local agency under Section 236 of the National Housing Act [12 U.S.C. 1715z-1].

Household: The family and PHA-approved live-in aide [24 CFR Part 982].

MPRI: The Michigan Department of Corrections Michigan Prisoner Re-entry Iniative

Pattern of Abuse: MSHDA defines a pattern of abuse as two or more occurrences of drug or alcohol-related offense during the previous twelve months.

Premises: The building, complex or development in which the assisted housing dwelling unit is located, including common areas and grounds.

Stalking: To follow, pursue, place under surveillance, or repeatedly commit acts with intent to kill, injure, harass, or intimidate; and to place a person in reasonable fear of death, serious bodily injury, or emotional harm to that person, their immediate family member(s), spouse or intimate partner.

TBRA: Tenant Based Rental Assistance funded and administered by the MSHDA Office of Homeless Initiatives

Verification of MPRI Participation: A representative designated by the Michigan Department of Correction Michigan Prisoner Re-entry Iniative will use the MPRI/TBRA Status Verification form (MSHDA 537) to verify that each MPRI participant will have undergone extensive programming during the course of their incarceration and pre-release planning in preparation for their release from prison and transition back to the community; and each MPRI participant will have undergone an assessment of their risk for re-offending, their needs, and their strengths using the COMPAS Assessment Instrument.

Violent Criminal Activity: Any criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force substantial enough to cause, or be reasonably likely to cause, serious bodily injury or property damage, including but not limited to rape, murder, robbery, arson, and assault.

Section B: Mandatory Applicant Denials

Deny assistance to all applicants if any of the following circumstances apply:

1. Not meeting Eligibility Criteria or Family Requirements (individual HUD references in parentheses)

1. No member of the family is a U.S. Citizen or eligible immigrant. Applicant household does not meet the eligibility criteria as defined by HUD, including but not limited to, documentation of citizenship, or eligible immigration status. [24 CFR 982.552]

   A family that includes eligible and ineligible individuals is called a “mixed family.” Mixed family applicants will be given notice that their assistance will be prorated and that they may request a hearing if they contest this determination.

2. Any family member refuses to sign or submit HUD-required consent forms, including the Release of Information form (HUD 9886), all supplemental forms required by MSHDA, declarations and consents related to citizenship/immigration status, and/or verification forms. [24 CFR 982.552]
3. Applicant household does not meet the Social Security number disclosure, documentation and certification requirements. [24 CFR 5.218]
4. Family violates family obligations under the program including failure to provide true and complete information. [24 CFR 982.552 (c)(i) and 24 CFR 981.551(b)(4).
5. Applicant household does not meet income eligibility requirements. [24 CFR 982.201]
6. Families for whom the greater of 10% of unadjusted or 30% of adjusted income exceeds the Payment Standard. [24 CFR 5.628]
7. If any family member fails to meet the eligibility requirements concerning individuals enrolled in an institution of higher education (students) as specified in 24 CFR 5.612 and 982.552. No assistance shall be provided under Section 8 of the 1937 Act to any individual who:
   1. Is under 24 years of age;
   2. Is not a veteran of the United States military;
   3. Is unmarried;
   4. Does not have a dependent child; and
   5. Is not otherwise individually eligible, or has parents who, individually or jointly, are not income-eligible to receive assistance under Section 8 of the United State Housing Act of 1927.

2. Drug Related or Criminal Activity including Illegal Use of a Drug, Violent Criminal Activity or Other Criminal Activity (see 24 CFR 982.552; 24 CFR 982.553)

1. The applicant or any household member has been evicted from a unit in any type of federally-assisted housing, for drug related criminal activity within the last three years. [24 CFR 982.553(a)(1)(i)] However, a family may be admitted to the program if the family member causing the eviction due to drug-related criminal activity:
   1. has successfully completed or is actively and successfully participating in a supervised drug rehabilitation program approved by MSHDA. The applicant is required to submit evidence of their or their household member’s current participation in, or completion of, a drug rehabilitation program; or
   2. is no longer a member of the household.
2. There is reasonable cause to believe that the applicant, or any member of the household, is currently engaging in the illegal use of a drug. A family may be admitted to the program if the family member causing the denial due to drug-related activity has successfully completed or is actively and sucessfully participating in a supervised drug rehabilitation program approved by MSHDA, or no longer resides in the household. [24 CFR 982.553(a)(1)(ii)(A)]
3. There is reasonable cause to believe that any member of the household’s illegal use or pattern of illegal drug use may threaten the health, safety, or right of peaceful enjoyment of the neighborhood by other residents. [24 CFR 982.553(a)(1)(ii)(B)]
4. Any household member is subject to a lifetime registration requirement under a state sex offender registration program.[24 CFR 982.553(a)(2)(i)]. This is a permanent prohibition of admission. A sex offender must register for their lifetime in the State of Michigan when convicted of any of the following offenses:
   • Criminal Sexual Conduct 1st Degree (M.C.L. 750.520b)
   • Criminal Sexual Conduct 2nd Degree (M.C.L. 750.520c(1)(a)
   • Kidnapping (M.C.L. 750.346)
   • Leading, Taking, Carrying Away, Decoying, or Enticing Away Child Under 14 (M.C.L. 750.350)
   • Child Sexually Abusive Activity or Material (M.C.L. 750.145c(2))
   • Child Sexually Abusive Activity or Material (M.C.L. 750.145c(3))
   • In addition, Offenders who are convicted of any second or subsequent sex offense must register for their lifetime.
5. Persons convicted of manufacturing or producing methamphetamine on the ‘premises’ of federally assisted housing are permanently prohibited admission to the HCV program. [24 CFR 982.553(a)(1)(ii)(C)].
6. There is reasonable cause to believe that a household member currently engages in, or has engaged in during the past 12 months, drug-related criminal activity, or other criminal activity which may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents or persons residing in the immediate vicinity; or, the owner, property management staff, or persons performing a contract administration function or responsibility on behalf of the PHA (including a PHA employee; or a PHA contractor, subcontractor, or agent. [24 CFR 982.553(a)(2)(ii)(A)(1,3,4)].
7. There is reasonable cause to believe that a household member currently engages in, or has engaged in during the past two years, violent criminal activity. [24 CFR 982.553(a)(2)(ii)(A)(2)].
8. Information is provided that shows any household member is engaged in or has been engaged in drug-related activity within the past 12 months. [24 CFR 982.553(a)(2)(ii)(A)]
9. The family has engaged in or threatened abusive or violent behavior toward MSHDA personnel (including contracted agents), including verbal or the threat of physical abuse or violence. Threatening behavior includes oral or written threats or physical gestures that communicate an intent to abuse, or commit violence. Use of expletives that are generally considered insulting, racial epithets, or other language, written or oral, that is customarily used to insult or intimidate, may also be considered grounds for denial. [24 CFR 982.552 (c)(1)(ix)]
   
   If a HA or other MSHDA staff person is the victim of abusive behavior (verbal or physical) by an applicant, the incident must be reported immediately to the assigned Resource Specialist. Abusive behavior by applicants will not be tolerated. If criminal charges are warranted, the threatened individual should pursue filing a complaint with local authorities. Criminal activity and fraud relative to the program will also not be tolerated, and should be reported to the Compliance Enforcement Coordiator immediately.

Juveniles: If it is learned that a juvenile family member has been charged as an adult in a crime, MSHDA will consider the situation on a case-by-case basis. Consult with the Resource Specialist and Compliance Enforcement Coordinator for guidance. Emancipated minors should be considered an adult and screened.

Michigan Department of Corrections’ Michigan Prisoner ReEntry Initiative (MPRI): In the case of a HARP referral, and the MPRI participation box is checked on the Certificate of Eligibility, the HA contacts the applicant via the 1634a with a copy to the MPRI representative to notify them that the applicant/MPRI client has reached the top of the HCV waiting list, and the applicant has reached verification status.

Proceed with the standard verification process, i.e., send the MSHDA 1890, HUD 9886, MSHDA 214, and collect the required documents. Conduct the criminal screening and if there is an issue as to the applicant’s eligibility based on their criminal history, i.e., those issues that require a judgment to assess the risk to the health, safety, and peaceable enjoyment of the neighborhood by other residents, then make contact with the applicant and the MPRI Representative. The MPRI Representative will confirm the applicant’s successful participation with MPRI and supplies verification of the applicant’s participation with MPRI within the 14-day designated time frame specified on the MPRI/TBRA Status Verification form (MSHDA 537). The MSHDA-537 will be used as the verification document. Once the HA documents the contact with the MPRI Representative and verifies receipt of the MPRI participation via MSHDA-537, HA continues with the standard application process. If, however, HA efforts to contact the MPRI Representative fail or there is no response to the MSHDA-537, HA sends the Denial of Assistance notification citing the failure to pass the criminal screening to the applicant and MPRI Representative.

Tenant Based Rental Assistance Program (TBRA): In the case of a HARP referral, and the TBRA participation box is checked on the Certificate of Eligibility, the HA contacts the applicant via the 1634a with a copy to the Lead Agency/Service Provider contact to notify them that the applicant/client has reached the top of the HCV waiting list, and the applicant has reached verification status.

Proceed with the standard verification process, i.e., send the MSHDA 1890, HUD 9886, MSHDA 214, and collect the required documents. Conduct the criminal screening and if there is an issue as to the applicant’s eligibility based on their criminal history, i.e., those issues that require a judgment to assess the risk to the health, safety, and peaceable enjoyment of the neighborhood by other residents, then make contact with the applicant and the Lead Agency/Service Provider contact. The Lead Agency/Service Provider contact will confirm the applicant’s successful participation with TBRA and supplies verification of the applicant’s participation with TBRA within the 14-day designated time frame specified on the MPRI/TBRA Status Verification form (MSHDA-537). The MSHDA 537 will be used as the verification document. Once the HA documents the contact with the Lead Agency/Service Provider, and verifies receipt of the TBRA participation via MSHDA-537, HA continues with the standard application process. If, however, HA efforts to contact the Lead Agency/Service Provider fail or there is no response to the MSHDA 537, HA sends the Denial of Assistance notification citing the failure to pass the criminal screening to the applicant and Lead Agency/Service Provider. TBRA participants who have a recent criminal history and who are not receiving or participating in supportive services, or who do not have a housing plan will be denied.

3. For Alcohol Abuse (see 24 CFR 982.551)

Admission to the program must be prohibited if MSHDA determines that there is reasonable cause to believe that any member of the household has demonstrated abuse or a pattern of alcohol abuse that threatens the health, safety, or right to peaceful enjoyment of other residents and persons residing in the immediate vicinity of the premises.

Section C: Discretionary Applicant Denials

The situations listed below may result in the denial of assistance. Denial decisions are made on a case-by-case basis with written confirmation of the consultation between the HA and the appropriate Resource Specialist or Compliance Enforcement Coordinator.

1. If any member of the household commits fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program. [24 CFR 982.552]
2. If any member of the household has committed fraud in connection with any federal or state-funded benefit program, e.g., TANF, Social Security Administration program, etc., the admission may be denied. The application is not denied solely on this basis without documentation or proof of the alleged fraud. The household may be admitted if the fraud is in connection with a federal or state-funded benefit program and the family was placed under a repayment agreement and verification that the debt was paid in full is obtained.
3. The applicant or family currently owes rent or other amounts to MSHDA or another Public Housing Agency (PHA), in connection with Section 8 or public housing assistance under the 1937 Act. This includes situations when the family has not reimbursed a PHA for amounts paid to an owner under a previous HAP contract for rent, damages to a unit, or other amounts owed by the family under the lease. If the applicant pays off the debt in its entirety or signs and is current with a repayment agreement, then the applicant may be assisted. [24 CFR 982.552(c)(1)(v), (vi) and (vii)]
4. The applicant or any household member has been evicted from federally assisted housing within the last five years. [24 CFR 982.552(c)(1)(ii)]
5. If a PHA ever terminated assistance to any family under the HCV program for any member of the family. [24 CFR 982.552(c)(1)(iii)]
6. Violence Against Women Act (VAWA): A family may be admitted to the program if the family is or has been the victim of domestic violence, dating violence, or stalking which has resulted in a history of evictions, or crime provided the abuser is no longer a member of the household. The family must be willing to certify the incidents by completing the Certification of Domestic Violence, Dating Violence, or Stalking (MSHDA 1635) and/or by submitting Police or court records. [Violence Against Women Act (VAWA) PL 109-192, January 5, 2006]

Section D: Denial Notices

When MSHDA determines an applicant is ineligible for the HCV program, staff must notify the family of their ineligibility in writing using the Application Denial form (MSHDA 1634b). The denial notice contains the following:

• The reason MSHDA considers the applicant ineligible, citing specific policy violations;
• The effective date of the denial;
• Which decisions the family has the right to appeal, and those they do not;
• The procedure for requesting an Informal Review if the applicant disagrees with the decision;
• The time limit for requesting an Informal Review;
• Other reason(s) – carefully word and clearly state reason(s) for denial.

If the applicant (or other adult household member) is being denied for criminal activity as shown by a criminal record, a copy of the criminal record must be provided to the applicant and to the individual named in the criminal history (if not the head of household) with the MSHDA 1634b.

Section E: Applicable Forms