Housing Voucher Programs - Policy and Procedures Manual

Chapter VI Sections

1. Required Initial Verifications
2. Family Locates Unit
3. Eligibility of Unit
4. Landlord Screening/Selection of Tenant
5. Landlord Registration Requirements and Procedures
6. Owner Disapproval and Restrictions
7. Affordability (40%) Cap
8. Rent Reasonableness
9. Inspection
10. Lease Requirements
11. Changes in Family Size/Income Prior to Effective Date
12. Executing Initial HAP Contract
13. Landlord Unit Information in Elite
14. Tenant/Landlord Late Fees
15. Portability Option
16. Project-Based Assistance
17. Applicable Forms List

Exhibits

• Exhibit 2

Chapter VI: Initial Contracts

Section C: Eligibility of Unit

The proposed unit:

1. Must be a rental (no purchase or intent to purchase).
2. Must not be occupied by the owner.
3. Must not be leased by a prohibited owner.
   1. Prohibited owner relationships include: parent, child, grandparent, grandchild, sister, or brother of any member of the tenant household.
   2. MSHDA is prohibited from approving contracts when the owner is a relative of the tenant, unless MSHDA determines that approving the unit will provide reasonable accommodation for a family member who is a person with disabilities. In these cases, a completed MSHDA16 showing the need for the accommodation and an accompanying letter from either the tenant or family member explaining how the specific unit owned by the tenant’s family member provides the required reasonable accommodation or how the family member owning the unit will provide services for the identified family member with the disability must be on file for the disabled family member. Refer to Chapter XVII. Reasonable Accommodation.
4. Must meet HUD’s Housing Quality Standards (HQS) requirements.
5. Must be the family’s only residence. Multiple subsidies are not allowed.
6. Can be of any structure type.
7. Can be a manufactured home if renting both the home and the lot (i.e. lot rent only is not allowed).
8. Can be a co-operative.
   1. MSHDA may approve a family living in cooperative housing if it is determined that assistance under the program will help maintain affordability of the cooperative unit for low-income families.
   2. All HCV Program regulations apply (i.e. HQS, Payment Standard [PS]).
   3. The HAP for a cooperative housing unit equals the lower of the PS minus the TTP or the monthly carrying charge for the unit, plus any utility allowance, minus the TTP.
   4. The monthly carrying charge includes the member's share of the cooperative debt service, operating expenses, and necessary payments to cooperative reserve funds. The carrying charge does not include down-payments or other payments to purchase the cooperative unit or to amortize a loan made to the family for this purpose.
   5. The rent for a cooperative housing unit must be reasonable, based on rents for comparable unassisted units.
   6. The Contract Rent to the owner equals the monthly carrying charge under the occupancy agreement/lease between the member (tenant) and the cooperative.
   7. HUD allows a Cooperative Occupancy Agreement to be used in lieu of a Lease Agreement. If the development refuses to execute a new lease for an initial contract, the complex must prepare and sign an Addendum to the original Occupancy Agreement which updates the effective date and rent amount OR change and initial the original Occupancy Agreement.
   8. Initial membership fees are considered the security deposit.