HUD PIH Notice § 2014-25

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             U.S. Department of Housing and Urban Development
                       Public and Indian Housing

________________________________________________________________________
Special Attention of:                     Notice         PIH 2014-25 (HA)
Directors of HUD Regional and Field
Offices of Public Housing;                Issued: October 16, 2014
Agencies that Administer the
Housing Choice Voucher Program            Expires: This notice remains in
                                          effect until amended, superseded or
                                          rescinded.
                                          ______________________________
                                          Cross References: Notice PIH
                                          2008-20, PIH 2009-22, PIH 2010-51

Subject: Over Subsidization in the Housing Choice Voucher Program

1. Purpose. On September 28, 2007, the Office of Inspector General (OIG) issued a
report on over subsidization in the Housing Choice Voucher (HCV) program due to the
issuance of vouchers with unit sizes greater than the number of family members in the
household. Pursuant to the recommendation of the OIG, the Department issued clarifying
guidance on the matter of categorization of live-in aides, other reasonable
accommodation issues and corresponding data entry into the Inventory Management
System (IMS)/Public and Indian Housing Information Center (PIC) through the notices
cited above. Notice PIH 2010-51 extended and revised Notice PIH 2009-22 to explain
subsidy standards in regard to live-in aides and their PHA-approved family member/s and
data entry in IMS/PIC for family members of live-in aides.

        On September 23, 2013, the OIG issued a follow-up report on over subsidization
in the HCV program. Although it was noted that vast improvement had been made, there
was still an amount in over-payments due to over subsidization. The OIG recommended
that PIH provide guidance to the public housing authorities (PHA) on the data analytic
tools available and the specific procedures to help detect and monitor over subsidized
households, improper payment standards, and reporting errors to put at least $1,128,000
to better use annually. The following section will address that issue. In all other
respects, this notice is consistent with the guidance PIH previously provided in Notice
PIH 2010-51.

2. Detection and Monitoring of Over subsidized Households.

        There are ad hoc reports in the IMS/PIC system that may enable PHAs to monitor
the factors that would indicate over subsidization and other improper payments:

   (1) Ad hoc reports may be accessed from the PIC main menu screen.
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   (2) “Form 50058 Ad hoc Report” should be selected under “ADHOC” on the left side
       of that screen. All of the information from the Family Report (Form HUD-
       50058) is available in an ad hoc report.

   (3) Next, select “Tenant-based Voucher.”

   (4) The action types selected should be limited to: new admissions (1); annual
       reexamination (2); interim reexamination (3); portability move-in (4); and other
       change of unit (7); and Historical Adjustment (14).

   (5) Then, the PHA should establish a date range for “Effective Date of Action” of at
       least 16 months to capture the majority of Family Reports in the current database.

   (6) At the next screen, at a minimum, the PHA should select the following data
       elements: head of household (3b); number of members in the household (3t); the
       number of bedrooms in the unit (5d); the number of bedrooms on the voucher
       (12a); and the payment standard for the family (12j). Additional items can be
       selected as needed.

        From the information on the ad hoc report, a PHA can ensure that the voucher
size and payment standard are correct for each family and make corrections where
necessary. A sample ad hoc report is attached. PHAs are encouraged to review these
reports on a regular basis (e.g. monthly, quarterly) to ensure families are not being
mistakenly over subsidized.

        In performing quality control, the PHA should further review cases where the
following “Red Flags” appear: (1) if the number of bedrooms on the voucher exceeds the
total number in the household and (2) if the payment standard for the family does not
match the number of bedrooms on the voucher or the unit size, if smaller. These are just
red flags for possible overpayments. However, there may be a justified reason, e.g. an
exception payment standard or an exception to the subsidy standards. To assist with
corrective actions, please review section 3.A. through 3.E. below.

3. Programmatic Explanations.

        A. Live-in Aides. The primary reason PHA issued vouchers with more bedrooms
as recorded on line 12a of the Family Report than the number of family members
recorded on line 3t is related to live-in aides. Although a health care provider must
document the need for a live-in aide (which would result in the issuance of an additional
bedroom size voucher), the live-in aide must be identified by the family and approved by
the PHA first.

        The definition of a live-in aide is recorded in 24 CFR § 5.403 which states that a
live-in aide is a person who resides with one or more elderly persons, near-elderly
persons or persons with disabilities and who is: (1) determined to be essential to the care
and well-being of the persons; (2) is not obligated for the support of the persons; and (3)
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would not be living in the unit except to provide the necessary supportive services. It
should be noted that the definition applies to a specific person (i.e., identified live-in
aide). In accordance with this definition, a live-in aide is not a member of the assisted
family and is not entitled to the HCV as the remaining member of the tenant family.

        In accordance with 24 CFR § 982.316, the PHA must approve a live-in aide if
needed as a reasonable accommodation in accordance with 24 CFR part 8 to make the
program accessible to and usable by a family member with a disability. The PHA may
disapprove a particular person as a live-in aide if s/he has: (1) committed fraud, bribery or
any other corrupt or criminal act in connection with any federal housing program; (2)
committed drug-related criminal activity or violent criminal activity; or (3) currently
owes rent or other amounts to the PHA or to another PHA in connection with Section 8
or public housing assistance under the 1937 Act. Additionally, under 24 CFR
§ 982.402(a), the PHA must establish subsidy standards to determine the number of
bedrooms needed for families of different sizes and compositions. Consequently, PHAs
may not approve an unidentified live-in aide, nor a larger unit than the family qualifies
for under the PHA’s subsidy standards for an unidentified live-in aide. The guidance
outlined in this Notice is in accordance with these regulatory provisions.

        Occasional, intermittent, multiple or rotating care givers typically do not reside in
the unit and would not qualify as live-in aides. Therefore, an additional bedroom should
not be approved for a live-in aide under these circumstances.

        B. Reasonable Accommodation Issues. A family may always request a
reasonable accommodation to program rules, policies, practices, or services, including to
the live-in aide policy, to permit program participation by individuals with disabilities. A
family’s composition or circumstances may warrant the provision of an additional
bedroom to permit disability-related overnight care and allow the family equal use and
enjoyment of the unit. Such limited exceptions to the established subsidy standards are
permitted under 24 CFR § 982.402(b)(8). The PHA must consider requests for an
exception to the established subsidy standards on a case-by-case basis and provide an
exception, where necessary, as a reasonable accommodation. A reasonable
accommodation request may only be denied if it would impose an undue financial and
administrative burden on the housing provider or fundamentally alter the nature of the
provider’s operations. The PHA shall document the justification for all granted
exceptions.

        C. Subsidy Standards. A PHA may only approve one additional bedroom for a
live-in aide. Although a live-in aide may have PHA-approved family member/s live with
him/her in the assisted unit, no additional bedrooms will be provided for the family
members of the live-in aide. The PHA must ensure that housing quality standards (HQS)
will not be violated and that there will be no more than two people per bedroom or
living/sleeping space in the unit in accordance with 24 CFR § 982.401(d)(2)(ii). If the
approval of additional family members of a live-in aide would result in the violation of
HQS, the additional family members of the live-in aide may not be approved.
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        D. Medical Equipment. Although PHAs may approve an additional bedroom for
medical equipment if the need is documented by a health care provider, the actual
equipment in the extra bedroom should be verified by the PHA during the annual
inspection of the unit. If the extra bedroom is not being used for the intended purpose,
the PHA must reduce the subsidy standard and corresponding payment standard at the
family’s next annual recertification. However, the PHA may take further action, if it
believes any family obligations under 24 CFR § 982.551 were violated.

        E. Other Causes. The secondary cause of over subsidization was the failure of
the PHA to change the voucher unit size after changes in family composition. Although
families are not required to move from an assisted unit when the number of bedrooms in
the unit exceeds the number of bedrooms for which the family is eligible, the payment
standard must conform to the PHA’s subsidy standards at the family’s next annual
recertification after the change in family composition.

4. PIC Data Entry. PHAs are expected to ensure that data on the Family Report is
correct when entered in IMS/PIC. Whenever there is a change in the subsidy standard
and corresponding payment standard for which the family is eligible, lines 12a and 12j of
the Family Report must be adjusted accordingly. All live-in aides and, if applicable, their
family members, must be entered on the report and coded L (live-in aide) in section 3h.

5. Effective Date. This notice is effective upon publication.

6. Information Contact. Inquiries about this notice should be directed to the staff in
your local field office.

7. Paperwork Reduction Act. The information collection requirements contained in this
letter have been approved by the Office of Management and Budget (OMB) under the
Paperwork Reduction Act (PRA) of 1995 (44 U.S.C 3520). In accordance with the PRA,
HUD may not conduct or sponsor, and a person is not required to respond to, a collection
of information unless the collection displays a currently valid OMB control number. The
following active information collections contained in this Notice have been approved
under the PRA - OMB Control Number 2577-0083.



                                                            /s/

                                      Jemine A. Bryon, Acting Assistant Secretary
                                         for Public and Indian Housing


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