HUD PIH Notice § 2016-06

                                     U.S. Department of Housing and Urban Development
                                     Office of Public and Indian Housing
                                                                                                   ___
Special Attention of:                                       Notice PIH-2016-06 (HA)
Public Housing Agency Directors;
Public Housing Hub Office Directors;                        Issued:         April 7, 2016
Public Housing Field Office Directors;
Program Center Coordinators;                                Expires:        Effective until amended or
                                                                            superseded
Resident Management Corporations;
Resident Councils                                           ________________________________
                                                            Cross References: PIH Notice 2015-12


Subject: Administering the Self-Certification Flexibility when Verifying Community Service and Self-
Sufficiency Requirement (CSSR) Compliance

1. Purpose: The Department is issuing this Notice to assist public housing agencies (PHAs) in understanding
   the resident self-certification process when administering the Community Service and Self-Sufficiency
   Requirement (CSSR).

2. Applicability: This Notice applies to PHAs that administer the Public Housing Program and all HUD Field
   Offices with Public Housing Programs. This Notice supplements all previous guidance and provides
   clarification guidance on administering the resident self-certification of compliance with the CSSR.

3. Background: Section 12(c) [42 U.S.C. Section 1437j] of the United States Housing Act of 1937, as
   amended on October 12, 1998 by Section 512 (Pub. L. 105-276) of the Quality Housing and Work
   Responsibility Act of 1998, contained a CSSR that every adult resident of public housing contribute eight
   hours of community service per month, or participate in an economic self-sufficiency program for eight
   hours per month. Certain individuals, including individuals that are employed and individuals with
   disabilities, are exempt from this requirement as outlined in 24 CFR 960.601(b). Regulations for the CSSR
   can be found at 24 CFR Subpart F, 960.600 through 960.609.

   On March 8, 2016, HUD published a final rule in the Federal Register providing programmatic streamlining
   across several HUD programs. The rule amended a provision in 24 CFR Subpart F, 960.605, to permit, but
   not require, a PHA to accept resident self-certifications of compliance with the CSSR. The final rule also
   amended 24 CFR, Subpart F, 960.607 to require a PHA that elects to accept self-certification to notify
   residents the self-certifications may be subject to third-party verification, and to require PHAs to validate a
   sample of the self-certifications annually.

4. Contents of Annual Notification to Residents and Self-Certification: Residents eligible to complete the
   CSSR must sign an acknowledgement of their obligation to complete the CSSR annually. This obligation is
   outlined in more detail in Notice PIH 2015-12. However, a PHA that elects to permit resident self-
   certifications must notify the resident of the resident’s ability to submit a self-certification. Examples of
   such notifications are provided in in Attachments A and B.
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   As required in Section 11 of Notice PIH 2015-12, in order to determine compliance with CSSR, at each
   regularly scheduled rent re-examination, each non-exempt family member presents a signed certification on
   a form provided by the PHA of CSSR activities performed over the previous twelve (12) months. Each PHA
   develops a standardized form with places for signature confirmation by supervisors, instructors, or
   counselors certifying the number of hours contributed. If a PHA elects to permit self-certifications, this
   PHA-developed form must include the following information:

          a statement that the resident has completed the number of hours listed and this statement is subject to
           penalties of perjury;
          the number of hours and type of activity (community service or self-sufficiency) that the resident
           completed;
          the name of the organization or person for which the activity was completed;
          the address of the organization or person;
          the phone number of the organization or person; and
          a contact person in the organization or the person for which the activity was completed.

   If a resident completes their CSSR obligation for more than one organization or person during the course of
        a year, the resident must complete one self-certification for each organization or person for which the
        resident performed the CSSR activity.

5. PHA Policies: A PHA that chooses to accept resident self-certifications of compliance with CSSR must
   update its CSSR policies prior to accepting resident self-certifications. Further, a PHA that elects to accept
   self-certifications only may do so prospectively after making necessary policy changes. For residents under
   lease at the time the PHA amends its policies, the PHA must review annual compliance and obtain third
   party verification for that lease cycle. However, for any subsequent lease cycles beginning after the PHA
   has adopted the policy change, the PHA may accept resident self-certifications for those periods. A PHA
   may not accept resident self-certifications for tenants subject to a work-out agreement until the resident has
   completed, and the PHA has verified through a third party, that the resident has completed the required
   hours.

6. Sampling Methodology and Validation Requirements: As required by amended 24 CFR Part 960.605, a
   PHA that elects to accept self-certifications must validate a sample of self-certifications with the third-party
   for whom the resident completed the community service or self-sufficiency activity. The sample of self-
   certifications the PHA validates must be a statistically valid, random sample. Attachment D to this notice
   provides the appropriate sampling methodology to be used by a PHA when determining how many self-
   certifications must be validated annually. For example, a PHA that has a universe of self-certifications of
   50 must validate at least 29 of the self-certifications to meet the statistically valid requirement. A PHA with
   a universe of self-certifications of 500 must validate 60 self-certifications to meet the statistically valid
   requirement.

   The universe of self-certifications should only include residents that submitted a self-certification, and
   should not include:

          Residents that are under the age of 18 years or 62 years or older;
          Residents that are exempt;
          Residents for which a PHA receives third party verification of completion with CSSR; and
          Residents that did not complete the required CSSR.

   Because the number of residents subject to the CSSR is constantly in fluctuation due to unit turnover,
   resident employment, etc., a PHA must choose a point in time annually to calculate the universe of self-
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   certifications received during the previous 12 months. However, PHAs do not need to wait until the end of
   the 12-month period to begin validating self-certifications. For example, a PHA that can reasonably
   determine the expected number of self-certifications to be received throughout the 12-month period may
   validate the appropriate sample of self-certifications during the 12-month period rather than waiting until the
   end of that time period, subject to any necessary reconciliations once the final universe and sample size is
   determined.

   To validate a self-certification, the PHA must obtain third-party documentation that includes, at a minimum,
   the name of the organization or person, the number of hours completed by the resident, a signature from the
   appropriate staff person within the third-party organization or person and that staff person’s contact
   information. Consistent with the written third-party verification techniques outlined in Notice PIH 2010-19,
   a PHA may accept third-party generated documentation directly from the third-party or from the resident.

7. Treatment of Fraudulent Self-Certifications: In the event a PHA determines a resident has submitted a
   fraudulent self-certification, the PHA must provide a notice of noncompliance to the resident pursuant to 24
   CFR 960.607. If the resident agrees to sign a work-out agreement, the PHA must obtain written third-party
   documentation of the resident’s compliance with the requirements of the workout agreement. Should the
   resident refuse to enter into a work-out agreement pursuant to the notice of noncompliance, the PHA must
   take steps to terminate the tenancy of the resident. For more information on this process, see Notice PIH
   2015-12.

8. HUD Oversight: A PHA that elects to accept self-certifications must retain the self-certification, any third
   party validation, and any information related to fraudulent self-certifications in the resident’s file for at least
   two years from the date the documents are received by the PHA for possible HUD review. As part of
   HUD’s oversight and regulatory review processes, and on a risk basis, HUD may review a PHA’s
   administration of CSSR, resident self-certifications, and sample validations.

9. Further Information: Direct inquiries to Todd Thomas of the Office of Public Housing and Voucher
    Programs at (678) 732-2056.

10. Paperwork Reduction: The information collection requirements contained in this Notice will be submitted
    for approval by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995
    (44 U.S.C. 3520) and assigned OMB control numbers 2577-0083 and 2577-0226.



                                                              /s/
                                                       Lourdes Castro Ramirez,
                                                       Principal Deputy Assistant Secretary
                                                       for Public and Indian Housing
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                                                                             Attachment A

              Community Service and Self-Sufficiency Requirement Certification
                               For Non-Exempt Individuals

                          Entrance Acknowledgement


Date:
Participant Name:

I have received and read the Community Service and Self Sufficiency Requirement (CSSR). I
understand that as a resident of public housing, I am required by law to contribute 8 hours per
month (96 hours over the course of every 12 month period) of community service or participate
in an economic self-sufficiency program. I further understand that if I am not exempt, failure to
comply with CSSR is grounds for lease nonrenewal. I understand that I may submit a self-
certification of compliance with the CSSR, and that my self-certification of compliance may be
subject to validation with the organization for which I completed the required hours. My
signature below certifies I received notice of this requirement at the time of initial program
participation.

Signature: ______________________________________
Date of Signature: _______________________________
                                                                                                5
                                                                Attachment B

              Community Service and Self-Sufficiency Requirement Certification
                               For Non-Exempt Individuals

                                 Annual Renewal
Date:
Participant Name:

I understand that as a resident of public housing, I am required by law to contribute 8 hours per
month (96 hours over the course of every 12 month period) of community service or participate
in an economic self-sufficiency program. I further understand that if I am not exempt, failure to
comply with CSSR is grounds for lease nonrenewal. I understand that I may submit a self-
certification of compliance with the CSSR, and that my self-certification of compliance may be
subject to validation with the organization for which I completed the required hours. My
signature below certifies I received notice of this requirement at the time of initial program
participation.


Signature: ______________________________________
Date of Signature: _______________________________
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Attachment C

 Below is a chart that indicates the universe and required sample sizes that must be validated by a PHA
 annually. A CSSR universe would be the number of age eligible residents that have submitted a self-
 certification. For universe sizes that fall between the universe sizes listed in the chart below, PHAs should
 utilize the sample size for the next largest universe size. For example, a PHA with a sample size of 27 self-
 certifications must validate at least 21 self-certifications.

                             Universe                       Sample Size
                               Size                         AT LEAST
                               ≤ 10                            ALL
                                15                              13
                                20                              16
                                25                              19
                                30                              21
                                 35                             24
                                 40                             26
                                 50                             29
                                 60                             33
                                100                             41
                                150                             47
                                200                             51
                                250                             54
                                300                             56
                                350                             57
                                400                             58
                                450                             59
                                500                             60
                                600                             61
                                700                             62
                                800                             63
                                900                             63
                               1000                             64
                               1500                             65
                               2500                             66
                               3500                             67
                               4000                             67
                               5000                             67
                               6000                             67
                               6500                             67
                             ≥ 7000                             68