8.1 Leasing to In-Place Tenants at Completion of Rehabilitation
The initial round of subsidies will go to “qualified In-place Tenants.” “In-place Tenants” are defined as those living in the property at the time the HAP Contract is executed between the BHA and the Owner. They are “qualified” if they are determined by BHA staff to be income-eligible under the criteria described in Chapter 7 of this Administrative Plan. Such Tenants will not need to be placed on the development’s site-based waiting list prior to being accepted as Mod Rehab Program Participants. See 24 C.F.R. § 882.514(b).
8.2 RESERVED
8.3 Referral of Applicants to the BHA to Fill Vacant Units
When vacancies occur, one or more Families from the existing waiting list shall be referred to the Owner, following selection preferences contained in Section Priorities and Preferences outlined in the Section Housing Choice Voucher Program Administrative Plan, Chapter 3.
If the BHA is unable to refer a sufficient number of interested applicants to the Owner within 30 days of the Owner’s notification, the Owner may be approved to advertise or solicit applications from low income families and refer those families to the BHA to determine eligibility. The BHA will determine eligibility of referred families in accordance with this Administrative Plan. Since the Owner is responsible for selecting tenants under this procedure, the Owner may refuse any family provided that he does not unlawfully discriminate.
The Owner must rent all vacant McKinney-Vento SRO Units under Contract, rehabilitated under 24 C.F.R. § 882, subpart H, to homeless individuals located through the Owner’s outreach efforts and determined by the BHA to be eligible. See also 24 C.F.R. § 882.808(b)(2). Thus, all Applicants who have applied for McKinney-Vento SRO units, must be homeless as defined by in Section 103 of the McKinney Act (42 U.S.C. 11302). See Section 3.3.5(b) of the HCVP Administrative Plan for definitions of the different Priorities.
8.4 Payment for Vacancies Between Execution of the Contract and Initial Occupancy
If a Unit is not leased within 15 days of the effective date of the Contract, the Owner will be entitled to housing assistance payments in the amount of 80 percent of the Contract Rent for the Unit for a vacancy period not exceeding 60 days from the effective date of the Contract. In accordance with 24 C.F.R. § 882.411(a), to receive such payments, the Owner must:
(1) Have complied with 24 C.F.R. §§ 882.506(d) and 882.508(d);
(2) Have taken and continues to take all feasible actions to fill the vacancy; and
(3) Have not rejected any eligible applicant except for good cause acceptable to the BHA.
8.5 Payment for Vacancies After Initial Occupancy
If an Eligible Family vacates its Unit and it is not the result of a Mod Rehab Program violation by the Owner, the Owner may receive the housing assistance payments due for as much of the remainder of the calendar month (“move-out month”) as the Unit remains vacant. If the vacancy continues, the Owner may receive a housing assistance payment in the amount of 80% of the Contract Rent for a vacancy period not exceeding an additional month. However, if the Owner collects any of the Family share of the rent for this period, the amount paid by the BHA will be reduced to an amount which, when added to the Family’s payment, does not exceed 80% of the Contract Rent. Any payment exceeding this amount must be reimbursed by the Owner to the BHA. See 24 C.F.R. § 882.411(b)(1).
To receive a vacancy payment in these circumstances, the Owner must:
(1) Notify the BHA in writing within two (2) business days upon learning of the vacancy or prospective vacancy;
(2) Have taken and continue to take all feasible actions to fill the vacancy including referral of sufficient number Applicants to BHA in accordance with Section 8.3 above; AND
(3) Have not rejected any Eligible Applicant except for good cause acceptable to the BHA.
If such a vacancy results from the Owner evicting an Eligible Family, the Owner will not be entitled to any of the above payments unless the BHA determines that the Owner complied with all requirements of the Contract. See 24 C.F.R § 882.411(c).
8.6 Double Compensation for Vacancies Is Prohibited
Payments for vacancies under sections 8.4 and 8.5 will not be available to an Owner if the Owner is entitled to payments from other sources (for example, payments for losses of rental income incurred for holding Units vacant for relocates pursuant to Title I of the HCD Act of 1974 or payments for unpaid rent under 24 C.F.R. § 882.414 (Security and Utility Deposits)). See 24 C.F.R. § 882.411(c).
8.7 Leasing Vacant Units to Ineligible Families Is Prohibited
Owners must lease all assisted Units under Contract to Eligible Families. Leasing of vacant, assisted Units to ineligible Tenants is a violation of the Contract and grounds for all available legal remedies, including suspension or debarment from HUD programs and reduction of the number of Units under the Contract in accordance with Section 6.9 of this Administrative Plan. Once the BHA has determined that a violation exists, the BHA will notify HUD of its determination and the suggested remedies. At the direction of HUD, the BHA will take the appropriate action. See 24 C.F.R. § 882.512(a).
8.8 Failure to Lease Units to Eligible Families
If, at any time beginning six months after the effective date of the Contract, the Owner fails for a period of six continuous months to have at least 90 percent of the assisted Units leased or available for leasing by Eligible Families (because families initially eligible have become ineligible due to termination), the BHA may reduce the number of assisted Units in accordance with Section 6.9 of this Administrative Plan. See 24 C.F.R. § 882.512(b).
8.9 Reduction of Number of Units Covered by Contract
The BHA may reduce the number of Units covered by the Contract if the Owner leases vacant assisted Units to ineligible Families (see Section 6.7) or fails to lease Units to Eligible Families (see Section 6.8). In any situation, the BHA may reduce the number of Units assisted to the number of Units actually leased or available for leasing by Eligible Families plus 10 percent (rounded up). The BHA will give at least 30 days’ notice before doing so. See 24 C.F.R. § 882.512(a)(b).
If the Owner has only one Unit under Contract and if one year has elapsed since the date of the last housing assistance payment, the BHA may terminate the Contract with the consent of the Owner. See 24 C.F.R. § 882.512(b).
8.10 Restoration of Number of Units Covered by Contract
In accordance with 24 C.F.R. § 882.512(c), if a reduction is made, the BHA will agree to an amendment of the Contract which restores the number of units covered by the Contract to pre-reduction levels if:
(1) The BHA determines that the restoration is justified by demand;
(2) The Owner otherwise has a record of compliance with obligations under the Contract; and
(3) Contract authority is available.
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