News

Supreme Court Refuses to Overturn Idaho Case Giving Homeless the Right to Sleep in Public Places

The U.S. Supreme Court denied a petition by Boise, ID to review Martin v. Boise, December 16, 2019, leaving in place earlier rulings by the 9th Circuit that homeless persons cannot be punished for sleeping outside when there are no adequate alternatives. This decision leaves in place the April 2019 9th Circuit ruling which covers nine western states and sets national precedence. The covered states are Alaska, Washington, Montana, Idaho, Oregon, California, Nevada, Hawaii and Arizona. The original case was filed in 2009 by the National Law Center on Homelessness & Poverty, seeking to prevent homeless people from being punished for sleeping on the streets when they have no other option. The goal of the suit was to force localities to offer affordable housing as the primary solution to homelessness. Boise had a "Camping & Disorderly Conduct Ordinance" against homeless persons. In 2018, the 9th Circuit found that "as long as there is no option of sleeping indoors, the government cannot criminalize indigent, homeless people for sleeping outdoors on public property, on the false premise that they had a choice in the matter." The High Court refusal to consider the case affirms that within the 9th Circuit, "the 8th Amendment precludes the enforcement of a statute prohibiting sleeping outside against homeless individuals with no access to alternative shelter." This ruling does not prohibit cities from addressing street encampments; it just means they have to do it in constructive ways that reduce harm and actually assists in ending homelessness. Putting homeless people in jail simply takes up jail space that could be used for dangerous criminals and imposing fines they cannot pay further inhibits their ability to afford housing. Early in the case, the Department of Justice recognized that "criminalizing public sleeping in cities with insufficient housing and support for homeless individuals does not improve public safety outcomes or reduce the factors that contribute to homelessness." The victory in this case is not that it allows homeless people to sleep in public areas; the victory is that it will force communities to address homelessness proactively through development of adequate affordable housing, while providing safe and appropriate emergency shelter in the meantime.

HUD Issues Issues Waivers for Public & Indian Housing Programs, Including Section 8 Project-Based Vouchers During COVID-19 Emergency

On April 10, 2020 the HUD Office of Public & Indian Housing (PIH) issued waivers to provide administrative relief and ensuring continued program operations during the COVID-19 pandemic. These waivers can be reviewed in their entirety in Notice PIH-2020-05. These waivers are directed to public housing authorities (PHAs), Indian tribes and tribally designated housing entities, and apply to public housing, Section 8 Housing Choice Vouchers (HCV), Section 8 Project-Based Voucher, and Indian Housing Programs. PHAs and Indian tribes may implement any or all of these waivers, immediately or at any point during the applicability period. HUD has also waived certain requirements relating to notice and approval of Administrative Plan and ACOP amendments, which will allow PHAs to adopt these new waivers more quickly. HUD is providing both short term waivers (focused on providing essential flexibilities when normal operations are severely disrupted) and long-term waivers, which allow PHAs to defer important but less critical functions in order to focus on the most vital responsibilities until transitioning back to normal operations. The short term waivers generally end on July 30, 2020 and the long-term waivers expire on December 31, 2020. HQS Waivers >PHAs may enter into a Housing Assistance Payment (HAP) contract for tenant-based or PBV units, turn over units to a new family, add new units to a PBV HAP contract, or substitute units on a PBV HAP contract without conducting a Housing Quality Standards (HQS) inspection through July 31, 2020. >In lieu of the HQS inspection, the PHA may accept a certification from the project owner that the owner "has no reasonable basis to have knowledge that life threatening conditions exist" in the units in question. >Units must be inspected by October 31, 2020. >These same alternate requirements apply to PHAs choosing to utilize the alternative inspection flexibility that had previously been provided under the Housing Opportunity Through Modernization Act of 2016 (HOTMA), which allows the PHA to recognize alternative inspection regimes such as REAC. In lieu of a PHA inspection within 15 days, the PHA may accept an owner s certification of no knowledge of life threatening conditions to delay inspections until no later than October 31, 2020. >If an HQS inspection has been conducted but the PHA uses the Non-Life Threatening Deficiencies (NLT) flexibility that had previously been provided under HOTMA, project owners have up to 60 days, instead of 30, to make NLT repairs. >For units already under a HAP contract, PHAs may delay the required biennial HQS inspections until no later than October 31, 2020. >If a tenant notifies a PHA that their unit does not comply with HQS, through July 31, 2020, the PHA may notify the project owner in lieu of conducting an HQS inspection. For life threatening deficiencies, the owner must either correct the deficiency or provide evidence that the deficiency does not exist within 24 hours. For NLT deficiencies, the project owner must either correct the deficiency or provide evidence that the deficiency does not exist within 30 days of the PHA notification. >HUD is waiving the HQS requirement that a leased unit have at least one bedroom or sleeping room for every two people in order to accommodate residents who may need to add household members as a result of the COVID-19 emergency. Recertifications for Income & Family Composition (Public Housing & HCV/Section 8  >PHAs may delay annual re-examinations of family income and composition until December 31, 2020. >If a PHA wants to proceed with re-certifications, through July 31, 2020, PHAs may rely on family self-certification and forego reliance on third-party income verifications, such as the EIV system. HUD will even permit self-certifications over the phone if the PHA staff creates a contemporary written record. >Interim certifications may be used to adjust a family s portion of the rent if the family has lost income. Again, PHAs may rely on family self-certifications and need not rely on EIV or other third party verification through July 31, 2020. In addition, PHAs may wish to review and adjust their interim re-examination policies, such as when increases in family income must be reported or how to determine the effective date of the interim certification. >Mandatory EIV monitoring is waived through July 31, 2020. However, families will be responsible if significant discrepancies from their self-certification are later discovered. >If a PHAs payment standard increases, PHAs do not have to wait until the regular family re-examination for a unit to increase the HAP subsidy. Additional Waivers Applicable to PIH and HCV/Section 8 Programs >Section 8 Administrative Plans and public housing Admissions and Continued Occupancy Policies (ACOP) may be temporarily amended without board of directors approval until July 15, 2020. >PHA Annual Plan/5-Year Plan submission dated extended - PHAs with June 30 and September 30 fiscal year ends now have until October 18, 2020, to submit their annual or 5-year plans. PHAs with December 31 fiscal year ends have until January 16, 2021. In addition, plan amendments, except for amendments required for RAD, Section 8, and Section 22 repositioning efforts, can be adopted without an open public meeting of the PHAs board of directors. >HUD is still requiring PHAs to notify tenants of policy changes, but 30-day advanced notice is no longer required. >PHAs have been given broad latitude to extend a family s initial voucher, execute HAP contracts up to 120 days after the start of a family s lease, allow vacancies for more than 180 days, and retain units on a HAP contract even if the unit does not generate subsidy for more than 180 days. >COVID-19 qualifies as "good cause," through December 31, 2020, to extend a family s participation in the Family Self-Sufficiency (FSS) Program for up to two years. >Public notice for PHAs opening or closing waitlists can be provided by leaving an outgoing voice message on its answering system and website, if the messages are accessible for hearing, visual, and other communication-related disabilities. >Capital Fund obligation end dates and expenditure end dates are extended by one year. PHAs may exceed Total Development Cost (TDC) and Housing Construction Cost (HCC) limits by 25% and may seek HUD approval to exceed TDC and HCC by up to 50%. Deadlines for closeout forms are extended by six months. >PHAs may use force account labor (workers employed directly by the agency), rather than contracted labor, for modernization activities. >Energy audits are suspended and PHAs need not review utility allowances until December 31, 2020. >HUD is temporarily suspending the Public Housing Assessment System (PHAS) and the Section 8 Management Assessment Program (SEMAP) for PHAs with a fiscal year end on or before December 31, 2020. >Financial statement submission deadlines have been extended. >PHAs now have 90, rather than 60, days to submit form HUD-50058 for transactions impacted by these waivers. HUD will provide future guidance regarding reporting work-arounds in the PIH Information Center (PIC) system. The CARES act also provides supplemental funding for the Public Housing and HCV programs and additional flexibility to move monies between Operating and Capital Funds. HUD will publish additional guidance regarding these aspects of the CARES Act in the future.

Minnesota Supreme Court Rules that Payments Made to a Parent to Care for a Disabled Child Count as Income

On February 12, 2020, the Supreme Court of Minnesota held that some of the payments made by the state under a program for families with children having developmental disabilities who need to stay at home, which are made to offset the cost of necessary services and equipment, are not excluded from the annual income computation for purposes of calculating eligibility under HUD Section 8 rules. Facts of the Case The plaintiff received funds through the Minnesota Developmental Disability Waiver program;This program provides funding to pay for the necessary services and equipment for keeping a disabled person living at home;The plaintiff chose to allocate a portion of the budget to herself as a paid parent to provide some of the necessary services to her son;The County found that, although most of the benefits paid were excluded from her income for purposes of determining her Section 8 eligibility, the amounts she paid herself were not, citing 24 C.F.R. 5.609(c)(16);The cited provision excludes from income "Amounts paid by a State agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home;"Plaintiff counsel argued that the amounts in question were excluded from income under section 5.609(c)(16);The County argued that the amounts must be included in income because they were not used to "offset" and "cost" to the plaintiff, since the plaintiff did not actually incur an out-of-pocket expense;The hearing officer ruled that plaintiff s payments to herself were not excluded from income;Plaintiff appealed and the hearing officer s decision was upheld, so the plaintiff appealed to the State Supreme Court. Finding The Supreme Court affirmed the decision. Reasoning "Cost" means monetary expense, and as the plaintiff incurred no monetary expense, there was no "cost" to offset;Federal income exclusions include "amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member;"Equating cost and expense, cost is a monetary expense per the regulation;"Cost" as used in this regulatory context can only mean an actual monetary expense that has been, or will be, incurred by the family to keep the disabled family member living at home;"Cost" means "out-of-pocket expenses" to be "reimbursed or offset by the state;" andThe amounts the plaintiff received as payment for her services in caring for her son were not paid to offset the cost of services and equipment because the plaintiff incurred no actual monetary expense. Therefore, they were not excluded from annual income by federal regulation. Summary This case makes it clear that in order to exclude money paid for medical expenses, it must be a payment that either (1) may only be used for medical expenses, or (2) is a direct reimbursement for medical expenses that have actually been incurred.

IRS Extends Deadlines for Several LIHTC Requirements Due to COVID-19

The IRS has issued Notice 2020-23 extending the deadline to July 15, 2020 for any tax action that was due to be performed from April 1, 2020 through July 15, 2020. The actions for which the extended deadline applies were outlined in Revenue Procedure 2018-58 and include several affordable housing provisions. Among the deadlines extended for low-income housing tax credit properties are the 10% of reasonably expected basis test, the 24-month period of minimum rehabilitation expenses, and the annual owner certification of compliance. The IRS is awaiting further guidance from the Department of Treasury on what other specific considerations the IRS may grant with regard to the Section 42 program. The IRS has also agreed to apply relevant sections of Revenue Procedure 2014-49 (for the LIHTC program) and 2014-50 (for Tax-Exempt Bonds)immediately. These procedures outline the waivers from certain requirements for projects located in federal disaster areas. As of April 8, 2020, 46 states had disaster declarations due to the COVID - 19 outbreak. Specific Requirements Outlined in 2014-49 (requires State approval) Carryover Allocation and Placed in Service Requirements:10% deadline extension: Housing Finance Agencies (HFAs) may grant an extension for meeting the 10% expenditure test. Owners with carryover allocations must demonstrate that at least 10% of total project costs have been incurred within one year after the allocation date. Under 2014-49, the HFA may grant an extension of up to six-months.Placed-in-Service extension: the two-year placed in service deadline may be extended by the HFA for up to 12-months. These extensions may be granted on an individual project basis or for all or a group of owners in the disaster area. Since 2014-49 and 50 were intended for projects that were "damaged" in a major disaster area, additional guidance is required in order to determine if delays in leasing will be able to obtain deadline extensions, but it is believed that such extensions will be granted.

HUD Issues COVID-19 Suspensions and Waivers for HOME Program

On April 10, 2020, HUD issued guidance regarding suspension and waivers for requirements for the HOME program as a result of COVID-19. The memorandum authorized HOME participating jurisdictions (PJs) to use HOME tenant-based rental assistance (TBRA) funds to facilitate urgent housing assistance to families experience financial hardship as a result of the COVID-19 pandemic. The memorandum allows PJs to use HOME funds for rental assistance to individuals and families experiencing financial hardship as a result of the pandemic, including (1) providing immediate rental assistance to individuals and families seeking housing, (2) assisting households that have housing but face reduced or lost wages, and (3) assisting existing families with TBRA with additional assistance due to reduced or lost wages. Prior to using this authority, a PJ must notify the local HUD Field Office of its intent to do so, identifying which suspensions or waivers the PJ plans to use. HUD Community Planning & Development (CPD) Field Offices shall inform PJs of the availability of these suspensions and waivers. PJs should also obtain a copy of the Memorandum of April 10. Note: this guidance applies only to Participating Jurisdictions. It does not apply in any way to individual property owners with HOME funds.

Complying with HUD's New Guidance on Assistance Animals -Part III - The Type of Animals That Can Serve as Support Animals

On February 8, 2020, I posted an article on the new HUD guidance on how to assess requests to have an animal as a reasonable accommodation under fair housing law. This new guidance which is known as the "Assistance Animal Notice" includes two attachments: (1) "Assessing a Person s Request to Have an Animal as a Reasonable Accommodation Under the Fair Housing Act," and (2) "Guidance on Documenting an Individual s Need for Assistance Animals in Housing." I am currently posting a series of three articles that detail requirements for each of these areas. The first article discussed "service" animals and last week s second article covered "assistance animals other than service animals," generally known as "support animals." I will conclude the series this week with an article on the type of animals that can generally be acceptable as "support animals." As a prelude to this article, it is worthwhile to remind readers of HUD s basic position relating to assistance animals. HUD has made it clear that such animals are not pets and cannot be subject to a community s standard "pet policies." Assistance animals do work, perform tasks, assist, and/or provide therapeutic emotional support for individuals with disabilities. Assistance animals fall into two categories: (1) Service animals [the subject of the first article], and (2) support animals, which may be trained or untrained, and do work, perform tasks, provide assistance, and/or provide therapeutic emotional support for individuals with disabilities. Any animal that does not qualify as a service or support animal is considered a "pet," and may be subjected to an owners pet policies. Fees or deposits may be charged for pets and breed restrictions may be imposed. There may be no fee or deposit for assistance animals, nor may there be automatic breed restrictions. One more general note before our discussion on acceptable support animals; a household may need more than one assistance animal. For example, a person may have a disability related need for both animals, or two disabled people in the same household each need their own assistance animal. When determining whether more than one assistance animal is needed, the basic procedures outlined in the HUD notice - and discussed in this series of articles - should be followed. Types of Animals That Can Be Used as Support Animals As outlined in last week s article, a support animal is an animal that eases or ameliorates a mental or emotional disability. Unlike a "service" animal, which generally can only be a dog, many types of animals may serve as "support" animals. However, based on the new HUD guidance, there are restrictions. Animals commonly kept in households. If a person needs a support animal due to a mental or emotional disability, an accommodation allowing the animal should be granted. If the animal is a dog, cat, small bird, rabbit, hamster, gerbil, other rodent, fish, turtle, or other small, domesticated animal that is traditionally kept in a home for pleasure rather than for commercial purposes, the animal should be permitted as a support animal (this assumes that the specific animal is not known to be dangerous). For purposes of this assessment, reptiles (other than turtles), barnyard animals, monkeys, kangaroos, and other non-domesticated animals are not considered common household animals. Unique Animals. If an individual is asking to keep a unique type of animal that s not commonly kept in household s as described above, the individual has a substantial burden of proving a disability-related therapeutic need for the specific animal or the specific type of animal. The person making the request should submit documentation from a healthcare professional confirming the need for this animal, which includes information of the type outlined in the "Guidance on Documenting an Individual s Need for Assistance Animals in Housing." If such documentation cannot be provided, this may well be grounds for denying the requested accommodation. Under what circumstances may a unique animal have to be approved as a support animal? Examples include: 1. The animal has been individually trained to do work or perform tasks that a dog cannot do. An example of this type of animal is a capuchin monkey, which is trained to perform tasks for a person with paralysis from a spinal cord injury. These monkeys are trained to retrieve bottles of water from the refrigerator, open the bottle, insert a straw, and place the bottle in a holder so that the person can drink the water. The monkeys are also trained to turn lights on and off and retrieve requested items from inside cabinets. The monkey can use its hands to perform manual tasks that a dog cannot perform. 2. Information from a healthcare professional confirms that (1) allergies prevent the person from using a dog; or (2) without the animal,  the symptoms or effects of the person s disability will be significantly increased. 3. The individual seeks to keep the animal outdoors at a house with a fenced yard where the animal can be appropriately maintained. If a resident obtains a unique animal before submitting reliable documentation from a healthcare professional that reasonably supports the need for the animal, a housing provider may take reasonable steps to enforce the pet policy (or "no pet" policy) that is in place at the property. This new guidance will be useful for owners in keeping animals such as snakes, chickens, or pigs off a property unless clearly needed because they provide a service that no domesticated animal could provide. How to Document a Resident s Need for an Assistance Animal HUD s Assistance Animal Notice includes an attachment that describes best practices for documenting an individual s need for an assistance animal. The attachment summarizes the information that a housing provider may need to know from a healthcare professional about an individual s need for an assistance animal. Housing providers may not require a healthcare professional to use a specific form, provide notarized statements, make statements under penalty of perjury, or to provide an individual s diagnosis or other detailed information about a person s physical or mental impairments. When providing this information, healthcare professionals should rely on "personal" knowledge of their patient/client - that is, the knowledge used to diagnose, advise, counsel, treat, or provide healthcare or other disability-related services to their patient or client. As a best practice, documentation should include the following: *The patient s name; *Whether the healthcare provider has a professional relationship with that patient/client involving the provision of healthcare or disability-related services; and *The type of animal(s) for which the accommodation is sought (i.e., dog, cat, bird, rabbit, hamster, gerbil, other rodent, fish, turtle, other specified type of domesticated animal, or other specified unique animal). Unless the disability is obvious or known, the following information may also be requested: *Whether the patient has a physical or mental impairment; *Whether the patient s impairment(s) substantially limit at least one major life activity or major bodily function; and *Whether the patient needs the animal(s) because it does work, provides assistance, or performs at least one task that benefits the patient because of his or her disability, or because it provides therapeutic emotional support to alleviate a symptom or effect of the disability of the patient/client, and not merely as a pet. If the animal is not a domesticated animal that is traditionally kept in the home for pleasure as noted above, the healthcare professional may be asked for the following additional information: *The date of the last consultation with the patient; *Any unique circumstances justifying the patient s need for the particular animal; and *Whether the healthcare professional has reliable information about this specific animal or whether the healthcare professional has specifically recommended this type of animal. The healthcare professional should sign and date the documentation, provide contact information, and any professional licensing information. Some Final Thoughts on Assistance Animals The Fair Housing Act does not require a housing provider to provide units to persons who pose a direct threat to the health or safety of other tenants or staff, or whose tenancy would result in substantial physical damage to the property of others. For this reason, specific animals that pose a direct threat that cannot be eliminated or reduced to an acceptable level through actions the individual takes to maintain control of the animal (e.g., keeping the animal in a secure enclosure), do not have to be accepted as assistance animals. No fee or deposit may be charged for an assistance animal. However, a resident may be charged for any damage an assistance animal causes if it is an owner s usual practice to charge residents for damages. Pet rules do not apply to assistance animals. So, there can be no limit on the size or breed of a dog used as an assistance animal, but specific animals known to be dangerous do not have to be accepted. Also, rules regarding conduct, hygiene, supervision, etc., can generally match those related rules in a pet policy. A person with a disability is responsible for feeding, maintaining, providing veterinary care, and controlling the assistance animal. The resident may do this on their own or with the assistance of family, friends, or service providers; the housing provider is not responsible for care of the animal. If a housing provider denies a reasonable accommodation request because it would impose a fundamental alteration in how the property is operated or create and undue financial and administrative burden, the housing provider should engage in an "interactive process" with the person requesting the accommodation to determine whether an alternative accommodation may be effective in meeting the disabled person s needs. Finally, while disabled individuals are entitled to a reasonable accommodation that they need in order to have full use and enjoyment of the property, they are not entitled to an accommodation that is unreasonable. This assistance animal guidance from HUD can be very helpful to housing providers in understanding their rights and responsibilities relative to disabled individuals and assistance animals.

HUD Issues New Guidance on Annual & Interim Recertifications During COVID-19 Emergency

On April 2, 2020 the HUD Office of Multifamily Housing issued an updated Questions and Answers (Q&A) for the Office of Multifamily Housing Stakeholders - Coronavirus (COVID-19) on the HUD Multifamily webpage. As part of the Q&A, the processing of annual and interim recertifications and the protocol to use during the pandemic was addressed (and supersedes earlier guidance on this topic as published on March 16, 2020 and March 24, 2020). Based on an April 9, 2020 memorandum from Tobias Halliday, Director of the HUD Office of Asset Management and Portfolio Oversight, this new protocol is effective immediately. Due to the COVID-19 emergency, there may be times when owners and tenants cannot comply with current HUD regulations regarding the completion of required certifications. When the use of regulatory procedures is not possible, the extenuating circumstance instructions provided in the April 2 Q&A may be used. HUD considers the CDC s recommendations for controlling the spread of the virus as well as shelter-in-place and similar orders as qualifying as an extenuating circumstance. When an extenuating circumstance is present, there is no change in the tenant s recertification anniversary date. The Total Tenant Payment/Tenant Rent and the assistance payment are effective retroactively to the recertification anniversary date. It is recommended by HUD that owners begin, and if possible, complete, the recertification actions within 90 days of being advised of the extenuating circumstance. Use of Tenant Self-Certifications for Interim and Annual Recertifications HUD will allow assisted tenants that may have lost income due to COVID-19 to self-certify for annual or interim recertifications. Acceptable methods of verification of income for all recertifications, in order of acceptability, are provided in HUD Handbook 4350.3, paragraph 5-13, B and Appendix 3. Family certification can be used if the information cannot be verified by another acceptable verification method. When family certification is used, owners must document the tenant file to explain why third party verification was not available. During the COVID-19 National emergency, this certification can be provided to the owner by other means such as mail or email. The owner may consider collecting the original documents from the family at a later date. Signatures For owners or tenants impacted by the COVID-19 virus, HUD will allow alternate signatures (e.g., copies or images of signatures sent by email, fax, or other electronic means) as long as original, "wet" signatures are obtained within 90 days from the termination of national, state, or local orders restricting movement to essential activities, whichever comes later. Forms that will require original, "wet" signatures to be obtained in the time period noted above include, but are not limited to, form HUD-9887/9887-A, form HUD-50059, lease agreements/addendums, family certification of income (unemployment, zero income, etc.), and state lifetime sex offender forms. Form HUD-9887/9887-A and Form HUD 50059 When a tenant s "wet" signature cannot be obtained on form HUD- 9887/9887-A, or on  form HUD-50059, due to extenuating circumstances, the forms, and HUD Handbook 4350.3, REV-1, paragraph 5-21.C (for HUD 9887/9887-A), and paragraph 5-31.F (for form HUD-50059), instruct the owner to document the tenant file with the reason for the delay and the specific plans to obtain the signature(s). As noted above, HUD will permit alternate signatures as long as original, "wet" signatures are obtained within 90 days from the termination of national, state, or local orders restricting movement to essential activities, whichever comes later. Please note that form HUD-9887/9887-A remains in effect for 15 months after signature. Documentation for Certifications Tenants experiencing extenuating circumstances due to COVID-19 can provide the owner with documentation for the recertification by email or other electronic delivery at the owner s discretion. Documentation includes, but is not limited to, paystubs, Social Security/SSI/SSP awards, bank statements, and public assistance documents. If electronic documentation is received by the owner, and original documents are required by HUD Handbook 4350.3, REV-1, the owner must collect the original documents from the tenant at a later date. (Note - owners should remind tenants to retain the original documents since they will be needed later). Tenant Rental Assistance Certification System (TRACS) When an extenuating circumstance is present due to the COVID-19 virus, the owner must submit the Interim Recertification (IR) or Annual Recertification (AR) to the TRACS (via the Contract Administrator or directly to TRACS, as appropriate) using one of the following three (3) extenuating circumstances codes: 1 = Medical (medical staff have quarantined the tenant); 2 = Late annual certification due to accommodation or extenuating circumstances; or 10 = Other A correction certification to remove the extenuating circumstance code must be submitted to TRACS once the appropriate signature(s) is obtained on form HUD-50059. Owners are reminded to maintain at least 90% of their certifications in an active status in TRACS to maintain subsidy payments. TRACS users experiencing technical issues can continue to submit requests through the system s Help Desk. While these provisions will be helpful to owners and residents when traditional certification methods are not possible, it is recommended that regular procedures be followed when feasible (and safe) to do so.

HUD Guidance Regarding COVID-19 Property Management Issues

On March 24, 2020, HUD updated its guidance on dealing with site management issues at HUD-regulated properties during the COVID-19 crisis. Following are some of the highlights of that guidance. 1. Owners may consider extenuating circumstances (including COVID-19 considerations in the community) when a tenant is not available to attend a recertification interview, sign consent forms, or sign form HUD-50059. It is recommended that the owner begin or accomplish the above actions within 90-days of being advised of the extenuating circumstance. For example, if a resident notifies management on April 6 that they are not leaving their apartment due to COVID-19 and will be unable to do the recertification interview that was scheduled. Management should document this in the resident file and make every effort to complete the process no later than July 5, 2020 (90 days). When an extenuating circumstance is present, there is no change to the tenant s recertification anniversary date. The Total Tenant Payment/Tenant Rent and the assistance payment are effective retroactively to the recertification anniversary date. The owner must document the file why the signature was not obtained and, if applicable, when the signature(s) will be obtained. 2. For owners/agents (O/A) that are working on recertifications for residents impacted by COVID-19, HUD will allow electronic signatures as long as they obtain original, "wet" signatures on recertification documents at a later date. In particular, the HUD-9887/9887A, which is usually signed at the beginning of the recertification process and allows the O/A to begin verifying documentation, requires an original "wet" signature. Other recertification documents in addition to the 9887/9887A that will require original, "wet" signatures to be obtained at a later date, include but are not limited to (1) the HUD-50059; (2) lease agreements/addendums; (3) affidavits of unemployment and zero income; and (4) state lifetime sex offender forms. 3. Tenants may also provide the background documentation for the recertification process, including but not limited to (1) paystubs; (2) SS/SSI/SSP award letters; (3) bank statements; and (4) public assistance documents by mail to the O/A at their discretion. With this flexibility, O/As can complete a temporary recertification using electronic versions of these documents and can collect the original documents from the tenant at a later date. REAC Inspections Until further notice, HUD Office of Multifamily Housing is postponing all REAC property inspections for all Multifamily properties. Where there is an exigent circumstance or reason to believe that there is a threat to life or property at a specific location, inspections will be conducted by HUD quality assurance inspectors in compliance with CDC guidelines. Please note that this supersedes guidance issued by HUD on March 12, 2020, which indicated that guidance from local health agencies would be followed. Management & Occupancy Reviews (MORs) HUD is relieving PBCAs operating under ACCs from the requirement to notify HUD that the Presidential emergency determination either limits, or in some cases, prevents, PBCAs from carrying out MORs and related activities. HUD is suspending standard MORs until the PBCA determines that local conditions no longer limit or prevent the PBCA from performing MORs safely. HUD is looking into a flexible model that would allow PBCAs to adapt to local conditions in a way that allows them to continue MORs on a modified basis to ensure acceptable conditions in HUD properties. Additional guidance in this area will be forthcoming. HUD is constantly updating its COVID-19 guidance and operators of HUD Multifamily housing should monitor the HUD website for the newest information.