F. Chapter 4, Waiting List and Tenant Selection

Corrected references or typos: Paragraph 4-7.C.1, 4-11.A, 4-12.C.3,4-14.B.5, 4-24.B.6

Additional clarification on existing text: Figure 4-2 - Added eligibility of college students to receive Section 8 assistance as a required topic for the Tenant Selection Plan. Paragraph 4-4.C.1.b - Removed temporary deferral of termination of assistance as a requirement for the Tenant Selection Plan.

Paragraph 4-4.C.6 - Corrected title of paragraph to include "Title VI of The Civil Rights Act of 1964." Paragraph 4-4.C.8 - Added that the Tenant Selection Plan must include the requirements for determining eligibility of students enrolled at an institution of higher education to receive Section 8 assistance.

.Paragraph 4-5 - Added a note that income targeting does not apply to Section 202 PAC, Section 202 PRAC and Section 811 PRAC.

Paragraph 4-7.B.5 - Added the same criteria established for other applicants when screening for drug abuse and other criminal activity must be applied when screening live-in attendents and new additions to the household. Paragraphs 4-7.E.6 and 4-28.B - Added If the applicant is a person with disabilities, the owner must consider extenuating circumstances in the screening process where this would be required as a matter of reasonable accommodation. Paragraph 4-9.C.2.c - Added that the applicant rejection notice must state that persons with disabilities have the right to request reasonable accommodations to participate in the informal hearing process. Paragraph 4-11.A and Paragraph 4-12 - Corrected form number for the Affirmative Fair Housing Marketing Plan to HUD-935.2A. Paragraph 4-12.D.4 - Added that the owner's responsibility to market projects to those least likely to apply includes marketing to the LEP population in the community. Paragraph 4-12.F - Added guidance on updating the Affirmative Fair Housing Marketing Plan. Paragraph 4-14.A.1 - Added in addition to providing applicants the opportunity to complete applications at the project site, owners may also send out and receive applications by mail or make reasonable accommodations for persons with disabilities, if requested. Paragraph 4-14.A.3 - Added when applicants do not complete the race and ethnicity form owners should place a notation in the tenant file that the applicant chose not to provide the race and ethnicity certification. Paragraph 4-16.A.1 - Added upon receipt of an application the owner must indicate the date and time received by either using a date and time stamp or writing and initialing the date and time on the application. Paragraph 4-21 - Added as an example the applicant did not respond to information or updates because of a disability. Paragraph 4-22.E - Added new paragraph stating the applicant's or tenant's file should be available for review by the applicant or tenant upon request or by a third party who provides signed authorization for access from the applicant or tenant. Paragraph 4-22.F - Added new paragraph stating the owner must dispose of applicant and tenant files and records in a manner that will prevent any unauthorized access to personal information, e.g., burn, pulverize, shred, etc. Paragraph 4-25.C - Added for example, an initial certification processed to move a tenant from Section 236 assistance to Section 8 assistance is counted for income targeting. Paragraph 4-27.C.2.f - Added "for lease violations" after previous evictions. Paragraph 4-27.D - Added unless the owner has established a geographic radius within which home vists are made (see paragraph 4-7 E.5).

Form HUD-23 (9/81)

Paragraph 4-27.E.6 - Added new paragraph stating the notification requirements if an applicant is denied admission because the criminal background check reveals he/she provided false information.

• Paragraph 4-28.B.1 - Added if the applicant is a person with disabilities, the owner must consider extenuating circumstances where this would be required as a matter of reasonable accommodation (see Chapter 2, Subsection 4 for information on Reasonable Accommodation.)

Paragraph 4-31.A.5 - Added noncitizen requirements do not apply to Section 202 projects with units not receiving assistance under the Rent Supplement or Section 8 programs to be consistent with paragraph 3-12.F. Paragraph 4-31.B.2 - Clarified that prorated assistance would be provided for the family members who submitted their immigration documentation in a timely manner.

• G. Chapter 5, Determining Income and Calculating Rent

Corrrected erroneous references or typos: Paragraph 5-6.A.3.d, 5-6.K.1, 5-6.K.3, 5-10.A.4, 5-12.A.3, 5-15.D.1, 5-25, Figure 5-5

Additional clarification on existing text: Paragraph 5-5.A.2 - Removed "and divide by 12" in two places in the paragraph.

Figure 5-2 - changed Note to read the earned income of a full-time student 18 years old or older who is a dependent is excluded to the extent that it exceeds $480.

Paragraph 5-6.C - Added text to correctly reflect the treatment of income and deductions for a permanently confined family member. Also added the owner should consider extenuating circumstances for obtaining the signature of the permanently confined member on the HUD-50059.

Paragraph 5-6.D - Included text stating when student financial is included in annual income for students applying for or receiving Section 8 assistance.

Paragraph 5-6.H - Added new paragraph providing guidance on the inclusion of periodic social security payments in annual income. Paragraph 5-6.K .4 - Added information on the treatment of Federal government pension funds paid to a former spouse.

Paragraph 5-6.O - Removed periodic payment from an asset is not income until the amount invested is recouped. Removed the examples "Documenting That Amounts Withdrawn Are Reimbursement of Amounts Invested." Clarified when to count withdrawals as assets and when to count as income.

Paragraph 5-6.Q.3 Example - Removed the last bullet in the example relating to student financial assistance.

Paragraph 5-7.G.2.b(2) - Removed the amount the holder invested in the annuity will not be counted as income along with the example. Paragraph 5-7.G.2.c(1) - Deleted "If total net assets exceed $5,000" as the cash value of an annuity must be calculated regardless of the total of the net assets.

Paragraph 5-7.G.5 - Added a new paragraph on treatment of Federal Government Pensions and renumbered the remaining subparagraphs in this section.

Paragraph 5-7.G.6.b - Changed to read the cash value of the asset for mortgage or deed of trust is the unpaid principal as of the effective date of the certification.

Paragraph 5-10.C.1.- Removed the phrase (including the member who is a person with disabilities) as this was a duplicative statement within the sentence.

Paragraph 5-10.D.6 - Added past one-time nonrecurring medical expenses that have been paid in full are not applicable when calculating anticipated medical expenses at move-in.

Paragraph 5-10.D.8.k - Added see Sample Certification for Qualified Long-Term Care Insurance Expenses in Exhibit 5-4. Paragraph 5-13.C.1.a - Added when third party verification is not possible refer to paragraph 5-19.E for documenting the file.

Paragraph 5-13.C.1.b - Removed the sentence the owner may resort to a review of documents before the two week date if the owner determines and documents that third party verification cannot or will not be obtained. Paragraph 5-13.C.3.b - Changed to read four to six pay stubs. Paragraph 5-13.D - Added "or signed affidavit". Paragraph 5-15.A, B.1 and B.2 - Added that the forms must be signed at move-in and at each annual recertification. Paragraph 5-16 - Removed the reference to Exhibit 5-8 as the exhibit has been removed. The EIV System User Manual for Multifamily Housing Program Users should be referred to for information relative to using EIV for verification of social security benefits. A future Handbook 4350.3 REV-1 update will include necessary references related to use of the EIV system.

Paragraph 5-17.B.1 - Changed to reflect that verifications are valid for 120 days. Paragraph 5-17.B.2 - Paragraph removed regarding updating verification requests orally with a 3[rd] party source and renumbered the remaining paragraphs.

Form HUD-23 (9/81)

Paragraph 5-23.C - Added new paragraph stating a tenant's file should be available for review by the tenant upon request or by a third party who provides signed authorization for access from the tenant.

Paragraph 5-23.E - Added new paragraph stating owners must dispose of applicant and tenant files and records in a manner that will prevent any unauthorized access to personal information, e.g., burn, pulverize, shred, etc. Paragraph 5-24 Added Key Regulation 24 CFR 5.661 Section 8 project-based assistance programs: Approval for police or other security personnel to live in project.

Paragraph 5-26.C - Added reference to paragraph 9-13 for information on utility reimbursements.

Paragraph 5-26.D - Added note that minimum rent does not apply to Section 202 PAC, Section 202 PRAC or Section 811 PRAC projects.

Paragraph 5-28 - Clarified calculating rent and assistance payments for Section 811 double occupancy units, corrected calculations in examples and added new examples.

Paragraph 5-31.C - Added that the certification statements are provided on the form HUD-50059 in Appendix 7-B and removed Figure 5-8.

Paragraph 5-31.F - Added required signatures must be obtained on the HUD-50059 prior to submitting the information to CA or HUD. Also added that the owner may consider extenuating circumstances when an adult family member is not available to sign the HUD-50059.

Exhibit 5-1 - Income Inclusions (4) - Corrected language to clarify the examples are types of periodic payments included in annual income and are not income exclusions. Also included new provision (9) for inclusion in annual income of financial assistance in excess of tuition for persons enrolled as students at an institution of higher education and added under Income Exclusion (6) "see income inclusions 9), above, for students receiving Section 8 assistance.

fy the examples are types of periodic payments included in annual income and are not income exclusions. Also included new provision (9) for inclusion in annual income of financial assistance in excess of tuition for persons enrolled as students at an institution of higher education and added under Income Exclusion (6) "see income inclusions 9), above, for students receiving Section 8 assistance.

Exhibit 5-2.A.10.d - Changed to calculate the imputed income using the cash value of the asset as of the effective date of the certification. Changed the example to agree with the text.

Exhibit 5-3 - Changed title to read "Examples of Medical Expenses That Are Deductible and Nondeductible".

Exhibit 5-3 - Cosmetic surgery - Added "However, if medical complications, e.g., infections, etc., occur as a result of the proceudre that requires medical treatment, the medical treatment expenses would be treated as a medical expense deduction."

Exhibit 5-3 - Nutritional supplements and Non-prescription medicines - Changed to read in order to be eligible as a medical expense, it must be recommended in writing by a licensed health care provider that the drug is treatment for a specific condition diagnosed by a physician or health care provider.

Exhibit 5-3 - Personal use items section - Added incontinence supplies as an example.

Exhibit 5-4 - Changed title to reflect it is a sample certification form for qualified long-term care insurance expenses.

Exhibit 5-8 - exhibit removed and replaced with Exhibit 5-9.

H. Chapter 6, Lease Requirements and Leasing Activities

Corrected erroneous references or typos: 6-3.A.4, 6-5 E.1 and 2, 6-25.F.2.b,

Additional clarification on existing text: Paragraph 6-4.A - Note added advising that leases may need to be conveyed in languages other than English for LEP persons.

Paragraphs 6-4.B.2 and 6-5.A.3 - Added paragraphs covering recertification, termination of assistance and fraud penalties found in the model lease for subsidized programs must be added to the occupancy agreements for coops. Figure 6-2 - Added Rent Supplement and Rental Assistance Payment (RAP) to the programs that use the Model Lease for Subsidized Programs.

Paragraph 6-4.D, 6-5.C.2, 6-12.B.2, 6-12.C.1,2 and 3 - Added contract administrators can approve lease modifications. (See paragraph 1-1 regarding CAs responsibilities.)

Paragraph 6-5.C.1 - Added Rental Assistance Payment (RAP) and Rent Supplement.

Paragraph 6-5.F.2 - Added RHS Section 515/8 projects must use the HUD Model Lease for Subsidized Programs. Also added that the owner must prepare and have approved a lease addendum containing the additional requirements required by RHS.

Paragraph 6-9.A.2 - Clarified that contract administrators review or approval of house rules is not required. Paragraph 6-9.B.5 - Added contract administrators may address issues related to House Rules and revised to read "that house rules circumvent or conflict with HUD requirements (including civil rights and Fair Housing)." Paragraph 6-10.A.4 - Added "to see Glossary" for definition of assistance animals.

9.A.2 - Clarified that contract administrators review or approval of house rules is not required. Paragraph 6-9.B.5 - Added contract administrators may address issues related to House Rules and revised to read "that house rules circumvent or conflict with HUD requirements (including civil rights and Fair Housing)." Paragraph 6-10.A.4 - Added "to see Glossary" for definition of assistance animals.

Paragraph 6-11.B.4 - Added the HUD-50059 must be filed in the tenant file to reflect the correct gross rent and assistance payment.

Paragraph 6-12.B.1 - Clarified lease changes provided by HUD Headquarters must be incorporated into the lease

Form HUD-23 (9/81)

and do not require approval by the HUD Field Office or Contract Administrator. Paragraph 6-14.B.2 - Added Contract Administrator.

Paragraph 6-15.H - Removed the reminder regarding the security deposit and special claims as it no longer applies. Paragraph 6-19 - Added as a Key Regulation, 24 CFR 2.278 Mandatory Meals in Multifamily Rental or Cooperative Projects for the Elderly or Handicapped.

Paragraph 6-23.B - Added new paragraph stating owners cannot charge tenants for late payment of rent in Section 202/8, Section 202 PAC, Section 202 PRAC and Section 811 PRAC projects. Renumbered the remaining paragraphs.

Paragraph 6-25 - Rearranged the order of this paragraph.

Paragraph 6-25.A - Changed to read "an owner may charge tenants for allowable charges identified under subparagraphs B, C, D and E below."

Paragraph 6-25.B.3 - Added a Note stating owners cannot charge tenants for returned checks for insufficient funds at Section 202/8, Section 202 PAC, Section 202 PRAC and Section 811 PRAC projects.

Paragraph 6-27.B.2 - Added Exhibit 6-6 provides "examples of" more detailed information that may be provided to the tenant during the briefing.

Paragraph 6-27.C.2 - Added when conducting the briefing of new tenants, the information may also have to be conveyed in languages other than English for LEP persons, in accordance with HUD guidance.

Paragraph 6-29.C.3 - Added the inspection form must include the statement "The unit is in decent, safe and sanitary condition."

Exhibit 6-2 - Removed the addendum to RHS lease requirements and added the Required RHS 515 Section 8 Lease Provisions - RHS 515/8 projects must now use the HUD Model Lease for Subsidized Programs.

Exhibit 6-6 - Changed the name of the exhibit to reflect that the exhibit is examples of tenant briefing topics. Added under Annual/Interim Recertification "Failure to recertify for Section 202 PRAC and Section 811

PRAC may result in termination of tenancy"; under General Rules added "No" installation of washers; and added in the introductory language this information may have to be conveyed in languages other than English for LEP persons, in accordance with HUD guidance.