Notice of Proposed Changes to the HCV Administrative Plan and MTW Supplement to Annual Plan FY 2025

The Housing Authority of Travis County (HATC) is proposing changes to the Housing Choice Voucher (HCV) Administrative Plan and the Moving to Work (MTW) Supplement to the Annual Plan for Fiscal Year 2025. These changes are being proposed to comply with new federal regulations, streamline existing policies, and enhance housing opportunities for low-income families in Travis County.

Overview of Changes to Housing Choice Administrative Plan FY 2025

Introduction

• Added information on the Housing Opportunity through Modernization Act (HOTMA).

Chapter 1

• Added information on the Housing Opportunity through Modernization Act (HOTMA) to the Overview and History of the Program section.
• Revised the section on Contents of the Plan to include information on project-based vouchers and policies governing special housing types.
• Revised the list of owner responsibilities to account for NSPIRE.

Chapter 2

• Expanded the existing policies on discrimination complaints with a new section on Discrimination Complaints, which includes guidance from Notice FHEO 2023-01.

Chapter 3

• Revised various areas of the chapter to account for HOTMA changes, including the Final Rule issued February 14, 2023, Notice PIH 2023-27, and other sources of HUD guidance on the topic. This includes a new section on Restriction on Assistance Based on Assets.
• Included the term human trafficking with Violence Against Women Act (VAWA) language, in addition to other VAWA clarifications to better align with current guidelines such as the implementation Guidance for VAWA 2022 published in the Federal Register on January 4, 2023.
• Clarified language on disparate impact and discriminatory effects per the final rule dated March 31, 2023.
• Updated cross-references to correspond with updates in Chapter 8.
• Added language requiring households to submit a new request for continued live-in aide care at each annual/biennial reexamination.
• Added language that the PHA will deny or terminate assistance or admission if a participant/applicant revokes their consent to access financial records from institutions to verify assets.

Chapter 4

• Included the term human trafficking with Violence Against Women Act (VAWA) language to better align with current guidelines.
• Addition of HATC’s new proposed policy to provide a preference to FUP youth who are terminated due to the time-limited assistance.

Chapter 5

• Included the term human trafficking with Violence Against Women Act (VAWA) language to better align with current guidelines.
• Revised family obligations to account for NSPIRE.
• Addition of HATC’s new proposed policy to assign one bedroom to the head of household and spouse/partner then one bedroom for every two additional occupants.
• Addition of HATC’s new proposed policy to define the maximum number of voucher extensions the PHA will provide which may not exceed a total of 180 days of total voucher search time (two 30-day extensions).

Chapter 6

• This chapter was completely rewritten from the ground up to account for HOTMA changes, including the Final Rule issued February 14, 2023, Notice PIH 2023-27, and other sources of HUD guidance on the topic.
• Removed Earned Income Disallowance for any new households on or after January 1, 2024. The exclusion period for prior households’ sunsets on January 1, 2026.
• Included also are changes regarding exceptions to utility allowances as a reasonable accommodation.
• Removal of HATC’s proposed policy under Moving to Work (MTW) to not apply dependent or childcare allowance to non-elderly/nondisabled families. Allowances will continue to be applied accordingly. This policy was never implemented.
• Removal of HATC’s proposed policy under MTW related to revised total tenant payment (TTP) and increased minimum rent. This policy was never implemented therefore the removal would align with current HUD policy. The minimum rent will remain at $50.

Chapter 7

• As with Chapter 6, the bulk of this chapter had to undergo a complete rewrite for HOTMA. Many of the changes were required due to updates in verification requirements outlined in Notice PIH 2023-27.
• Revision of MTW policy to accept family’s self-certification of assets totaling $50,000 or less. This policy revision complies with HOTMA’s new guidelines.
• Addition of FUP youth preference for those who are at risk for homelessness due to time-limited voucher. This preference will be verified through direct referral from partnering agencies.

Chapter 8

• This chapter only contains a minor policy adjustment to the Inspection Results section to disallow self-certification of repairs.
• This chapter contains extensive rewrites to update for NSPIRE requirements.
• NSPIRE inspections will start October 1, 2025. Prior to that date, HQS standards will apply.
• Revision to allow HATC to accept self-certification of completed repairs with supporting documentation for reinspections where repairs are not life-threatening.

Chapter 9

• Included the term human trafficking with Violence Against Women Act (VAWA) language to better align with current guidelines.
• Additions and updates to citations for NSPIRE.
• Added language to MTW PHA policy stating landlord incentive payments to new landlords are based on available funding and not guaranteed. HATC will establish a fixed budget each fiscal year for landlord incentives based on the first year’s utilization.
• Maintained HQS referenced in policy since NSPIRE will be implemented October 1, 2025.

Chapter 10

• Included the term human trafficking with Violence Against Women Act (VAWA) language to better align with current guidelines.
• Removed references to Housing Quality Standards.
• Removed duplicative/conflicting policy information regarding voucher extensions and expiration.
• Clarified policy regarding sending documentation to the receiving PHA.
• Revision and update to voucher initial term from 60 to 120 days for all portable families. This is congruent with the overall voucher issuance for all projects.

Chapter 11

• Removed references to HQS and updated for NSPIRE.
• Updated policy language to mirror language elsewhere in the admin plan.
• As with Chapters 6 and 7, the bulk of this chapter had to undergo a complete rewrite to account for HOTMA, including the Final Rule issued February 14, 2023, Notice PIH 2023-27, and other sources of HUD guidance on the topic.
• Revise and add language to HATC’s MTW policy to conduct biennial reexaminations for all households except those participating in VASH, SV, EHV. Those projects will be certified annually.
• Add language that HATC will process changes in household composition only at the biennial reexamination unless the family reports a change to the household that impacts space requirements or results in a decrease in income.
• Revision to HATC’s family reporting interim policy pertaining to increases in earned income between annual/biennial reexaminations. The PHA will not process an interim reexamination, regardless of the amount of the increase, unless the family has previously received an interim reduction/decrease during the same reexamination cycle.
• Revision to HATC’s family reporting interim policy pertaining to increases in unearned income between annual/biennial reexaminations. The PHA will process an interim reexamination for any increases in unearned income of 10% or more in adjusted income.
• The PHA will not perform an interim reexamination when a family reports an increase in income (whether earned or unearned income) within three months of their annual reexamination effective date. However, families who delay reporting income increases until the last three months of their certification period may be subject to retroactive rent increases in accordance with the PHA policies in Chapter 14.

Chapter 12

• Revised the policy that the PHA will terminate assistance if the family has been evicted from federally assisted housing in the last five years to reduce the number of years to three.
• Included the term human trafficking with Violence Against Women Act (VAWA) language, in addition to other VAWA clarifications to better align with current guidelines such as the implementation Guidance for VAWA 2022 published in the Federal Register on January 4, 2023.
• Updated Exhibit 12-1, Statement of Family Obligations, with NSPIRE language.
• Revision to policy requiring families to report additions of household members within 10 days to 30 days to be congruent with policy revisions throughout administrative plan.

Chapter 13

• Revised policy in HAP Contract Term and Terminations section for clarification.
• Included the term human trafficking with Violence Against Women Act (VAWA) language, in addition to other minor VAWA clarifications to better align with current guidelines such as the implementation Guidance for VAWA 2022 published in the Federal Register on January 4, 2023.
• Removed references to HQS and updated for NSPIRE.
• Adding language to MTW Landlord Damage Claims policy to qualify landlords who lease a new voucher tenant to any landlord-owned unit within 6 months of prior family move out.
• Adding language to MTW Landlord Damage Claims policy which provides damage claims payments based on available funding and is not guaranteed. HATC will establish a fixed budget each fiscal year for landlord damage claims based on the first year’s utilization.

Chapter 14

• Added a new subsection and accompanying policy on De Minimis Errors, plus a minor clarification to account for HOTMA changes, including the Final Rule issued February 14, 2023, Notice PIH 2023-27, and other sources of HUD guidance on the topic.
• Removed references to HQS and updated for NSPIRE.

Chapter 15

• Reworked Chapter 15 to include the policies by default rather than directing to the guide. Policies are now included where relevant in the event that the PHA grants use of a special housing type as needed as a reasonable accommodation.
• Multiple updates to account for NSPIRE’s effect on various special housing types.

Chapter 16

• Included the term human trafficking with Violence Against Women Act (VAWA) language, in addition to other VAWA clarifications to better align with current guidelines such as the implementation Guidance for VAWA 2022 published in the Federal Register on January 4, 2023.
• Included changes regarding exceptions to utility allowances as a reasonable accommodation.
• Modified the policy on evidence for the informal hearing to eliminate the charge of copying documents related to the hearing.
• Added a record retention policy that the PHA will keep for at least three years records of all complaints, investigations, notices, and corrective actions related to fair housing violations.
• Removed references to HQS and updated for NSPIRE.

Chapter 17

• Made minor updates to account for the Federal Register notice issued March 3, 2023, on subsidy layering requirements.
• Added a minor clarification on asset limitation requirements to the section on Eligibility for PBV Assistance to account for HOTMA changes.
• Included the term human trafficking with Violence Against Women Act (VAWA) language to better align with current guidelines.
• Multiple updates throughout to account for NSPIRE’s effect on PBV program requirements.

Chapter 18

• Added information and clarification to the Applicable Regulations, PBV Percentage Limitation and Unit Cap, Inspecting Units, and Continuation of Housing Assistance Payments sections to account for the most recent Rental Assistance Demonstration (RAD) notice, PIH 2023-19.
• Added a minor clarification on asset limitation requirements to the section on Eligibility for PBV Assistance to account for HOTMA changes.
• Included the term human trafficking with Violence Against Women Act (VAWA) language to better align with current guidelines.
• Removed references to HQS and updated for NSPIRE.

Chapter 19

• Added a new Part VI on Stability Vouchers.
• Revised Part II on the Foster Youth to Independence (FYI) Initiative to account for guidance set forth in Notice PIH 2023-04.
• Included the term human trafficking with Violence Against Women Act (VAWA) language to better align with current guidelines.
• Removed references to HQS and updated for NSPIRE.
• Add new policy which will provide a selection preference on the PHA’s HCV waiting list for FUP youth who are terminated due to the time limit on assistance (36-60 months).
• Revising entire Stability Voucher Program section by utilizing HUD language for Stability Voucher program however maintained the same policies from prior year.

Glossary

• Updated acronyms and definitions for all cumulative changes specified above.
• Revised various definitions for HOTMA.
• Removed references to HQS and updated for NSPIRE.

TPS EHV

• Updated language from HUD PIH Notice 2023-23.
• Increased service fee dollar amount from $50 to $200 for service fees that support EHV families in fulfilling their family obligations based on PIH Notice 2023-23. Increase service fees to allow for assisting with resolving a lease violation to prevent eviction and included vital documents as an approved service fee expense.
• Further defined parameters for payment to tenant for service fees that pay for essential household items based on PIH Notice 2023-23.
• In the HCV Admin Policy Changes Summary document below, items identified with this symbol * are significant PHA policies and revisions. All other items are HUD mandated changes to the Administrative Plan due to HOTMA, VAWA, and NSPIRE.

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Overview of Changes to MTW Supplement to Annual Plan FY 2025

In FY 2024, HATC faced challenges in implementing activities for rent simplification due to HUD’s delay of HIP and HATC software changes. Activities associated with rent simplification were tied to Annual Reexaminations; therefore, biennial reexaminations were not implemented. Due to HOTMA policy and HUD-approved streamlining of processes, the PHA will remove proposed MTW activities associated with processing of reexaminations. Biennial reexaminations are planned to be implemented starting FY 2025. Priorities for HATC include continuing activities that promote landlord retention and increase housing opportunities, reduce administrative burden for staff, and exploring opportunities that promote self-sufficiency.

Tenant Rent Policies

1.f. Minimum Rent

The PHA will establish a $75 minimum rent. In combination with activities 1.h. and 1.s., this initiative promotes rent simplification, which supports reduction of administrative costs while supporting self-sufficiency through promoting the families' increased understanding of how family share is determined.

For FY 2025: This activity was never implemented and will be discontinued in submission year.

1.h. Total Tenant Payment as a Percentage of Gross Income

The PHA will establish 28% of income as the total tenant payment. In combination with activities 1.f. and 1.s., this initiative promotes rent simplification, supporting reduction of administrative costs while supporting self-sufficiency through promoting the family's increased understanding of how family share is determined. Combining these rent initiatives will have minimal impact on the family's rental amount.

For FY 2025: This activity was never implemented and will be discontinued in submission year.

1.o. Initial Rent Burden

The PHA will not approve an initial assisted tenancy if the family share exceeds 60% of the family’s monthly income. This initiative increases housing opportunities for assisted families while reducing the number of initial requests for tenancy approval disapproved due to affordability, therefore reducing administrative burden and increasing housing choice.

For FY 2025: This activity is currently implemented for all households and will continue in the next fiscal year.

1.s. Elimination of Deductions

The PHA plans to eliminate dependent and childcare deductions. In combination with 1.f. and 1.h., this initiative promotes rent simplification, supporting reduction of administrative costs while supporting self-sufficiency through promoting the family's increased understanding of how family share is determined. Removing deductions would simplify administrative burden in determining rental portions.

For FY 2025: This activity was never implemented and will be discontinued in submission year.

Reexaminations

3.b. Alternative Reexamination Schedule for Households

The PHA will establish a biennial reexamination schedule for all households. Implementing this initiative will reduce administrative and family burden due to less frequent reporting and processing reexaminations. The PHA will conduct an interim reexamination any time the family’s adjusted income has decreased by any amount. Increases in earned income between annual/biennial reexaminations will be processed only if the family had previously received an interim reduction in rent during the same reexamination cycle. The PHA will process an interim reexamination for any increases in unearned income of 10% or more in adjusted income. Additions in household members which impact space requirements will also be reviewed and processed accordingly. PHAs policies allowing families to retain their increased earnings in between the biennial reexamination periods will provide greater self-sufficiency for the family.

For FY 2025: This activity was scheduled to be implemented in FY 2024; however, because activities 1.f., 1.h., and 1.s. were connected to this activity, it was not implemented. For FY 2025, this activity is planned to be implemented with the removal of 1.h., 1.s., and 1.f. The following projects will be processed annually: VASH, Stability Vouchers, and Emergency Housing Vouchers.

3.d. Self-Certification of Assets

At reexamination, the PHA will allow self-certification of assets up to $50,000. Per HUD’s new regulations, the $50,000 amount is the new standard under HOTMA regulations. This initiative supports reduction of administrative burden in needing to verify assets through third-party sources.

For FY 2025: This activity is currently implemented for all households and will continue in the next fiscal year.

Landlord Leasing Incentives

4.b. Damage Claims

Under Moving to Work, the HATC will provide payments to landlords for tenant-caused damages following the move-out of a voucher tenant. Leasing to a new voucher tenant may be to another owned unit by the landlord and must be within 6 months of prior tenant move-out. The security deposit paid by the tenant must first be applied to the amount of the cost of damages. The total amount of damages to be paid by HATC will be the lesser of:

1. the actual costs to repair the damages less the tenant security deposit not otherwise applied to other charges or;
2. two (2) months contract rent. Providing payments would further promote landlord recruitment and retention, therefore increasing housing choice for tenants. Damage claims are based on available funding. The PHA will establish a fixed budget each fiscal year for landlord incentives based on the first year’s utilization.

For FY 2025: This activity is currently implemented for all households and will continue in the next fiscal year.

4.c. Other Landlord Incentives

At HAP contract and lease execution, the PHA will pay up to one month’s rent to landlords newly participating in the HATC’s HCV tenant-based program. Under this initiative, a new landlord is a landlord who has never participated in HATC’s tenant-based HCV program. The agency goal is to increase housing opportunities for low-income families by recruiting new landlords.

For FY 2025: This activity is currently implemented for all households and will continue in the next fiscal year.

Housing Quality Standards/NSPIRE

5.d. Alternative Inspection Schedule

The PHA will inspect units under contract at least once every three years (36 months). The PHA will also conduct an inspection at the request of the family or owner anytime during tenancy as needed. This initiative reduces administrative burden for HATC staff.

For FY 2025: This activity is currently implemented for all households and will continue in the next fiscal year.

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Public Comment

Public comments may be submitted from August 16, 2024 to September 30, 2024

Submit Comments To:

• Mail: Christina Montes, Director of Voucher Programs & Homeless Initiatives, 502 E. Highland Mall Blvd. Suite 106 B, Austin, Texas 78752
• Email: [email protected]

Copies of the HCV Administrative Plan and the MTW Supplement are available for review online below (at www.hatctx.com), or in person at the HATC office at 502 E. Highland Mall Blvd. Ste. 106 B Austin, Texas 78752

The HATC’s Board of Commissioners will vote on adopting these changes on Thursday, October 3, 2024, at 9:30 AM. The meeting will be held at the HATC office located at 502 E. Highland Mall Blvd. Ste. 106 B Austin, Texas 78752. This meeting is subject to change. Any changes will be posted on the HATC website.

Reasonable accommodations related to reviewing this plan may be requested by contacting:

• Email: [email protected]
• Phone: 512-854-1883

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