Contract Administration

Updates

May 23, 2018

• MOR Guidance

• Procedural Updates

• PBCA Procurement

• New Initiatives: Centralized WL, FSS, Housing Stabilization

Overview

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Management and Occupancy Reviews

Guidance and Lessons Learned

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• Reviewed about 75% of our portfolio

• Due to Federal Budget Continuing Resolutions (CR), funding amounts/timing are unpredictable

• RIHousing will provide 30 days courtesy when possible

• Minimum notice: 14 days

Scheduling and Future Outlook

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• Review any prior MOR findings, if applicable, and determine if they have been addressed

• Review property's last physical inspection report (REAC) and ensure any deficiencies noted have been corrected

• Fill out the HUD 9834 on your own and gather relevant documents Master Binder EIV user documentation Policies / Procedures

Preparing for Your MOR

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• Self-audit a few files to make sure files have all required documentation

• On review date, have appropriate staff available for entrance and exit interview and prepared for questions from contract administrator

• We need: files, master binder, interview room, and a file review room

Preparing for Your MOR (cont.)

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The following items are particularly important and can affect your score significantly:

• Ineligible residents • Incomplete screenings – BCI, sex offender• EIV clearance for all staff• EIV policies and procedures• Tenant file EIV reports (90 day, existing tenant)• Master file – printing all reports (month/quarter)

even if no results found

Crucial Findings

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These reports must be produced and reviewed on a regular basis and available for CA to view upon MOR:

• Identify Verification: Failed Pre-Screening Report – run monthly Failed Verification Report – run monthly May also include Pending Verification

• Multiple Subsidy Report: Run quarterly unless your policy indicates more frequent use

EIV Master File

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These reports must be produced and reviewed on a regular basis and available for CA to view upon MOR:

• Deceased Tenant Report: run quarterly unless your policy indicates more frequent use

• New Hires Report: run quarterly unless your policy indicates more frequent use

* We recommend setting up your file by year; after 3 years, Master Files can be purged in accordance with HUD’s current data purge/destruction policies.

EIV Master File (cont.)

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Your AFHMP needs to be reviewed every five years• If no changes are needed you still need to

document your findings.• If a change is needed, send to HUD for approval.

Save documentation of finding and date it was sent to HUD.

Affirmative Fair Housing Marketing Plan

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• Finding: an area identified during Management Review that requires action on part of the property

• Corrective Action: portion of Finding that outlines specific action you must take to address deficiency – must be within 30 days

• All responses must be complete• We will keep the report open until all findings

have been addressed

Responding to MOR Report

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Procedure and Policy Updates

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All documents can now be sent to your CA via email. This includes:

• Rent Comp Studies

• Special Claims

• Contract Renewal Packages

• Rent schedules

CAs are now sending voucher corrections via email when possible.

Moving Towards Paperless

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Annual Adjustment requests (OCAFs) are now being sent via DocuSign

• DocuSign will be the sender

• Monthly reminders

• Digital signature

• Can attach the rent schedule right to the document

DocuSign

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Monthly e-newsletter to notify owners/agents of program changes, new HUD developments, etc.

• To subscribe send an email to: pbca_eblast@rihousing.com

E-Newsletter

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• HUD’s attempt to re-procure has encountered litigation

• In 2017 HUD released 2 procurements for HAP Contract Regional Support Services (HAPRSS)

Current PBCA tasks split nationally & locally

Intended to replace PBCA program

• Procurements cancelled in March 2018 due to volume of comments – concerns about customer service, administrative inefficiency, etc

• Congress directed HUD to develop state-by-state procurement strategy – details unknown

PBCA Procurement Cancellation

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New Initiatives

Centralized Wait List, Multifamily FSS, Housing Stabilization

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• Launched Dec. 2017: www.waitlistcentralri.com

• 19 out of 24 Housing Authorities participating

• All applications online (but reasonable accommodation)

• All tech support and updates/purges done by RIHousing

• Agencies retain autonomy – choose own preferences

HCV Centralized Wait List Portal

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• Advantages to applicants

Can apply to all participating agencies at once

Able to update application 24/7

Potential shorter wait times and expanded housing choice

• Advantages to agencies/landlords

Reduced administrative costs

Option for reciprocal jurisdiction

Potentially larger pool of local applicants

Landlords can monitor payments and inspection results online

HCV Centralized Wait List Portal (cont.)

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• FSS has expanded to the Multi-Family portfolio!

• Provides families with financial incentives and support services to increase income & meet life goals (education, specialized training, and job placement)

• Centerpiece of program is an escrow account that matches participants' increases in earned income with equal increases in savings (from HAP funds)

Family Self-Sufficiency (FSS) Program

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• Personal coaching and service coordination are essential

HUD is not providing grant funding

Owners can use funds from residual receipts accounts

• Must create an Action Plan and submit to HUD for approval

Family Self-Sufficiency Program (cont.)

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• Participant graduated from FSS Program last year and has voluntarily given up her voucher.

• Escrowed $17, 041 during participation in the program – using for home repairs and husband’s citizenship.

• Began FSS with no job in 2013. Now is a CNA.

• In 2015, she began working for a Health Services organization where she has been working for the last 15 months as a medical assistant.

• Purchased a home in Warwick with her husband and 4 children.

FSS Success Story

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FSS + Financial Coaching

Savings incentive

Financial coaching

Access to financial products

Path to financial security

“It’s hard to believe how with a few changes and fixing my

finances, everything has changed. I tell my financial

coach at Compass, ‘you’re not just changing one life – you’re

changing five.’”- Mariluz, Compass FSS Program

Participant, pictured with three of her children and her Financial Coach

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• Some owners and PHAs exploring forming network w/ financial coaching focus

• RIHousing may be able to contract for FSS coordination services in the future

Future Impact of FSS in RI

WHY Financial Coaching?

How will FSS savings be a launching pad to improve our tenants’ lives?

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Homelessness Prevention & Diversion

• Launched in 2016 to fill gap in services for households who have been able to access mainstream housing but struggle to maintain it

• Provides short-term case management to address issues that may be compromising voucher or tenancy, with the goal of remaining housed and avoiding eviction

• Unique to RIHousing – only agency in Rhode Island to offer Housing Stabilization services, and possibly only housing finance agency nationwide

Housing Stabilization Program (HSP)

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Who can access HSP services?

• HSP services are limited to RIHousing-involved tenants in the following programs:

Leased Housing & Rental Services

• Housing Choice Voucher Program

• Continuum of Care

• Project Based Contract Administration

Homeownership

• HelpCenter (foreclosures)

Madeline Walker Tax Lien Assistance program

Housing Stabilization Program (cont.)

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Who can access HSP services?

• HSP services can also be accessed by private owners, landlords, and property management companies that house RIHousing tenants.*

Provide information & resources

Mitigation of case-specific tenant issues to avoid legal interventions

Landlord/tenant or tenant/tenant mediation

*HSP services are especially beneficial for properties that do not employ a Resident Service Coordinator

Housing Stabilization Program (cont.)

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Mutually beneficial outcomes

• For Tenants:

Increased likelihood of long-term success maintaining tenancy in a safe and sustainable home that meets the household’s needs (RIHousing mission)

• For Owners/Management:

Minimizes financial burden: administrative, staff time, legal fees, constables, unit turnover, forced move-out and storage, vacancy periods

Provides management with support when addressing tenant challenges

Increased positivity within the living & working environment

Housing Stabilization Program (cont.)

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Referral Process: Accessing HSP services

• Complete HSP referral form

Include written description of problem and action to address or rectify by management or RSC

• Scan/email or fax referral form to:Erin Gorman, HSP CoordinatorPhone: 401-457-1197Email: egorman@rihousing.comFax: 401-450-1365

Housing Stabilization Program (cont.)

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Questions?

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Assistant Director, Leased Housing & Rental ServicesCharley Francis: cfrancis@rihousing.com, 401-457-1228

Contract Administration Supervisor (your second call)Hope Lanphear: hlanphear@rihousing.com, 401-429-1409

Housing Stabilization CoordinatorErin Gorman: egorman@rihousing.com, 401-457-1197

Contract Administrators (your first call):Nancy Boyd: nboyd@rihousing.com, 401-457-1238Richelle Fitzgerald: rfitzgerald@rihousing.com, 401-457-1227Joanne Curtis: jcurtis@rihousing.com, 401-457-1117

Lynne Crowell: lcrowell@rihousing.com, 401-457-1255

Jesus Diaz: jdiaz@rihousing.com, 401-457-1233

Contacts

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LIHTC/Multifamily Program Updates

May 23, 2018

• REAC

• Inspectable Areas

• EH&S and H&S

• Hints for inspection preparation

• HUD Standards

• Updated Compilation Bulletin

• Tenant Selection Plan

Overview

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• The Uniform Physical Conditions Standards (UPCS) are the standards followed for REAC (Real Estate Assessment Center) inspections

• Performed by HUD certified inspectors

• Use Rapid 4.0 software - Record and Process Inspection Data (RAPID) inspection software

• 8823s may be issued for EH&S findings

https://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/reac/products/prodpass/dcd4.0

REAC Information

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• Five RIHousing staff currently certified as HUD REAC inspectors

• HUD tightening oversight/more QA visits

• Will inspect to HUD/UPCS protocol

• All level 3 findings require a photo

• Inspector will call out deficiencies by their level

REAC Information (cont.)

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Property representative must:

• Accompany the inspector at all times

• Open all bedroom and bathroom doors

• Not run ahead to make repairs/untie pull cords

• Clear window sills and open window blinds to ready the area for inspection

For all EH&S items noted, owner must send their Owners certification of correction to their HUD account executive, NOT to the inspector.

REAC Information (cont.)

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Five Areas Required Under UPCS:

1. Site

2. Building Exterior

3. Building Systems

4. Common Areas

5. Units

Inspectable Areas

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SITE

• Fencing and Gates

• Grounds

• Mailboxes/Project Signs

• Market Appeal

• Parking Lots/ Driveways/Roads

• Play Areas and Equipment

• Refuse Disposal

• Retaining Walls

• Storm Drainage

• Walkways/Steps

Inspectable Areas (cont.)

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• Doors

• FHEO/Uniform Federal Accessibility Standards (UFAS)

• Fire Escapes

• Foundations

• Lighting

• Roofs

• Walls

• Windows

Inspectable Areas (cont.)

BUILDING EXTERIOR

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BUILDING SYSTEMS

• Domestic Water

• Electrical System

• Elevators

• Emergency Power

• Fire Protection

• HVAC

• Roof Exhaust System

• Sanitary System

Inspectable Areas (cont.)

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COMMON AREAS

• Basement/Garage/Carport

• Closet/Utility/Mechanical

• Community Room

• Day Care

• Halls/Corridors/Stairs

• Kitchen

• Laundry Room

• Lobby

• Office

• Other community spaces

• Patio/Porch/Balcony

• Pools and Related Structures

• Restrooms/Pool Structures

• Storage

• Trash Collection Areas

Inspectable Areas (cont.)

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UNITS

• Bathroom

• Call-for-Aid

• Ceiling

• Doors

• Electrical System

• Floors

• Hot Water Heater

• HVAC System

• Kitchen

• Laundry Area

• Lighting

• Outlets/Switches

• Patio/Porch/Balcony

• Smoke Detector

• Stairs

• Walls

• Windows

Inspectable Areas (cont.)

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HEALTH AND SAFETY ITEMS

• Air Quality

• Electrical Hazards

• Elevator

• Emergency/Fire Exits

• Flammable Materials

• Garbage and Debris

• Hazards

• Infestation

Health and Safety

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Exigent Health & Safety (EH&S)

• Risk of potential harm or death to residents or others

Air Quality

Blocked Egress

Improperly stored flammable materials

Health & Safety (H&S)

• Any hazardous condition that poses threat to health and safety of residents and others

Sharp edges

Infestation

Trip hazards

Health and Safety (cont.)

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• For all EH&S items noted, owner must send the Project Owner’s Certification that all Exigent Health and Safety items have been corrected to their HUD account executive, NOT to the inspector. A copy must be provided to the LIHTC

Compliance Specialist for the property.

Exigent Health & Safety (EH&S)

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• Upon receipt of this certification, RI Housing will issue a corrected Form 8823 to the IRS stating that all health and safety deficiencies have been remedied.

• Failure to provide proof of correction(s) to LIHTC Compliance Specialist may result in recapture of low income housing tax credits by the IRS.

Exigent Health & Safety (EH&S) (cont.)

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REAC – have available:• Site Map

• Building Information Units

Floors

• Square footage of parking lots/driveways and walkways for inspector

• Current Rent Roll or Occupancy Report Bedroom Size

Vacant Units

Helpful Hints for Preparation

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REAC - have available:• Boiler certificates• Elevator certificates• Lead-Safe documentation

• Evidence of Fire Alarm Testing and Fire Sprinkler Testing

• Resident notification letter Should state inspection may last more than 1 day Check for grease/oil in the oven Check egresses – doors and windows Check pull cords

Helpful Hints for Preparation (cont.)

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REAC Updates

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• Standards are applicable to all properties subject to UPCS physical inspections.

• Non-Industry Standard repairs – not acceptable

• All repairs must be made in good and workmanlike manner with materials suitable for the purpose and defect free.

HUD Notice Industry Standard Repairs

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• Cracks in Brick Wall: Tuck-pointed using mortar = correct; Caulking is not

• Drywall Repair: Sheetrock with mud and/or tape = correct; Covering hole or damaged drywall with plywood or laminate is not

• Wooden Door Repair: Wood or wood veneer = correct; Sheetrock mud or plywood is not

• Downspouts: Same materials, shape and design = correct; Plastic or PVC piping is not

https://www.us-hc.com/images/pdfs/IndustryStandardNotice2016.pdf

HUD Notice Industry Standard Repairs (cont.)

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https://www.hud.gov/sites/dfiles/PIH/documents/newpasscb.pdf

REAC Compilation Bulletin

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• Call-For-Aid (pull cords): “correct length” is at baseboard height

• Buildings that are connected as a single structure but are in fact different “buildings” will now be handled as separate buildings.

• Minor chipping of brick wall corners will no longer be considered a deficiency, is not considered “spalling.”

• Pressure Relief Valve that is “crimped, or otherwise restricted” shall now be recorded as a deficiency.

• Windows that are more than 8 feet in height are no longer required to be tested for proper operation; instead the inspector is to perform a visual verification of the item.

Highlights from updated Compilation Bulletin 4.0 - Version 3

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• Items that are more than 8 feet in height that are not windows that cannot be tested by management are now to be cited as a deficiency. Example: a smoke detector on a ceiling that is > 8’ and

management cannot reach the item to test it, REAC inspector is required to simply record as a deficiency.

• Inspectors not allowed in units prior to 9am and after 6pm.

Highlights from updated Compilation Bulletin 4.0 - Version 3 (cont.)

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• Vegetation found to be growing on buildings, such as moss, or weeds growing in gutters, should be cited as "Site - Overgrown Vegetation."

• "Foundation Vents" are not part of the UPCS Inspection Code.

• Bed Begs: If the inspector visually verifies a bed bug infestation (i.e. sees the bed bugs) he/she should cite "Infestation - Insects", if it is merely suspected, it should continue to be "Hazards -Other."

Highlights from updated Compilation Bulletin 4.0 - Version 3 (cont.)

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• Flammable items in their original canister that are near a combustible source should be cited as an issue. Example: hair spray that is stored near an open flame or an outlet

• Trip hazards that are observed on a walkway or driveway that are NOT owned by the property, such as a city owned walkway, are now to be recorded as HAZARDS-OTHER, which is the proper way to record and acknowledge the issue, but it will remain a non-scoring issue

Example: Hazards - Other = zero points

• If property has fencing along its perimeter acting as a security/safety fence (4’ in height or more), whether it is owned by the property or not, the fencing must be inspected for deficiencies.

Highlights from updated Compilation Bulletin 4.0 - Version 3 (cont.)

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Questions?

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• IRS 8823 Guidehttps://www.irs.gov/pub/irs-utl/lihc-form8823guide.pdf

• HUD REAC Compilation Bulletinhttps://www.us-hc.com/images/pdfs/HUD_REAC_Comp_Bulletin_4.V3.pdf

• UPCS Codehttps://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/reac/products/pass/pass_insp_rpv23

Available Resources

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• Owner/agent must develop and make public awritten Tenant Selection Plan (TSP).

• Plan must detail policies and procedures used to select, screen and admit applicants.

• Owner is responsible to ensure the TSP is written in compliance with state and federal laws. TSP should be reviewed by Owner’s legal counsel.

• Refer to HUD Handbook 4350.3 Rev 1 Chapter 4.

Tenant Selection Plan (TSP)

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Tenant Selection Plan (cont.)

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• 4/5/2016 - HUD issued guidance on the use of criminal records as screening criteria in a Tenant Selection Plan.

• Potential fair housing violations if screening criteria has a disparate impact on a particular race, national origin group or other protected class more than another without justification.

Tenant Selection Plan (cont.)

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Tenant Selection Plan (cont.)

https://portal.hud.gov/hudportal/documents/huddoc?id=HUD_OGCGuidAppFHAStandCR.pdf62

Screening:

• Must include current HUD requirements, i.e. use of criminal records, particularly regarding criminal charges vs. convictions.

• All references to "charges" should be removed, as recent HUD guidance cautions owners not to disqualify applicants based upon charges alone.

Tenant Selection Plan (cont.)

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Consider:

• The nature and severity of a conviction

• The amount of time that has passed since the criminal conduct occurred

• Mitigating Factors - HUD guidance suggests a policy that considers mitigating information vs. a policy with strict time limit exclusions = less discriminatory

Tenant Selection Plan (cont.)

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Consider:

• Facts or circumstances surrounding the criminal conduct

• Age of individual at the time of the conduct

• Tenant history before and/or after the conviction or conduct

• Evidence of rehabilitation efforts

Fair Housing = consistent application of Tenant Screening Policy = apply the standards consistently to all applicants

Tenant Selection Plan (cont.)

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Checklist:

Introduction: description of property and who it serves

Right to Apply: self explanatory

Privacy Policy: privacy and confidentiality

Fair Housing Statement including LEP and VAWA

Reasonable Accommodation

Eligibility Criteria

Selection Criteria

Tenant Selection Plan (cont.)

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Checklist:

Mitigating Circumstances

Application Process

Denial of Applicants – need to see rejection process and letter they send to applicant

Wait List

Internal Unit Transfers

Student Rule

Occupancy Standards (persons per bed size)

Tenant Selection Plan (cont.)

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Policy must include:

• Detailed rejection process and copy of denial letter that is sent to applicant; denied applicant must receive a copy of VAWA

• Policies for applying Violence Against Women Act (VAWA) protections

• If receiving HOME Funds, must include HOME requirements OR must reference separate HOME TSP

Tenant Selection Plan (cont.)

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Tips:

• Review landlord history/references

• Reasonable standards for look-back periods

• Reasonable policy for credit scores

• MOUs with service providers

• Know your funding sources and their requirements

• Stable housing = less likely to reoffend with low-level criminal offenses

Tenant Selection Plan (cont.)

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Tips:

• A TSP that rejects applicants because of arrests (without conviction) = not acceptable

• A conviction is evidence of criminal conduct, but not all conduct demonstrates a risk to resident/

staff safety and/or to property.

Tenant Selection Plan (cont.)

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Questions?

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Assistant Director, Asset Management/ComplianceMichael DiChiaro: mdichiaro@rihousing.com, 401-457-1274

Rental Compliance/Training CoordinatorKathleen Millerick: kmillerick@rihousing.com, 401-457-1241

LIHTC Program Multifamily Compliance Specialists:Glen Turner: gturner@rihousing.com, 401-457-1154Craig Scorpio: cscorpio@rihousing.com, 401-450-1326Lenore Coughlin: lcoughlin@rihousing.com, 401-457-1258

Jamie Wolcott: jwolcott@rihousing.com, 401-450-1343

Contacts

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