Representing the Public & Subsidized Housing Client

Representing the Public & Subsidized Housing Client Merf Ehman Columbia Legal Services Its Complicated but Great Work!Usually you can find a basis to argueGood cause even outside Seattle The subsidy is incredibly meaningful to the client

Overview Programs created by federal legislationDifferent rights flow from different subsidiesFind out the type of subsidy your client receives What type of Subsidy?Public Housing Section 8Multifamily programs Low Income Housing Tax Credits

Affordable Housing Eligibility 2011 Family size30 percent income limit50 percent income limit80 percent income limit1$18,500$30,800$45,5002$21,150$35,200$52,0003$23,800$39,600$58,5004$26,400$44,000$65,0005$28,550$47,550$70,2006$30,650$51,050$75,400Finding the subsidy Ask clientReview leaseAsk housing provider/attorneyLook online

Search the WebLow Income Tax Credit http://www.wshfc.org/property/property.aspMultifamily housinghttp://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfhhttp://www.rentonhousing.org/http://www.seattlehousing.org/housing/http://www.kcha.org/lookingforhousing/lookingforhousing.aspx

OverviewHow the program works

Key Regulatory Features

CONVENTIONAL PUBLIC HOUSING

OWNED AND MANAGED BY PUBLIC HOUSING AUTHORITY (PHA)

Seattle Housing Authority http://www.seattlehousing.org/about/policies/King County Housing AuthorityRenton Housing Authority

Subsidy Mechanism Sources of LawStatute 42 USC 1437 Federal regulations (24 C.F.R. 966)Residential Landlord Tenant ActLocal Laws (Silva, 94 Wn. App. 731 (1999)HUD handbooks, circulars, notices (Public Housing Occupancy Guidebook)PHA admission and continued occupancy policies (ACOP)Tenant Lease

Eviction Process Sometimes there is an informal conference between the notice and the grievance hearing. 12Reasons for Termination 24 CFR 966.4(l)Only these reasons! 13NoticeMust state opportunity for hearingNo preemption of state notice requirements Housing Authority v. Terry, 114 Wn.2d 558 (1990)Factual statement of basis for evictionHousing Authority v. Saylors, 19 Wn. App. 871 (1978)14 day nonpayment notice ?24 CFR 966.4(l)(3)(i)(A) 14 days in the case of failure to pay rent

Non payment and lease violations14Grievance Hearing Due Process RequirementsDefenses4th and 5th amendments Same as at SCHPHA cant use UDA show cause hearing if no grievance opportunity (PHA Circular 97-05 HUD due process determination for WA)De novo hearing in UDA

15Negotiations Look behind the noticeReview hearing decision Practical/Creative AlternativesTransferVoucherAccommodationMitigationServices NO waiver of rights under RCW 59.18.230Exceptions under RCW 59.18.360Cannot appear in standard form leaseNo substantial inequality in the bargaining position of the two partiesNot in violation of public policyWritten approval of tenants attorney that exemption complies with aboveNO waiver of Seattle Just CauseNo exceptions Deemed void and of no lawful force or effect

Show Cause Hearing Request discoveryAs soon as possibleDefensesMitigating circumstancesDV4th and 5th amendments State law innocent tenant defense HearingMust prove factual allegations Show cause hearing should not be used to summarily resolve issues related to serious or repeated lease volitions, Pleasant, 126 Wn. App. 382 (2005)Helpful in negotiationsRequest trial right awayFor nonpayment of rent client can reinstate under RCW 59.18.410

Section 8Tenant based subsidy Section 8 Voucher1.22.10PUBLIC HOUSING AUTHORITYTENANTLANDLORDDwelling LeaseHAP Contract VoucherSources of lawFederal regulations (24 C.F.R. 982)Housing Choice Voucher Guidebook, 7420.10GPHA Section 8 Admin PlanLease

Rents 90% to 110% of the Fair Market Rents (FMR)May be increased as a reasonable accommodationTenant Share of Rent is 30% of adjusted incomeEviction and Termination of Subsidy Separate processes Inform client of possible voucher termination related to UD

Termination by OwnerDuring initial lease term:- Serious or repeated violation of lease, or federal, state or local law- Drug-related activity- Criminal activity that threatens other residentsAfter initial lease term:- Without cause, except as required by lease or local law (Seattle Just Cause Eviction Ordinance SMC 22.206.160C)1.22.1023Termination of SubsidyViolation of program obligationsDrug-related or violent criminal activityFraud or briberyViolation of payment agreementsThreatening PHA personnelEvictionMove out w/out notice to PHA1.22.102424Violation of program obligations includes lease violations, damage to premises, supplying information, move-out notices, and use of unit.Negotiations with Landlord Goal is to Preserve VoucherMutual lease terminationAvoid court finding of serious or repeated lease violationAvoid termination in initial 12 month periodAvoid eviction Avoid debt to LLAvoid factual finding of violation Proof settlement terms met

Negotiations with PHAInform them of eviction noticeOptions for preserving voucher PHAs concernsExplain LLs culpability (if any)Request reasonable accommodation (if applicable)DV Other mitigating circumstancesPoor conditions request inspections Section 8 administrative termination hearing Right to hearing 24 C.F.R. 982.555 Must timely requestDue processMitigating circumstances C.F.R 982.552(c)(2)(i)Disability24 C.F.R 982.552(c)(2)(iv)RetaliationWarranty of habitability Compliance Other Refer for rep

Eviction Defenses at Show Cause hearing Good Cause in first year of leaseSide agreementsIllegal Late feesShould be based on tenants rent portionSHA stops paying due to poor conditionsNot grounds for evictionTenant must keep payingMulti-family housing

Applicable LawFederal regulations (24 C.F.R. 247)HUD Handbook 4350.3Tenant Selection Plan1.22.1030Grounds for Termination or NonrenewalMaterial noncompliance with rental agreementMaterial violation of RLTA tenant dutiesFailure to supply informationNonpayment of rent or other chargesOther good cause1.22.103131Material noncompliance is one or more substantial violations or repeated minor violations that disrupt livability, adversely affect health, safety or enjoyment, interfere with project management or finances.Termination NoticeState law notice periods, except other good cause requires at least 30 daysState reasons with enough specificity so tenant can prepare defenseAdvise tenant of other rights (24 C.F.R. 247.4)1.22.1032Hearing RightsNotice must advise tenant that meeting with owner to discuss eviction can be requested in 10 days.Failure to give opportunity to confer or to confer in good faith may be defense to evictionGorsuch Homes v. Wooten, 597 N.E.2d 554 (1992)1.22.1033Low Income Housing Tax CreditsWashington State Housing Finance Commission Low-Income Housing Tax CreditsCountrys most extensive affordable housing program The program was added to Section 42 of the Internal Revenue Code in 1986 to provide private owners with an incentive to create and maintain affordable housing. Over 600 projects and 33,000 units in Washington State

1.22.10Subsidy Mechanism Investors buy income tax credits in qualified properties that have received state allocation, creating cash equity for owners that reduces project development debt burden. In exchange, the owner agrees to rent a specific number of units to qualified tenants at specified rents, usually below-market. An owner may choose one of two occupancy restrictions: At least 20% of units occupied by households whose income is at or below 50% of AMI.At least 40% of units occupied by households whose income is at or below 60% of AMI.

Sources of Regulation Section 42 of the Internal Revenue CodeTreasury regulations at 26 C.F.R. 1.42State QAP and regulationsState Regulatory Agreement with the ownerLease Program Requirements Good cause required for termination or nonrenewal of tenancy

Termination notice must state grounds with reasonable factual specificity

Good Cause Good Cause Definition:

Serious or repeated violation of material terms of lease;Failure to vacate after premises made uninhabitable by fire, flood or other casualtywww.wshfc.org1.22.1039Questions? www.nhlp.org