Administrative Code

Virginia Administrative Code
Title 13. Housing
Agency 10. Virginia Housing Development Authority
8/15/2020

Chapter 70. Rules and Regulations for Section 8 Existing Housing Assistance Payment Program

13VAC10-70-10. General program description.

The following rules and regulations will be applicable to the assistance of existing certificate and voucher rental housing units subsidized under Section 8 of the U.S. Housing Act of 1937 (42 USCS § 1437 et seq.), as amended ("section 8") and the applicable rules and regulations ("section 8 rules and regulations") 24 CFR 882 and 887 promulgated pursuant thereto. These rules and regulations are intended to provide a general description of the authority's processing requirements and are not intended to include all actions which may be involved or required. Notwithstanding anything to the contrary herein, the executive director is authorized to waive or modify any provision herein where deemed appropriate by him for good cause. These rules and regulations are subject to change at any time by the board of the authority.

The section 8 existing certificate and voucher housing assistance payments program (the "program") provides rental assistance from the U.S. Department of Housing and Urban Development ("HUD") to eligible families and persons whose incomes do not exceed the limitations established by HUD pursuant to the section 8 rules and regulations. Once certified as income eligible under the program, such families or individuals must locate and select a rental housing unit in the private market. If such unit meets the housing quality standards established by HUD for decent, safe and sanitary housing, a lease may be executed by the owner of the unit and the family or individual, and the owner and the authority simultaneously therewith enter into a housing assistance payments contract (the "HAP contract"). The rent under the lease, plus an allowance for utilities (other than telephone) not furnished by the owner, must normally not exceed the fair market rent established by HUD for the area. Any such allowance for utilities shall be established by the authority from time to time in accordance with the section 8 rules and regulations. The amount that the tenant pays for rent and utilities is determined in accordance with the applicable section 8 rules and regulations. The difference between the rent (plus any utility allowance) and the tenant's contribution is paid as housing assistance payments ("housing assistance payments") to the owner by the authority with section 8 subsidy funds received from HUD. The housing assistance payments are applied by the owner toward the payment of the rent on the rental housing unit. The tenant pays directly to the owner the portion of the rent not paid by the authority. In certain instances, the amount of the housing assistance payments may exceed the contract rent, and the balance is paid by the authority to the tenant as a utility allowance.

The authority acts as the statewide administrator of the program by allocating its set-aside of section 8 subsidy funds received from HUD to those local governmental agencies or entities participating or wishing to participate in the program as administrative agents ("administrative agents") of the authority. The authority receives an administrative fee from HUD for its services as administrator of the program, and the authority shares this fee with the administrative agents.

Upon the completion of the moderate rehabilitation of rental housing unit(s) pursuant to the authority's rules and regulations for section 8 moderate rehabilitation program, these rules and regulations shall govern the administration of the section 8 subsidy and the HAP contract for such rental housing unit(s). The term "section 8 rules and regulations" shall, when used with respect to moderate rehabilitation units, be deemed to refer to the rules and regulations applicable to the section 8 moderate rehabilitation program.

Housing assistance payments may be made available to eligible persons and families pursuant to these rules and regulations only if and to the extent that the authority has received from HUD section 8 subsidy funds therefor.

The program shall in all respects be governed by, and administered in accordance with, the section 8 rules and regulations and all other applicable procedures and requirements imposed by HUD with respect to the program. The section 8 rules and regulations and such other procedures and requirements imposed by HUD shall control over any inconsistent provision herein.

The executive director or any authorized officer of the authority acting under his supervision is authorized to act on behalf of the authority with respect to all matters hereunder. The executive director or such authorized officer may delegate all or part of his authority to any employee who is acting under his control and supervision.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0006 § 1, eff. July 1, 1989; amended, Virginia Register Volume 11, Issue 17, eff. May 1, 1995.

13VAC10-70-20. Implementation of the program.

The authority shall contact local governments throughout the Commonwealth to determine their interest in participating in the program. If a local government desires to participate in the program, the governing body shall adopt a resolution accepting the program and designating a local governmental agency or entity to act as the administrative agent. In the event that funds are not provided by HUD in an amount sufficient to fund all of the reservations by the localities, the authority shall allocate the available funds among the localities in such manner and amounts as the authority shall deem to best serve the purposes of the program. Upon notification from HUD of the availability of funds for the authority, an application for the participation by the locality in the program shall be submitted to HUD for review and approval. If HUD approves the application, the authority and HUD enter into an annual contributions contract ("ACC") which shall set forth the terms and conditions relating to the funding and administration of the program. The authority and the administrative agent shall thereupon sign an administrative services agreement ("ASA") for a term of one year. The ASA shall be renewable annually during the term of the ACC, provided that the administrative agent has complied with the ASA and has otherwise performed to the satisfaction of the authority. After execution of the ASA, the administrative agent shall initiate the administration of the program.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0006 § 2, eff. July 1, 1989; amended, Virginia Register Volume 11, Issue 17, eff. May 1, 1995.

13VAC10-70-30. Administration of the program.

The administrative agent shall conduct an outreach program satisfactory to the authority and in compliance with the HUD approved equal opportunity housing plan for the purpose of attracting the participation in the program of owners of rental housing units and eligible families and individuals. The administrative agent shall then receive applications from families and individuals who desire to qualify for assistance under the program. The application shall be on such form(s) and shall include such documentation as may be required by the authority and HUD. Based upon such application, the administrative agent shall verify income, family composition, medical and other expenses, and other relevant factors and shall determine whether the family or individual is eligible for assistance under the program. If such family or individual is determined to be eligible, the administrative agent shall calculate such family's or individual's contribution ("total tenant payment") to be made for rent and utilities and shall issue such family or individual a certificate of family participation or housing voucher which shall be valid for 60 days. The administrative agent shall also advise and brief the family or individual on the procedures and requirements under the program in such manner as the authority shall require.

The family or individual shall locate and select the rental housing unit and shall submit to the administrative agent such forms and documents as may be required by the authority or HUD. The administrative agent shall thereafter meet with the owner of the rental housing unit and complete an inspection of each unit. The administrative agent shall determine if the rental housing unit meets the housing quality standards established by HUD, shall review the terms of the proposed lease for compliance with the requirements of the program and shall determine rent reasonableness. If the rental housing unit and proposed lease are approved by the administrative agent and if the rent is determined by the administrative agent to be reasonable, the owner and the family or individual may execute the approved lease, and the owner shall sign the HAP contract with VHDA. Within such time period as the authority shall require, the administrative agent shall submit to the authority all forms and documents required by the authority for its final approval.

Upon final approval, the authority shall make monthly payments to the owner (and, where required, the tenant) of the rental housing unit in accordance with the terms of the HAP contract. The balance, if any, of the rent shall be paid by the tenant in accordance with the terms of the lease. The owner of the rental housing unit shall comply with all of the terms and conditions of the HAP contract and in the event of a breach thereof, shall be subject to the exercise by the authority of the rights and remedies provided therein. The tenant shall comply with all requirements imposed on him under the section 8 rules and regulations and with all other applicable procedures and requirements established by HUD and the authority with respect to the program.

Persons holding the following offices and positions may not participate as owners in the program during their tenure and for one year thereafter because their relationship with the authority or the program would constitute a prohibited interest under the ACC and HAP contracts: (i) present or former members or officers of the authority or the administrative agent, (ii) employees of the authority or the administrative agent who formulate policy or influence decisions with respect to the program, and (iii) public officials or members of a governing body or state or local legislators who exercise functions or responsibilities with respect to the program. In addition, current members of or delegates to the Congress of the United States of America or resident commissioners are not eligible to participate in the programs as owners.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0006 § 3, eff. July 1, 1989; amended, Virginia Register Volume 11, Issue 17, eff. May 1, 1995.

13VAC10-70-40. Program funding.

Under the ACC, funding shall be made available for (i) housing assistance payments and (ii) administrative expenses incurred for operation of the program. The ASA shall provide two types of funds which may be used by the administrative agent to pay for expenses incurred for operation of the program:

1. Preliminary expense reimbursement. An administrative agent shall be allowed preliminary expense reimbursement during the first 12 months and any extensions of the operation of the program or until each rental housing unit is leased, whichever comes first. To be eligible for reimbursement, the expense must be directly related to the first year of the operation of the program, e.g., the purchase of nonexpendable equipment, salaries, employee benefits, office supplies, rent, telephone charges, copying costs, etc. Prior to implementation of the program, the local administrative agency shall prepare a proposed budget setting forth the allocation of funds among the various categories. This proposed budget is reviewed by the authority. Preliminary expenses shall be reimbursable only if, and to the extent that, actual expenses are incurred. Payments shall be made in by the authority based on the leasing of the units as documented by the administrative agent.

2. Administrative fee income. Administrative fee income is a set fee paid by the authority to the administrative agent for each rental housing unit under lease each month. Adequate records shall be maintained by the administrative agent evidencing costs incurred in the administration of the program. Adjustments to the administrative fee will be made if a surplus of income over expenses occurs. Annually, on July 1 or such other date as shall be agreed to by the authority and the administrative agent, redetermination shall be made regarding the amount of fee income which will be required to fund expenses expected to be incurred in the operation of the program. Such redetermination shall be made based upon a budget which may be submitted by the administrative agent and approved by the authority.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0006 § 4, eff. July 1, 1989; amended, Virginia Register Volume 11, Issue 17, eff. May 1, 1995.

13VAC10-70-50. Responsibilities of the authority and the administrative agent.

Under the terms of the ASA, the authority will provide the following services:

1. Train and supervise the administrative agent and provide the administrative agent with current forms, policies, and procedures.

2. Provide information to administrative agents to use in their outreach program to owners and income-eligible individuals and families, and pay for the costs of media advertising within the budgeted amount as approved.

3. Provide final review of and action on requests for lease approval submitted by the administrative agent.

4. Make housing assistance payments to owners and, where required, utility payments to individuals and families.

5. Review and approve claims by owners as submitted by the administrative agent; conduct informal hearings.

6. Administer and enforce HAP contracts with owners.

7. Monitor and enforce compliance with equal opportunity requirements, including the administrative agent's efforts to provide opportunities for individuals and families seeking housing outside areas of economic and racial concentration.

8. Monitor and enforce compliance with HUD's procedures and policies for program administration and fiscal reporting.

9. Process and approve for payment requisitions for reimbursement of preliminary expenses of the program as submitted by the administrative agent; make administrative fee payments to administrative agents.

10. Review the administrative agent's administration of the program, including unit inspections, at regularly scheduled intervals.

Under the terms of the ASA, the administrative agent shall be responsible for implementing and administering the program with its jurisdiction by performing the responsibilities set forth in the ASA, including but not limited to the following:

1. Provide outreach to owners of rental housing units and income-eligible individuals and families to encourage participation by them in the program, including media advertising.

2. Encourage owners to make their rental housing units available by direct contact with landlords or associations.

3. Complete the certifications and recertifications for tenant eligibility, on such form(s) as the authority may require, to determine tenant eligibility.

4. Verify each applicant's income, assets, family composition, medical and other expenses.

5. Calculate the total tenant payment of each eligible individual or family.

6. Maintain a waiting list of eligible individuals and families.

7. Refer individuals and families from the waiting list to vacant moderate rehabilitation units as applicable.

8. Issue certificates of family participation or housing vouchers to eligible individuals and families, as needed, and conduct a briefing for each participant as to the procedures and requirements under the program.

9. Review the leases proposed by owners; determine rent reasonableness; and inspect the rental housing units.

10. Determine the amount of the housing assistance payments and the portion of the rent payable by the tenants.

11. Explain program procedures to owners, including those who have been approached by holders of certificates of family participation or housing vouchers.

12. Complete the necessary paperwork for submission of requests for lease approval to the authority by the required deadline.

13. Reexamine tenant income and redetermine amount of rent at least annually beginning 120 days prior to the anniversary date of each HAP contract.

14. Perform inspections of rental housing units at least annually and as requested by the tenants, owners, or the authority.

15. Inform owners of proper eviction proceedings and complete and submit to the authority the necessary paperwork for processing claims by the owners.

16. Notify tenants and owners of any changes made in the HAP contract pursuant to the terms thereof.

17. Maintain family folders and other documents and records required by the authority to ensure program efficiency and accuracy.

18. Requisition the authority monthly for reimbursement of preliminary expenses, if applicable; review fee income payments received from the authority for any discrepancies; maintain adequate documentation for all program related costs; and maintain a record of advertising expenses.

19. Inventory at least annually all nonexpendable equipment purchased with section 8 preliminary funds.

20. Endeavor to ensure compliance with equal opportunity requirements, including efforts to provide opportunities for individuals and families seeking housing outside areas of economic and racial concentration.

21. Maintain a folder of all outreach efforts including copies of ads run, copies of mass mailings, etc.

22. Advise participating individuals and families of other support services available in the community.

23. Maintain all forms and reports according to the requirements of the Virginia Privacy Protection Act (§ 2.1-377 et seq. of the Code of Virginia).

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0006 § 5, eff. July 1, 1989; amended, Virginia Register Volume 11, Issue 17, eff. May 1, 1995.



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