Administrative Code

Virginia Administrative Code
8/9/2022

Part IX. Replacement Housing Benefits for Tenants

24VAC30-41-520. General.

A. A residential tenant who was in occupancy at the displacement dwelling for 90 days or more before the initiation of negotiations for the property is eligible to receive a rent supplement to provide for relocation to comparable replacement housing.

B. A tenant eligible under this category can receive a replacement housing payment not to exceed $7,200 to rent a decent, safe and sanitary replacement dwelling. A tenant may be eligible for a down payment supplement up to $7,200. The monetary limit of $7,200 for a rental replacement housing payment, or a down payment supplement, does not apply if provisions of last resort housing are applicable (see Part XI (24VAC30-41-650 et seq.)).

C. A discussion of rent supplement determination is found in the "Guidance Document for the Determination of Certain Financial Benefits to Displacees," effective October 1, 2014.

Statutory Authority

§ 25.1-402 of the Code of Virginia; 42 USC § 4601 et seq.; 49 CFR Part 24.

Historical Notes

Derived from Virginia Register Volume 18, Issue 3, eff. November 21, 2001; amended, Virginia Register Volume 21, Issue 13, eff. April 6, 2005; Volume 22, Issue 21, eff. July 26, 2006; Volume 30, Issue 26, eff. October 1, 2014.

24VAC30-41-530. Payment computation.

A. The rental replacement housing determination is 42 times the amount obtained by subtracting the base monthly rental including utilities (heat, electric, water and sewer) for the displacement dwelling from the lesser of:

1. The monthly rent and estimated average monthly cost of utilities for a comparable replacement dwelling as defined in 24VAC30-41-30; or

2. The monthly rent and estimated average monthly cost of utilities for the decent, safe and sanitary replacement dwelling actually occupied by the displaced person.

B. The district office will determine the rental rates of comparable housing by use of the three comparable methods (24VAC30-41-430), except with regard to the adjustment of asking price. Less than three comparables may be used for this determination when it is concluded, after a diligent search, that fewer comparable rental units are available. If the determination is based on fewer than three comparables, the project file will be documented as to the efforts to locate comparable housing.

C. The base monthly rental for the displacement dwelling is the lesser of:

1. The average monthly cost for rent and utilities at the displacement dwelling during the last three months. For an owner-occupant, use the fair market rent for the displacement dwelling. For a tenant who paid little or no rent for the displacement dwelling, use the fair market rent unless its use would result in a hardship because of the person's income or other circumstances; or

2. Thirty percent of the average gross household income from all sources if the amount is classified as low income by the U.S. Department of Housing and Urban Development (HUD). Income must be supported by tax documents, employer verification, etc. If the district manager determines that income is not disclosed or the amount is not adequately supported, the benefit will be based on rent and utilities in subdivision 1 of this subsection; or

3. The total of the amounts designated for shelter and utilities if receiving a welfare assistance payment from a program that designates the amount for shelter and utilities.

D. Utility costs of heat, electricity, water and sewer must be included in both the displacement and selected comparable rent. Reasonable efforts should be made to secure accurate information. The displacee's utility bills or a statement from the utility company is best. If actual costs are not available, a reasonable estimate should be made based on size and type of unit and other factors. The basis for the utility estimate should be documented in the project file.

E. If the displacee receives public assistance that allocates an amount for housing costs and the displacee has been informed of such allocation, the payment will be considered within the individual's financial means and the rent supplement will be computed in accordance with this section.

Statutory Authority

§ 25.1-402 of the Code of Virginia; 42 USC § 4601 et seq.; 49 CFR Part 24.

Historical Notes

Derived from Virginia Register Volume 18, Issue 3, eff. November 21, 2001; amended, Virginia Register Volume 21, Issue 13, eff. April 6, 2005.

24VAC30-41-540. Disbursement of rental replacement housing payment.

The rental payment as determined in 24VAC30-41-530 shall be paid in a lump sum, unless the district manager determines that it should be paid in installments.

Statutory Authority

§ 25.1-402 of the Code of Virginia; 42 USC § 4601 et seq.; 49 CFR Part 24.

Historical Notes

Derived from Virginia Register Volume 18, Issue 3, eff. November 21, 2001; amended, Virginia Register Volume 30, Issue 26, eff. October 1, 2014.

24VAC30-41-550. $7,200 limit on offers.

A rent supplement payment offer is limited to $7,200 under normal program authority. VDOT has an overriding responsibility, however, to enable tenant displacees to rent replacement housing within their financial means. See 24VAC30-41-30 for the definition of "financial means." If the payment computation exceeds $7,200, last resort housing provisions are applicable. See Part XI (24VAC30-41-650 et seq.) of this chapter for last resort housing provisions.

Statutory Authority

§ 25.1-402 of the Code of Virginia; 42 USC § 4601 et seq.; 49 CFR Part 24.

Historical Notes

Derived from Virginia Register Volume 18, Issue 3, eff. November 21, 2001; amended, Virginia Register Volume 30, Issue 26, eff. October 1, 2014.

24VAC30-41-560. Change of occupancy.

If a tenant, after moving to a decent, safe and sanitary dwelling, relocates within the one-year period specified in 24VAC30-41-360 to a higher cost rental unit, another claim may be presented for the amount in excess of that amount which was originally claimed, but not to exceed the total rent supplement originally computed.

Statutory Authority

§ 25.1-402 of the Code of Virginia; 42 USC § 4601 et seq.

Historical Notes

Derived from Virginia Register Volume 18, Issue 3, eff. November 21, 2001.

24VAC30-41-570. Down payment benefit -- 90-day tenants.

A. A displaced tenant eligible for a rental replacement housing payment who elects to purchase a replacement dwelling in lieu of accepting such rental assistance payment may elect to apply the entire computed payment to the purchase of a replacement dwelling. This payment may be increased to any amount, not to exceed $7,200, for the purchase of a replacement dwelling and related incidental expenses.

B. VDOT has a responsibility to enable a displacee to relocate to housing of the same tenancy or ownership status as was occupied before displacement. Efforts will be made through advisory assistance and the down payment benefit to assist a tenant to move to ownership, but the achievement of ownership by tenants is not a program requirement.

Statutory Authority

§ 25.1-402 of the Code of Virginia; 42 USC § 4601 et seq.; 49 CFR Part 24.

Historical Notes

Derived from Virginia Register Volume 18, Issue 3, eff. November 21, 2001; amended, Virginia Register Volume 30, Issue 26, eff. October 1, 2014.

24VAC30-41-580. Section 8 Housing Assistance Program for low income families.

A. Program features.

1. Section 8 is a rent subsidy program funded by the U.S. Department of Housing and Urban Development (HUD) to enable low-income families to rent privately owned decent, safe and sanitary housing. Section 8 is administered by local housing agencies. Landlords receive a subsidy representing the difference between 30% of an eligible tenant's adjusted gross household income and reasonable housing rent as determined under program rules.

There are three types of Section 8 housing:

a. A certificate based on the income of the recipient and the rent paid;

b. A voucher, which pays a specific amount toward the recipient's rent; and

c. Market rehab unit.

The first two program types are portable, meaning the benefit moves with the recipient. The market rehab form stays with the housing facility.

2. Section 8 assistance has a feature that is superior to the relocation rent supplement in that it is not limited to 42 months, but continues as long as the recipient household is income eligible. The district office should make every effort to relocate existing Section 8 recipients to units in which their Section 8 benefits will continue. If a normal relocation rent supplement is paid, the local housing agency may consider this income, and disqualify the displaced household from eligibility for Section 8. It may be difficult to reenter the program, as there is usually a long waiting list. The district office should closely coordinate with the administering local housing agency.

B. Replacement housing payment computation. In order to transfer Section 8 benefits the recipient must relocate to a decent, safe and sanitary unit in which the owner agrees to participate in this program. Local housing agencies generally maintain current lists of participating owners and properties.

The criteria below will apply, corresponding to the type of Section 8 program the displacee is receiving:

1. For the certificate program, rent must be less than the ceiling set as fair market rent in the HUD schedule for the local area. Housing agencies will provide a copy of the current HUD established local schedule.

2. For a recipient in the voucher program, Section 8 will pay up to the housing authority approved payment standard for the area. This is usually 80-100% of the fair market rent in subdivision 1 of this subsection. The recipient may pay the landlord the difference if actual rent is higher than the standard.

3. Market rehab Section 8 recipients may remain in Section 8 on concurrence of the local housing agency and the landlord.

In determining the rent supplement amount, assume utility costs are the same as before relocation. An effort should be made to use comparable dwellings meeting Section 8 criteria. The standard of base monthly rent should be used, which is the lower of the following: existing rent before subsidy, market rent, or 30% of income. Under the Section 8 certificate program, rent paid should be the same as 30% of income. However, this will not always be the case in the voucher program. An example is provided below:

Example
Rent Supplement - Section 8 Voucher Program

FACTS BEFORE RELOCATION:

Displacee household income

$1,000/month

30% of income

$300/month

Fair market rent and contract rent

$550/month

Actual rent paid (Section 8 voucher = $225)

$325/month

AFTER RELOCATION:

Displacee moves to comparable housing at $550/month and retains Section 8 voucher paying $225 to landlord. VDOT pays rent supplement on incremental difference between 30% of income ($300) and actual replacement rent ($325).

($325 - $300) X 42 months - $1,050

C. Displacee options. The agent will inform the displacee of the replacement housing payment, both with and without Section 8 participation and advise of the following options:

1. Accept VDOT conventional rent supplement, which is limited to 42 months, and may disqualify the displacee for Section 8 in the future;

2. Receive down payment subsidy of $7,200 to assist in purchase of a replacement dwelling; or

3. Retain Section 8. VDOT will pay rent supplement only to the extent of any difference between Section 8 subsidy and base monthly rent (as in above example). In most cases, the VDOT payment will be $0. Tenants should be encouraged to accept this option if they plan to continue to rent and have no prospects of significant increase of income.

D. Tenant not on Section 8 before displacement. Determine rent supplement based on comparable unsubsidized housing, and the lesser of existing rent, market rent or 30% of income if classified as low income by HUD. This is a conventional rent supplement situation. If the tenant moves to Section 8 housing as a replacement, recalculate based on the net increase (if any) in monthly housing cost to the displacee after applying the Section 8 subsidy.

Statutory Authority

§ 25.1-402 of the Code of Virginia; 42 USC § 4601 et seq.; 49 CFR Part 24.

Historical Notes

Derived from Virginia Register Volume 18, Issue 3, eff. November 21, 2001; amended, Virginia Register Volume 21, Issue 13, eff. April 6, 2005; Volume 30, Issue 26, eff. October 26, 2014.

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