# Presentation: 922923

## HUD RHIIP Training – PH/HCV

**Case Study 3 – Champion Family (Housing Choice Voucher)**

- Chapter 9: Case Study 3-Champion

- May 2003

## Champion Case Study:

**Same process as Alexander and Bennett**
**Topic presentation**
**Students complete case study**
**Using Appendix C, File Review Checklist Worksheets**
**Students review PHA’s HUD 50058**
**Students complete Appendix A, Tenant File Review Checklist**
**Review correct checklist and HUD 50058**

- Chapter 9: Case Study 3-Champion

- May 2003

## Champion Case Study: Topics

- Assets
- Actual and imputed asset income
- Assets disposed of (imputed assets)
- Annual Income: Periodic Payments
- Payment Standards
- Proration for mixed families

- Chapter 9: Case Study 3-Champion

- May 2003

## Champion Case Study: Topics

- Adjusted Annual Income
- Disability Assistance Expense
- Medical Expense
- Families who qualify for both Disability Assistance and Medical Expenses

- Chapter 9: Case Study 3-Champion

- May 2003

## Assets

- Chapter 9: Case Study 3-Champion

- May 2003

## Assets

- Value of assets may affect family’s annual income
- PHA must:
- Identify assets
- Verify market value of assets
- Know how to determine cash value of assets
- Calculate Asset Income

- Chapter 9: Case Study 3-Champion

- May 2003

## Market vs. Cash Value of Assets

- Market Value – what the asset is “worth”on the market
- Cash Value – what you would actually get out of the asset if you converted it to cash. (e.g. sold it) (Market value minus expenses to sell or convert to cash)
**What is the market value of a $4,000 savings account?**
**What is the cash value of the account?**

- Chapter 9: Case Study 3-Champion

- May 2003

## Valuing Assets

- When calculating cash value, PHA must consider expenses involved in converting assets to cash:
- Penalties for early withdrawal
- Broker and legal fees
- Closing costs for real estate

- Chapter 9: Case Study 3-Champion

- May 2003

## Cash Value of Asset

- Certificate of Deposit
- Market value			    $18,000
- 10% early withdrawal penalty       _$1,800__ _
- Cash value of asset		    $16,200

- Chapter 9: Case Study 3-Champion

- May 2003

## Cash Value of Asset

- 	Home value		 $99,500
- 	Mortgage balance	  $40,000
- 	Broker fees   		  _$7,000_
- Cash value of property =	 $52,500

**Expenses to convert**

- Chapter 9: Case Study 3-Champion

- May 2003

## Assets Include Some Assets People DON’T Actually Have

- Assets disposed of within past two years for less than fair market value
- This can also be referred to as an imputed asset
- To determine cash value:
- Market value of the asset *less the expenses and the amount received in compensation*

- Chapter 9: Case Study 3-Champion

- May 2003

## Assets Disposed of for Less than Market Value

- Applicant sold her home to her son for $10,000
- The home value was $89,000 with no mortgage balance
- Selling fees were $1,800

- Chapter 9: Case Study 3-Champion

- May 2003

## Assets Disposed of for Less than Market Value

- 	$89,000 Market Value
- 	_-  1,800_  Fees
- 	$87,200
- 	 _-10,000_ Sales price to son
-    $77,200 Counted as an asset 2 years from 		   date of sale = Cash Value

- Chapter 9: Case Study 3-Champion

- May 2003

## Assets Disposed of for Less than Market Value

- Home value					$ 99,500
- Mortgage balance			    	-  40,000
- Family-paid broker fees		          -   2,700
- Amount received			      	-_   5,000_
- Cash value of asset (disposed)         $ 51,800
- Count $51,800 cash value of asset for 2 years

- Chapter 9: Case Study 3-Champion

- May 2003

## Assets Disposed of

**Assets Disposed of**

- Generally NOT considered to include those disposed of due to:
- divorce or separation
- bankruptcy
- foreclosure
- PHA should develop applicant certification form for verification purposes

- Chapter 9: Case Study 3-Champion

- May 2003

## Assets and Asset Income

- We have talked about ASSETS . . .
- But what about the income they produce?

- Chapter 9: Case Study 3-Champion

- May 2003

## Actual Income from Assets

- Assets can generate income
- Income from assets is counted in determining annual income

- Chapter 9: Case Study 3-Champion

- May 2003

## Actual Income from Assets

- Examples of income from assets
- Interest
- Dividends
- Net income from real or personal property
- Asset income of minors is counted as income (Ex: interest on savings account)

- Chapter 9: Case Study 3-Champion

- May 2003

## Anticipating Actual Income from Assets

- Market value of asset is used to determine actual anticipated income from asset
- Question: will the family have any income coming from this asset if they **don’t** sell it?
- Formula to determine anticipated income from interest bearing accounts:
**Market value x interest rate**

- Chapter 9: Case Study 3-Champion

- May 2003

## Income from Assets

- Net cash value of asset
- is used to determine imputed asset income

- Chapter 9: Case Study 3-Champion

- May 2003

## Income from Assets

- When net cash value of all assets is $5000 or less, use the actual income from assets

- Chapter 9: Case Study 3-Champion

- May 2003

## Assets

- If net cash value of assets exceeds $5,000 must use the **greater** of:
- actual income from assets
- imputed income from assets (HUD passbook rate times net cash value of all assets)
- HUD Field Office has HUD passbook rate for jurisdictions

- Chapter 9: Case Study 3-Champion

- May 2003

## When Net Cash Value of all Assets Exceed $5,000

**Add** cash value of all assets
**Multiply** by the local HUD passbook rate
**Compare** result (imputed income from assets) to actual income from assets
**Use** whichever result is greater as Final Asset Income in rent calculation

- Chapter 9: Case Study 3-Champion

- May 2003

## Annual Income

- Chapter 9: Case Study 3-Champion

- May 2003

## Periodic Payments

- Include in annual income the full amount of periodic amounts received from
- Social Security
- Pensions and Annuities
- Retirement funds
- Disability or death benefits
- Insurance policies

- Chapter 9: Case Study 3-Champion

- May 2003

## Periodic Payments

- Deductions
**If deductions (for example, Medicare) are taken out of the gross benefit, use the gross amount of the benefit**
- Adjustments
**With Social Security, if benefits have been reduced to offset a prior overpayment, use the amount actually being received**

- Chapter 9: Case Study 3-Champion

- May 2003

## Disability Assistance Expenses

- Chapter 9: Case Study 3-Champion

- May 2003

## Disability Assistance Expense

- Deduction allowed for
- Unreimbursed, anticipated costs for
- Attendant care
- Auxiliary apparatus
- Paid on behalf of any family member who is a person with disabilities

- Chapter 9: Case Study 3-Champion

- May 2003

## Disability Assistance Expense

- Expenses must be
- Reasonable
- Necessary to enable a family member to be employed
- This may or may not be the person with disabilities

- Chapter 9: Case Study 3-Champion

- May 2003

## Disability Assistance Expense

- Examples of qualifying expenses
- Payments made on a motorized wheelchair for the adult son of the head of the family to go to work each day on his own
- Payments to a care attendant to stay with a disabled 16-year-old child to allow the child’s mother to go to work each day

- Chapter 9: Case Study 3-Champion

- May 2003

## Disability Assistance Expense

- Cost of maintenance and upkeep of  auxiliary apparatus is included
- Veterinarian costs and food costs of a service animal
- Cost of maintaining the equipment added to a car but NOT the cost of maintaining the car

- Chapter 9: Case Study 3-Champion

- May 2003

## Disability Assistance Expense

- Attendant care includes reasonable expenses for
- Home medical care
- Nursing services
- Housekeeping and errand services
- Interpreters for hearing-impaired
- Readers for persons with visual disabilities

- Chapter 9: Case Study 3-Champion

- May 2003

## Disability Assistance Expense

- Maximum disability assistance allowance is that which exceeds 3% of the family’s annual income
- The allowance is capped by the amount the family is enabled to earn as a result of the the disability assistance expenses

- Chapter 9: Case Study 3-Champion

- May 2003

## Disability Assistance Expense - Example

- Head’s earned income:                      $ 14,500
- Spouse’s earned income:                     12,700
- Total Income:                                     $ 27,200
- Son’s attendant care expenses:          $ 3,830
- 3% of Annual Income:                          $   816

- Chapter 9: Case Study 3-Champion

- May 2003

## Disability Assistance Expense – Example (cont.)

- Son’s attendant care expenses:	        $ 3,830
- Minus 3% threshold				_-    816_
- Maximum allowable disabilityassistance expense:	            =  $ 3,014
- Which is less than the earned income of the person(s) enabled to work

- Chapter 9: Case Study 3-Champion

- May 2003

## Medical Expenses

- Chapter 9: Case Study 3-Champion

- May 2003

## Medical Expense Deduction

- Permitted only for elderly or disabled families
- If family is eligible, unreimbursed medical expenses of all family members are allowed

- Chapter 9: Case Study 3-Champion

- May 2003

## Medical Expense Deduction

- Include all unreimbursed expenses the family anticipates incurring during the 12 months following this certification
- PHA policy determines allowable medical expenses
- PHAs may use IRS Publication 502 as a tool

- Chapter 9: Case Study 3-Champion

- May 2003

## Medical Expense Deduction

- Services of doctors and health care professionals
- Services of health care facilities
- Medical insurance premiums
- Prescription/non-prescription medicines (PHA policy)
- Transportation to treatment
- Dental expenses, eyeglasses, hearing aids, batteries

- Chapter 9: Case Study 3-Champion

- May 2003

## Medical Expense Deduction

- Live-in or periodic medical assistance
- Nursing services
- Costs for assistive animal and its care
- Long term care insurance premiums

- Chapter 9: Case Study 3-Champion

- May 2003

## Medical Expense Deduction

- Regular payments on a past one-time medical expense
- Any one-time medical expense may be counted only one time
- If full amount of a medical bill has been allowed, it will not be allowed again, even if it has not yet been paid

- Chapter 9: Case Study 3-Champion

- May 2003

## Families Eligible for Medical and Disability Assistance Expenses 

- 3% threshold applied only once
- Because deduction for disability assistance expenses is limited by the amount earned by the person enabled to work, it is calculated before the medical deduction

- Chapter 9: Case Study 3-Champion

- May 2003

## Families Eligible for Both

- If disability assistance expense is equal to or more than 3% of annual income
- deduct 3% from disability assistance expense
- compare to earnings made possible by assistance
- add total medical expenses

- Chapter 9: Case Study 3-Champion

- May 2003

## Families Eligible for Both

- 	Disability Expense			$2000
- 	- 3% of Annual Income		-  500
- 	“Proposed” Expense			$1500
- 	Amount Earned 			$1000
- 	Allowable Disability Expense	$1000
- 	All Medical Expense is added        $  300
- 	Total Deduction                              $1300

- Chapter 9: Case Study 3-Champion

- May 2003

## Families Eligible for Both

- If disability assistance expense is less than 3% of annual income
- Earnings is compared to disability assistance expense to get allowable disability assistance
- Total disability expense is added to the medical expenses
- 3% threshold is subtracted from the total

- Chapter 9: Case Study 3-Champion

- May 2003

## Families Eligible for Both (Disability Expense Less than 3% of Annual Income)

- 	Disability Expense			$  400
- 	Earnings					$ 1000
- 	Disability Expense			$  400
- 	Medical Expense		    _+__	__$  900_
- 	Total of Both Expenses 	          $1300
- 	Less 3% of Annual Income        _	__  - 500_
- 	Allowable for Both			$  800

- Chapter 9: Case Study 3-Champion

- May 2003

## Elderly/Disability Allowance

- Tip:  If the family qualifies for medical expenses, they also qualify for the $400 Elderly/Disability Allowance.

- Chapter 9: Case Study 3-Champion

- May 2003

## Champion Case Study: Topics

- Payment Standards
- Rent Calculation

- Chapter 9: Case Study 3-Champion

- May 2003

## Payment Standards -Definitions     

*Subsidy Standards:* PHA established standards to determine the number of bedrooms and amount of subsidy for families of different sizes and composition

- Chapter 9: Case Study 3-Champion

- May 2003

## Payment Standards - Definitions      

*Family Unit Size:*  (voucher size) The appropriate number of bedrooms for a family, as determined by the PHA under the PHAs subsidy standards
*Payment Standard:* Established by PHA for each FMR area in PHA jurisdiction by bedroom size

- Chapter 9: Case Study 3-Champion

- May 2003

## Payment Standard

- Used to calculate total subsidy for the family
- PHA’s Payment Standard is maximum subsidy amount

- Chapter 9: Case Study 3-Champion

- May 2003

## Payment Standards Schedule

- HUD publishes Fair Market Rents (FMRs) annually
- PHA must adopt Payment Standards schedule for each FMR area in jurisdiction
- PHA must establish Payment Standard for each bedroom size

- Chapter 9: Case Study 3-Champion

- May 2003

## Establishing PS Amounts

- 90 to 110% of FMR is basic range
- HUD approval not needed for basic range
- HUD must approve Payment Standard higher or lower than basic range
- HUD Field Office may approve up to 120%
- Higher than 120% takes HUD Headquarters approval

- Chapter 9: Case Study 3-Champion

- May 2003

## Establishing PS Amounts

- PHA may establish separate PS within basic range for designated part of FMR
- PHA must use exception PS for any unit selected in exception PS area

- Chapter 9: Case Study 3-Champion

- May 2003

## What Payment Standard to Use  

- PS to be used is lower of:
- PS for family unit size (Voucher size); or
- PS for size of unit selected

- Chapter 9: Case Study 3-Champion

- May 2003

## Utility Allowance

- Tip:  If a family selects a unit that is different from the family unit size (voucher size), which Utility Allowance do you use?
- Use the Utility Allowance for the size of the dwelling unit actually leased by the family

- Chapter 9: Case Study 3-Champion

- May 2003

## What Payment Standard to Use

- During  a HAP Contract, Payment Standard for a family is:
**Payment Standard as determined at most recent regular reexamination after beginning of the HAP Contract unless the PHA has:**
***decreased*** the Payment Standard amount on their schedule
***increased*** the Payment Standard amount on their schedule

- Chapter 9: Case Study 3-Champion

- May 2003

## What Payment Standard to Use

- The HUD monitor should examine the PHA’s most recent revision of Payment Standard schedule

- Chapter 9: Case Study 3-Champion

- May 2003

## What Payment Standard To Use

- If the PHA has ***decreased*** the Payment Standard:
**At the first regular reexam use higher of old or new payment standard**
**Gives the family a little protection**
**At second regular reexam, use lower (new) payment standard, (unless PHA has increased the PS since last regular reexamination)**

- Chapter 9: Case Study 3-Champion

- May 2003

## Example: PHA decreases PS

- Old payment standard............900
- New decreased PS	.....................850
- 1st regular reexam, use.................900
- At 2nd regular reexam use............. 850

- Chapter 9: Case Study 3-Champion

- May 2003

## Example: PHA decreases, then increases

- Old payment standard............900
- New decreased PS	.....................850
- 1st regular reexam, use.................900
- PHA raises PS after 1st reexam to...875
- At 2nd regular reexam use..............875

- Chapter 9: Case Study 3-Champion

- May 2003

## What Payment Standard To Use

- During  a HAP Contract, if PHA has ***increased*** the PS:
- Use the new, higher Payment Standard at the first regular reexam after the Payment Standard
- But not at any interim

- Chapter 9: Case Study 3-Champion

- May 2003

## Example: PHA Increases PS

- Old payment standard...................900
- New payment standard..................950
- 1st regular reexam, use..................950

- Chapter 9: Case Study 3-Champion

- May 2003

## Change in Family Size/ Composition 

- Family qualifies for different size voucher
- At next regular reexamination use:
- The PS for the new family unit size, regardless of any increase or decrease in the PS schedule

- Chapter 9: Case Study 3-Champion

- May 2003

## Monitoring Review

- Chapter 9: Case Study 3-Champion

- May 2003

## Champion Case Study:Process Overview

-     _**Ground Rules**_
**Objective: complete case study**
**Time: Approximately 1 hour**
**Work individually**
**Trainer and trainer aides will assist if needed**
**Please keep noise volume to a minimum**

- Chapter 9: Case Study 3-Champion

- May 2003

## Champion Case Study:Process Overview

-    _** **__**Instructions for Part 1**_
**Review PHA file data and complete Appendix C (Tenant file review worksheets)**

- Chapter 9: Case Study 3-Champion

- May 2003

## Champion Case Study:Process Overview

_**Resources for case study**_
**Case information begins page 9-17**
**Verifications (pg 9-27)**
**Appendix C, Tenant File Review Checklist Worksheets (You complete)**
**Cubzide PHA Policies/Schedules (pg 6-5)**

- Chapter 9: Case Study 3-Champion

- May 2003

## Champion Case Study:Process Overview

-    _** **__**Instructions for Part 2**_
**Review PHA’s HUD 50058 (Handout)**
**Complete Appendix A, Tenant File Review Checklist to record discrepancies**
**Page 9-75**

- Chapter 9: Case Study 3-Champion

- May 2003

## Cash Value of Assets Answer

- Chapter 9: Case Study 3-Champion

- May 2003

**Notes:**
Household includes everyone who lives in the unit
Family includes all household members except live-in aides and foster children
Member number 01 is Head of household
Member number 02 is spouse or co-head. If no spouse or co-head, list other household members
RELATION CODES
S = Spouse, the marriage partner of the head of household
K = Co-head, an individual equally responsible for the lease. A household may have either a spouse or a co-head, but never both. 
F = Foster child/adult
Y = Other youth under 18 
E = Full-time student 18+ (other than head, spouse, co-head, foster individual) who is considered full-time by the attended educational institution.  The institution may be a vocational school with a diploma/certificate program, or a degree-granting institution)
L = Live-in aide: A person who lives with a disabled, elderly, or near-elderly person who is
Determined to be essential to the care and well-being of the person
Not obligated for the support of the person
Would not be otherwise living in the unit except to provide the needed care.
   Note that the children of a live-in aide are also coded as L
A = Other adult
3i = individual U.S. citizenship status
3j = disability meeting HUD’s definitions 
3k = race
3m = ethnicity
3n = SSN: normally the 9 digit SSN issued by the Social Security Administration. (For individuals not possessing SSNs: as of 6/25/02, instructions to agencies are to use nine 9s. This rejects when transmitted.  Announced update states  

## Annual IncomeAnswer

- Chapter 9: Case Study 3-Champion

- May 2003

**Notes:**
Household includes everyone who lives in the unit
Family includes all household members except live-in aides and foster children
Member number 01 is Head of household
Member number 02 is spouse or co-head. If no spouse or co-head, list other household members
RELATION CODES
S = Spouse, the marriage partner of the head of household
K = Co-head, an individual equally responsible for the lease. A household may have either a spouse or a co-head, but never both. 
F = Foster child/adult
Y = Other youth under 18 
E = Full-time student 18+ (other than head, spouse, co-head, foster individual) who is considered full-time by the attended educational institution.  The institution may be a vocational school with a diploma/certificate program, or a degree-granting institution)
L = Live-in aide: A person who lives with a disabled, elderly, or near-elderly person who is
Determined to be essential to the care and well-being of the person
Not obligated for the support of the person
Would not be otherwise living in the unit except to provide the needed care.
   Note that the children of a live-in aide are also coded as L
A = Other adult
3i = individual U.S. citizenship status
3j = disability meeting HUD’s definitions 
3k = race
3m = ethnicity
3n = SSN: normally the 9 digit SSN issued by the Social Security Administration. (For individuals not possessing SSNs: as of 6/25/02, instructions to agencies are to use nine 9s. This rejects when transmitted.  Announced update states  

## Dwelling Unit/ Utility AllowanceWorksheet

**What did you put for the Total Utility Allowance?**
**PHA indicated $56**
**Let’s look at the Admin Plan Utility Allowance Schedule**

- Chapter 9: Case Study 3-Champion

- May 2003

**Notes:**
Household includes everyone who lives in the unit
Family includes all household members except live-in aides and foster children
Member number 01 is Head of household
Member number 02 is spouse or co-head. If no spouse or co-head, list other household members
RELATION CODES
S = Spouse, the marriage partner of the head of household
K = Co-head, an individual equally responsible for the lease. A household may have either a spouse or a co-head, but never both. 
F = Foster child/adult
Y = Other youth under 18 
E = Full-time student 18+ (other than head, spouse, co-head, foster individual) who is considered full-time by the attended educational institution.  The institution may be a vocational school with a diploma/certificate program, or a degree-granting institution)
L = Live-in aide: A person who lives with a disabled, elderly, or near-elderly person who is
Determined to be essential to the care and well-being of the person
Not obligated for the support of the person
Would not be otherwise living in the unit except to provide the needed care.
   Note that the children of a live-in aide are also coded as L
A = Other adult
3i = individual U.S. citizenship status
3j = disability meeting HUD’s definitions 
3k = race
3m = ethnicity
3n = SSN: normally the 9 digit SSN issued by the Social Security Administration. (For individuals not possessing SSNs: as of 6/25/02, instructions to agencies are to use nine 9s. This rejects when transmitted.  Announced update states  

## Adjusted Annual Income Answer

- Chapter 9: Case Study 3-Champion

- May 2003

**Notes:**
Worksheet calculation fro case study? Or wait until Medical?

## Adjusted Annual Income Answer

- Chapter 9: Case Study 3-Champion

- May 2003

**Notes:**
Worksheet calculation fro case study? Or wait until Medical?

## Adjusted Annual IncomeAnswer

- Chapter 9: Case Study 3-Champion

- May 2003

**Notes:**
Worksheet calculation fro case study? Or wait until Medical?

## Adjusted Annual IncomeAnswer

- Chapter 9: Case Study 3-Champion

- May 2003

**Notes:**
Worksheet calculation fro case study? Or wait until Medical?

## Adjusted Annual Income Answer

- Chapter 9: Case Study 3-Champion

- May 2003

**Notes:**
Household includes everyone who lives in the unit
Family includes all household members except live-in aides and foster children
Member number 01 is Head of household
Member number 02 is spouse or co-head. If no spouse or co-head, list other household members
RELATION CODES
S = Spouse, the marriage partner of the head of household
K = Co-head, an individual equally responsible for the lease. A household may have either a spouse or a co-head, but never both. 
F = Foster child/adult
Y = Other youth under 18 
E = Full-time student 18+ (other than head, spouse, co-head, foster individual) who is considered full-time by the attended educational institution.  The institution may be a vocational school with a diploma/certificate program, or a degree-granting institution)
L = Live-in aide: A person who lives with a disabled, elderly, or near-elderly person who is
Determined to be essential to the care and well-being of the person
Not obligated for the support of the person
Would not be otherwise living in the unit except to provide the needed care.
   Note that the children of a live-in aide are also coded as L
A = Other adult
3i = individual U.S. citizenship status
3j = disability meeting HUD’s definitions 
3k = race
3m = ethnicity
3n = SSN: normally the 9 digit SSN issued by the Social Security Administration. (For individuals not possessing SSNs: as of 6/25/02, instructions to agencies are to use nine 9s. This rejects when transmitted.  Announced update states  

## Housing Assistance Payment (HAP) and Tenant Rent (HCV Only) Answer

- Chapter 9: Case Study 3-Champion

- May 2003

**Notes:**
Household includes everyone who lives in the unit
Family includes all household members except live-in aides and foster children
Member number 01 is Head of household
Member number 02 is spouse or co-head. If no spouse or co-head, list other household members
RELATION CODES
S = Spouse, the marriage partner of the head of household
K = Co-head, an individual equally responsible for the lease. A household may have either a spouse or a co-head, but never both. 
F = Foster child/adult
Y = Other youth under 18 
E = Full-time student 18+ (other than head, spouse, co-head, foster individual) who is considered full-time by the attended educational institution.  The institution may be a vocational school with a diploma/certificate program, or a degree-granting institution)
L = Live-in aide: A person who lives with a disabled, elderly, or near-elderly person who is
Determined to be essential to the care and well-being of the person
Not obligated for the support of the person
Would not be otherwise living in the unit except to provide the needed care.
   Note that the children of a live-in aide are also coded as L
A = Other adult
3i = individual U.S. citizenship status
3j = disability meeting HUD’s definitions 
3k = race
3m = ethnicity
3n = SSN: normally the 9 digit SSN issued by the Social Security Administration. (For individuals not possessing SSNs: as of 6/25/02, instructions to agencies are to use nine 9s. This rejects when transmitted.  Announced update states  

## Housing Assistance Payment (HAP) and Tenant Rent Answer(HCV Only)

- Chapter 9: Case Study 3-Champion

- May 2003

**Notes:**
Household includes everyone who lives in the unit
Family includes all household members except live-in aides and foster children
Member number 01 is Head of household
Member number 02 is spouse or co-head. If no spouse or co-head, list other household members
RELATION CODES
S = Spouse, the marriage partner of the head of household
K = Co-head, an individual equally responsible for the lease. A household may have either a spouse or a co-head, but never both. 
F = Foster child/adult
Y = Other youth under 18 
E = Full-time student 18+ (other than head, spouse, co-head, foster individual) who is considered full-time by the attended educational institution.  The institution may be a vocational school with a diploma/certificate program, or a degree-granting institution)
L = Live-in aide: A person who lives with a disabled, elderly, or near-elderly person who is
Determined to be essential to the care and well-being of the person
Not obligated for the support of the person
Would not be otherwise living in the unit except to provide the needed care.
   Note that the children of a live-in aide are also coded as L
A = Other adult
3i = individual U.S. citizenship status
3j = disability meeting HUD’s definitions 
3k = race
3m = ethnicity
3n = SSN: normally the 9 digit SSN issued by the Social Security Administration. (For individuals not possessing SSNs: as of 6/25/02, instructions to agencies are to use nine 9s. This rejects when transmitted.  Announced update states  

## Housing Assistance Payment (HAP) and Tenant Rent Answer(HCV Only) 

- Chapter 9: Case Study 3-Champion

- May 2003

**Notes:**
Household includes everyone who lives in the unit
Family includes all household members except live-in aides and foster children
Member number 01 is Head of household
Member number 02 is spouse or co-head. If no spouse or co-head, list other household members
RELATION CODES
S = Spouse, the marriage partner of the head of household
K = Co-head, an individual equally responsible for the lease. A household may have either a spouse or a co-head, but never both. 
F = Foster child/adult
Y = Other youth under 18 
E = Full-time student 18+ (other than head, spouse, co-head, foster individual) who is considered full-time by the attended educational institution.  The institution may be a vocational school with a diploma/certificate program, or a degree-granting institution)
L = Live-in aide: A person who lives with a disabled, elderly, or near-elderly person who is
Determined to be essential to the care and well-being of the person
Not obligated for the support of the person
Would not be otherwise living in the unit except to provide the needed care.
   Note that the children of a live-in aide are also coded as L
A = Other adult
3i = individual U.S. citizenship status
3j = disability meeting HUD’s definitions 
3k = race
3m = ethnicity
3n = SSN: normally the 9 digit SSN issued by the Social Security Administration. (For individuals not possessing SSNs: as of 6/25/02, instructions to agencies are to use nine 9s. This rejects when transmitted.  Announced update states  

## Housing Assistance Payment (HAP) and Tenant Rent Answer(HCV Only)

- Chapter 9: Case Study 3-Champion

- May 2003

**Notes:**
Household includes everyone who lives in the unit
Family includes all household members except live-in aides and foster children
Member number 01 is Head of household
Member number 02 is spouse or co-head. If no spouse or co-head, list other household members
RELATION CODES
S = Spouse, the marriage partner of the head of household
K = Co-head, an individual equally responsible for the lease. A household may have either a spouse or a co-head, but never both. 
F = Foster child/adult
Y = Other youth under 18 
E = Full-time student 18+ (other than head, spouse, co-head, foster individual) who is considered full-time by the attended educational institution.  The institution may be a vocational school with a diploma/certificate program, or a degree-granting institution)
L = Live-in aide: A person who lives with a disabled, elderly, or near-elderly person who is
Determined to be essential to the care and well-being of the person
Not obligated for the support of the person
Would not be otherwise living in the unit except to provide the needed care.
   Note that the children of a live-in aide are also coded as L
A = Other adult
3i = individual U.S. citizenship status
3j = disability meeting HUD’s definitions 
3k = race
3m = ethnicity
3n = SSN: normally the 9 digit SSN issued by the Social Security Administration. (For individuals not possessing SSNs: as of 6/25/02, instructions to agencies are to use nine 9s. This rejects when transmitted.  Announced update states  

## Appendix A: Thinking Points

- Discussion

- Chapter 9: Case Study 3-Champion

- May 2003

## Appendix A: Thinking Points

- Medical Expenses:- Did PHA use same as last year?- Any non-recurring?- Balance of past-due bills reduced by last year’s allowance? 3rd party documentation of balance?
- Admin plan guidance on medical expenses for staff?

- Chapter 9: Case Study 3-Champion

- May 2003

## Appendix A: Thinking Points

- Do verification forms determine if expenses are reimbursed from another source?

- Chapter 9: Case Study 3-Champion

- May 2003

## HCV Calculation

- Prorated calculation for mixed families

- Chapter 9: Case Study 3-Champion

- May 2003

## Prorated Rent Calculation (HCV)

- Step 1:  Divide number of eligible family members by total number in family to arrive at proration percentage
- Step 2:  Multiply Total HAP (Total Subsidy) by proration percentage to get prorated Total HAP

- Chapter 9: Case Study 3-Champion

- May 2003

## Prorated Rent Calculation (HCV)

- Step 3:  Subtract prorated Total HAP from Gross Rent to get Mixed Family Total Family Contribution
- Step 4:  Subtract Utility Allowance from Mixed Family Total Family Contribution to get Mixed Family Tenant Rent to Owner or Utility Reimbursement Payment

- Chapter 9: Case Study 3-Champion

- May 2003

## Prorated Rent Calculation (HCV)

- Step 5:  Subtract Mixed Family Tenant Rent to Owner from Rent to Owner to get Prorated HAP to Owner

- Chapter 9: Case Study 3-Champion

- May 2003

## Prorated Rent Calculation: Example (HCV)

**Jones family has 6 members  **
**4 are eligible citizens**
**2 are noncontending members**
**Family’s Total HAP is $200**
**Gross Rent is $600**
**Rent to Owner is $550**
**Utility Allowance is $50**
**Calculate prorated HAP and Tenant Rent to Owner**

- Chapter 9: Case Study 3-Champion

- May 2003

## Prorated Rent Calculation (HCV)

- Eligible family members divided by total family members  (4 divided by 6 = .67 proration percentage)
- Total HAP					$ 200
- Times proration percentage             x   _.67_
- Equals prorated Total HAP		$ 134

- Chapter 9: Case Study 3-Champion

- May 2003

## Prorated Rent Calculation (HCV)

- Gross Rent					 $ 600
- Minus Prorated Total HAP			 _-  134_
- Equals Mixed Family Total FamilyContribution (TFC)				=  466
- Mixed Family TFC			          $  466
- Minus Utility Allowance			 _-    50_
- Equals Mixed Family Tenant Rent	= 	    416

- Chapter 9: Case Study 3-Champion

- May 2003

## Prorated Rent Calculation (HCV)

- 	Rent to Owner				  $ 550
- 	Minus Family Tenant Rent		   _- 416_
- 	Equals Prorated HAP to Owner  = $ 134
- The Jones family will pay $66 more in Tenant Rent (416-350 – 350 is what the Tenant Rent would have been if not prorated) and the PHA will pay $66 less in HAP to Owner (200-134) due to the presence of two ineligible members

- Chapter 9: Case Study 3-Champion

- May 2003

## Prorated Rent Calculation (HCV)

- Now we will assume that the Champion family had an ineligible relative come to live with them
- The Champion family now has 4 people living in the unit but only 3 are eligible under the Noncitizens Rule
- Sections F. 1 – 12 of the RIM worksheet has been completed for you...pg 9-105
- Complete Lines F. 18 - 23...page 9-107

- Chapter 9: Case Study 3-Champion

- May 2003

## Housing Assistance Payment (HAP) and Tenant Rent Answer(HCV Only)

- Chapter 9: Case Study 3-Champion

- May 2003

**Notes:**
Household includes everyone who lives in the unit
Family includes all household members except live-in aides and foster children
Member number 01 is Head of household
Member number 02 is spouse or co-head. If no spouse or co-head, list other household members
RELATION CODES
S = Spouse, the marriage partner of the head of household
K = Co-head, an individual equally responsible for the lease. A household may have either a spouse or a co-head, but never both. 
F = Foster child/adult
Y = Other youth under 18 
E = Full-time student 18+ (other than head, spouse, co-head, foster individual) who is considered full-time by the attended educational institution.  The institution may be a vocational school with a diploma/certificate program, or a degree-granting institution)
L = Live-in aide: A person who lives with a disabled, elderly, or near-elderly person who is
Determined to be essential to the care and well-being of the person
Not obligated for the support of the person
Would not be otherwise living in the unit except to provide the needed care.
   Note that the children of a live-in aide are also coded as L
A = Other adult
3i = individual U.S. citizenship status
3j = disability meeting HUD’s definitions 
3k = race
3m = ethnicity
3n = SSN: normally the 9 digit SSN issued by the Social Security Administration. (For individuals not possessing SSNs: as of 6/25/02, instructions to agencies are to use nine 9s. This rejects when transmitted.  Announced update states