Office to Prevent and End Homelessness Direct & Rental Assistance Guidelines

UPDATED JANUARY 2020

OPEH DIRECT & RENTAL ASSISTANCE GUIDELINES 2 | P a g e Updated January 2020

Table of Contents

PROGRAM TYPES ELIGIBLE FOR ASSISTANCE

PROGRAM LIMITATIONS

RESIDENCY

EVALUATION OF PROGRAM PARTICIPANT ELIGIBILITY AND NEEDS

INITIAL EVALUATION

DIRECT ASSISTANCE – ELIGIBLE EXPENSES

(A) RENTAL APPLICATION FEES

(B) SECURITY DEPOSITS

(C) LAST MONTH’S RENT

(D) UTILITY DEPOSITS

(E) UTILITY SERVICE PAYMENTS

(F) MOVING EXPENSES

(G) AUTOMOBILE ASSISTANCE

(H) ID AND DRIVER LICENSE ASSISTANCE

(I) TRANSPORTATION EXPENSE ASSISTANCE

(J) STORAGE

(K) JOB TRAINING EXPENSE ASSISTANCE

(L) MEDICAL OR DENTAL CARE EXPENSE ASSISTSANCE

(M) HOUSEHOLD ITEMS

(N) IMMIGRATION FEES

(O) CRIMINAL JUSTICE AND LEGAL ASSISTANCE

RENTAL ASSISTANCE GUIDELINES

(A) LENGTH OF ASSISTANCE

(B) CASE MANAGEMENT

(C) RE-EVALUATION FOR HOMELESSNESS PREVENTION AND RAPID RE-HOUSING ASSISTANCE

(D) ANNUAL INCOME

(E) PRE-PAYMENT

(F) USE WITH OTHER SUBSIDIES

(G) FAIR MARKET RENT

(H) RENTAL REASONABLENESS

(I) RENT CALCULATION

(J) TERMINATION

DOCUMENTATION

MOTEL FUNDING

CONFLICT OF INTEREST

HOMELESS DEFINITIONS

❖ AT RISK OF HOMELESSNESS DEFINITION:

❖ HOMELESSNESS DEFINITION:

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GUIDELINES FOR OPEH DIRECT & RENTAL ASSISTANCE

PROGRAM TYPES ELIGIBLE FOR ASSISTANCE

(a) EMERGENCY SHELTER, OVERFLOW, OUTREACH.

(b) HOMELESSNESS PREVENTION AND DIVERSION.

(c) RAPID RE-HOUSING.

PROGRAM LIMITATIONS

All forms of financial assistance are payable only after a good faith attempt has been made to utilize other resources

(e.g. food banks, clothing closets) and until available mainstream resources and benefits can be secured (e.g. TANF, SNAP).

Assistance is not guaranteed Assistance can be discontinued at any time for a program participant’s non-compliance with program rules, failure to work on making progress toward self-sufficiency, failure to maintain contact with case manager, threats or acts of violence either expressed or suggested on persons or property, lack of available funds or any other reason outlined in the program agreement.

RESIDENCY. Assistance may only be provided to individuals and families who reside within Fairfax County (including the City of Fairfax, the town of Herndon, and the town of Vienna or the City of Falls Church). Program participants moving from Fairfax County, and the associated cities and towns, to another jurisdiction may only receive a one-time payment of financial assistance and up to 3 months of rental assistance.

All assistance provided must be part of a housing plan. Referrals to supportive services should also be provided.

EVALUATION OF PROGRAM PARTICIPANT ELIGIBILITY AND NEEDS

INITIAL EVALUATION. Program staff must conduct an initial evaluation of homeless status to determine the eligibility of each individual or family for assistance as well as an evaluation of the amount and types of assistance the individual or family needs to regain stability in permanent housing. These evaluations must be conducted in accordance with the coordinated entry requirements and written standards.

DIRECT ASSISTANCE – ELIGIBLE EXPENSES

(a) RENTAL APPLICATION FEES. Funds may pay for the rental housing application fee that is charged by the owner to all applicants.

(b) SECURITY DEPOSITS. Funds may pay for a security deposit that is equal to no more than 2 months’ rent.

(c) LAST MONTH’S RENT. If necessary to obtain housing for a program participant, the last month’s rent may be paid from funds to the owner of that housing at the time the owner is paid the security deposit and the first month’s rent. This assistance must not exceed one month’s rent and must be included in calculating the program participant’s total rental assistance, which cannot exceed 24 months during any 3-year period.

(d) UTILITY DEPOSITS. Funds may pay for a standard utility deposit required by the utility company for all customers for the utilities. Eligible utility services are gas, electric, water, and sewage.

(e) UTILITY SERVICE PAYMENTS. Funds may pay for up to 24 months of utility payments per program participant, per service, including up to 6 months of utility payments in arrears, per service. A partial payment of a utility bill counts as one month. This assistance may only be provided if the program participant or a member of the same household has an account in his or her name with a utility company or proof of responsibility to make utility payments. Eligible utility services are gas, electric, water, and sewage. No program participant shall receive more than 24 months of utility assistance within any 3-year period.

(f) MOVING EXPENSES. Funds may pay for moving costs, such as truck rental or hiring a moving company.

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A maximum of 25 percent of the total direct assistance amount awarded in this amendment may be used in the following categories. The direct assistance must be related to obtaining or maintaining housing.

(Although the OPEH Direct Assistance Guidelines are based on ESG regulations, please note that this section differs from ESG regulations).

(g) AUTOMOBILE ASSISTANCE. Automobile expenses, including repairs and insurance, are capped at $2,000 per year per household.

(h) ID AND DRIVER LICENSE ASSISTANCE. Driver license reinstatement, replacement, or ID obtainment fees are capped at $250 per year per adult.

(i) TRANSPORTATION EXPENSE ASSISTANCE. Bus tokens or smart trip cards, gas cards can be purchased to get to and from employment, employment-related training, or critical appointments e.g. medical or housing. Cab vouchers can be purchased but are limited to emergency uses.

1. Long distance transportation (bus, train, or plane ticket) may be provided if a household has secured a safe alternative to shelter in a different jurisdiction. This assistance is limited to a one-way ticket and may only be provided once. Staff must confirm housing in another jurisdiction, this assistance may not be provided if the household will be homeless in the other jurisdiction.

2. Up to 3 unpaid parking tickets (to help avoid a car from being impounded).

(j) STORAGE. Up to 3 months of storage fees. Up to 3 months of arrears for storage fees.

(k) JOB TRAINING EXPENSE ASSISTANCE. Any costs for training, including the costs to obtain certifications of licenses, must be directly linked to an ability to obtain or improve employment and income. Costs are capped at $5,000 per adult.

(l) MEDICAL OR DENTAL CARE EXPENSE ASSISTSANCE. Costs are for medical or dental assistance are capped at

$500 per year per person. Costs for denture expenses are capped at $2,000 per year per adult.

(m) HOUSEHOLD ITEMS.

1. Beds (including mattresses, box springs and rails)

2. Household items (dishware, cookware, silverware, linens, etc.)

3. Grocery cards maybe be provided to households who have (a) secured a safe alternative to shelter, or (b) live in a shelter that does not provide food, or (c) are living in a place not meant for habitation with no immediate access to food, or (d) are moving to a housing placement and need assistance with groceries for the first month.

All grocery cards must be given in conjunction with a referral to food support services (food banks, etc.)

(n) IMMIGRATION FEES. Costs associated with obtaining or renewing permanent residence cards, change in status application fees, biometrics, etc.

(o) CRIMINAL JUSTICE AND LEGAL ASSISTANCE. Eviction costs and fees for households enrolled in prevention in order to retain the housing.

RENTAL ASSISTANCE GUIDELINES

(a) LENGTH OF ASSISTANCE. Rental Payment Assistance can be provided to assist program participants in returning to housing stability. An agency may provide a program participant with up to 24 months of rental assistance during any 3-year period. This assistance may be short-term rental assistance, medium-term rental assistance, payment of rental arrears, or any combination of this assistance.

• Short-term rental assistance is assistance for up to 3 months of rent.

• Medium-term rental assistance is assistance for more than 3 months but not more than 24 months of rent.

• Payment of rental arrears consists of a one-time payment for up to 6 months of rent in arrears, including any late fees on those arrears.

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(b) CASE MANAGEMENT. While providing homelessness prevention or rapid re-housing assistance to a program participant, the recipient or subrecipient must:

1) Require the program participant to meet with a case manager not less than once per month to assist the program participant in ensuring long-term housing stability; and

2) Develop a plan to assist the program participant to retain permanent housing after the assistance ends, taking into account all relevant considerations, such as the program participant's current or expected income and expenses; other public or private assistance for which the program participant will be eligible and likely to receive; and the relative affordability of available housing in the area.

(c) RE-EVALUATION FOR HOMELESSNESS PREVENTION AND RAPID RE-HOUSING ASSISTANCE.

1) The recipient or subrecipient must re-evaluate the program participant's eligibility and the types and amounts of assistance the program participant needs not less than once every 3 months for program participants receiving homelessness prevention assistance, and not less than once annually for program participants receiving rapid re-housing assistance. At a minimum, each re-evaluation of eligibility must establish that:

(i) The program participant does not have an annual income that exceeds 30 percent of median family income for the area, as determined by HUD; and

(ii) The program participant lacks sufficient resources and support networks necessary to retain housing without assistance.

2) The recipient or subrecipient may require each program participant receiving homelessness prevention or rapid re-housing assistance to notify the recipient or subrecipient regarding changes in the program participant's income or other circumstances (e.g., changes in household composition) that affect the program participant's need for assistance. When notified of a relevant change, the recipient or subrecipient must re-evaluate the program participant's eligibility and the amount and types of assistance the program participant needs.

(d) ANNUAL INCOME. When determining the annual income of an individual or family, the recipient or subrecipient must use the standard for calculating annual income under 24 CFR 5.609. A sample format for calculating part 5 annual income can be found at the following link:

https://www.hud.gov/sites/documents/DOC_35649.PDF. Income limits are defined by HUD and published annually online at http://www.huduser.org/portal/datasets/il.html. There are no income requirements for those in emergency shelter, overflow, outreach, or rapid re-housing programs. Individual or families receiving direct assistance or rental assistance must have an annual income below 30% of AMI.

FY2019 Income Limit Area: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area

Median

Income

FY 2018

Income Limit

Category

Persons in Family

1 2 3 4 5 6 7 8

$121,300

Extremely Low

(30%) Income

Limits ($)

$25,500 $29,150 $32,800 $36,400 $39,350 $42,450 $45,150 $48,050

(e) PRE-PAYMENT. Note that rental assistance may not be paid to the property owner more than one month in advance of the rent being due. For example, a program participant’s rent that is due to a property owner on March 1 may be paid as early as February 1 but not on January 31 or earlier.

(f) USE WITH OTHER SUBSIDIES. Except for a one-time payment of rental arrears on the tenant’s portion of the rental payment, rental assistance cannot be provided to a program participant who is receiving tenant-based rental assistance, or living in a housing unit receiving project-based rental assistance or operating assistance, through other public sources. A security deposit can be provided.

(g) FAIR MARKET RENT. Rental assistance cannot be provided unless the rent does not exceed the Fair

Market Rent (FMR) established by HUD. See HUD’s website https://www.ecfr.gov/cgi-bin/text-idx?rgn=div5&node=24:1.1.1.1.5#se24.1.5_1609 https://www.hud.gov/sites/documents/DOC_35649.PDF http://www.huduser.org/portal/datasets/il.html

OPEH DIRECT & RENTAL ASSISTANCE GUIDELINES 6 | P a g e http://www.huduser.org/portal/datasets/fmr.html to get the latest FMR amounts for Fairfax County. The

FMR’s for FY2020 are:

FY2020

EFFICIENCY ONE-BEDROOM TWO-BEDROOM THREE-BEDROOM FOUR-BEDROOM

$1,457 $1,500 $1,707 $2,215 $2,707

(h) RENTAL REASONABLENESS. Rental assistance payments must also comply with HUD’s standard of rent reasonableness. The Rent Reasonableness Checklist available through the ESG-funded direct assistance program may be utilized. In conducting rent reasonableness, the case manager must determine whether the rent to the owner is a reasonable rent in comparison to rent for other comparable unassisted units. In determining comparability, the case manager must consider: location, quality, size, unit type, and age of the contract unit, and amenities, housing services, maintenance, and utilities the owner must provide under the lease.

(i) RENT CALCULATION. For purposes of calculating rent under this section, the rent shall equal the sum of the total monthly rent for the unit, any fees required for occupancy under the lease (other than late fees and pet fees) and, if the tenant pays separately for utilities, the monthly allowance for utilities (excluding telephone) established by the public housing authority for the area in which the housing is located.

(j) TERMINATION. No further rental assistance payments may be made to a property owner if: (a) the program participant moves out of the housing unit for which the program participant has a lease; (b) the lease terminates and is not renewed; or (c) the program participant becomes ineligible to receive rental assistance.

DOCUMENTATION

All of the following documentation must be kept in the case files for program participants in addition to the client documentation required by the Office to Prevent and End Homelessness for the primary Case Management contract.

(All forms are subject to updates by OPEH. Also, forms are only considered complete if they are completely filled in, signed, dated and initialed as appropriate.)

(a) Income Verification (using copy of paystub or benefits statements, Verification of Income Form or, if no other option is available, a self-declaration of income by the program participant

(b) Copies of:

1) ID for all household members

2) Lease – Each program participant receiving rental assistance must have a legally binding, written lease for the rental unit, unless the assistance is solely for rental arrears. The lease must be between the owner and the program participant. Where the assistance is solely for rental arrears, an oral agreement may be accepted in place of a written lease, if the agreement gives the program participant an enforceable leasehold interest under state law and the agreement and rent owed are sufficiently documented by the owner's financial records, rent ledgers, or canceled checks.

3) 5 Day Pay-or-Quit notice or court summons (if applicable)

4) Bills or invoices for which the household is receiving assistance

5) Receipts for items purchased with the direct assistance funds

(c) W-9 for all entities who will receive payment on behalf of the client.

Agencies utilizing this funding source will be required to submit a separate Direct Assistance invoice. Invoice template to be provided by OPEH.

http://www.huduser.org/portal/datasets/fmr.html https://www.hudexchange.info/resource/3070/esg-rent-reasonableness-and-fmr/ https://www.hudexchange.info/resource/3070/esg-rent-reasonableness-and-fmr/

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MOTEL FUNDING

ELIGIBILITY. Motel stays may occur due to overflow in the shelter or to other situations that may not permit families to stay in shelter (e.g. health condition of a family member). All other alternatives must be explored before placing a household in a motel including diversion, doubling up families in shelter, or using overflow space.

This assistance may only be provided to households with at least one adult and one child who meet the criteria under paragraph (1) of the homeless definition or who meet the criteria under paragraph (4) of the homeless definition and live in an emergency shelter or other place described in paragraph (1) of the homeless definition. (See end of guidelines for homeless definitions).

Motel placement must be conducted in accordance with the coordinated entry requirements and written standards.

(a) TIMEFRAME. The contractor is expected to manage motel fund expenditures accordingly to ensure that some motel funds are available throughout the fiscal year. No other funding is anticipated.

(b) MOTEL TO SHELTER. Families should exit motels to main shelters when openings occur. Collaboration across regions is expected to continue as this is the key to the success of the system.

(c) LENGTH OF STAY. Any motel stays longer than two weeks must be reported to OPEH. Agencies should notify

OPEH if 4 motel rooms are utilized at the same time.

(d) CASE MANAGEMENT. Case management must be provided with the same frequency as for those in the shelter.

Intake for households must be completed within 1 business day of entering the motel.

(e) AVERAGE COST PER NIGHT. On average, the motel rooms utilized should cost below $100 per night.

(f) LOCATION. Nonprofit contracting agencies will have the authority to choose a motel near their shelter location for ease of providing transportation and case management services.

(g) HMIS. Families must be recorded in the appropriate motel project for their Human Services Region in the

Homeless Management Information System (HMIS) according to the HMIS Data Standards for emergency shelters.

(h) INVOICING AND REPORTING. Reporting for motel funds should occur in conjunction with monthly invoicing and reporting for RRH and prevention funds. Separate lines should be listed for motel funds with a notation on how many families, how many nights and cost for that month.

(i) DAMAGES. Damage caused by the client should be paid for by the client, but the nonprofit is responsible for these damages if the client is unable to pay.

(j) MINIMUM STANDARDS. Any motel used for emergency shelter and paid with OPEH motel funds must meet state or local government safety and sanitation standards, as applicable, and the following minimum safety, sanitation, and privacy standards.

(i) Structure and materials. The motel must be structurally sound to protect residents from the elements and not pose any threat to health and safety of the residents.

(ii) Space and security. The motel must provide each program participant in the shelter with an acceptable place to sleep and adequate space and security for themselves and their belongings.

(iii) Interior air quality. Each room or space within the shelter must have a natural or mechanical means of ventilation. The interior air must be free of pollutants at a level that might threaten or harm the health of residents.

(iv) Water supply. The water supply must be free of contamination.

(v) Sanitation facilities. Each program participant in the motel must have access to sanitary facilities that are in proper operating condition, are private, and are adequate for personal cleanliness and the disposal of human waste.

(vi) Thermal environment. The motel must have any necessary heating/cooling facilities in proper operating condition.

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(vii) Illumination and electricity. The motel must have adequate natural or artificial illumination to permit normal indoor activities and support health and safety. There must be sufficient electrical sources to permit the safe use of electrical appliances in the shelter.

(viii) Food preparation. Food preparation areas, if any, must contain suitable space and equipment to store, prepare, and serve food in a safe and sanitary manner.

(ix) Sanitary conditions. The motel must be maintained in a sanitary condition.

(x) Fire safety. There must be at least one working smoke detector in the motel room. Where possible, smoke detectors must be located near sleeping areas. The fire alarm system must be designed for hearing-impaired residents. All public areas of the shelter must have at least one working smoke detector. There must also be a second means of exiting the building in the event of fire or another emergency.

CONFLICT OF INTEREST

(a) The provision of direct assistance may not be conditioned on an individual's or family's acceptance or occupancy of housing owned by agency providing direct assistance. No agency may, with respect to individuals or families occupying housing owned by the agency, or any parent or subsidiary of the agency, carry out the initial evaluation of eligibility or administer assistance.

(b) No person employee, agent, consultant, officer, or elected or appointed official of an agency who exercises or has exercised any functions or responsibilities with respect to direct assistance, or who is in a position to participate in a decision-making process or gain inside information with regard to activities assisted under the program, may obtain a financial interest or benefit from the assistance; have a financial interest in any contract, subcontract, or agreement with respect to the assistance; or have a financial interest in the proceeds derived from the assistance, either for him or herself or for those with whom he or she has family or business ties, during his or her tenure or during the one-year period following his or her tenure.

(c) Any act of fraud, theft or other inappropriate use of funds may result in any of the following actions, up to and including criminal prosecution:

1) Agency repayment of inappropriate used funds,

2) Non-reimbursement for funds that are not use appropriately,

3) Denial of access to a program or agency,

4) Contract termination, or

5) Other criminal, civil and administrative penalties and sanctions.

HOMELESS DEFINITIONS

❖ AT RISK OF HOMELESSNESS DEFINITION:

HUD CATEGORY DESCRIPTION ELIGIBLE PROGRAM TYPE

Category 1

Individuals and

Families

An individual or family who:

1. Has an annual income below 30% of median family income for the area; and

2. Does not have sufficient resources or support networks immediately available to prevent them from moving to an emergency shelter or another place defined in Category 1 of the “homeless” definition;

3. Meets one of the following conditions:

a. Has moved because of economic reasons 2 or more times during the 60 days immediately preceding the application for assistance; OR

b. Is living in the home of another because of economic hardship; OR

c. Has been notified that their right to occupy their current housing or living situation will be

Prevention, provided that the individual or family has an annual income below

30% of AMI.

OPEH DIRECT & RENTAL ASSISTANCE GUIDELINES 9 | P a g e terminated within 21 days after the date of application for assistance; OR

d. Lives in a hotel or motel and the cost is not paid for by charitable organizations or by Federal, State, or local government programs for low-income individuals; OR

e. Lives in an SRO or efficiency apartment unit in which there reside more than 2 persons or lives in a larger housing unit in which there reside more than one and a half persons per room; OR

f. Is exiting a publicly funded institution or system of care; OR

g. Otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness

Category 2

Unaccompanied

Children and

Youth

A child or youth who does not qualify as homeless under the homeless definition but qualifies as homeless under another

Federal statute.

Category 3

Families with

Children and

Youth

A unaccompanied youth who does not qualify as homeless under the homeless definition, but qualifies as homeless under section

725(2) of the McKinney-Vento Homeless Assistance Act, and the parent(s) or guardian(s) or that child or youth if living with him or her.

❖ HOMELESSNESS DEFINITION:

HUD CATEGORY DESCRIPTION ELIGIBLE PROGRAM TYPE

Category 1

Literal

Homelessness

Individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning:

1. Has a primary nighttime residence that is a public or private place not meant for human habitation;

2. Is living in a publicly or privately operated shelter designated to provide temporary living arrangements

(including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state and local government programs); or

3. Is exiting an institution where (s)he has resided for 90 days or less and who resided in an emergency shelter or place not meant for human habitation immediately before entering that institution.

Emergency Shelter, Overflow, Motel, Outreach, Rapid Re-

Housing

Category 2

Imminent Risk of

Literal

Homelessness

Individual or family who will imminently lose their primary nighttime residence, provided that:

1. Residence will be lost within 14 days of the date of application for homeless assistance;

2. No subsequent residence has been identified; and

3. The individual or family lacks the resources or support networks needed to obtain other permanent housing.

Prevention, provided that the individual or family has an annual income below

30% of AMI.

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Category 3

Homeless under other Federal statutes

Unaccompanied youth under 25 years of age, or families with children and youth, who do not otherwise qualify as homeless under this definition, but who:

1. Are defined as homeless under the other listed federal statutes;

2. Have not had a lease, ownership interest, or occupancy agreement in permanent housing during the 60 days prior to the homeless assistance application;

3. Have experienced persistent instability as measured by two moves or more during the preceding 60 days;

and

4. Can be expected to continue in such status for an extended period of time due to special needs or barriers.

Prevention, provided that the individual or family has an annual income below

30% of AMI.

Category 4

Fleeing/Attempting to Flee Domestic

Violence

Any individual or family who:

1. Is fleeing, or is attempting to flee, domestic violence;

2. Has no other residence; and

3. Lacks the resources or support networks to obtain other permanent housing.

Prevention or

Rapid Re-Housing*

*provided that the individual or family also meets the criteria for

Category 1