HUD Section 8 Program Administration 2 — Questions and Answers
Question 1: Under the HCV program, when must a PHA conduct an interim inspection of a unit between regular annual inspections?
- Whenever a tenant requests one for any reason
- When the PHA receives a HQS complaint, when a unit fails an inspection, or when required by the PHA's administrative plan (Correct answer)
- Only when directed by HUD headquarters
- Interim inspections are never required—only annual inspections are mandatory
Correct answer: When the PHA receives a HQS complaint, when a unit fails an inspection, or when required by the PHA's administrative plan
PHAs must conduct interim inspections when a complaint about unit conditions is received, when following up on failed inspections, or as required by their administrative plan.
PHAs must conduct interim (unscheduled) HQS inspections when: (1) the PHA receives a complaint about unit conditions from a tenant, owner, or other party; (2) following up on a previously failed inspection to verify deficiency correction; (3) when the PHA's administrative plan requires them; or (4) when other circumstances suggest HQS non-compliance. Tenant-requested inspections for legitimate HQS concerns must be acted upon. PHAs cannot ignore complaints merely because an annual inspection previously passed.
Question 2: What is the primary purpose of a 'rent reasonableness' determination in the HCV program?
- To ensure the tenant is not paying more than 30% of income for rent
- To ensure that the gross rent for the assisted unit is not more than comparable unassisted units in the same area (Correct answer)
- To set the maximum income limit for program eligibility
- To determine how much of the HAP payment goes to utilities
Correct answer: To ensure that the gross rent for the assisted unit is not more than comparable unassisted units in the same area
Rent reasonableness ensures that the PHA does not pay inflated rents for Section 8 units by comparing the proposed rent to comparable unassisted units in the same market.
Rent reasonableness determination (required under 24 CFR 982.507) requires PHAs to verify that the gross rent for an HCV-assisted unit is not more than the rent charged for comparable unassisted units in the same market area. PHAs compare units based on: location, quality, size, type, and age of housing; amenities; housing services; maintenance; and utilities. If a unit's proposed rent exceeds comparable unassisted rents, the PHA cannot approve the unit at that rent.
Question 3: Under HCV program rules, an owner wants to increase the rent for a Section 8 assisted unit at lease renewal. What is the required process?
- The owner can raise the rent to any amount and the PHA adjusts the HAP payment accordingly
- The owner must request approval from the PHA at least 60 days before the proposed increase; the PHA conducts a new rent reasonableness determination (Correct answer)
- The PHA sets the rent increase based on HUD's published FMR adjustment factors
- Rent increases are prohibited in Section 8 units for the first 3 years
Correct answer: The owner must request approval from the PHA at least 60 days before the proposed increase; the PHA conducts a new rent reasonableness determination
Owners must request rent increases from the PHA in advance (typically 60 days before the new lease term). The PHA must conduct a new rent reasonableness determination before approving the increase.
Under HCV program rules, owners must provide proper notice to the PHA (typically at least 60 days before the proposed increase effective date) when requesting a rent increase at lease renewal. The PHA must then: (1) conduct a new rent reasonableness determination to confirm the proposed new rent is reasonable; (2) if reasonable, approve the increase and execute a HAP contract amendment; and (3) if unreasonable, deny or negotiate the increase. The PHA cannot simply adjust the HAP payment to cover any requested increase.
Question 4: A PHA terminates a HAP contract because an owner repeatedly failed to correct HQS deficiencies. What happens to the tenant?
- The tenant loses their housing voucher entirely
- The tenant retains the voucher and has the opportunity to search for another eligible unit (Correct answer)
- The tenant must immediately vacate the unit with no assistance
- The PHA must find the tenant a new unit directly
Correct answer: The tenant retains the voucher and has the opportunity to search for another eligible unit
Termination of the HAP contract due to owner failure does not terminate the tenant's voucher. The tenant retains program eligibility and may search for another HCV-eligible unit.
Under HCV program rules, the voucher is the tenant's—not the owner's. When a HAP contract is terminated because the owner failed to maintain HQS, the tenant's program participation is not terminated. The PHA provides the tenant with a new voucher (or reactivates their existing one) with an extended search period to find a new unit. The owner loses the HAP contract and future HAP payments. This protection is fundamental to the tenant-based voucher concept—tenants are not penalized for owner failures.
Question 5: Under the HCV program, what is the standard tenant contribution percentage toward rent?
- 25% of gross monthly income
- 30% of adjusted monthly income (Correct answer)
- 40% of gross monthly income
- No maximum—tenants can pay any amount
Correct answer: 30% of adjusted monthly income
Under the HCV program, the standard tenant contribution is 30% of adjusted monthly income toward gross rent (rent plus utilities).
Under HCV program rules, the minimum tenant rent contribution is the highest of: 30% of the family's monthly adjusted income, 10% of monthly gross income, the welfare rent (if applicable), or the PHA's minimum rent (up to $50). The standard formula results in approximately 30% of adjusted income for most families. If the gross rent exceeds the payment standard, the family pays the 30% contribution plus the difference between the actual rent and the payment standard.
Question 6: Under Section 8 program rules, which of the following is a prohibited basis for refusing to rent to a Housing Choice Voucher holder in jurisdictions with source-of-income protections?
- The unit does not meet HQS standards
- The source of income being a housing voucher, in jurisdictions with source-of-income protection laws (Correct answer)
- The tenant's household is too large for the unit
- The tenant has a documented prior eviction for drug-related activity
Correct answer: The source of income being a housing voucher, in jurisdictions with source-of-income protection laws
Many states and localities have source-of-income (SOI) protection laws that prohibit landlords from refusing to rent to HCV holders solely because they use a voucher.
Federal Fair Housing Act protects against discrimination based on race, color, national origin, religion, sex, disability, and familial status. It does not federally prohibit source-of-income (SOI) discrimination. However, many states and cities have enacted SOI protection laws prohibiting landlords from refusing to rent to HCV holders solely because of their voucher status. Legitimate bases for refusing to rent include: unit does not meet HQS, unit size inappropriate, or documented disqualifying tenant history.
HUD Section 8 Program Administration 2
Under the HCV program, when must a PHA conduct an interim inspection of a unit between regular annual inspections?