Title
Resolution to Approve Amendments to the HCV Administrative Plan: Chapters 6 Related to Decreases in Payment Standards
Memorandum
Due to insufficient funding from HUD to respond to the local market rent increases, the Ann Arbor Housing Commission (AAHC) has gone into funding shortfall multiple budget cycles, despite taking numerous measures to manage costs. The AAHC is amending its Housing Choice Voucher (HCV) Administrative Plan to incorporate program updates, policy amendments, clarify procedural requirements, and/or implement newly approved Moving to Work (MTW) activities. The revisions below apply to Chapter 6 of the Administrative Plan and addresses changes to applying decreased payment standards to families who remain under a HAP contract.
The current policy states that the AAHC will apply reduced payment standards only to new admissions and families who move to another property. The AAHC is not required to apply decreased payment standards to families who remain under HAP contract at the time of their annual certification. Staff are recommending that the AAHC Board adopt a policy that applies the decreased payment standard at the family's second regular re-examination, to both manage the HAP funds that are allocated by HUD and to give family's a reasonable time to adjust. The following sections outline the Administrative Plan chapter and policy area being revised, including the previous language and the updated policy language adopted by the AAHC.
6-III.C. APPLYING PAYMENT STANDARDS
Decreases
Current PHA Policy
If a PHA changes its payment standard schedule resulting in a lower payment standard amount, during the term of a HAP contract, the PHA will not reduce the payment standard used to calculate subsidy for families under HAP contract as long as the HAP contract remains in effect.
The PHA will not establish different policies for decreases in the payment standard for designated areas within their jurisdiction.
Updated PHA Policy
If a PHA chan...
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