The Trainer — August 2014
Opening Waiting Lists; Dealing with Household Member's Death
In this month’s feature, we gave you five steps to take when opening a waiting list that has been closed for a while. You need to be prepared for administrative obstacles and to avoid potential regulatory and fair housing problems.
In our article on what to do when you learn that a household member has died, we explained that a manager of a Section 8 site in particular has an obligation to act quickly after a resident’s death to ensure compliance with certain HUD requirements and to mitigate the financial loss to the site.
QUESTION #1
Before opening your waiting list, you should consult which two documents?
a. Your site’s affirmative fair housing marketing plan (AFHMP) and its resident selection plan.
b. The AFHMP and housing assistance payments (HAP) contract.
c. The HAP contract and the Tenant Organization Rules.
d. None of the above.
QUESTION #2
Applicants must complete a full application before they can be placed on your waiting list. True or false?
a. True.
b. False.
QUESTION #3
You must rank applications on your waiting list in the order they were received. True or false?
a. True.
b. False.
QUESTION #4
When notifying applicants that they have a place on your waiting list, which of the following should you not do?
a. Tell them they’re eligible for a unit as soon as they reach the top of the waiting list.
b. Tell them the estimated waiting time until a unit becomes available.
c. Ask them to notify you of any changes to their household, income, or contact information.
d. Ask them to contact you every six months to confirm that they want to stay on the waiting list.
QUESTION #5
If a household member dies and a remaining household member is entitled to succession, there’s no need for an interim recertification. True or false?
a. True.
b. False.
QUESTION #6
When a sole household member dies, HUD will pay the subsidy for only up to 14 days. True or false?
a. True.
b. False.
QUESTION #7
If the family holds the subsidized unit after the death of the sole household member, you can charge the family for use and occupancy beyond the subsidy termination date. True or false?
a. True.
b. False.
ANSWERS & EXPLANATIONS
QUESTION #1
Correct answer: a
Your site should have both an affirmative fair housing marketing plan (AFHMP) and a resident selection plan. Review both of these before opening your waiting list, and follow the procedures each sets out.
QUESTION #2
Correct answer: b
False. It’s a waste of time and money to have every applicant who responds to the open waiting list notice fill out a full-length application. Instead, HUD lets you offer applicants a shorter pre-application form when placing them on waiting lists [Handbook 4350.3, par. 4-14 (C)(1)].
QUESTION #3
Correct answer: b
False. The fairest way to rank applications, particularly if you expect to attract a crush of applicants, is to use a random drawing. Under this approach, the waiting list isn’t established based on date and time of application. Instead, the site randomly orders applications to form its waiting list. The lottery rules can be established in advance with a limit to the number of applications that will be placed on the waiting list. When the application deadline has passed, the site randomly selects the number of applications from a pool of all applications submitted. Those selected are randomly ordered on a waiting list.
QUESTION #4
Correct answer: a
When notifying applicants, be careful not to give them the impression that you’re guaranteeing their admission to the site. Otherwise, misunderstandings and conflicts could result if applicants who appear to be eligible when you place them on the waiting list are no longer eligible when they reach the top of the list. For example, their household size or income may have changed by the time you’re ready to admit them. Instead, stress to applicants that they’re “apparently eligible” for a unit, but that you must determine their eligibility when they reach the top of the list.
QUESTION #5
Correct answer: b
False. An interim recertification should be processed in accordance with HUD requirements and your internal procedures. The effective date of the interim recertification will depend on several factors, including the time frame in which the resident’s death was reported and the effect the removal of the household member will have on tenant rent [HUD Handbook 4350.3, par. 7-13]. The tenant rent and HUD assistance payment will be adjusted accordingly. During the recertification, you must file a HUD Form 50059 and sign a new HUD Model Lease with the remaining head of household and any other adult household members.
QUESTION #6
Correct answer: a
True. According to HUD, when the sole household member dies, subsidy is limited to the earlier of 14 days (two weeks) from the date of death or when the unit is vacated (that is, when the owner receives possession of the unit). As such, the owner is ineligible to receive subsidy for the unit even when it continues to be held by the family beyond the two-week period.
QUESTION #7
Correct answer: a
True. In this situation, you should consult your attorney. He or she can recommend appropriate legal action to regain possession and charge the family for use and occupancy beyond the subsidy termination date. Quickly recovering a unit previously occupied by a deceased sole household member will reduce the potential financial loss to the site and allow you to re-rent the unit to the next eligible household.