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109.04.6-XVI. Tenant-Based Rental Assistance (TBRA).

AR ADC 109.04.6-XVIArkansas Administrative Code

West's Arkansas Administrative Code
Title 109. Development Finance Authority
Division 04. Multi-Family Housing
Rule 6. Compliance Monitoring Policies and Procedures Manual for the Home Program
Ark. Admin. Code 109.04.6-XVI
109.04.6-XVI. Tenant-Based Rental Assistance (TBRA).
TBRA funds are used to help eligible low-income households pay for housing costs, including rent, utilities, and security deposits. The most common use of TBRA funds is to make up the difference between the amount a household can afford to pay for housing and a local rent standard.
All HOME funds used for TBRA activities must benefit tenants whose incomes are at or below the HUD low-income limit, defined as 80% of area median income. In addition, at least 90% of TBRA participants and households in HOME-assisted rental units assisted with each fiscal year's allocation of HOME funds must have incomes at or below 60% of area median income. TBRA programs may use the Section 8 definition of income, the Census Long Form definition of annual income, or the IRS definition of adjusted gross income for eligibility purposes.
ADFA contracts with Public Housing Authorities (PHA) to administer TBRA funds. ADFA staff will visit annually each facility that administers TBRA funds to review tenant files and housing quality standards of the unit. ADFA staff will look for evidence of the following:
1. Records demonstrating compliance of contracts with individual households for a maximum of two years;
2. Records demonstrating compliance with lease specifications;
3. Records demonstrating compliance with income qualifications; an applicant's income determination is considered valid for up to six months. If TBRA has not been awarded within that period, a new income determination must be completed;
4. Records demonstrating compliance with tenant selection plan;
5. Records (HQS reports) demonstrating that Unit inspections were made at initial move-in and annually during the term of the TBRA assistance;
6. Documentation certifying the eligibility of the unit in each tenant's file;
7. Records pertaining to lead-based paint disclosure notice and pamphlet; the notice must be signed by the tenant;
8. Records demonstrating that only eligible costs are funded with TBRA (rent, utility costs, security deposit); and
9. Records demonstrating that rents are reasonable.
ADFA, in its sole discretion, may conduct interim inspections to ensure that units meet minimum housing quality standards.
TBRA Documentation Requirements
Application, Eligibility Verification, and Disposition Records
An application should be on file for each applicant, together with documentation of a determination of the applicant's basic eligibility and preferences. Each file should contain documentation on of the final disposition of the household's application.
TBRA Coupon
A copy of the executed coupon should be retained in the files of all approved TBRA recipients.
Request for Unit Approval
A copy of all Requests for Unit Approval, including those that were rejected, should be maintained.
PJ/Owner Contract
Once the household locates a unit, the owner must agree to participate in the program. The tenant file must include a copy of the executed contract between the owner and the PHA.
Property Inspections
Copies of all inspection reports should be maintained in the file. Any deficiencies in paint surfaces must be clearly detailed.
Notification of Defects (Lead-based Paint)
If deficiencies in paint surfaces are found, a copy of the written notification from the administering agency to the owner should be documented in the file. A copy of the clearance examination report should be in the file if additional work was required.
Administering Agency's Response to Lead-Poisoned
The following documents should be in the file:
Children
Documents identifying poisoned children; Risk Assessment Report:
Clearance Report;
Lead Hazard Evaluation and Lead Hazard Reduction Notices;
Documentation that Lead Hazard Evaluation and Lead Hazard Reduction Notices were provided to the tenant; and
Copies of quarterly letters to the Public Health Agencies with names of children under age 6 living in TBRA units.
Lease and Lease Addendum
The HOME Program allows owners to use their own leases if they meet HOME requirements. ADFA will review leases to ensure that they do not contain any prohibited language. ADFA will review tenant files to ensure that an executed lease and lease addendum are in the file.
Tenant Payment
The tenant file should document the tenant payment amount and the TBRA payment. ADFA will verify that the tenant and the PHA are paying appropriate amounts, given the structure of the program and its payment standard.
Annual Income Recertification
Tenant income must be verified annually to establish continued income eligibility. ADFA will review tenant files to determine if annual determinations are being completed accurately and on time. Supporting documentation must be retained in the files.
Documentation of Termination
When a tenant leaves the TBRA program, the PHA must document the date and reason for leaving.
Minimum and Maximum Payment: The HOME Program rules establish a maximum TBRA assistance payment and require the PHA to establish a minimum tenant payment. The PHA may use its discretion in setting this minimum payment level. The minimum payment may be established as a dollar figure (such as $50.00) or as a percentage of income (such as 10% of monthly income). The maximum amount that the HOME TBRA program may pay to assist any given household is the difference between 30 percent of the household's adjusted monthly income and the jurisdiction-wide rent limit established by the PHA, known as the payment standard. Two options apply for the payment standard.
1. If the PHA does not establish its own payment standard, then the payment standard must be based upon the Section 8 Fair Market Rents. The payment standard must not be less than 80 percent of the published FMRs and not more than the FMR or area-wide exception rent.
2. The PHA may also develop a payment standard based on local market conditions.
Once established, the payment standard remains constant for all similarly sized units for the entire program. The PHA may, however, approve a unit-specific standard for up to 20 percent of the units in the TBRA program. If desired, the standards for these units can be up to 10 percent higher than the regular standard.
Current with amendments received through December 15, 2023. Some sections may be more current, see credit for details.
Ark. Admin. Code 109.04.6-XVI, AR ADC 109.04.6-XVI
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