2017 AHMA Conference SpecialNeeds Sporadic Employment Workshop Michael

2017 AHMA Conference Special-Needs & Sporadic Employment Workshop Michael Soper Marji Johnson

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Special-Needs Commitments Additional owner elections made in the application process: § Elderly • • 62 or older (all residents) 55 or older (at least one resident per household) 62 or older, or disabled any age (RD/RHS) HUD Elderly § Large Household • 4 or more persons in a 3 bedroom or larger unit § Disabled • At least one person in the unit meets the definition of disabled

Special-Needs Commitments Transitional Housing for the Homeless § Supportive services must be provided by Qualified Non-Profit or government entity § Homeless status and service plan must be verified for each household § Applies to all units in a building (is a 10% or 20% Commitment for the property) § Residents must transition to independent living within 24 months § 6 month lease recommended but not required

Special-Needs Commitments Housing for the Homeless – Permanent § Supportive services must be provided by Qualified Non-Profit or government entity § Homeless status and service plan must be verified for each household (like Transitional) § Can be a 10, 20 or 75% Commitment – units not confined to just one building § Residents do not have to move § 6 month lease required

Special-Needs Commitments Farmworker § Applies to 20%, 75% or 100% of the property’s units § Household must have earned at least $3, 000 directly from farm work in the 12 months prior to occupancy and anticipate the same after move-in. § Must work with services in connection with agriculture or aquaculture and/or directly handling product.

Regulatory Agreement

Identifying Special Needs Set-Aside Commitments

Identifying Special Needs Set-Aside Commitments

Special Needs Set. Aside Forms Available on our Web site at: www. wshfc. org/managers/forms-RC. htm What qualifies as “Farm Work” Exceptions/Clarifications to $3, 000 rule, including retired Farmworker qualification

Farmwork Exceptions/ Clarifications The following exceptions can be considered if fully documented: 1. Household with less than $3, 000 income from Farm Work in the last 12 months. If a Household made less than $3, 000 during the last 12 months from Farm Work they must be able to document all of the following to qualify: At least one Household member has a history of meeting the Requirement for a Farmworker Household (including over $3, 000 per year in previous Farm Work income); and At least one Household member’s principal current occupation and past 12 months occupation is Farm Work; and At least one Household member plans to continue doing Farm Work as their principal occupation.

Farmwork Exceptions/ Clarifications 2. Household with a disabled individual whose principal occupation for the 12 month period before their disability was Farm Work. 3. Household with an individual retired from Farm Work. This Household must include at least one person who is at least 55 years of age or older and they must have: • Spent the five years prior to retirement as a Farmworker. or • Spent the majority of ten years prior to retirement as a Farmworker. Property manager must document above exceptions to verify Farm Work status with third-party verification(s), W-2(s) or tax

Farmwork Exceptions/ Clarifications • Clarifications to Farm Work Definition: Property managers should attach any necessary documentation to this form which demonstrates how household meets the Farm Work Definition. • Further clarification of Agriculture and Aquaculture can be found in the RCWs and WACs listed in the Farm Work Reference found in the Special -Needs section of our Resident Certification Forms website.

Special-Needs Leasing Rules • In new construction special-needs setasides must be met by 100% occupancy • In acquisition/rehab, the attrition rules apply (Tax Credit Policies, Chapter 4, pages 2930, Relocation Plan) • No Double Counting of Commitments except in 75% or higher Special. Needs properties. For example a 75% Farmworker property with 20% Disabled set-aside can have a household count towards both.

Designating in WBARS

Marketing and Good Faith Efforts • The 30 Day Rule – This rule pertains to Special-Needs Commitments. Units must be held vacant, in rent ready condition and actively marketed for a minimum of 30 days prior to renting to a household that does not meet the special-needs definition. A Special. Needs Vacancy Report is required in these situations. Exceptions may be made in certain circumstances only with WSHFC approval. • Good Faith Efforts – Defined as actively marketing any vacant housing units which are necessary to meet commitments. Does not apply to Elderly, Transitional or Homeless units.

OK OK NC

CLASS DISCUSSION QUESTIONS Special-Needs Housing Commitments

Q: A property elected the Large Household (defined as a unit with three or more bedrooms occupied by a household of four or more) Commitment. A household is initially qualified and during the recertification process it is found that one of the household members has moved out, would this unit still be in compliance with the three household members left? A: Yes, as long as the next available, three-bedroom unit is rented to a qualified large household. For all Special-Needs Commitments, once the household qualifies at move in, the household remains qualified (as long as at least one member of the initially qualified household remains in the unit).

Q: Large Household - Are there any exceptions or allowances for households with special needs? A: Yes. Exceptions can be made on a case by case basis. Property Managers may submit requests for exceptions by email to their assigned Portfolio Analyst.

Q: Do I have to re-confirm that my Disabled residents are still disabled at recertification? A: No.

Sporadic Income • What is sporadic Income? • Income that is not received on a regular basis. • Some situations where there can be Sporadic Income: § § § Concession Stand Worker Outdoor Construction / Painter Panhandling Day Labor Farmwork

Income Qualification LESS THAN FULLTIME • Hourly wages X hours/week X 52 § $15. 00 x 27 x 52 = $21, 060. 00 • Weekly wages X number of weeks § $420. 00 X 46 = $19, 320. 00

Sporadic Income ADDITIONAL CONSIDERATIONS • Seasonal – Calculate wages + unemployment § Include all sources of income for 12 months § See Seasonal Worker Statement § Employment Security Dept. has online calculators www. esd. wa. gov/uibenefits/benefitcheck/how-much. php

Determining Income of Sporadic Employees • Include anticipated income from all sources for full 12 months. • Use Seasonal Worker Statement to find out what the resident intends to do or earn during the off-season. • Try to match weeks off to verification(s).

Sporadic Income Examples Concession Stand Worker Dawn works as a server for Centerplate Corp at a Safeco Field concession stand during Mariner games. She gets paid an hourly rate of $13. 00. The regular season is from April – September of each year. If the team makes the playoffs then she will get additional work in October. Apr • Jun May Aug Jul Oct? Sep

Sporadic Income Examples Concession Stand Worker What should you be watching for? • If the employer completes the Employment Verification question: “If the work is seasonal or sporadic, please indicate the layoff period(s). ” § Did the employer or employee indicate whether or not unemployment will be available?

Sporadic Income Examples The Painter When Tom applies for a new tax credit unit, you discover that he paints the outside of houses fulltime for a painting contractor from July through October. Jul Sep $$$ $$ Aug Oct When he completes the Seasonal Worker Statement you learn that the painting contractor he works for does not participate in unemployment insurance. Tom also discloses that when the outdoor painting season ends, he sometimes is asked by homeowners to clean their gutters or paint the inside of their houses for cash. $

Sporadic Income Examples The Painter How would you verify Tom’s income? • Get an employment verification from his employer. • Get a copy of Tom’s tax return since it sounds like Tom is operating a business.

Sporadic Income Examples How to Verfy Income of Panhandlers & Day Laborers • Third-party verification of income (using verifications, pay-stubs and/or tax returns, etc) is always the best. A property serving the homeless has unique situations. • Panhandler on the streets – document their income by providing a notarized statement describing the amount of income they receive. • Day Labor - (not part of the Millionaire Club or a temporary agency), document their income with a notarized statement. Note: For the Self –Employed who make enough to file taxes, a tax return is needed to verify income or a Profit & Loss Statement for the first year.

How to Create a Notarized Statement I earn $50. 00 per week busking on Broadway. • Print out a Gift Affidavit from our website. • Use paper to cover top and the bottom footer and copy. • Have the resident write their statement • Resident signs/dates in presence of a notary.

Determining Income of Seasonal Employees • Wages – if cannot verify anticipated wages from all employers, then look back to prior tax return and/or W-2 s • When qualifying a Farmworker review employment history on Farmworker Household Initial Certification. • Unemployment benefits - use past history or Employment Security Dept. has online benefit calculator https: //esd. wa. gov/unemployment/calculate-your-benefit

Seasonal Worker Scenario You are reviewing a certification for a new move -in. The rent is $1000 a month. The household consists of a couple (Joe and Maria) and their 2 minor children. The certification packet consists of the following: • REAs - Joe is working at Blue Orchards. He declared no other income sources. Maria declared she is not working and has no other income sources. They have $500 in checking and no other assets. • Joe’s VOE from Blue Orchards – Joe will be laid off September through February. His annualized YTD income for the period he is expected to work is $13, 000. • Zero Income Certification for Maria (Husband will pay for expenses) • Sworn Statement of Net Family Assets What questions or additional documentation would you suggest?

Farmworker Scenario What if they were applying at a property with a Farmworker set-aside and completed this additional form. What questions or additional documentation would you suggest?

Thank You! This presentation will be available on the conference website.