§ 984.306 - HCV portability requirements for FSS participants.

§ 984.306 Section 8 residency and HCV portability requirements for FSS participants.

(a) Relocating FSS family. For purposes of this section, the term “relocating FSS family” refers to an FSS family that moves from the jurisdiction of a PHA at least 12 months after signing its contract of participation.

(b) Initial occupancy

Initial period of CoP -

(1) First 12 months.

A family participating in the Section 8 FSS program must lease an assisted unit, for a minimum period of

During the first 12 months after the effective date of the

contract of participation, in

FSS CoP, an FSS family may not move outside the jurisdiction of the PHA that

selected

first enrolled the family

for

in the FSS program. However, the PHA may approve

a

an FSS family's request to move outside

the initial PHA

of its jurisdiction under portability (in accordance with § 982.353 of this chapter) during this period. This paragraph (a)(1) applies to a former PBV family who received tenant-based rental assistance in accordance with § 983.261 of this chapter and exercised their right to move.

(2) After the first 12 months. After the first 12 months of the FSS

contract of participation

CoP, the FSS family with a tenant-based voucher may move outside the initial PHA jurisdiction under portability

procedures

regulations (in accordance with § 982.353 of this chapter). This paragraph (

c) Portability: relocation but continued participation in the FSS program of the initial PHA - (1) General. A relocating FSS family may continue in the FSS program of the initial PHA if the family demonstrates to the satisfaction of the initial PHA that, notwithstanding the move, the relocating FSS family

a)(2) applies to former PBV families who received tenant-based rental assistance in accordance with § 983.261 of this chapter and exercised their right to move.

(b) An FSS family moves to the jurisdiction of a receiving PHA that administers an FSS program.

(1) Whether the receiving PHA bills the initial PHA or absorbs the FSS family into its HCV program, the receiving PHA must enroll an FSS family in good standing in its FSS program; unless

(i) The receiving PHA is already serving the number of FSS families identified in its FSS Action Plan and determines that it does not have the resources to manage the FSS contract; or

(ii) The receiving PHA and the initial PHA agree to the FSS family's continued participation in the initial PHA's FSS program. Prior to the PHAs agreeing to the continued participation, the initial PHA must determine that the relocating FSS family has demonstrated that, notwithstanding the move, it will be able to fulfill its responsibilities under the initial or a modified

contract of participation

CoP at its new place of residence.

(

For example, the FSS family may be able to commute to the supportive services specified in the

contract of participation

CoP, or the family may move to obtain employment as specified in the contract.

)

(2)

Single contract of participation. If the relocating family remains in the FSS program of the initial PHA, there will only be one contract of participation, which shall be the contract executed by the initial PHA.

(d) Portability: relocation and participation in the FSS program of the receiving PHA -

(1) General. A relocating FSS family may participate in the FSS program of the receiving PHA, if the receiving PHA allows the family to participate in its program. a PHA is not obligated to enroll a relocating FSS family in its FSS program.

(2) Two contracts of participation. If the receiving PHA allows the relocating FSS family to participate in its FSS program, the receiving PHA will enter into a new contract of participation with the FSS family for the term on the remaining contract with the initial PHA. The initial PHA will terminate its contract of participation with the family.

(e) Single FSS account. Regardless of whether the relocating

Where continued FSS participation is not possible in accordance with paragraph (b)(1) of this section, the initial PHA must clearly discuss the options that may be available to the family, depending on the family's specific circumstances, which may include, but are not limited to, modification of the FSS contract, termination of the FSS contract and forfeiture of escrow, termination with FSS escrow disbursement in accordance with § 984.303(k)(1)(iii), or locating a receiving PHA that has the capacity to enroll the family into its FSS program.

(c) An FSS family moves to the jurisdiction of a receiving PHA that does not administer an FSS program. If the receiving PHA does not administer an FSS program, the FSS family may not continue participation in the FSS program. The initial PHA must clearly discuss the options that may be available to the family, depending on the family's specific circumstances, which may include, but are not limited to, modification of the FSS contract, termination with FSS escrow disbursement in accordance with § 984.303(k)(1)(iii), termination of the FSS contract and forfeiture of escrow, or locating a receiving PHA that administers an FSS program.

(d) Single FSS escrow account. Regardless of whether the FSS family remains in the FSS program of the initial PHA or is enrolled in the FSS program of the receiving PHA,

there will be a single FSS account which

the family will have only one FSS escrow account. If the receiving PHA is billing the initial PHA, the account will be maintained by the initial PHA.

When

If an FSS family will be absorbed by the receiving PHA, the initial PHA will transfer the family's FSS escrow account funds to the receiving PHA and the receiving PHA will maintain the funds in its FSS account.

(

f

e)FSS program termination; loss of FSS escrow account

; and termination of Section 8 assistance

.

(1) If an FSS family

that

relocates to another jurisdiction, as provided under this section, and is unable to fulfill its obligations under the

contract of participation,

CoP (or any modifications thereto), the PHA, which is a party to the

contract of participation, may: (i) Terminate

CoP, must terminate the FSS family from the FSS program, and the family's FSS escrow account will be forfeited

; and (ii) Terminate the FSS family's Section 8 assistance on the ground that the family failed to meet its obligations under the contract of participation

. Termination of FSS program participation and forfeiture of FSS escrow must be used only as a last resort, after the PHA determines, in consultation with the family, that the family would be unable to fulfill its obligations under the CoP after the move, that the current CoP cannot be modified to allow for graduation prior to porting, and that the current CoP cannot be terminated with FSS escrow disbursement in accordance with § 984.303(k)(1)(iii). When termination is the only option, the PHA must clearly notify the family that the move will result in the loss of escrow funds.

(2) In the event of forfeiture of the family's FSS escrow account funds, the

funds in the family's

FSS escrow account funds will revert to the PHA maintaining the FSS escrow account for the family.

[61 FR 8815, Mar. 5, 1996, as amended at 65 FR 16733, Mar. 29, 2000]

(f) Contract of Participation (CoP).

(1) If the FSS family enrolls in the receiving PHA's FSS program pursuant to this section, the receiving PHA will enter into a new CoP with the FSS family for the term remaining on the contract with the initial PHA. The initial PHA will terminate its CoP with the family.

(2) If the FSS family remains in the FSS program of the initial PHA, pursuant to this section, the CoP executed by the initial PHA will remain as the contract in place.

(g) New FSS enrollment into the receiving PHA's FSS program -

(1) Billing. If the receiving PHA bills the initial PHA, the receiving PHA may, consistent with the receiving PHA's FSS enrollment policies, enroll a family that was not an FSS participant at the initial PHA into its FSS program, provided that the initial PHA manages an FSS program and agrees to such enrollment. If the receiving PHA bills the initial PHA, but the initial PHA does not manage an FSS program, the family may not enroll in the receiving PHA's FSS program.

(2) Absorption. If the receiving PHA absorbs the family into its HCV program, the receiving PHA may, consistent with the receiving PHA's FSS enrollment policies, enroll a family that was not an FSS participant at the initial PHA into its FSS program.