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THE DISTRICT OF COLUMBIA HOUSING AUTHORITY
NOTICE OF FINAL RULEMAKING
The Board of Commissioners of the District of Columbia Housing Authority (DCHA) pursuant to D.C. Official Code § 6-203 (2008Repl.), hereby gives notice of the adoption of the new chapter 54 of title 14 of the District of Columbia Municipal Regulations. The final regulations set forth new policies for the administration of the Housing Choice Voucher Program.
The first proposed rulemaking was published in the D.C. Register on February 17, 2012, at 59 DCR 1344. Final action to adopt this rulemaking was taken at the Board of Commissioners regular meeting on June 13, 2012. The final rules will become effective upon publication of this notice in the D.C. Register.
Chapter 56 “Debts and Repayment Agreements,” of title 14, “Housing,” of the DCMR is added as follows:
CHAPTER 56
DEBTS AND REPAYMENT AGREEMENTS
5600 DEBTS AND REPAYMENT AGREEMENTS POLICIES
5600.1 DCHA shall make a concerted effort to collect the debt when it is determined that participant families or owners owe money to DCHA.
5600.2 DCHA shall use a variety of collection tools to recover debts including, but not limited to:
(a) Requests for lump-sum payments;
(b) Civil suits;
(c) Repayment agreements;
(d) Reductions in payments for other units;
(e) Referral to collection agencies;
(f) Reporting to credit bureaus; or
(g) Income tax set-off programs.
5601 DEBTS DUE TO PROGRAM FRAUD, MISREPRESENTATIONS, OR
5601.1 A participant Family or owner may owe a debt to DCHA for program abuse or non-reporting information to the HCVP, even if the participant Family or owner had no intent to commit fraud. In such cases, the debt is still due and payable to DCHA.
5601.2 DCHA may initiate termination proceedings for any Family owing a debt due to program fraud, misrepresentation, or failure to disclose information. Proceedings shall be halted if the Family agrees to enter into a repayment agreement and signs the agreement and all supporting documentation. If the Family refuses to acknowledge the amount owed and sign the repayment agreement and all other supporting documentation, DCHA shall begin or resume termination proceedings.
5601.3 When a Family owes a debt to DCHA, DCHA shall offer the Family an opportunity to enter a repayment agreement unless DCHA determines that the debt is due to fraud or repeated program violations.
5601.4 When DCHA determines that a debt is owed, DCHA shall send a notice to the Family that includes the following:
(a) The amount of the debt owed;
(b) An explanation for the basis of the debt and how it was calculated;
(c) Copies of any supporting documentation (for example, EIV reports); and
(d) Instructions on how to provide DCHA with supporting documentation to contest the amount of the debt.
5601.5 Except in cases of fraud or repeated program violations, as described above, DCHA shall permit the Family to enter a repayment agreement. DCHA shall provide a copy of the proposed repayment agreement to the Head of Household together with the notice described in § 5601.4. If the Family declines to enter into a repayment agreement, on terms proposed by DCHA or other reasonable terms, DCHA may proceed with termination.
5601.6 Where DCHA determines that the Family is not entitled to enter into a repayment agreement because the debt is due to fraud or repeated program violations, DCHA shall provide that information in the notice to the Family described in § 5601.4, including the reasons DCHA believes that a repayment agreement is not warranted, and shall advise the Head of Household of its right to challenge DCHA’s decision to terminate assistance pursuant to chapter 89 of this title of the DCMR.
5601.7 If a Participant Family or owner owes a debt as a result of alleged program fraud, DCHA may take one (1) or more of the following actions at its sole discretion:
(a) Refer the participant Family to the HUD Inspector General for investigation;
(b) Refer participant Family to the U.S. Attorney for criminal prosecution;
(c) Refer the debt to a debt collection agency or DCHA's Office of Attorney General for collection; or
(d) Terminate the participant Family's assistance with proper prior notice and opportunity for a hearing.
5601.8 Under no circumstances, regardless of the amount of the debt, shall an offset be made against utility allowance payments. DCHA staff shall inform the participant Family that no offset against utility allowances payments may be taken.
5601.9 If DCHA determines that an owner has retained (or obtained) inadvertently or unintentionally Housing Assistance Payments to which the owner is not entitled, DCHA may elect to either:
(a) Deduct the amounts from future Housing Assistance Payments owed to the owner for any units under contract; or
(b) Enter into a Repayment Agreement as specified by § 5602.
5601.10 If future Housing Assistance Payments are insufficient to reclaim the amounts owed, DCHA will, at its option and full discretion, pursue one (1) or more of the following collection activities:
(a) Require the owner to pay the amount in full;
(b) Enter into a Repayment Agreement for the amount owed;
(c) Pursue collections through the local court system;
(d) Terminate the HAP contract;
(e) Restrict or deny the owner from future participation in the HCVP program; or
(f) Any other programmatic or legal action as identified in § 5601.7 above.
5602 REPAYMENT AGREEMENTS GENERALLY
5602.1 A Repayment Agreement is a document entered into between DCHA and a Head of Household or an owner who owes a debt to DCHA. It is similar to a promissory note, but contains more details regarding the nature of the debt, the terms of payment, special provisions, and the remedies available to DCHA upon default of the Agreement.
5602.2 The minimum monthly payment under a repayment agreement shall be negotiated on a case-by-case basis between DCHA and the participant Family or owner.
5602.3 The goal of any repayment agreement shall be to establish reasonable monthly payments such that the participant can remain in the program so long as he or she complies with the terms of the repayment agreement.
5602.4 The circumstances in which DCHA may decline to enter into a Repayment Agreement include, but are not limited to, any of the following:
(a) If the participant Family or owner already has a Repayment Agreement in place;
(b) If DCHA determines that the Family or owner:
(1) committed program fraud;
(2) intentionally withheld information; or
(3) intentionally provided false information; or
(c) If the Family already has a Repayment Agreement in place and incurs an additional debt to DCHA, any old debts to DCHA shall be paid in full before DCHA enters into a new Repayment Agreement.
5603 REPAYMENT AGREEMENTS TERMS
5603.1 DCHA shall only execute Repayment Agreements with a Head of Household or an owner.
5603.2 All payments under a Repayment Agreement shall be due in full on the first (1st) day of the month and shall be considered to be in default if not paid by the tenth (10th) day of the month. Any check given for payment under a Repayment Agreement that is dishonored by the bank upon which it is drawn shall be considered in default unless the participant can demonstrate bank error.
5603.3 All repayment agreements shall have the terms of repayment as set by DCHA and agreed to by the Head of Household or owner. Each monthly payment shall be a fixed installment of the amount due with a minimum monthly payment of ten dollars ($10).
5603.4 The terms of a Repayment Agreement may be renegotiated if there is a decrease or increase in the Family’s income.
5603.5 Repayment Conditions for owners shall be as follows:
(a) All debts owed by owners shall be repaid through either Repayment Agreement or reduction in future HAP at the sole and absolute discretion of DCHA; and
(b) DCHA may determine that a participating owner be given no more than twelve (12) months to repay a debt through a Repayment Agreement or through reduction in future HAP payments, or some combination thereof.
5603.6 Hardship exemptions shall be requested in writing by the Head of Household for tenant repayments or property owner for owner repayments. DCHA shall verify the hardship circumstances and respond in writing within ten (10) days of the receipt of the information verifying the hardship.
5603.7 DCHA shall consider requests for hardships as described below:
(a) Monthly payments for Participant Families may be decreased to a minimum of ten dollars ($10) per month in cases of Family hardship and if requested with reasonable notice from the Family, verification of the hardship, and the approval of a HCVP Supervisory staff member;
(b) In the case of landlord or owner debt, an exemption of one thirty-(30) day period may be allowed if requested in writing with reasonable notice from the owner, verification of the hardship, and approval by an HCVP Supervisory staff member;
(c) The maximum period for hardship exemptions from repayment agreements shall be six (6) months. Hardship exemptions shall only be granted under the following circumstances:
(1) The Family has lost eligibility for, or is awaiting, an eligibility determination for a federal, state, or local assistance program. This includes a Family member who is a noncitizen lawfully admitted for permanent residence under the Immigration and Nationality Act who would be entitled to public benefits but for Title IV of the Personal Responsibility and Work Act;
(2) Family income has decreased because of changed Family circumstances, including the loss of employment or change in household composition;
(3) A health emergency occurred that caused an unexpected increase in household expenses; or
(4) A death has occurred in the Family; and
(d) Once the six (6) month period of hardship payments has passed, the original repayment terms shall automatically resume.
5603.8 If DCHA decides not to enter a Repayment Agreement, or a participant disputes the amount of the debt, DCHA shall send a notice of the rights to review accordance with the policies in chapter 89 of this title of the DCMR.
5604 RESTRICTIONS ON MOVES for default
5604.1 No participant Family moves shall be approved if the Repayment Agreement is in default, unless there is a request in writing from the Participant Family and documentation provided, satisfactory to HCVP, that the move is the result of one (1) of the following causes:
(a) Family size exceeds the Housing Quality Standard maximum occupancy number;
(b) The HAP contract is terminated due to owner non-compliance;
(c) A natural disaster occurs;
(d) Requests for Reasonable Accommodation;
(e) Other health and safety issues such as threat of physical violence to the participant Family, request for relocation under a "Witness Protection" order, or other legitimate request;
(f) Intrafamily violence, dating violence, or stalking as explained in § 4907; or
(g) Other circumstances that would authorize the issuance of an emergency transfer voucher under § 5334.
5604.2 The granting of permission to move shall not limit DCHA’s other remedies for enforcement of repayment agreements that are in arrears as contained in § 5605 or elsewhere in the DCMR.
5605.1 If any payment is more than thirty (30) days past due, the repayments shall be considered to be in arrears, and the Family shall be deemed in violation of the terms of the Repayment Agreement.
5605.2 DCHA shall take action to terminate assistance to the participant Family and terminate any and all HAP contracts with the owner. DCHA may then seek all other collection remedies as described in this chapter. Termination proceedings shall continue until payments are no longer in arrears.
5605.3 DCHA shall apply all amounts received as payments toward repayment agreements to the oldest balances first.
5606.1 Heads of Household and former Heads of Household shall remain liable for all unpaid debts which shall remain on the books as a debt to DCHA, unless discharged by order of the United States Bankruptcy Court.
5606.2 While a Head of Household’s debt shall remain on DCHA’s books, DCHA may write off such debts for accounting purposes in accordance with DCHA’s policies and procedures.
5606.3 Former Heads of Household with unpaid current debts shall be denied readmission to HCVP or admission to other DCHA programs. This does not apply to debts that have been discharged by order of the United States Bankruptcy Court, are barred by District of Columbia’s statute of limitations, or are otherwise satisfied.
