MTW Activities

Description – Households in which all members are elderly and/or disabled and there is no earned income shall be re-certified on a triennial basis.

Update on Status of Activity – This activity is fully implemented and will be ongoing with modifications described below.

Changes or Modifications – This activity was modified from biennial to triennial recertifications in the 2015 Plan. In 2018, HACC will modify this activity as follows:

1. Recertifications for households in which all members are elderly or disabled, even if household members have earned income, will be re-certified only on a triennial basis.
2. Recertifications for households in which all adult members are compliant with the Local Self-Sufficiency Requirements, will be re-certified only on a triennial basis.
3. Households that fall into the above two categories are not required to report any changes in income and no interim recertifications shall be conducted regardless of whether income increases or decreases.

Description- Participation in a self-sufficiency program is a condition of eligibility for new admissions and a condition of continued occupancy for existing residents and participants. All ablebodied individuals ages 18 through 54 are required to actively pursue activities to achieve economic self-sufficiency. The head of the household is required to develop a self-sufficiency plan that identifies goals and objectives for each household member required to participate in the Mandatory LSS Program and is held accountable for progress of all household members.

LSS Requirement– Work requirements shall be based on annual earned income. The minimum earned income for compliance with the work requirement shall be based on the years in which the household has received assistance. Each year, the earned income requirement will increase to prepare individuals for exit from assistance at the end of the 8-year term limit. The income tiers shall be based on percent of the area median income for Champaign County. The chart below reflects the earned income requirements for 2021.

Non-exempt household members may also be enrolled on a full-time basis (as defined by the institution) in an educational program that offers a degree or certificate. Household members enrolled in an educational program must demonstrate successful progress towards the degree or certificate. Progress shall be defined as successfully completing 75% of all required course work on an annual basis.

New Admissions – New Admissions households including households porting from another jurisdiction will be provided one year from the date of the initial lease up in Champaign County to become compliant with LSS requirements.

If a New Admission household is not compliant with LSS requirements prior to submission of a Request for Tenancy Approval, they must meet with an LSS Case Worker and develop an LSS Plan. HACC will not approve a RFTA until the household has developed a plan and executed the LSS Contract.

If a member of a household claims self-employment and is establishing a new business, they must provide documentation required by local, state or federal law of the creation and/or existence of the business.

Rent Changes – If a household member is compliant with the employment requirements and subsequently experiences loss of employment, they shall be granted a 90-day waiver for the employment requirement. No rent change will be processed during the 90-day waiver period. Failure of a household member to re-secure employment within the 90 days shall be grounds for termination of housing assistance. Upon securing new employment, a rent change shall be processed to reflect the new employment wages. Only one waiver period shall be permitted within each calendar year.

If loss of employment is through no fault of the individual (lay-off, company closure, etc.) an extension of a second 90-day waiver may be granted provided the individual can demonstrate that they are actively searching for new employment. In these circumstances, a rent adjustment will be processed as applicable. Failure to secure new employment after a second 90-day waiver period shall be grounds for termination of housing assistance.

Self-Employment- Individuals who are self-employed including childcare home providers must have a total annual gross income equivalent to the applicable State of Illinois minimum wage times 1,300 hours to be considered in compliance with the employment requirements under the LSS Program. Copies of income tax forms filed with the IRS must be provided to claim self-employment; no other documentation shall be acceptable.

Term Limit– Effective January 1, 2016, non-exempt households shall be limited to a maximum housing assistance term not to exceed eight years. The following provisions shall apply.

• The eight-year term shall commence at the first annual recertification that occurs after January 1, 2016.
• All households must comply with all requirements of the LSS Program at all times while receiving housing assistance. Failure to do so will result in termination of housing assistance prior to the maximum term.
• Households whose annual income exceeds 80% of the Champaign County median income at the time of annual recertification shall no longer be eligible for housing assistance. Housing assistance will cease at the end of 60 days from the effective date of the annual recertification.
• If a non-exempt household member becomes exempt while receiving housing assistance the term limits shall no longer apply. If a household previously received housing assistance for a maximum time period but later becomes exempt, they may re-apply for housing assistance and the term limits shall no longer apply.
• Households may not designate an alternate head of household for the purpose of extending term limits. All adult household members shall be subject to the applicable term limit for the household.

SHIFT (LSS Next Steps)– in 2020, HACC added a new component to be known as LSS Next Steps (SHIFT). The recently received FSS Coordinator grant will be used to assist families that are in compliance with LSS requirements but have not yet achieved sufficient self-sufficiency to exit the HCV Program. Focus will be primarily on assisting head of households in developing skills that will lead to higher paying employment opportunities.

Financial Incentive- Financial Incentives will be provided in the form of a goal-based payment system. Families will be required to meet certain benchmarks of self-sufficiency and as a result, they will earn varying cash incentives with a maximum earning potential of $16,000. In order to receive a credit for a milestone, the household must be in compliance with all MTW requirements for the quarter that the goal was achieved. HACC will establish an escrow account and as goals are achieved the credit will be applied to the account. The goal-based credits will only be paid upon voluntary exit from the program(s) in good standing or completion of the Contract of Participation. All credits will be forfeited for any household that is terminated from the program for cause or ports to another jurisdiction for any reason.

No partial credits will be provided; no credit will be earned if any member of the household was non-compliant for any time during the 12-month calendar period. The annual credits will accrue and will only be paid upon voluntary exit from the program(s) in good standing or upon expiration of the 8-year term limit. All credits will be forfeited for any household that is terminated from the program for cause or ports to another jurisdiction for any reason.

In order to successfully complete the LSS Contract of Participation, participants must meet the following criteria:

1. The head of household has obtained suitable employment and met the minimum annual earned income for compliance. Suitable employment is defined as working full time for at least 12 months.
2. All members of the household have been independent of welfare for at least twelve consecutive months. Welfare is defined as assistance from federal or state welfare programs. It does not include social security, child support payments, Medicaid or similar benefits.
3. Activities listed on the Individual Training and Service Plan must be completed within the designated timeframe.
4. The household is in full compliance with the lease, including no monies owed for repayment agreements to HACC or landlords.

Case Coordination– To assist in the client’s successful completion of their Contract of Participation, LSS Coordinators will assist the family in the development of an Individual Training and Services Plan and assure that LSS Program participants are linked to supportive services they need to achieve their economic self-sufficiency goals.

Mandatory Job Retention Training- Individuals who lose employment more than once, for any reason other than a reduction in force, shall be required to enroll, attend and complete a job retention program as directed by their LSS Case Manager.

Dependent School Requirements- School requirements for dependents ages 5 through 18 shall be eliminated as the school district will not provide documentation to HACC regarding attendance. School attendance of a minor dependent will not have any impact on the continued assistance of the assisted household at any time now or in the future.

Update on Status of Activity– This activity is fully implemented and will be ongoing in 2021.

Changes or Modifications– The following modification to the LSS Activity in the 2021 Plan is the renaming of the LSS Next Steps program to SHIFT

Description – Flat rent schedules are established annually and are effective on January 1st of each calendar year. Tenant rent is calculated as gross annual income with no deductions or allowances. Gross annual income is calculated pursuant to the HUD regulatory requirements. However, employment income for dependents is included in total household income if they are not also pursuing a training certification or educational degree. Current income exclusions as defined by HUD continue to apply.

The tiered flat rent amount is based on income ranges established in increments of 5% of the Area Median Income (AMI). The applicable flat rent for an assisted household is the corresponding rent for the range in which the gross annual income of the household falls. The flat rent is the amount that the tenant will pay towards rent. Utility allowances are eliminated. Households with gross annual income less than 5% of the Area Median Income (AMI) pay a minimum rent based on bedroom size of the assisted housing unit.

Update on Status of Activity – This activity is fully implemented and will be ongoing with modifications described below.

Changes or Modifications – This activity was modified as described above in the 2014 Plan. In 2018, HACC will modify this activity as follows:

1. Project Based Voucher participants shall be pay the applicable flat rent even if it exceeds the contract rent for the unit.
2. Project Based Voucher households with incomes equal or greater than 100% of area median income will no longer be eligible for housing assistance and will be provided with a 90-day notice to vacate.
3. Tenant Based Voucher participants whose tenant rent exceeds the contract rent on the unit will be provided with a 30-day notice of cancellation of their voucher.
4. The flat rent determined at the most recent recertification will remain in effect regardless of any increase or decrease in income until the next regularly scheduled recertification.

Interim recertifications will be completed only as applicable under the Local Self-Sufficiency Program.

Description – The definition of elderly families in the Public Housing Program and the HCV Program was modified from head or co-head aged 62 or older to all household members aged 55 or older.

Update on Status of Activity – This activity is fully implemented and will be ongoing with no changes or modifications.

Description – HACC partnered with Habitat for Humanity to utilize its MTW flexibility to fill a gap in affordable homeownership needs in Champaign County. HACC refers existing residents of HACC programs that complete the MTW Mandatory Local Self-Sufficiency Program through compliance with employment requirements. Habitat selects from referrals in accordance with the Habitat Partner Family Selection Process.

Habitat provides all homeownership program services including pre and post home purchase counseling; financial literacy, credit repair and counseling; sweat equity by the home buyer; and, home mortgages at 0% interest, amortized at 25 years. HACC provides a second mortgage at the time of construction completion and closing of permanent financing for the difference between the appraised value of the home and the maximum mortgage that can be supported by the purchaser. However, HACC’s maximum second mortgage is limited to $40,000 per home. The second mortgage is forgivable at the rate of 5% per year over a 20-year period.

Update on Status of Activity – This activity is fully implemented and will be ongoing with modifications described below.

Changes or Modifications – This activity was modified as described above in the 2015 Plan. In 2018, HACC will modify this activity as follows:

1. HACC will provide a second mortgage to eligible households to purchase other homes anywhere in Champaign County. The second mortgage is available to cover closing costs, down payment assistance or to write down the price of the home. The second mortgage will be limited to $40,000 per household; 50% of the total amount will be forgiven at 10% per year over 10 years. The remaining 50% of the second mortgage shall become due and payable to HACC upon transfer of title to anyone other the original head(s) of household at the time of the home purchase.
2. Eligible households will be limited to those households who have annual gross earned income of $40,000 or more per year; have a continuous employment history of 3 years or more, have a credit score of 650 or more; and, are fully compliant with all other MTW LSS requirements. Households with no earned income shall not be eligible for the MTW Homeownership Program.
3. Eligible households must attend pre-purchase and post-purchase counseling programs and be pre-approved by a lending institution located in Champaign County.
4. Units to be purchased are limited to a single unit such as a single family home; townhome or condominium. No multi-family structures shall be eligible.
5. The unit to be purchased must be no more than 15 years old or must have been substantially rehabilitated within the past 10 years and must pass a preliminary inspection by HACC prior to execution of a purchase contract.
6. HACC will determine on a annual basis the amount of MTW Block Grant funds that will allocated to the MTW Homeownership Program based on prescreened applicants that meet all eligibility criteria above.

Description – HACC developed and implemented a local Project Based Voucher (PBV) Program to ensure that a greater number of quality units are available to low-income families throughout Champaign County. The local PBV Program includes the following components:

• Provision of Project based assistance at properties owned by HACC or an affiliate of the Authority that are not public housing.
• Establishment of a reasonable competitive process for project basing housing assistance at units in which HACC or a related affiliate has no ownership interest that meet existing Housing Quality Standards or any standards developed by HACC pursuant to this MTW Agreement and that are owned by non-profit or for-profit entities.
• Adoption of alternate standards for determining the location of existing, newly constructed or substantially rehabilitated housing to receive subsidy in compliance with the requirements outlined in Attachment C of the MTW Agreement.
• Establishment of project based waiting lists and processing of all project based activities at the property by the respective property management company.
• Elimination of the automatic conversion to tenant based assistance after one year in the project based unit.

Update on Status of Activity – This activity is fully implemented and will be ongoing with modifications described below.

Changes or Modifications – In 2018, HACC will clarify and/or modify this activity as follows:

1. Project Based Vouchers will be limited to new construction projects or projects that are undergoing substantial rehabilitation. No PBV’s will be awarded to existing properties.
2. HACC will not limit the number of vouchers to be project based in totality or to any individual project. Annually, HACC will identify the PBV’s to be committed in its annual MTW Plan.
3. HACC will commit Project Based Vouchers for units owned directly by HACC or an affiliate that is wholly controlled by HACC without the need for a competitive process if the project is included in the Annual MTW Plan as Affordable Housing Development.
4. Competitive processes for award of PBV’s to other owners will be through a process initiated by HACC or any other entity that requires an application process to award funding for the project. HACC may provide an up-front commitment of Project Based Vouchers contingent on the award of funding. This up-front commitment will not impact the subsequent award of Project Based Vouchers to the project post-funding even if used as a scoring advantage for the project.
5. A commitment letter provided by HACC shall serve as the Agreement to Enter into a Housing Assistance Payments Contract (AHAP); no further documentation will be utilized until completion of rehabilitation or new construction. A local HAP contract inclusive of all HACC’s MTW provisions will be executed upon acceptance of the units by HACC.

Contract rents for Project Based Voucher units shall be limited to 20% of the MTW Local Payment Standard for the applicable PRESM (primary real estate submarket) in which the property is located. All rents shall be supported by an independent third-party market study whether owned directly or indirectly by HACC or another entity.

Description – Champaign County has a geographic area of 997 square miles consisting of the urban cities of Champaign and Urbana, the Village of Rantoul and various other small villages and towns. The diversity of HACC’s jurisdiction results in real estate markets that demand rent schedules far beyond those of the HUD published Fair Market Rents.

Utilizing a third-party market research firm, HACC identified that Champaign County has nine (9) Primary Real Estate Sub-Markets. To facilitate administration of Local Payment Standards, HACC identified boundaries for each PRESM that include the entire Village, Town or Township in rural areas of the County and complete census tracts in the urban areas of the County. Using rent analysis data collected by the market research firm, HACC established a unique local payment standard schedule for each of the nine PRESMs. The Local Payment Standards are based on the median market rent by bedroom size within each corresponding PRESM. Each PRESM has two Local Payment Standard Schedules:

1. Schedule for structures that are single family homes, townhomes, duplexes or condominiums.
2. Schedule for structures that contain three or more apartment units.

The Local Payment Standard is the “net” rent and is the maximum rent that HACC will approve except at Project Based Properties. On an annual basis, HACC secures an updated market rent study and analysis and reviews the Local Payment Standards. If local market rents have changed (increased or decreased) by more than 5% in a given year, the corresponding payment standard schedule is adjusted accordingly.

Update on Status of Activity – This activity is fully implemented and will be ongoing with no changes or modifications.

Description – To facilitate the development activities described, HACC will utilize its authorization to acquire sites without prior HUD approval and will certify that the HUD site selection requirements have been met.

Update on Status of Activity – This activity is fully implemented and will be ongoing with no changes or modifications. The following property is anticipated to be acquired in 2018:

• Village of Tolono – 3.21 acres
• Village of Fisher – 2.15 acres
• Village of St. Joseph – 4.24 acres with existing 14-unit building
• Town of Savoy – up to 4.52 acres
• City of Champaign – approximately 2.08 acres with 6,107 square foot office building.

Description – To facilitate development activities, HACC will utilize its authorization under the Second Amendment to the Amended and Restated Moving to Work Agreement (Amendment to Attachment D) to use Replacement Housing Factor Funds for Development under Option 3. HACC will also use Section 8 and Section 9 funds for development of additional affordable housing.

Update on Status of Activity – This activity is fully implemented and will be ongoing with no changes or modifications. The following developments are expected to be ongoing during 2018:

Bristol Place Residences
Redevelopment of the Bristol Park neighborhood in partnership with the City of Champaign and a private developer. Consists of 90 total units: 60 single family homes and 15 duplex buildings. Received 9% Low Income Housing Tax Credit allocation in October 2017. Financial closing and construction start estimated for June 2018. Construction completion estimated for December 2019. HACC will provide up to $2,000,000 in secondary financing along with 84 vouchers. HACC will be member of General Partner and have a first right of refusal agreement.

Haven at Market Place (Champaign)
RAD transfer of assistance for Skelton Place public housing community. Total of 98 elderly designated units in 3-story building and 24 flats for individuals with special needs. Tax exempt bonds to be issued by the Eastern Illinois Economic Development Authority with 4% LIHTC and FHA221(d)4 mortgage. HACC will serve as Managing GP and property manager. Financial closing and construction start estimated for June 2018. Construction completion estimated for December 2019.

Abbey at Kickapoo Trail (St. Joseph)
Acquisition and rehabilitation of existing 14-unit building in the Village of St. Joseph. HACC currently has a purchase contract on this property and is working with the Village to transfer the existing special use permit.

Jardin of Savoy (Savoy), Harbor at Depot Crossing (Tolono) & Vista at Sangamon Trail (Fisher)
These three sites are vacant site currently under purchase contracts. HACC will acquire these sites for new construction of senior units under a single financing transaction. Savoy is currently zoned appropriately; Tolono and Fisher have rezoning applications pending. These sites represent HACC’s continued effort to serve the smaller rural communities of the county.

Description—The Emergency Family Shelter Program provides temporary shelter and intensive case management services for homeless families with dependent children. Families are eligible to stay in a shelter unit for a temporary period of 30 days with extensions up to 45 days. Families must agree to participate in case management services to remain in the shelter.

The Emergency Family Shelter Program is located at Maple Park Manor; a property consisting of two buildings of 12 units: 2 one-bedroom units and 10 two-bedroom units. Of the 24 units, 1 unit is an office to deliver case management services; 8 units are temporary emergency shelter; and the remaining 15 units are Permanent Supportive Housing for homeless families.

Under a three-way Memorandum of Agreement, the Champaign County Continuum of Care is responsible for administration and oversight of all program policies and procedures for the eight shelter units including furnishings, housekeeping and preparing units for re-occupancy. United Way funds intensive case management services and manages the Case Management Services Contract with Regional Planning. HACC is responsible for property management and building maintenance services for all units in the property. HACC provides Project Based Vouchers for the 15 transitional units and an operating subsidy to support the 8 Emergency Shelter Units. The operating subsidy is equal to the actual per unit operating costs.

Upon successful completion of one year of compliance with Case Management Services and residing in a Permanent Supportive Housing unit, families will be eligible to request conversion of project based assistance to a tenant based voucher. Case Management staff will assist the families in locating alternate housing with the tenant based voucher. This turnover will provide for the availability of a Permanent Supportive Housing unit to another family in the Emergency Shelter Program.

Update on Status of Activity—This activity is fully implemented and will be ongoing with modifications described below.

Changes or Modifications—In 2018, HACC will clarify and/or modify this activity as follows:

• Families residing in the Shelter units will transfer to the Permanent Supportive Housing units or may be eligible to receive a tenant based voucher to locate alternate housing when determined by the Case Management Staff.
• Families in the Permanent Supportive Housing units shall be eligible to receive a tenant based voucher to locate alternate housing when determined by the Case Management Staff but may not remain in the Permanent Supportive Housing unit beyond 12 months.
• Case Management Staff will assist the families in locating alternate housing with the tenant based voucher. This turnover will provide for the availability of a Permanent Supportive Housing unit to another family in the Emergency Shelter Program.
• Families receiving a tenant based voucher will be exempt from the MTW Local Self-Sufficiency requirements for one year. Upon the first anniversary of the lease agreement under the tenant based voucher, families must be compliant with MTW LSS requirements.

Description- The Reentry Council identified housing as the key issue impacting the success of individuals returning to Champaign County after prison. At the request of the Champaign County Reentry Council and its member organizations, HACC partnered with two local non-profits that provide direct services to individuals returning to the community from prison to provide Reentry Transitional Housing.

Update on Status of Activity- This activity is fully implemented and will be ongoing in 2021.

Changes or Modifications– This activity was modified in 2021 to be implemented under the approved MTW Activity 2020:02 Community Improvement and Support Initiative.

Description HACC will work with owners of Low-Income Housing Tax Credit rental properties where the units have been designed to be compatible with homeownership units in the applicable community and which meet local City codes to be sold as homeownership. The Good Steward Program will be offered during the initial tax credit compliance period to prepare rental residents for homeownership and shall be comprised of the components described below.

Rental Phase– The initial 8 years of the tax credit compliance period at any applicable LIHTC property shall be the rental phase only of the program. Beginning in year 9, existing residents must elect to convert their tenancy to a lease purchase arrangement. Residents opting out of the lease purchase program shall exit the program if at the end of the MTW Term limit; move to another Project Based Voucher unit; or receive a Tenant-Based Voucher for the remaining period of their MTW Term limit.

First Right of Refusal– Beginning with year 9 of the tax credit compliance period, existing residents and all newly admitted residents will execute a first right of refusal agreement which provides them with the option to purchase the unit at the end of the tax credit compliance period. The FROR will detail all provisions of the Good Steward Lease Purchase Program.

Right Size Unit– During the rental phase of the project, residents will be required occupy an appropriate size unit in accordance with the number of household members. If an appropriate size unit does not exist at the property, residents will be right sized to the smallest unit size available. Upon execution of the First Right of Refusal, residents shall be eligible to remain in the unit which they intend to purchase regardless of changes in household size. HACC shall enter into a separate agreement with the corresponding municipality, for each applicable LIHTC property participating in the Good Steward Lease Purchase Program, to pay the costs of the difference between the right size unit and the actual unit until such time that the unit is purchased by the resident.

Financial Literacy and Credit Repair– Upon determination of eligibility for the Low-Income Housing Tax Credit rental unit, a credit report will be reviewed to determine the current credit score of each household. A credit repair or credit stabilization plan will be developed for each household as needed, to enable sufficient time to repair credit and/or maintain good credit prior to the end of the tax credit compliance period. Financial literacy classes will be offered on a regular basis to support residents progress on the credit repair or credit stabilization plan and will include such topics as personal budgeting; energy conservation; understanding recourse versus non-recourse debt, home equity and other financial topics.

Counseling and Training– During the rental phase of the Good Steward Program, expectations and standards to which residents must maintain their housing unit will be clearly defined. Training classes will be offered to residents and will focus on interior and exterior maintenance; energy cost savings; being a good neighbor; and other topics to support compliance with lease requirements while preparing for homeownership. Individual counseling will be required when residents are in violation of lease requirements.

Equity Credits- Rental residents can earn equity credits to be used for the purchase of their housing unit at the end of the tax credit compliance period. Credits will be earned based on compliance with the following requirements:

1. Maintaining the exterior areas for which tenants have responsibility and the interior of the unit in accordance with requirements stipulated in the lease agreement.
2. Timely payment of tenant rent and other charges pursuant to the lease agreement.
3. Adherence to all other terms and conditions of the lease agreement and addenda including policies regarding visitors and guests.
4. Compliance with obligations set forth in the Project Based Voucher Statement of Family Obligations.
5. Compliance with all MTW Self-sufficiency requirements as stipulated in the MTW Local SelfSufficiency contract. Residents will earn a Good Steward credit of $500 each calendar quarter towards the purchase of the housing unit in which they reside when they have remained compliant with all criteria outlined above during that quarter. At least annually, residents will be provided with a written statement of the amount of their earned equity credit. Credits shall only be applicable towards the purchase of a unit at the Tax Credit property and are not transferable to any other housing unit and cannot be claimed in cash. The Property Management Agent for the property will conduct quarterly inspections to determine compliance with lease provisions. HACC will certify compliance with PBV and MTW requirements and provide certifications to the Property Management Company who will be responsible for tracking each tenant’s accumulated credits.

Description– HACC will implement a Community Improvement and Support Initiative to repurpose fourteen single family scattered site homes. The anticipated use of the homes is described below.

• 2 units are being used for MTW Activity 2019-1, Re-Entry Transitional Housing Program
• 1 unit is being used for MTW Activity 2020-2, Community Improvement and Support Initiative as a rental home for the Carle Foundation Hospital New Beginnings Program.
• We will continue to work with community organizations to identify uses for the remaining 6 houses in 2020 that directly benefit HACC program participants.

The following provisions will apply to this activity.

• HACC will not be paying for or providing any direct services under this activity.
• The non-profit organizations will not pay any rent to HACC but will assume all operating costs of the house(s).
• HACC may provide or complete rehab up to a maximum of $20,000 per house.

Update on Status of Activity– This activity is fully implemented and will be ongoing in 2021.

Changes or Modifications– This activity will be modified in 2021 to combine already approved MTW activities 2019-1 Re-entry Transitional Housing Program, 2020-1 Illinois Commitment Student Voucher.

Program and 2020-2 Community Improvement and Support Initiative under one program called the Sponsor Based Voucher Program.