Cal. Civ. Code § 0770-01-05-.21

After the THDA makes all required calculations
and verifications, then the final eligibility determination will be made.

(1) Eligible. If an applicant has all required documentations and has met all eligibility
requirements, then the THDA will continue with calculations to determine whether there is
enough funding available to fund the family and issue the Housing Choice Voucher.

(2) Ineligibility, Denial, and Opportunity for Informal Review. If an applicant fails the criminal
background check, fails to return required documentation within fourteen (14) calendar days,
or is otherwise ineligible based on HUD and the THDA Eligibility Requirements, the THDA
will send a written notice of denial to the applicant household. The written notice of denial will
include the federal citation on which the denial is based, include a brief explanation of the
reasons for the denial, inform the applicant of their right to an informal review, and explain
how to request an informal review. (24 C.F.R. 982.201(f)). A copy of the notice is filed in the
applicant’s file.

(3) Subsidy Standards, Payment Standards, Minimum Rent, Total Tenant Payment, and Rent
Calculation (24 C.F.R. Parts 5.628, 5.623, 982.201(b), 982.4, 982.501, 982.503, 505). The
THDA compares the annual income to the income limits and calculates the Total Tenant
Payment. If the THDA determines that there is funding available to fund the family, then final
eligibility will be determined.

(a) Subsidy Standards.

1. Subsidy Standards Definition (24 C.F.R. 982.4). The criteria established by the
THDA for determining the appropriate number of bedrooms and amount of
subsidy for families of different sizes and compositions.

2. The THDA has established subsidy standards which:

(i) Provide for the smallest number of bedrooms needed to house the family
without overcrowding (24 C.F.R. 982.402(b)(1));

(ii) Comply with HQS space requirements (24 C.F.R. 982.402(b)(2); and

(iii) Are applied consistently for all families of the same size and composition,
unless a defined exception exists (24 C.F.R. 982.402(b)(3) and (8)).

3. General. The subsidy standards (voucher size), payment standards and
minimum rent, as well as income, all contribute to the rent calculation and total
tenant payment (TTP) per HUD regulation.

(i) The income of every household member who will reside or resides in the
assisted unit, including members who are temporarily absent, is included in
the subsidy standard calculation when calculating total tenant payment
(TTP).

(ii) Subsidy Standards determine the unit size (number of bedrooms) for which
an applicant or participant qualifies. The unit size determines the maximum
amount of subsidy that will be paid through the Payment Standard. The
goal of determining unit size is to assign an appropriate bedroom size
allocation for the household that will require the minimum commitment of
housing subsidy.

(iii) The unit size is based on the household composition meaning the number
of individuals residing in the unit. The unit size for which the household
qualifies is shown on the voucher and is used to determine the payment
standard, unless the family chooses a unit that is lower than the voucher
size issued.

(iv) Income limits for unit sizes that exceed a 4-bedroom unit size are
calculated by applying a 15 percent adjustment to the previous unit size
beginning with the 4-bedroom allocation. For example, the Fair Market
Rate (FMR) for a 5-bedroom unit is 1.15 times the 4-bedroom FMR. FMRs
for single-room occupancy units are 0.75 times the zero-bedroom (i.e.,
efficiency) FMR.

(v) Housing Quality Standards (HQS) allow two persons per living/sleeping
room and allot for a maximum occupancy, assuming a living room is used
as a living/sleeping area.

(I) Maximum Occupancy or Unit Size Chart

I. 0 bedroom voucher size, maximum occupancy is 2.

II. 1 bedroom voucher size, maximum occupancy is 4.

III. 2 bedroom voucher size, maximum occupancy is 6.

IV. 3 bedroom voucher size, maximum occupancy is 8.

V. 4 bedroom voucher size, maximum occupancy is 10.

VI. 5 bedroom voucher size, maximum occupancy is 12.

VII. 6 bedroom voucher size, maximum occupancy is 14.

4. Determining Unit Size and Subsidy Standard.

(i) In the unit size determination, the determination is figured without requiring
applicants or participants to use rooms other than bedrooms for sleeping
purposes, i.e., the living room. However, if the THDA approves the addition
of other members to the household, some members may have to sleep in
the living room, in accordance with the maximum occupancy chart, until the
next annual recertification. Then the family may move to larger unit if they
are eligible according to all program guidelines, including the relocation
conditions.

(ii) Unit size for families will be determined based on a standard of two
persons per bedroom, without regard to the age or sex of household
members.

5. Other considerations.

(i) If any of the above rules for determining the unit size have not occurred as
of the annual or interim recertification, but would take place within thirty
(30) calendar days of the recertification, the determination should be made
as if the event has occurred, but only to the benefit of the participant, not
the detriment.

(ii) Foster Children and Foster Adults are included in determining unit size if
the arrangement is existing at the time of initial eligibility. Later, a Foster
Child or Foster Adult may only be approved as part of the household if the
placement does not overcrowd the unit.

(iii) A child absent because of temporary placement in foster care outside of
the home, as evidenced by court order, is considered a member of the
family, and therefore considered in determining family size at initial
eligibility. However, if the child continues to be absent at any annual
certification, then the child will be removed from the household until the
court places the child back with the household permanently.

(iv) Space is not provided for minors who live out of the unit more than fifty (50)
percent of the time. For example, if the tenant does not have custody of a
child, but the child visits on weekends, then a bedroom is not allocated.

(v) Any live-in aide must be counted in determining the family unit size. Live-in
aides may be provided a separate bedroom, but not their families.

(vi) Space is not provided for a full-time student who is away at school, but
lives with the family during school recesses.

(vii) Space is not provided for a person who will be absent most of the time,
such as a member who is away in the military.

(viii) A person who is confined to a medical facility for less than ninety (90
days), who plans to return to the assisted unit after treatment, will be
included in the subsidy standard determination.

(ix) One-bedroom units, not zero-bedroom units, are assigned to single person
households because very few efficiency or zero-bedroom units exist in the
rental market. However, if the household selects an efficiency or a zero-
bedroom unit, the zero-bedroom payment standard is used.

6. Reasonable Accommodations. Persons requesting a reasonable accommodation
of the THDA’s subsidy standards may be approved for a larger unit if a
knowledgeable healthcare professional verifies the need. See 0770-01-05-
.21(3)(b)5. When determining whether a larger subsidy size request will be
approved, the THDA must weigh the financial and administrative burden granting
the larger bedroom size will have on the overall program and its’ applicants and
participants against the individual household’s need for the larger size.

(b) Payment Standards (24 C.F.R. 982.4, 982.503, 982.505). The Payment Standard is the
maximum monthly assistance payment for the family, before deducting the Total
Tenant Payment. A Payment Standard is used to calculate the monthly housing
assistance payment for a family.

1. HUD regulations require that a Payment Standard schedule be established for
each county where the program is administered by bedroom size.

2. Payment Standards for each bedroom must be established between 90 and 110
percent of the Fair Market Rent (FMR) for the county and published at least
annually as a payment standard schedule. The decision of where to set
individual payment standards by county is based upon funding available to serve
to the baseline of units and average rents in the county by bedroom size.

3. Determination of Payment Standard for the Family (24 C.F.R. 982.4). The
Payment Standard is the lower of the following:

(i) The payment standard amount (per the THDA payment standard schedule
for the county) for the family unit size; or

(ii) The payment standard amount for the size of the dwelling unit rented by
the family; or

(iii) The gross rent of the unit.

4. Increase or Decrease in the Payment Standard. The THDA does not respond
individually to complaints about a general policy change or class grievance.
Therefore, if the THDA changes the payment standards and applies it to all
families uniformly, the THDA will not individually respond to any complaint
regarding the change.

(i) If the THDA determines that funding will be insufficient to cover all
occupied vouchers during a given funding term, the THDA will request a
waiver from HUD to allow the immediate application of a payment standard
decrease when such an action will allow the THDA to avoid termination of
assistance for families. The determination of the generally applicable
payment standard is not subject to appeal (24 C.F.R. 982.555(b)).

(ii) HUD may approve a Payment Standard amount that is higher than the
basic range (90-110%) for a designated part of the FMR area if the field
office determines that such approval is justified by either the median rent
method or 40th percentile rent.

5. Reasonable Accommodation of Payment Standard Amount (Exception Standard)
(24 C.F.R. 982.503(c)(2)(i), (c)(3)). If an applicant or participant requests a higher
payment standard be used as a reasonable accommodation to enable the
applicant or participant to obtain a unit that meets their special needs, the
applicant or participant must complete the THDA Request for Reasonable
Accommodation form. The THDA will mail a medical certification form to a
knowledgeable medical professional to verify the need for the accommodation. If
approved, the increase in the payment standard cannot exceed 120% of FMR.

(i) HUD has issued guidance, which allows the THDA to approve a payment
standard of not more than 120 percent of the FMR without HUD approval if
required as a reasonable accommodation for a household that includes a
person with disabilities. This provision allows the THDA to establish a
payment standard within limits, which were formerly permitted but
designated for approval only by a HUD Field Office (24 C.F.R.
982.503(c)(2)(B)(ii)).

(ii) The THDA must perform a rent reasonableness determination in
accordance with the section 8(o)(10) of the U.S. Housing Act of 1937 and
the HCV program regulations.

(iii) The THDA must maintain documentation that the THDA performed the
required rent reasonableness analysis.

(iv) In addition, the THDA must maintain documentation that the unit has the
feature(s) required to meet the needs of the person with disabilities.

6. Effect of Decrease in Payment Standard Amount during the Term of the HAP
Contract (24 C.F.R. 982.505(c)(3)). If the Payment Standard decreases during
the term of a HAP Contract, the old higher payment standard is used to calculate
the monthly housing assistance payment until the family’s second regular
recertification following the effective date of the decrease in the payment
standard amount. The lower payment standard amount is used at the second
annual recertification, unless the payment standard has been subsequently
increased.

7. Effect of Increase in Payment Standard Amount during the Term of the HAP
Contract (24 C.F.R. 982.505(c)(4)). If the Payment Standard amount is increased
during the term of the HAP contract, the increased Payment Standard amount is
used to calculate the monthly housing assistance payment for the family at the
effective date of the family’s first regular recertification on or after the effective
date of the increase in Payment Standard.

8. Change in Family Unit Size during the HAP Contract Term (24 C.F.R.
982.505(c)(6)). If the family unit size changes during the term of the HAP
contract either due to a change in family composition, a change in THDA’s
subsidy standard, or a THDA error, THDA will process an interim recertification
to determine the Payment Standard amount.

(i) During the annual or interim recertification period, if a family now qualifies
for a smaller unit, the family may choose to remain in the larger unit and
pay the additional rent or relocate to a smaller unit.

9. The utility allowance is the lesser of the unit size selected than the size
authorized on the voucher.

(c) Minimum Rent (24 C.F.R. 5.623). HUD requires the THDA to establish an appropriate
minimum that may range from $0 to $50 per month. It applies to all voucher families
residing within the THDA’s jurisdiction, but only when it is the highest amount in the
TTP calculation.

1. The minimum rent established by the THDA is $50.

2. Minimum Rent Hardship Exception (24 C.F.R. 5.630).

(i) The Quality Housing and Work Responsibility Act of 1998 (QHWRA)
establishes certain exceptions to the minimum rent requirements for
hardship circumstances. Financial hardship, for the purpose of determining
a minimum rent exception, includes the following situations:

(I) The participant has lost eligibility or is awaiting an eligibility
determination for a Federal, State, or local assistance program
(includes a member who is a noncitizen lawfully admitted for
permanent residence who would be entitled to public benefits);

(II) The household would be evicted as a result of the imposition of the
minimum rent requirement;

(III) The income of the household has decreased because of changed
circumstances, including loss of employment;

(IV) A death in the household has occurred; or

(V) Other circumstances as determined by HUD.

(ii) If a household requests a minimum rent exception, the minimum rent
requirement is immediately suspended on the first of the month following
the receipt of the request until a determination is made whether:

(I) The hardship meets the requirements listed above; and

(II) The hardship is temporary or long-term.

(iii) The following guidelines are followed after the hardship is verified:

(I) If it is determined that the reported hardship does not meet the
criteria defined above, the minimum rent is imposed retroactive to
the date of the suspension. In this case, a plan of repayment must
be established to retrieve the previously suspended tenant rent
contribution.

(II) If it is determined that the reported hardship meets the above-
defined criteria, but is temporary in nature, the minimum rent also is
imposed retroactive to the date of the suspension. A plan of
repayment must be established to retrieve the previously suspended
tenant rent contribution. If the household at some point in the future
demonstrates that the financial hardship developed into a long-term
situation, the household’s minimum rent requirement will be
retroactively reduced.

(iv) If it is determined that the hardship is of a long-term basis, the household is
exempted from the minimum rent requirement retroactive to the first of the
month following the date the household’s request was received.

(v) The THDA will not grant a minimum rent hardship exception during a
Housing Assistance Payment (HAP) shortfall period. The THDA may reach
shortfall status when the funding award for a particular calendar year is
insufficient to meet regular, ongoing monthly HAP expenses for currently
assisted families.

3. Verification. The household must verify that the hardship exists within ninety (90)
days of the event. During the ninety-day verification period, the household’s
assistance may not be terminated for nonpayment of rent.

(i) The THDA will not consider requests for a minimum rent exception during
a time when funding is insufficient to cover current HAP expenses for
current participants.

(ii) Acceptable verification includes, but is not limited to, the following:

(I) A death certificate for a household member.

(II) A separation letter from an employer.

(III) A notification letter that benefits have been terminated or an award is
pending from the Social Security Administration or other social
services agency.

(d) Total Tenant Payment Calculation (24 C.F.R. 5.628, 24 C.F.R. 982.4(b)). At initial
move-in, relocation, annual and interim reexaminations, an application (form HUD-
50058) is completed that includes a worksheet for calculating Total Tenant Payment.

1. To calculate the TTP for a Housing Choice Voucher, the following procedures are
followed:

(i) The gross annual income is calculated;

(ii) Any allowances and/or expenses to determine the total annual deductions
are calculated;

(iii) The adjusted annual income is calculated; and

(iv) The monthly gross income and the monthly adjusted income are
calculated.

(v) The TTP is the higher of the following:

(I) $50 minimum rent; or

(II) 10% of gross monthly income; or

(III) 30% of adjusted monthly income.

2. A copy of the 50058 form, which includes the total tenant payment calculation is
maintained in the tenant file and may be viewed by the tenant at their request.

(e) Rent Calculation (24 C.F.R. 982.501).

1. A family who leases a unit with a gross rent at or below the Payment Standard
pays as gross rent the highest of 30 percent of the monthly-adjusted income or
10 percent of the monthly gross income or the minimum rent.

2. A family that rents a unit with a gross rent that exceeds the Payment Standard
pays as gross rent the highest of 30 percent of the monthly-adjusted income or
10 percent of the monthly income and any rent above the payment standard.

3. There is no voucher “shopping incentive” for a family who rents a unit that is
below the Payment Standard. When the total rent for a unit is less than the
payment standard, the family does not receive a discounted tenant portion.

4. Rental Subsidy Calculation for a Housing Choice Voucher Holder. Only the Total
Tenant Payment (TTP) and forty (40) percent of the monthly-adjusted income are
calculated at the time a Housing Choice Voucher is issued. The remainder of the
calculation is completed after the family has selected a specific unit.

(i) The Total Tenant Payment (TTP) is calculated.

(ii) The family’s maximum initial rent burden is calculated, which is 40% of
monthly-adjusted income.

(4) Eligibility Does Not Equal Admission to the HCV Program.

(a) Eligible, but No Funding Available. If the applicant is otherwise eligible for the HCV
Program, but there are not sufficient funds to subsidize the unit size of the household,
the THDA will suspend the eligibility process for the selected applicant and the
issuance of vouchers until adequate funding levels exist to support the applicant
household. (24 C.F.R. 982.204(d)(2)).

(b) Admission Definition. During the stages of initial application, selection from a waitlist,
final application, and verification, the family is still considered an applicant. The date
used to determine when an applicant becomes a participant is the effective date of the
first HAP Contract. An applicant has the right to an informal review, as defined in these
rules, but not to an informal hearing, as provided to participants in these rules, except
as specifically provided.

(c) Final Eligibility Determination. Upon completion of final determination of eligibility, the
applicant is issued a voucher, which is a contract between the THDA and the
household specifying the rights and responsibilities of each party. This is the
household’s authorization to search for a unit.

Authority: T.C.A. §§ 13-23-102, 13-23-104, and 13-23-115(18), 42 U.S.C. § 1437, and 24 C.F.R., Part
982. Administrative History: Original rule filed May 16, 1980; effective June 30, 1980. Repeal filed
September 28, 2004; effective December 12, 2004. Repeal and new rule filed June 4, 2015; effective
September 2, 2015. Amendments filed October 5, 2018; effective January 3, 2019. Amendments filed
June 11, 2024; effective September 9, 2024. Emergency rules filed January 13, 2026; effective through
July 12, 2026. Emergency rules filed July 8, 2026; effective through January 4, 2027. Emergency rules
expired effective July 13, 2026, and the rules reverted to their previous statuses.