Common use of Annual and Interim Re-examination of Rent, Dwelling Size and Eligibility Clause in Contracts

Annual and Interim Re-examination of Rent, Dwelling Size and Eligibility. a. Annual Re-examinations: The components of the mandatory annual re-examination are as follows: 1) The status of each family shall be reexamined at least once each year unless the family claims zero income, in which case the family’s income will be reexamined every 90 days. 2) The Tenant must supply PHA with accurate written information about family composition, citizenship and/or immigration status and age of family members, amount and source of income of all tenant family members, assets and related information necessary to determine eligibility for continued occupancy, annual income, adjusted income, rent, any criminal activity by household members and appropriateness of dwelling size. 3) All adult members of the household must be present during the reexamination meeting to sign releases for required documentation. 4) The Tenant agrees to comply with reasonable PHA requests for verification by signing releases or authorizations for third-party sources, presenting documents for review or providing other suitable forms of verification. This information will be used by PHA to decide whether the amount of the rent should be changed, and whether the dwelling size is still appropriate for the Tenant's needs. 5) Failure to supply requested information and/or misrepresentation of information is a serious violation of the terms of the Lease and may result in termination of the Lease. 6) During the annual re-examination, Tenants will be given the choice between paying: a. rent based on income; or b. a flat rent based on the value of the dwelling unit. 7) PHA shall notify each family in writing of the dollar amount of these two rent amounts. 8) To comply with Annual Re-examination requirements, PHA shall give the Tenant reasonable notice of what action(s) the Tenant must take and the date by which any such action must be taken for compliance under this section. 9) In accordance with Federal and state law, PHA will process any applicable earned income disallowance for a qualifying family that has experienced an increase in their earned income. 10) PHA will not reduce any portion of rent if the public assistance benefits of a covered family are reduced when the welfare department verifies: a. any failure of any member of the family to comply with conditions under the assistance program requiring participation in an economic self-sufficiency program or imposing a work activities requirement, or b. welfare fraud. c. In either of the cases under this section, the Tenant’s monthly contribution toward rent may not be decreased during the period of reduction, as a result of the benefits reduction. d. If the Tenant challenges the welfare program grant reduction, the requirements of paragraph 8 shall not take effect until the results of the challenge are known. 11) Failure to comply with annual reexamination requirements or to misrepresent income or qualification for deductions is a serious lease violation and grounds for lease termination. b. Interim Re-examinations: The components of interim re-examinations are as follows: 1) Between annual re-examinations, all changes in household composition must be reported. Certain changes require advance approval by PHA. Tenants must report the following changes of household composition to the PHA within ten (10) calendar days of the occurrence: a. Birth or adoption of children and Court-awarded custody of children. b. Other additions to the household require written approval by PHA before the changes of household composition are made. c. Failure to obtain advance permission to allow other persons to move into the dwelling unit is a serious lease violation and grounds for lease termination. 2) In accordance with Federal and state law, PHA will process any applicable earned income disallowance for a qualifying family that has experienced an increase in their earned income. Tenants must report timely in accordance with Section 6 (c) (1), in order to ensure full benefit of income disallowance. 3) PHA will process an interim reduction in rent if the Tenant has a decrease in income or change in household composition or circumstances that will last 30 days or longer. 4) Between annual re-examinations the Tenant may be switched from a flat rent to an income- based rent upon a showing of financial hardship. 5) PHA will grant a hardship exemption to a qualifying tenant who is paying the minimum rent or the flat rent. 6) The Tenant paying flat rent or minimum rent must request the hardship exemption. 7) The following circumstances would constitute a hardship for Minimum or Flat rent payers: a. Tenant experiences a loss income that will last more than 30 days; b. The family has lost eligibility for or is awaiting an eligibility determination from a Federal, State or local assistance program; c. A person with income leaves the tenant family; d. There is a death in the Tenant family; e. The Tenant would be evicted because of being unable to pay either the Flat Rent or the Minimum Rent; 8) Minimum rent payers will be granted an automatic 90 day exemption period. PHA will verify the Tenant’s hardship claim and, if the Tenant does not qualify for a hardship exemption, PHA will reinstate the Minimum Rent, retroactive to the date the exemption was granted. PHA will enter into a Repayment Agreement for any rent not paid during the 90 day period. When the hardship is verified, the tenant’s rent will be based on the greater of 30 percent of adjusted monthly income or 10 percent of monthly income. 9) Flat rent payers who qualify for the hardship exemption will be required to provide necessary documentation of income and deductions so that PHA can compute an accurate income- based rent. 10) If a Tenant (other than a Flat or Minimum Rent payer) is granted a reduction in rent between annual re-examinations, the Tenant is then subject to an Interim increase in rent if Tenant’s income increases. 11) PHA will process an interim increase in rent if the tenant receives PHA’s permission to add an adult member with income to the lease; 12) PHA will process an interim increase in rent if the Tenant’s earned or unearned income increases by more than $_____ per month. 13) PHA will process an interim increase in rent if the PHA discovers that the Tenant has been misrepresenting the facts upon which his or her rent is based. Failure to report accurate information is also grounds for Lease termination in accordance with Section 17 of this Lease. 14) PHA will process an interim increase in rent if PHA verifies that a Tenant claiming zero income has either monetary or non-monetary income. c. Effective Dates of Rent Changes: 1) Decreases - 1st day of the month after the decrease in income is first reported to the PHA and verified by third party.

Annual and Interim Re-examination of Rent, Dwelling Size and Eligibility. a. Annual Re-examinations: The components of the mandatory annual re-examination are as follows: 1) The status of each family shall be reexamined at least once each year unless the family claims zero income, in which case the family’s income will be reexamined every 90 days. 2) The Tenant must supply PHA with accurate written information about family composition, citizenship and/or immigration status and age of family members, amount and source of income of all tenant family members, assets and related information necessary to determine eligibility for continued occupancy, annual income, adjusted income, rent, any criminal activity by household members and appropriateness of dwelling size. 3) All adult members of the household must be present during the reexamination meeting to sign releases for required documentation. 4) The Tenant agrees to comply with reasonable PHA requests for verification by signing releases or authorizations for third-party sources, presenting documents for review or providing other suitable forms of verification. This information will be used by PHA to decide whether the amount of the rent should be changed, and whether the dwelling size is still appropriate for the Tenant's needs. 5) Failure to supply requested information and/or misrepresentation of information is a serious violation of the terms of the Lease and may result in termination of the Lease. 6) During the annual re-examination, Tenants will be given the choice between paying: a. rent based on income; or b. a flat rent based on the value of the dwelling unit. 7) PHA shall notify each family in writing of the dollar amount of these two rent amounts. 8) To comply with Annual Re-examination requirements, PHA shall give the Tenant reasonable notice of what action(s) the Tenant must take and the date by which any such action must be taken for compliance under this section. 9) In accordance with Federal and state law, PHA will process any applicable earned income disallowance for a qualifying family that has experienced an increase in their earned income. 10) PHA will not reduce any portion of rent if the public assistance benefits of a covered family are reduced when the welfare department verifies: a. any failure of any member of the family to comply with conditions under the assistance program requiring participation in an economic self-sufficiency program or imposing a work activities requirement, or b. welfare fraud. c. In either of the cases under this section, the Tenant’s monthly contribution toward rent may not be decreased during the period of reduction, as a result of the benefits reduction. d. If the Tenant challenges the welfare program grant reduction, the requirements of paragraph 8 shall not take effect until the results of the challenge are known. 11) Failure to comply with annual reexamination requirements or to misrepresent income or qualification for deductions is a serious lease violation and grounds for lease termination. 12) If, at the time of annual reexamination, a tenant’s adjusted income exceeds the income limits for occupancy (120 percent of area median income, adjusted for family size) the family will be informed in writing that if their adjusted income continues to exceed the continued occupancy income limit for the following 2 consecutive annual reexaminations, the family will be required to pay a rent based on the greater of: a. The full Fair Market Rent (issued by HUD), or b. The amount of monthly subsidy for the dwelling unit (issued by HUD), or c. Move out of the unit within 6 months of the second consecutive instance of over income status. b. Interim Re-examinations: The components of interim re-examinations are as follows: 1) Between annual re-examinations, all changes in household composition must be reported. Certain changes require advance approval by PHA. Tenants must report the following changes of household composition to the PHA within ten (10) calendar days of the occurrence: a. Birth or adoption of children and Court-awarded custody of children. b. Other additions to the household require written approval by PHA before the changes of household composition are made. See section 11 of this lease for details. c. Failure to obtain advance permission to allow other persons to move into the dwelling unit is a serious lease violation and grounds for lease termination. 2) In accordance with Federal and state law, PHA will process any applicable earned income disallowance for a qualifying family that has experienced an increase in their earned income. Tenants must report timely in accordance with Section 6 (c5(c) (1), in order to ensure full benefit of income disallowance. 3) PHA will process an interim reduction in rent if the Tenant has a decrease in income or change in household composition or circumstances that will last 30 days or longer. 4) Between annual re-examinations the Tenant may be switched from a flat rent to an income- based rent upon a showing of financial hardship. 5) PHA will grant a hardship exemption to a qualifying tenant who is paying the minimum rent or the flat rent. 6) The Tenant paying flat rent or minimum rent must request the hardship exemption. 7) The following circumstances would constitute a hardship for Minimum or Flat rent payers: a. Tenant experiences a loss income that will last more than 30 days; b. The family has lost eligibility for or is awaiting an eligibility determination from a Federal, State or local assistance program; c. A person with income leaves the tenant family; d. There is a death in the Tenant family; e. The Tenant would be evicted because of being unable to pay either the Flat Rent or the Minimum Rent; 8) Minimum rent payers will be granted an automatic 90 day exemption period. PHA XXX will verify the Tenant’s hardship claim and, if the Tenant does not qualify for a hardship exemption, PHA XXX will reinstate the Minimum Rent, retroactive to the date the exemption was granted. PHA will enter into a Repayment Agreement for any rent not paid during the 90 day period. When the hardship is verified, the tenant’s rent will be based on the greater of 30 percent of adjusted monthly income or 10 percent of monthly income. 9) Flat rent payers who qualify for the hardship exemption will be required to provide necessary documentation of income and deductions so that PHA can compute an accurate income- income-based rent. 10) If a Tenant (other than a Flat or Minimum Rent payer) is granted a reduction in rent between annual re-examinations, the Tenant is then subject to an Interim increase in rent if Tenant’s income increases. 11) PHA will process an interim increase in rent if the tenant receives PHA’s permission to add an adult member with income to the lease; 12) PHA will process an interim increase in rent if the Tenant’s earned or unearned income increases by more than $_____ 200.00 per month. 13) PHA XXX will process an interim increase in rent if the PHA discovers that the Tenant has been misrepresenting the facts upon which his or her rent is based. Failure to report accurate information is also grounds for Lease termination in accordance with Section 17 15 of this Lease. 14) PHA will process an interim increase in rent if PHA verifies that a Tenant claiming zero income has either monetary or non-monetary income. c. Effective Dates of Rent Changes: 1) Decreases - 1st day of the month after the decrease in income is first reported to the PHA and verified by third party.

Annual and Interim Re-examination of Rent, Dwelling Size and Eligibility. a. Annual Re-examinations: The components of the mandatory annual re-examination are as follows: 1) : The status of each family shall be reexamined at least once each year unless the family claims zero income, in which case the family’s income will be reexamined every 90 days. 2) . The Tenant must supply PHA with accurate written information about family composition, citizenship and/or immigration status and age of family members, amount and source of income of all tenant family members, assets and related information necessary to determine eligibility for continued occupancy, annual income, adjusted income, rent, any criminal activity by household members and appropriateness of dwelling size. 3) . All adult members of the household must be present during the reexamination meeting to sign releases for required documentation. 4) . The Tenant agrees to comply with reasonable PHA requests for verification by signing releases or authorizations for third-party sources, presenting documents for review or providing other suitable forms of verification. This information will be used by PHA to decide whether the amount of the rent should be changed, and whether the dwelling size is still appropriate for the Tenant's needs. 5) . Failure to supply requested information and/or misrepresentation of information is a serious violation of the terms of the Lease and may result in termination of the Lease. 6) During . the annual re-examination, Tenants will be given the choice between paying: a. rent based on income; or b. a flat rent based on the value of the dwelling unit. 7) . PHA shall notify each family in writing of the dollar amount of these two rent amounts. 8) . To comply with Annual Re-examination requirements, PHA shall give the Tenant reasonable notice of what action(s) the Tenant must take and the date by which any such action must be taken for compliance under this section. 9) . In accordance with Federal and state law, PHA will process any applicable earned income disallowance for a qualifying family that has experienced an increase in their earned income. 10) income so long as they qualify before 12/31/2023. PHA will not reduce any portion of rent if the public assistance benefits of a covered family are reduced when the welfare department verifies: a. any failure of any member of the family to comply with conditions under the assistance program requiring participation in an economic self-sufficiency program or imposing a work activities requirement, or b. welfare fraud. c. In either of the cases under this section, the Tenant’s monthly contribution toward rent may not be decreased during the period of reduction, as a result of the benefits reduction. d. If the Tenant challenges the welfare program grant reduction, the requirements of paragraph 8 shall not take effect until the results of the challenge are known. 11) . Failure to comply with annual reexamination requirements or to misrepresent income or qualification for deductions is a serious lease violation and grounds for lease termination. b. Interim Re-examinations: The components of interim re-examinations are as follows: 1) Between annual re-examinations, all changes in household composition must be reported. Certain changes require advance approval by PHA. Tenants must report the following changes of household composition to the PHA within ten (10) calendar days of the occurrence: a. Birth or adoption of children and Court-awarded custody of children. b. Other additions to the household require written approval by PHA before the changes of household composition are made. c. Failure to obtain advance permission to allow other persons to move into the dwelling unit is a serious lease violation and grounds for lease termination. 2) In accordance with Federal and state law, PHA will process any applicable earned income disallowance for a qualifying family that has experienced an increase in their earned incomeincome before 12/31/2023. Tenants must report timely in accordance with Section 6 (c) (1), in order to ensure full benefit of income disallowance. 3) PHA will process an interim reduction in rent if the Tenant has a decrease in income or change in household composition or circumstances that will last 30 days or longer. 4) Between annual re-examinations the Tenant may be switched from a flat rent to an income- based rent upon a showing of financial hardship. 5) PHA will grant a hardship exemption to a qualifying tenant who is paying the minimum rent or the flat rent. 6) The Tenant paying flat rent or minimum rent must request the hardship exemption. 7) The following circumstances would constitute a hardship for Minimum or Flat rent payers: a. Tenant experiences a loss income that will last more than 30 days; b. The family has lost eligibility for or is awaiting an eligibility determination from a Federal, State or local assistance program; c. A person with income leaves the tenant family; d. There is a death in the Tenant family; e. The Tenant would be evicted because of being unable to pay either the Flat Rent or the Minimum Rent; 8) Minimum rent payers will be granted an automatic 90 day exemption period. PHA XXX will verify the Tenant’s hardship claim and, if the Tenant does not qualify for a hardship exemption, PHA XXX will reinstate the Minimum Rent, retroactive to the date the exemption was granted. PHA will enter into a Repayment Agreement for any rent not paid during the 90 day period. When the hardship is verified, the tenant’s rent will be based on the greater of 30 percent of adjusted monthly income or 10 percent of monthly income. 9) Flat rent payers who qualify for the hardship exemption will be required to provide necessary documentation of income and deductions so that PHA can compute an accurate income- based rent. 10) If a Tenant (other than a Flat or Minimum Rent payer) is granted a reduction in rent between annual re-examinations, the Tenant is then subject to an Interim increase in rent if Tenant’s income increases. 11) PHA will process an interim increase in rent if the tenant receives PHA’s permission to add an adult member with income to the lease; 12) PHA will process an interim increase in rent if the Tenant’s earned or unearned income increases by more than $_____ per month. 13) PHA XXX will process an interim increase in rent if the PHA discovers that the Tenant has been misrepresenting the facts upon which his or her rent is based. Failure to report accurate information is also grounds for Lease termination in accordance with Section 17 of this Lease. 14) PHA will process an interim increase in rent if PHA verifies that a Tenant claiming zero income has either monetary or non-monetary income. c. Effective Dates of Rent Changes: 1) Decreases - 1st day of the month after the decrease in income is first reported to the PHA and verified by third party.

Annual and Interim Re-examination of Rent, Dwelling Size and Eligibility. a. Annual Re-examinations: The components of the mandatory annual re-examination are as follows: 1) The status of each family shall be reexamined at least once each year unless the family claims zero income, in which case the family’s income will be reexamined every 90 days. 2) The Tenant must supply PHA with accurate written information about family composition, citizenship and/or immigration status and age of family members, amount and source of income of all tenant family members, assets and related information necessary to determine eligibility for continued occupancy, annual income, adjusted income, rent, any criminal activity by household members and appropriateness of dwelling size. 3) All adult members of the household must be present during the reexamination meeting to sign releases for required documentation. 4) The Tenant agrees to comply with reasonable PHA requests for verification by signing releases or authorizations for third-party sources, presenting documents for review or providing other suitable forms of verification. This information will be used by PHA to decide whether the amount of the rent should be changed, and whether the dwelling size is still appropriate for the Tenant's needs. 5) Failure to supply requested information and/or misrepresentation of information is a serious violation of the terms of the Lease and may result in termination of the Lease. 6) During the annual re-examination, Tenants will be given the choice between paying: a. rent based on income; or b. a flat rent based on the value of the dwelling unit. 7) PHA shall notify each family in writing of the dollar amount of these two rent amounts. 8) To comply with Annual Re-examination requirements, PHA shall give the Tenant reasonable notice of what action(s) the Tenant must take and the date by which any such action must be taken for compliance under this section. 9) In accordance with Federal and state law, PHA will process any applicable earned income disallowance for a qualifying family that has experienced an increase in their earned income. 10) PHA will not reduce any portion of rent if the public assistance benefits of a covered family are reduced when the welfare department verifies: a. any failure of any member of the family to comply with conditions under the assistance program requiring participation in an economic self-sufficiency program or imposing a work activities requirement, or b. welfare fraud. c. In either of the cases under this section, the Tenant’s monthly contribution toward rent may not be decreased during the period of reduction, as a result of the benefits reduction. d. If the Tenant challenges the welfare program grant reduction, the requirements of paragraph 8 shall not take effect until the results of the challenge are known. 11) Failure to comply with annual reexamination requirements or to misrepresent income or qualification for deductions is a serious lease violation and grounds for lease termination. 12) If, at the time of annual reexamination, a tenant’s adjusted income exceeds the income limits for continued occupancy (120 percent of area median income, adjusted for family size) the family will be informed in writing that if their adjusted income continues to exceed the continued occupancy income limit for the following 2 consecutive annual reexaminations, the family will be required to pay a rent based on the greater of: a. the full Fair Market Rent (issued by HUD), or b. the amount of monthly subsidy for the dwelling unit (issued by HUD), or c. move out of the unit within 6 months of the second consecutive instance of over- income status. b. Interim Re-examinations: The components of interim re-examinations are as follows: 1) Between annual re-examinations, all changes in household composition must be reported. Certain changes require advance approval by PHA. Tenants must report the following changes of household composition to the PHA within ten (10) calendar days of the occurrence: a. Birth or adoption of children and Court-awarded custody of children. b. Other additions to the household require written approval by PHA before the changes of household composition are made. c. Failure to obtain advance permission to allow other persons to move into the dwelling unit is a serious lease violation and grounds for lease termination. 2) In accordance with Federal and state law, PHA will process any applicable earned income disallowance for a qualifying family that has experienced an increase in their earned income. Tenants must report timely in accordance with Section 6 (c) (1), in order to ensure full benefit of income disallowance. 3) PHA will process an interim reduction in rent if the Tenant has a decrease in income or change in household composition or circumstances that will last 30 days or longer. 4) Between annual re-examinations the Tenant may be switched from a flat rent to an income- based rent upon a showing of financial hardship. 5) PHA will grant a hardship exemption to a qualifying tenant who is paying the minimum rent or the flat rent. 6) The Tenant paying flat rent or minimum rent must request the hardship exemption. 7) The following circumstances would constitute a hardship for Minimum or Flat rent payers: a. Tenant experiences a loss income that will last more than 30 days; b. The family has lost eligibility for or is awaiting an eligibility determination from a Federal, State or local assistance program; c. A person with income leaves the tenant family; d. There is a death in the Tenant family; e. The Tenant would be evicted because of being unable to pay either the Flat Rent or the Minimum Rent;. 8) Minimum rent payers will be granted an automatic 90 day exemption period. PHA will verify the Tenant’s hardship claim and, if the Tenant does not qualify for a hardship exemption, PHA will reinstate the Minimum Rent, retroactive to the date the exemption was granted. PHA will enter into a Repayment Agreement for any rent not paid during the 90 day period. When the hardship is verified, the tenant’s rent will be based on the greater of 30 percent of adjusted monthly income or 10 percent of monthly income. 9) Flat rent payers who qualify for the hardship exemption will be required to provide necessary documentation of income and deductions so that PHA can compute an accurate income- based rent. 10) If a Tenant (other than a Flat or Minimum Rent payer) is granted a reduction in rent between annual re-examinations, the Tenant is then subject to an Interim increase in rent if Tenant’s income increases. 11) PHA will process an interim increase in rent if the tenant receives PHA’s permission to add an adult member with income to the lease; 12) PHA will process an interim increase in rent if the Tenant’s earned or unearned income increases by more than $_____ per month. 13) PHA will process an interim increase in rent if the PHA discovers that the Tenant has been misrepresenting the facts upon which his or her rent is based. Failure to report accurate information is also grounds for Lease termination in accordance with Section 17 of this Lease. 14) PHA will process an interim increase in rent if PHA verifies that a Tenant claiming zero income has either monetary or non-monetary income. c. Effective Dates of Rent Changes: 1) Decreases - 1st day of the month after the decrease in income is first reported to the PHA and verified by third party.

Annual and Interim Re-examination of Rent, Dwelling Size and Eligibility. a. Annual Re-examinations: The components of the mandatory annual re-examination are as follows: 1) : The status of each family shall be reexamined at least once each year unless the family claims zero income, in which case the family’s income will be reexamined every 90 days. 2) . The Tenant must supply PHA HACC with accurate written information about family composition, citizenship and/or immigration status and age of family members, amount and source of income of all tenant family members, assets and related information necessary to determine eligibility for continued occupancy, annual income, adjusted income, rent, any criminal activity by household members and appropriateness of dwelling size. 3) . All adult members of the household must be present during the reexamination meeting to sign releases for required documentation. 4) . The Tenant agrees to comply with reasonable PHA HACC requests for verification by signing releases or authorizations for third-party sources, presenting documents for review or providing other suitable forms of verification. This information will be used by PHA HACC to decide whether the amount of the rent should be changed, and whether the dwelling size is still appropriate for the Tenant's needs. 5) . Failure to supply requested information and/or misrepresentation of information is a serious violation of the terms of the Lease and may result in termination of the Lease. 6) During . the annual re-examination, Tenants will be given the choice between paying: a. rent based on income; or b. a flat rent based on the value of the dwelling unit. 7) PHA . HACC shall notify each family in writing of the dollar amount of these two rent amounts. 8) . To comply with Annual Re-examination requirements, PHA HACC shall give the Tenant reasonable notice of what action(s) the Tenant must take and the date by which any such action must be taken for compliance under this section. 9) . In accordance with Federal and state law, PHA HACC will process any applicable earned income disallowance for a qualifying family that has experienced an increase in their earned income. 10) PHA income so long as they qualify before 12/31/2023. HACC will not reduce any portion of rent if the public assistance benefits of a covered family are reduced when the welfare department verifies: a. any failure of any member of the family to comply with conditions under the assistance program requiring participation in an economic self-sufficiency program or imposing a work activities requirement, or b. welfare fraud. c. In either of the cases under this section, the Tenant’s monthly contribution toward rent may not be decreased during the period of reduction, as a result of the benefits reduction. d. If the Tenant challenges the welfare program grant reduction, the requirements of paragraph 8 shall not take effect until the results of the challenge are known. 11) . Failure to comply with annual reexamination requirements or to misrepresent income or qualification for deductions is a serious lease violation and grounds for lease termination. b. Interim Re-examinations: The components of interim re-examinations are as follows: 1) Between annual re-examinations, all changes in household composition must be reported. Certain changes require advance approval by PHAHACC. Tenants must report the following changes of household composition to the PHA HACC within ten (10) calendar days of the occurrence: a. Birth or adoption of children and Court-awarded custody of children. b. Other additions to the household require written approval by PHA HACC before the changes of household composition are made. c. Failure to obtain advance permission to allow other persons to move into the dwelling unit is a serious lease violation and grounds for lease termination. 2) In accordance with Federal and state law, PHA HACC will process any applicable earned income disallowance for a qualifying family that has experienced an increase in their earned incomeincome before 12/31/2023. Tenants must report timely in accordance with Section 6 (c) (1), in order to ensure full benefit of income disallowance. 3) PHA HACC will process an interim reduction in rent if the Tenant has a decrease in income or change in household composition or circumstances that will last 30 days or longer. 4) Between annual re-examinations the Tenant may be switched from a flat rent to an income- based rent upon a showing of financial hardship. 5) PHA HACC will grant a hardship exemption to a qualifying tenant who is paying the minimum rent or the flat rent. 6) The Tenant paying flat rent or minimum rent must request the hardship exemption. 7) The following circumstances would constitute a hardship for Minimum or Flat rent payers: a. Tenant experiences a loss income that will last more than 30 days; b. The family has lost eligibility for or is awaiting an eligibility determination from a Federal, State or local assistance program; c. A person with income leaves the tenant family; d. There is a death in the Tenant family; e. The Tenant would be evicted because of being unable to pay either the Flat Rent or the Minimum Rent; 8) Minimum rent payers will be granted an automatic 90 day exemption period. PHA HACC will verify the Tenant’s hardship claim and, if the Tenant does not qualify for a hardship exemption, PHA HACC will reinstate the Minimum Rent, retroactive to the date the exemption was granted. PHA HACC will enter into a Repayment Agreement for any rent not paid during the 90 day period. When the hardship is verified, the tenant’s rent will be based on the greater of 30 percent of adjusted monthly income or 10 percent of monthly income. 9) Flat rent payers who qualify for the hardship exemption will be required to provide necessary documentation of income and deductions so that PHA HACC can compute an accurate income- based rent. 10) If a Tenant (other than a Flat or Minimum Rent payer) is granted a reduction in rent between annual re-examinations, the Tenant is then subject to an Interim increase in rent if Tenant’s income increases. 11) PHA HACC will process an interim increase in rent if the tenant receives PHAHACC’s permission to add an adult member with income to the lease; 12) PHA HACC will process an interim increase in rent if the Tenant’s earned or unearned income increases by more than $_____ per month. 13) PHA HACC will process an interim increase in rent if the PHA HACC discovers that the Tenant has been misrepresenting the facts upon which his or her rent is based. Failure to report accurate information is also grounds for Lease termination in accordance with Section 17 of this Lease. 14) PHA HACC will process an interim increase in rent if PHA HACC verifies that a Tenant claiming zero income has either monetary or non-monetary income. c. Effective Dates of Rent Changes: 1) Decreases - 1st day of the month after the decrease in income is first reported to the PHA HACC and verified by third party.

Annual and Interim Re-examination of Rent, Dwelling Size and Eligibility. a. A. Annual Re-examinations: The components of the mandatory annual re-examination are as follows: (1) The status of each family shall be reexamined at least once each year unless the family is in the eviction process or the family claims zero income, in which case the family’s income will be reexamined every 90 ninety (90) days. (2) The Tenant and all household members must supply PHA HHA with accurate written information about family composition, citizenship and/or immigration status and age of family members, amount income and source of income of all tenant family members, assets and related information necessary to determine eligibility for continued occupancy, annual income, adjusted income, rent, any criminal activity by the Tenant and all household members and appropriateness of dwelling size. (3) All adult members Failure to supply such information and/or misrepresentation of information is a serious violation of the household must be present during terms of the reexamination meeting to sign releases for required documentationLease and may result in termination of the Lease. (4) The Tenant agrees to comply with reasonable PHA HHA requests for verification by signing releases or authorizations for third-party sources, presenting documents for review or providing other suitable forms of verification. This information will be used by PHA HHA to decide whether the amount of the rent should be changed, and whether the dwelling size is still appropriate for the Tenant's needs. (5) Failure to supply requested information and/or misrepresentation of information is a serious violation of the terms of the Lease and may result in termination of the Lease. 6) During the annual re-examination, Tenants will be given the choice between payingbetween: a. (a) rent based on income; or b. (b) a flat rent based on the value of the dwelling unit. 7(6) PHA HHA shall notify each family in writing of the dollar amount of these two rent amounts. 8) (7) To comply with Annual Re-examination requirements, PHA HHA shall give the Tenant reasonable notice of what action(s) the Tenant must take and the date by which any such action must be taken for compliance under this section. (8) In addition to executing a new lease at the annual re-examination, Tenants will also be required to sign any and all attachments, as applicable. (9) In accordance with Federal and state law, PHA HHA will process any applicable earned income disallowance for to a qualifying family that has experienced an increase in their earned income. (10) PHA If Tenant experiences a decrease in income from public assistance because their grant is cut for one of the two following reasons, their rent will not reduce any portion of rent if the public assistance benefits of a covered family are reduced when the welfare department verifiesbe reduced: a. any failure (a) The Texas Department of any member Human Services (TDHS) has reduced the grant because of welfare fraud; or (b) TDHS has reduced the family grant because the household failed to comply with conditions under the assistance program requiring participation in an economic self-sufficiency program or imposing a work activities requirement, or b. welfare fraudrequirements. c. In either of the cases under this section, the Tenant’s monthly contribution toward rent may not be decreased during the period of reduction, as (11) If a result of the benefits reduction. d. If the Tenant challenges the welfare program TDHS’s reduction of their grant, an interim reduction in rent will be processed until the matter is settled by the TDHS. (12) If the TDHS upholds the grant reduction, the requirements of paragraph 8 shall not take effect until Tenant will owe a retroactive rent on the results of the challenge are knowninterim rent reduction granted. 11(13) If the TDHS overturns the grant reduction, no retroactive balance is owed. (14) If an income-based Tenant fails to cooperate and complete the recertification process, HHA may increase the rent to the flat rent amount. (15) Failure to comply cooperate with annual reexamination requirements or to misrepresent income or qualification for deductions is a serious lease violation and grounds for lease termination. b. Interim Re-examinations: The components of interim re-examinations are as follows: 1) Between annual re-examinations, all changes in household composition must be reported. Certain changes require advance approval by PHA. Tenants must report the following changes of household composition to the PHA within ten (10) calendar days of the occurrence: a. Birth or adoption of children and Court-awarded custody of children. b. Other additions to the household require written approval by PHA before the changes of household composition are made. c. Failure to obtain advance permission to allow other persons to move into the dwelling unit is a serious lease violation and grounds for lease termination. 2) In accordance with Federal and state law, PHA will process any applicable earned income disallowance for a qualifying family that has experienced an increase in their earned income. Tenants must report timely in accordance with Section 6 (c) (1), in order to ensure full benefit of income disallowance. 3) PHA will process an interim reduction in rent if the Tenant has a decrease in income or change in household composition or circumstances that will last 30 days or longer. 4) Between annual re-examinations the Tenant may be switched from a flat rent to an income- based rent upon a showing of financial hardship. 5) PHA will grant a hardship exemption to a qualifying tenant who is paying the minimum rent or the flat rent. 6) The Tenant paying flat rent or minimum rent must request the hardship exemption. 7) The following circumstances would constitute a hardship for Minimum or Flat rent payers: a. Tenant experiences a loss income that will last more than 30 days; b. The family has lost eligibility for or is awaiting an eligibility determination from a Federal, State or local assistance program; c. A person with income leaves the tenant family; d. There is a death in the Tenant family; e. The Tenant would be evicted because of being unable to pay either the Flat Rent or the Minimum Rent; 8) Minimum rent payers will be granted an automatic 90 day exemption period. PHA will verify the Tenant’s hardship claim and, if the Tenant does not qualify for a hardship exemption, PHA will reinstate the Minimum Rent, retroactive to the date the exemption was granted. PHA will enter into a Repayment Agreement for any rent not paid during the 90 day period. When the hardship is verified, the tenant’s rent will be based on the greater of 30 percent of adjusted monthly income or 10 percent of monthly income. 9) Flat rent payers who qualify for the hardship exemption will be required to provide necessary documentation of income and deductions so that PHA can compute an accurate income- based rent. 10) If a Tenant (other than a Flat or Minimum Rent payer) is granted a reduction in rent between annual re-examinations, the Tenant is then subject to an Interim increase in rent if Tenant’s income increases. 11) PHA will process an interim increase in rent if the tenant receives PHA’s permission to add an adult member with income to the lease; 12) PHA will process an interim increase in rent if the Tenant’s earned or unearned income increases by more than $_____ per month. 13) PHA will process an interim increase in rent if the PHA discovers that the Tenant has been misrepresenting the facts upon which his or her rent is based. Failure to report accurate information is also grounds for Lease termination in accordance with Section 17 of this Lease. 14) PHA will process an interim increase in rent if PHA verifies that a Tenant claiming zero income has either monetary or non-monetary income. c. Effective Dates of Rent Changes: 1) Decreases - 1st day of the month after the decrease in income is first reported to the PHA and verified by third party.