Frequently Asked Questions (FAQs): Detail
Can grantees provide utility-only assistance? What is the qualifying hardship? And what type of documentation is required in such instances?
Grantees can provide utility-only assistance, but HUD expects that this will be rare. First, there are laws governing public utilities in many states that prevent utility companies from shutting off power to a unit during winter months, and which may also require the utility company to offer payment plans to households that miss payments. Second, staff must confirm that no other utility assistance, such as LIHEAP, is available to prevent the shut-off.
If neither of these conditions exist, however, utility-only assistance may be justified under a couple of different scenarios. First, if utilities are shut off during winter months, this can result in a dangerous situation for the occupants. If the household is going to have to abandon the housing due to a lack of utilities and can avoid moving to a shelter by having utilities paid, then HPRP funds may be used for this purpose. Under another scenario, an applicant’s lease may include a provision requiring utilities be maintained for the unit by the tenant. As a result, a utility shut-off could constitute a lease violation, thus placing the household at risk for eviction. In both cases, it is the grantee or subgrantee's responsibility to confirm and document in the case file that the utility company will in fact shut-off the utility if the amount due is not paid.
If the household is going to have to leave the housing due to a lack of utilities, can avoid literal homelessness by having utilities paid, and meets other HPRP eligibility requirements, then a household may be assisted under the Homelessness Prevention category with utility-only assistance.
With regard to documentation, a copy of a utility shut-off notice or arrears statement is not sufficient by itself to document program eligibility. In addition to documenting, via an assessment, that the household has no other financial resources, support networks, or other housing options, grantees/subgrantees must also assess and document that a household with a utility shut-off notice will become literally homeless but for HPRP assistance. In practical terms, this means that HPRP staff must assess whether the household will lose their housing if the utility is shut-off (i.e., it will constitute a lease violation causing lease termination and/or will cause housing to be unfit for human habitation). HPRP staff should attempt to obtain a copy of the participant's lease and highlight the provision related to utility obligations and consequences. If unable to obtain a lease, HPRP staff should assess and record such circumstances in the HPRP participant case file. As with other HPRP eligibility documentation, HPRP staff must first attempt to obtain third-party verification. Participant self-declaration is only acceptable if third-party documentation cannot be obtained.
Program/System: HPRP
Topic: Determining and Documenting Client Eligibility
Date Posted: 1/6/10
HUD HRE Privacy Policy | HUD HRE Linking Policy
World Wide Web: http://hudhre.info
HUD HRE Contact Info