How to Remove Mold—and Know When to Hire


How to Remove Mold—and Know When to Hire...

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★  ★ Incorporating Assisted Housing Financial Management Insider  ★  ★ M a r c h 2 013

i n s i de t h i s i ssue In the News: HUD Issues New Guidance on Dangers of Radon Gas . . . . . . . . . . . . 5 Model Letter: Explain Why Residents Need a Social Service Coordinator. . . . . 7 Recent Court Rulings. . . . . . . . . . . . . . . . 8 ➤ Household Head Responsible for Guests’, Members’ Actions ➤ Housing Authority Can Terminate Section 8 Assistance ➤ Owner Not Liable for Discrimination, Privacy Invasion ➤ Housing Authority Gave Insufficient Notice of Termination The Trainer. . . . . . . . . . . . . . . . . . . . . . . 10

HUD Makes First Round of Hurricane Sandy Recovery Fund Allocations HUD recently allocated $5.4 billion in Community Development Block Grant (CDBG) Disaster Recovery funding to five states and New York City, representing the first round of CDBG grants from the Disaster Relief Appropriations Act of 2013 signed into law by President Obama on Jan. 29. This is the fastest HUD has ever allocated CDBG funding to grantees following the passage of a funding bill. “It is critical for HUD to make this funding available as quickly as possible so families can begin rebuilding and repairing their homes and small businesses can get back on their feet,” said HUD Secretary Shaun Donovan, who also chairs the Hurricane Sandy Rebuilding Task Force established by President Obama in December. “We continue to focus on providing funding and other resources to those in the (continued on p. 11)

fe ature

How to Remove Mold—and Know When to Hire Experts The issue of mold cleanup has been on the forefront of state and federal officials’ minds as the Northeast continues to rebuild after Hurricane Sandy. Mold spores can aggravate existing respiratory problems, particularly asthma—and there was an alarming increase in asthma cases after Hurricane Katrina in New Orleans. “You’re going to see that here in the Northeast,” says Mike Shain of NY Indoor Air Quality Solutions. “Cold helps postpone the growth of mold; humidity is low in wintertime, which gives people a bit of a reprieve. But come May, June, or July, if landlords haven’t resolved their issues, mold is going to flourish.” In response to the dangers posed by mold, New York City recently announced that it will be spending $15 million to eradicate mold in about 2,000 Sandyaffected buildings. Whether a mold problem appears at your site due to a moist environment created by a natural disaster or by faulty plumbing, you need (continued on p. 2)

Dos & Don’ts

Follow Four Dos & Don’ts to Get Funding for Social Service Coordinator Many assisted sites would like to hire a social service coordinator but don’t know where to get the money to pay the coordinator’s salary. With government grants very limited, it’s important to know what other sources you can tap to get the funding you need. And to get this funding, you need to know what documents and information to include when requesting HUD approval. To help you, we’ve given you a brief summary of exactly what a service coordinator does, and we’ve put together four dos and don’ts to follow. Following these dos and don’ts will help you determine whether you have enough money to pay for a service coordinator. If you don’t, the dos and don’ts will tell you how to get the funding you need. Also, we’ve included a Model Letter: Explain Why Residents (continued on p. 6)

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B OAR D OF A D V I SORS Daniel A. Bancroft, Esq. Broderick, Bancroft & Goldberg Newton, MA

Kay McIlmoil, CPM, NAHPe IMC Inspections Locust Grove, VA

Colleen Bloom LeadingAge Washington, DC

Denise B. Muha National Leased Housing Association Washington, DC

George Caruso, CPM, NAHP Edgewood Management Member, NAHMA Board of Directors Germantown, MD Doug Chasick LeaseHawk Melbourne Beach, FL Mark Chrzanowski Gene B. Glick, Co. Indianapolis, IN Charles J. Durnin Jr. Interstate Realty Management Co. Marlton, NJ Karen Graham, CPM HCCP Karen A. Graham Consulting, LLC Cincinnati, OH

Richard M. Price, Esq. Partner Nixon Peabody LLP Washington, DC Greg Proctor Windsor Consulting Lexington, KY Johrita Solari, SHCM, NAHPe, HCCP Solari Enterprises, Inc. Orange, CA Gwen Volk, CPM, SHCM, NAHP(e), HCCP LBK Management Services Irving, TX Charles S. Wilkins Jr. The Compass Group, LLC Washington, DC

Editor: Eric Yoo Executive Editor: Heather Ogilvie Production Director: Kathryn Homenick Director of Operations: Michael Koplin Assisted Housing Management Insider [ISSN 1072-009X ( print ), 1938-310X (online )] is published by Vendome Group, LLC, 6 East 32nd Street, New York, NY 10016. Volume 20, Issue 2 Subscriptions/Customer Service: To subscribe or for assistance with your subscription, call 1-800-519-3692 or go to our Web site, www.vendomerealestatemedia. com. Subscription rate: $455 for 12 issues. To Contact the Editor: Email: [email protected]. Call: Eric Yoo at (212) 812-8435. Fax: (212) 228-1308. To Place an Advertisement: Please email Erin Tyler, [email protected], or call (216) 373-1217. Disclaimer: This publication provides general coverage of its subject area. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice or services. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The publisher shall not be responsible for any damages resulting from any error, inaccuracy, or omission contained in this publication. © 2013 by Vendome Group, LLC. All rights reserved. No part of Assisted Housing Management Insider may be reproduced, distributed, transmitted, displayed, published, or broadcast in any form or in any media without prior written permission of the publisher. To request permission to reuse this content in any form, including distribution in educational, professional, or promotional contexts, or to reproduce material in new works, please contact the Copyright Clearance Center at [email protected] or (978) 750-8400. For custom reprints, e-prints, or logo licensing, please contact Donna Paglia at (216) 373-1210 or [email protected].

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How to Remove Mold (continued from p. 1) to get rid of the mold as quickly and effectively as possible. We’ll discuss who should do the mold cleanup work at your site—your employees or an outside expert. We’ll also give you tips on how to choose a mold remediation company, if you need one. And we’ll also highlight the latest changes to the Uniform Physical Conditions Standards (UPCS) with regard to mold and mildew. Air Quality and REAC Inspections The standards by which REAC inspections are conducted and scored for multifamily properties changed significantly on Jan. 1, 2013. The Federal Register, Vol. 77, No. 154, published on Aug. 9, 2012, announced a sweeping set of changes to the UPCS, which are the basis of HUD’s Real Estate Assessment Center (REAC) inspections as well as the IRS and others’ mandated affordable housing inspections. One significant change occurs under the Units/Health and Safety category. The official UPCS language for Air Quality—Mold/Mildew Observed has been modified to include a minimum threshold for citation. Prior to these changes, Mold/Mildew was cited when “evidence of mold/mildew” was merely present. The new definition says that the defect is cited “If the area has at least one square foot of mold or mildew.” When to Call in the Mold Cleanup Experts Guidelines issued by the federal Environmental Protection Agency (EPA) offer some commonsense standards for you to follow when deciding if your employees or an outside expert should handle the mold cleanup. The guidelines give recommendations as to when you should hire a professional to deal with a mold problem. The guidelines also offer recommended cleaning methods. The guidelines issued by the EPA recommend basing the decision on who should handle a mold problem on the amount of square footage affected by mold. The guidelines discussed below apply to most mold problems you’d encounter, but don’t apply to mold found in the HVAC systems of buildings. 10 square feet of mold or less. If mold is found only in a small area (10 square feet or less)—say, on ceiling tiles or patches of walls— the guidelines say that your maintenance staff can take care of the problem. Maintenance staff should wear proper protection when doing the work. This includes using N95 disposable respirators (which can be found in most hardware stores) and wearing gloves and goggles. Also, the actual work area should be unoccupied, the guidelines say. But there’s no need to vacate people from adjacent spaces unless they’re particularly at risk, like infants or people with serious medical conditions or immune deficiency problems.

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Your staff should place any mold-covered material they find in a sealed plastic bag. And when finished, they should wipe the work areas clean. They should also wipe clean any pathways they’ve walked on during the cleanup. 10–100 square feet of mold. If mold is found in this amount of space, the guidelines say that your maintenance staff can take care of the problem, but it may be smarter to call in the experts. If you choose to have your staff remove the mold, the recommended precautions are identical to those above, with these additional recommendations: ■ Cover the work area with a plastic sheet and seal the sheet with tape to contain the dust before starting the mold cleanup; ■ Use plastic sheeting to seal off ventilation ducts or grills in the work area; ■ Vacuum the work area and paths taken by staff with a vacuum containing a HEPA filter; ■ Make sure that not only the work area but the area immediately adjacent to it is unoccupied while the work is being done; and ■ If you expect to generate a lot of dust while taking care of the mold problem (for example, if you have to knock down plaster walls), follow the procedures explained below for 100 or more square feet of mold—including hiring a professional to fix the problem. 100 or more square feet of mold. If mold is found in this amount of space—say, the wallboard in an entire room is covered with mold—the guidelines say you should hire a professional mold remediation company to combat the problem. This amount of mold would be too much for your maintenance staff alone to deal with safely.

Recommended Methods of Mold Removal In addition to giving you information about when to hire a professional to take care of a mold problem, the guidelines also give recommendations on how to remove mold. According to the guidelines, the first thing you should do when faced with a mold problem is to locate and get rid of the source of moisture or humidity that’s causing the problem. Then try to get rid of the mold itself. The guidelines caution against painting or caulking over moldy surfaces. The paint is likely to peel. A variety of mold cleanup methods are available. The specific method or group of methods used will depend on the type of material affected. Wet vacuum. Wet vacuums are vacuum cleaners designed to collect water. They can be used to remove water from floors, carpets, and hard surfaces where water has accumulated. They should not be used to vacuum porous materials, such as gypsum board. They should be used only when materials are still wet—wet vacuums may spread spores if sufficient liquid isn’t present. The tanks, hoses, and attachments of these vacuums should be thoroughly cleaned and dried after use since mold and mold spores may stick to the surfaces. Damp wipe. Whether dead or alive, mold is allergenic, and some molds may be toxic. Mold can generally be removed from nonporous (hard) surfaces by wiping or scrubbing with water, or water and detergent. It’s important to dry these surfaces quickly and thoroughly to discourage further mold growth. Instructions for cleaning surfaces, as listed on product labels, should always be read and

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followed. Porous materials that are wet and have mold growing on them may have to be discarded. Since molds will infiltrate porous substances and grow on or fill in empty spaces or crevices, the mold can be difficult or impossible to remove completely. It’s important to note that dead mold is still allergenic, and some dead molds are potentially toxic. The use of a biocide, such as chlorine bleach, is not recommended as a routine practice during mold remediation, although there may be instances where professional judgment may indicate its use, such as when immune-compromised individuals are present. HEPA vacuum. HEPA (HighEfficiency Particulate Air) vacuums are recommended for final cleanup of remediation areas after materials have been thoroughly dried and contaminated materials removed. HEPA vacuums are also recommended for cleanup of dust that may have settled on surfaces outside the remediation area. Care must be taken to assure that the filter is properly seated in the vacuum so that all the air must pass through the filter. The used vacuum filter and contents of the HEPA vacuum must be disposed of in well-sealed plastic bags. Discard damaged materials in sealed plastic bags. Building materials and furnishings that are contaminated with mold growth and are not salvageable should be double-bagged using 6-mil. polyethylene sheeting. These materials can then usually be discarded as ordinary construction waste. It’s important to package mold-contaminated materials in sealed bags before removal from the containment area to minimize the dispersion of mold spores throughout (continued on p. 4)

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How to Remove Mold (continued from p. 3)

the building. Large items that have heavy mold growth should be covered with polyethylene sheeting and sealed with duct tape before they’re removed from the containment area. How to Choose a Mold Remediator If your mold problem is too big for your maintenance staff to handle, you’ll need to find a company that can do the mold cleanup for you—a mold remediation company or mold remediator. Here are nine questions you should ask when hiring a mold remediation contractor: 1. Do you also do mold testing? An important question to ask when interviewing remediation contractors is whether the contractors also do mold testing, says Wes Carlton, vice president of MBA Technologies, a forensic indoor air-quality testing firm. A conflict of interest occurs when a contractor is hired to discover whether a mold problem exists, as well as to fix the mold problem, he explains. If you’re going to get testing done ahead of time, make sure you hire a separate testing company to do it. 2. Do you have prior mold remediation experience? You want to hire a remediation contractor that has prior mold remediation experience, says Jeffrey A. Moerdler, a partner at Mintz Levin, PC, a nationwide law firm with a specialty in environmental law. Therefore, ask prospective remediation contractors whether they have prior mold remediation experience. If they say yes, ask about the nature and scope of that experience, he says. For example, ask whether the prior mold reme-

diation experience was in a residential or commercial building and how extensive the remediation was. The remediation contractor you hire should have experience with mold problems similar to yours. If your mold problem is extensive and a remediation contractor’s only prior experience involved, for example, remediation of a house’s bathroom, you may want to look elsewhere. 3. Are you affiliated with a recognized professional association? There are currently no government-imposed standards on mold removal or the contractors that perform it. Therefore, you can’t require a mold remediation contractor to be licensed. You can, however, require that the contractor be somehow affiliated with a recognized professional association. 4. What products will you use for remediation? A good remediation contractor should tell you that it plans to remove materials that can’t be cleaned, such as moldy drywall, and to use a cleaning solution with water to clean out all the mold that can be removed without totally removing the material, such as moldy ceiling tiles. 5. How will you dispose of mold-infested material? You don’t want any of the material, such as contaminated drywall, carpets, or furniture, to be left in a Dumpster at your site. The contractor should dispose of the material properly by carting it away to an approved disposal facility. Therefore, make sure you ask what will happen after mold-infested material is removed from your site, and only hire a contractor that will remove it properly. 6. What type of containment will you use? Remediating medi-

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um-to-large-size areas of mold contamination often requires containment. Containment keeps the contaminated area separate from the rest of your site so the airborne mold spores can’t spread and contaminate other areas. Most remediation contractors do this by using “negative pressurization,” which means covering an area with plastic sheeting to seal the space between the remediation area and the rest of the site. 7. What is the nature and extent of your insurance coverage? Mold remediation, like any other contracting work done at your site, can potentially cause damage. For example, the contractor could get hurt when knocking down or removing drywall, or residents’ property could get damaged. Ask remediation contractors if they’re adequately insured for any property damage that may occur, and any incident or injury that may arise during the course of the job, including injury to residents, staff members, or passersby. 8. To what extent will you warranty your work? Ask prospective remediation contractors to what extent they’ll warranty— that is, guarantee—their work, suggests Moerdler. And find out whether they have the financial strength to stand behind any warranty they give you, he adds. Suppose the mold problem recurs and you have to hire a second mold remediation contractor to address the situation. If the original remediation contractor promised to pay all your costs should mold recur, but it’s a small company with limited finances, it may not be able to stand behind that warranty. The warranty you get from the company should basically say

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that after the remediation, testing done to the contaminated area will show that you have good indoor air quality. 9. Can you give several references? It’s important to check the reputation of prospective remediation contractors. Ask for several references and pay close attention to the quality of the references you get. When you check references, speak with someone who supervised the work or has direct knowledge of the work, and find out the following: ■ Names of the specific senior employees who worked on the reference’s remediation job, including foreman, project manager, or supervisor; ■ Nature and scope of the reference’s job, such an entire skyscraper, one floor of a suburban office building, or basement of a home; ■ Quality of the remediation contractor’s work, including timeliness, responsiveness, and cleanup; ■ Any problems that occurred during the remediation, and how the remediation contractor handled those problems; ■ Remediation contractor’s willingness to work with the reference on matters such as scheduling, notifying residents, and building access; and ■ Whether the reference would hire the remediation contractor again.  ♦ Insider Sources Wes Carlton: Loss Consultant, MBA Technologies, Inc., PO Box 121326, Arlington, TX 76012; www.riskrecovery.org. Jeffrey A. Moerdler, Esq.: Member, Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.; 666 3rd Ave., New York, NY 10017; www.mintz.com. Michael Shain: Owner, NY Indoor Air Quality Solutions, 80 Old Brook Rd., Huntington Station, NY 11746; www.niaqssolutions.com.

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In the News

HUD Issues New Guidance on Dangers of Radon Gas On Feb. 4, 2012, HUD’s Office of Public and Indian Housing issued a notice (Notice PIH 2013-06) intended to provide public housing authorities with information on the dangers of radon. The notice was part of a broader announcement of the “Advancing Healthy Housing: A Strategy for Action.” This is a joint initiative by the White House Council on Environmental Quality (CEQ), Environmental Protection Agency (EPA), HUD, and the Department of Energy (DOE) to jointly promote federal action to advance healthy housing by demonstrating the connection between housing conditions and residents’ health. Radon is an odorless, colorless gas that’s a decay product of elements in soil and rock. Under certain natural conditions, radon gas can enter the air and become hazardous. Radon is present in every part of the country, even though concentrations vary depending on geologic conditions. When radon gas enters a building, it can be inhaled directly, or attach to dust on walls, on floors, or in the air. Breathing in high concentrations of radon gas may result in mutations in lung tissue that may lead to lung cancer. As concentrations of radon gas increase, the risk of contracting lung cancer from radon also increases. In fact, radon exposures are estimated to result in approximately 21,000 lung cancer deaths each year in the United States, which makes exposure to radon the second leading cause of lung cancer in the United States, after smoking. Radon can build up to dangerous levels inside homes, schools, and other buildings. But radon generally poses the greatest risk to occupants living at or below ground level. Occupants on the lower levels of structures are at greater risk of excess exposure if high radon concentration levels are present and aren’t appropriately mitigated. Occupants of new housing built without using radon-resistant construction methods are also at greater risk. The best way to mitigate radon is to prevent it from ever entering a building. The EPA recommends mitigation for residences with radon concentrations at or above 4 picocuries per liter of air (pCi/L). The notice advises housing authorities to check with their individual state or regional authorities for local radon policies. Further information on mitigation strategies and maps of radon zones around the country can be found at www.epa.gov/radon/index.html. The notice further states that HUD will continue to examine ways that radon testing and mitigation may be incorporated into HUD-assisted housing program requirements, and housing authorities are strongly encouraged to proactively plan and complete radon testing and follow-up with mitigation strategies if possible, especially when excessive radon levels are present. In addition to the PIH notice, on Feb. 4, HUD also announced there will be radon testing requirements for any multifamily housing that receives HUD financing or refinancing. If testing indicates that high levels of radon are present, HUD will also require that the building be repaired to reduce radon levels indoors. The requirement becomes effective June 4, 2013.  ♦

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Dos & Don’ts (continued from p. 1)

Need a Social Service Coordinator, that you may adapt when you submit your written request for funding to your HUD area office. What’s a Service Coordinator? Many residents at family-based assisted sites need social services, such as job training or drug counseling. And residents at elderly and disabled sites need to find the supportive services they need to continue living independently. Although these services may be available to residents in the neighborhood, locating them can be difficult—especially for site managers who don’t have the time or the training to do so. So, many assisted site owners hire a social service coordinator, a fulltime staff member with specialized training who’s responsible for linking assisted residents with the services they need. FOLLOW FOUR DOS & DON’TS

✔ Make Sure Coordinator

Meets HUD’s Qualifications

To qualify for funding, make sure any candidate you’re considering hiring as your site’s service coordinator fits the qualifications HUD spells out in its guidelines [HUD Handbook 4381.5, par. 8-4]. The guidelines say a service coordinator should have: ■ A bachelor’s degree in social work or a degree in psychology or counseling, preferably; however, individuals without a degree but with appropriate work experience may be hired;

■ Two to three years’ experience in providing social services to families; ■ Demonstrated working knowledge of social services and resources in your area; and ■ Demonstrated ability to advocate, organize, problem-solve, and “provide results” for families.

✔ Use Proper Type of Funding

You can get funding for a service coordinator at an elderly, disabled, or family-based site. But what funding you can use depends on a variety of factors, including the type of site and whether it has residual receipts. Here are the types of funding available and which types of sites can use them. Grants. Each year HUD offers grant monies to owners of HUD assisted housing, enabling them to hire a service coordinator. Service coordinator grants are made for an initial three-year term and provide funding for the salary, fringe benefits, and related administrative costs associated with employing a service coordinator. HUD awards grants to owners of HUD assisted multifamily housing—namely, developments built with or subsidized by the following programs: Section 202, project-based Section 8, Section 236, and Section 221(d) (3) Below-Market Interest Rate. All housing must be designed or designated for sole occupancy by elderly persons (aged 62 and older) and/or younger people with disabilities (aged 18 to 61). Residual receipts. If your site has a residual receipts account, you can use funds from this account to pay your service coordinator’s salary, but you must first ask HUD’s permission to with-

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draw funds for this purpose. You would have funds in a residual receipts account if, over the years, your site operations have generated cash that exceeds the amount of permitted payments to the owner. To get permission, submit a written request to your local HUD office. Ask your local HUD office if it has a form you must complete as part of this request. Rent increases. If your site gets budget-based rent increases, you can ask HUD for a rent increase to fund a service coordinator. But if your site has a residual receipts account, you can’t ask HUD for a rent increase until you’ve used up all the funds in that account. If your site gets budget-based rent increases, HUD says to follow the rent-increase request procedures in Handbook 4350.1 (Chapter 7). You must submit an annual budget that includes the costs for the coordinator. If your site gets rent increases based on “annual adjustment factors,” you’ll need to request a “special rent increase.” HUD describes the required submissions for special rent increases in Handbook 4350.1 (Chapter 34). For instance, you must show proof that social problems have caused a “substantial and general increase” in operating costs at your site and other assisted sites in your area.

✘ Don’t Set Unreasonably

High Salary for Coordinator

HUD hasn’t specified any limits on coordinators’ salaries. But, as with any other site expense, you must be prepared to show HUD that the salary you’re proposing for the coordinator is “reasonable.” That means you need to do

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some research before submitting your proposal to HUD. Advertise for the position and describe the qualifications you’re looking for and the type of work you’d expect the coordinator to do. Ask applicants to send a resume and a cover letter that includes their salary history and the salary they would want for a job at your site. Base your salary proposal on these applicants’ responses and submit any responses to HUD as evidence that your proposal is reasonable. You can also check with other management companies or your local HUD office to see what salary range is reasonable in your site’s area.

✔ Document Need for Coordinator When Requesting Funding Back up your funding requests to HUD with a letter that explains why your site needs a service coordinator. Whether you’re asking for HUD’s approval to pay for a coordinator from your site’s residual receipts accounts, a budgetbased rent increase, or a special rent increase, you’ll increase your chances of getting approval if you make a convincing case. You can submit the percentage of the site’s residents who need social services; you might include a resident petition that calls for a social service coordinator, or the results of a resident questionnaire/survey that highlights their unmet social services needs; you may submit incident reports involving such things as drugs, gangs, or violence that indicate a need for a social service coordinator; or you may submit expense records that show extra costs for repairing vandalized property

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Model Letter

Explain Why Residents Need a Social Service Coordinator Here’s an example of a cover letter like the one you might submit to HUD as part of your social service coordinator funding request. With your letter, submit documentation supporting the information in it and any forms required by your local HUD office. Consult your site’s attorney before writing your own explanation. Dear HUD Funds Management Director: 1. In accordance with the requirements of Handbook 4381.5, Rev-2, CHG-2, Chapter 8, ABC Management Co. hereby requests permission to withdraw $23,000 from ABC Apartment’s residual receipts account for the purpose of paying the salary of a social service coordinator for the next 12 months. 2. Almost all of the 250 households living at ABC have unmet social needs. The current site staff does not have the training necessary to effectively address these needs. These unresolved social problems have a devastating impact on individual families and, in turn, directly affect the staff’s ability to manage the site. a. Thirty-five percent of households include at least one person who has a drug- or alcohol-related problem. b. Only 20 percent of households include a person who is employed, and most residents at the site have never had a full-time job. Inadequate access to child care is the main reason why household members do not seek a job. c. Only 10 percent of households include a person who has received preventive health screening over the past year. 3. I have also enclosed a petition signed by members of 212 households. It expresses the residents’ desire to have a social service coordinator. 4. Hiring a social service coordinator is also a sound business decision for ABC Apartments. Included herewith are expense records indicating that ABC has spent nearly $27,000 over the past year to improve security, repair property damage, and clean up after vandals. Also included are police reports that show that the vast majority of these extra costs are linked to gang activity and domestic violence at the site. 5. In light of these problems, I hope you will agree that adding a social service coordinator to our management team will improve the quality of residents’ lives. Please feel free to call me with any questions or comments about this request. I can be reached at 222-222-2222. Thank you for your consideration. Sincerely, Jennifer Manager

or for increased security or any other expenses linked to social problems. If possible, show HUD how your site’s high turnover rate is connected to unmet social needs. Finally, you may want to explain to HUD that dealing with

the problems created by unmet social needs has distracted staff members from doing the jobs they were hired to do.  ♦

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Recent Court Rulings

➤ Household Head Responsible for

Guests’, Members’ Actions Facts: Following neighbors’ complaints to management and after receiving at least one letter titled “Disturbing the Peaceful Enjoyment,” a resident received a notice to vacate her unit. The management cited her unit as a meeting place for narcotics dealers and pointed to the sale of narcotics in and around the premises as its reason for the eviction. The notice further indicated that the resident was previously warned about the lease violations. The notice informed her that due to criminal activity by members of her household and others under her control, her lease was terminated. At trial, the manager testified that the resident wasn’t evicted for engaging in criminal activity. Rather, she was evicted due to the fact that the individuals that she invited or allowed to be in her unit had participated in criminal activity while on the site. The patrol officer testified that on several occasions he set up surveillance on her unit. He stated that he always considered it a “hub...where if you visit the River Garden, that’s where you see people congregating...and you see a lot of...very suspicious people.” The trial court found that due to criminal activity taking place at or near the resident’s unit, the health, safety, and right to peaceful enjoyment of the premises by others was affected. The resident appealed. Ruling: A Louisiana appeals court agreed with the

lower court’s judgment. Reasoning: The resident disputed whether the man-

and other persons to the property and, therefore, fell under the resident’s control. The household members, guests, and other persons allowed on the property participated in the complained-of activity that resulted in the eviction. • River Garden Apartments v. Robinson, January 2013

➤ Housing Authority Can Terminate

Section 8 Assistance Facts: A former resident sued the local housing authority for allegedly violating her due process rights when it terminated her Section 8 assistance after an informal hearing. The hearing officer found that the resident’s husband had been living as an unauthorized occupant in her unit while she was receiving assistance. The resident claimed that she was denied the opportunity to present evidence at the hearing and that the decision ultimately made by the hearing officer wasn’t supported by evidence. The investigator had submitted six police reports showing that the resident and her husband had cohabitated. But five of the reports were issued before the resident began receiving assistance. The resident pointed to statements made by the hearing officer at the informal hearing as evidence of bias. The officer found that the resident had submitted an “illegal lease” as evidence at the hearing and questioned her about her termination from the Section 8 housing assistance program years earlier. The resident claimed that the hearing officer “assumed” that the resident was in violation when the hearing officer asked her why she violated the program’s rules. Specifically, the hearing officer asked the resident why, after she was informed of the program’s rules, she “still didn’t follow the program” and violated the rules again.

agement was able prove that she, her household, or her guests had engaged in criminal activity that was either drug-related or threatened the health, safety, or right to peaceful enjoyment of the other residents. The court pointed out that the management contended that her household or her guests engaged in criminal activity that led to her eviction and where the lease refers to “a guest or other person under the tenant’s control,” the resident controls who has access to the premises and is responsible for their activities.

The housing authority asked the court for a judgment in its favor without a trial.

Although the resident wasn’t personally involved in the criminal activity alleged, members of her household, guests, and others persons under her control participated in the complained-of activities. Members of her household allowed or invited guests

Reasoning: The court ruled that there was no evidence to reasonably suggest the hearing officer had a financial interest in the outcome of the hearing or had been the target of the resident’s personal abuse or criticism. At most, the court concluded, the evidence

Ruling: A South Carolina district court granted the housing authority a judgment without a trial in its favor.

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March 2013

A s s i s t e d H OUS I NG M ANAGE M ENT I NS I DER

highlighted by the resident showed a lack of credibility assigned to the resident by the hearing officer, prompted by the evidence the resident submitted, as well as by the resident’s testimony and conduct at the hearing. Also, the court found that the evidence presented at the hearing was substantial. On the issue of whether the resident and her husband lived at the same address, the police reports were reasonably reliable. In addition, the reports weren’t the only evidence the officer relied upon. The housing authority’s investigator could find no other permanent living quarters for the husband. • Pickett v. Housing Authority of the City of Myrtle Beach, January 2013

➤ Owner Not Liable for Discrimination,

Privacy Invasion Facts: A resident sued the owner, manager, and security guard for allegedly violating her rights under the Fair Housing Act. One morning, the site’s security guard detained three young boys who had placed traffic cones in the street and told them to sit on the curb while he contacted their parents. Seeing these events, the resident approached the guard, who asked if she was a parent to one of the boys. She said she was not. The guard instructed her to leave, but she refused, responding that she was “not a slave” and this was “not a plantation.” The guard warned her again to leave the area or else he would arrest her. The resident ignored the warning and continued to interfere with the guard by again challenging his authority. He attempted to arrest her, but she struggled during the arrest. Eventually, the guard pinned her on the ground and arrested her. She was charged with resisting law enforcement. Approximately two weeks later, the management sent the resident a notice of termination informing her that because she had engaged in criminal activity, she had to vacate her unit within 30 days. When she didn’t vacate the unit, the management began eviction proceedings against her in court. She later was acquitted of the misdemeanor charge, and the site dropped the eviction proceedings. The resident was never evicted. Later, the resident signed a new lease with the site. One of the clauses stated: “The Tenant agrees to permit the Landlord, his/her agents or other persons, when authorized by the Landlord, to enter the unit for the purpose of making reasonable repairs and periodic inspections.” In accordance with the clause, on July 9, 2008, the management notified the resident

9

of an upcoming inspection five days later. The notice listed the correct date of the inspection (July 14) but incorrectly identified the day of the week as Wednesday instead of Monday. The site manager and a HUD agent inspected her unit as planned on July 14. The resident wasn’t present, but four of her minor children were home alone. Invoking the Fair Housing Act, the resident sued, alleging that her arrest lacked probable cause and involved excessive force, that the defendants attempted to evict her because of her race, and that the inspection of her unit violated her privacy. The management and the security guard asked the court for a ruling in their favor without a trial. The district court granted their request, and the resident appealed. Ruling: The Seventh Circuit appeals court upheld the district court’s ruling. Reasoning: The court determined that the resident’s

invasion-of-privacy claim failed because she presented no evidence establishing that the inspectors intruded upon her physical seclusion in a way that would be offensive or objectionable to a reasonable person, since she signed a lease consenting in advance to periodic inspections of her unit and she was given advance notice of the upcoming inspection. Also, the resident failed to submit any evidence to support her remaining claims. • Williams v. Gene B. Glick Company, January 2013

➤ Housing Authority Gave Insufficient

Notice of Termination Facts: A former resident sued the local housing authority for allegedly violating her due process rights when they terminated her Section 8 voucher. The voucher paid all of the resident’s $875 monthly rent. In her termination letter, the housing authority stated that she failed to submit her recertification package, failed to attend her recertification appointment, and violated her lease. Sometime in 2012, the owner began sending complaints about the resident’s conduct to the housing authority. According to the complaints, the resident had allowed a nonresident to use keys to enter the building and her unit. Also, young men had unlocked the front doors with screwdrivers to visit the resident; as a result, the locks needed to be replaced. The owner also complained about the resident hosting crowds of visitors who would stay late into the (continued on p. 12)

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A s s i s t e d H OUS I NG M ANAGE M ENT I NS I DER

March 2013

THE TRAINER We’ll review the compliance issues raised in this month’s articles. Then we’ll give you a quiz to test your understanding of the issues discussed.

Dealing with Mold Problems; Hiring a Social Service Coordinator

THE TRAINER

In this month’s feature, we discussed how to get rid of mold at your site, whether it’s due to a moist environment caused by a natural disaster or by faulty plumbing. You need to know when your maintenance staff can handle the mold cleanup and when you should hire a mold remediation company.

In our article on hiring a social service coordinator, we gave you four “dos and don’ts” for getting appropriate funding for the position. You need to make sure that the person you hire meets HUD’s qualifications and that you fund the position from approved sources.

TRAINER’S QUIZ INSTRUCTIONS: Each of the questions below has only one correct answer. On a separate sheet of paper, write down the number of each question, followed by the answer you have chosen—for example, (1) b, (2) a, and so on. The correct answers (with explanations) follow the quiz. Good luck!

QUESTION #1

QUESTION #4

If you discover a mold infestation that covers 100 or more square feet of mold, EPA guidelines say you should hire a professional mold remediation company. True or false?

Letting the mold remediation company discard moldinfested materials in your site’s Dumpsters is safe and can save you extra disposal costs. True or false?

a. True.

a. True.

b. False.

b. False.

QUESTION #2

QUESTION #5

Which of the following isn’t a recommended method of dealing with mold? a. Damp wiping the surface with water and detergent.

HUD guidelines say that to qualify for funding, a site’s social service coordinator must have a degree in social work, psychology, or counseling. True or false?

b. Painting or caulking over the moldy surface.

a. True.

c. Using a wet vacuum on damp carpets and hard surfaces.

b. False.

d. Using a HEPA vacuum after cleaned surfaces have dried.

QUESTION #3 When hiring a mold remediation company, you should choose one that’s licensed and meets government standards. True or false?

QUESTION #6 If your site gets budget-based rent increases, you can ask HUD for a rent increase to fund a service coordinator. True or false? a. True. b. False.

a. True.

QUESTION #7

b. False.

HUD has set a specific limit on how much you can pay a social service coordinator. True or false? a. True. b. False.

© 2013 by Vendome Group, LLC. Any reproduction is strictly prohibited. For more information call 1-800-519-3692 or visit www.vendomerealestatemedia.com.

March 2013

A s s i s t e d H OUS I NG M ANAGE M ENT I NS I DER

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TRAINER’S QUIZ

ANSWERS & EXPLANATIONS

QUESTION #1

disposal facility. Make sure you ask what will happen after mold-infested material is removed from your site, and only hire a contractor that will remove it properly.

Correct answer: a

QUESTION #5

True. If mold is found in this amount of space—say, the wallboard in an entire room is covered with mold—the guidelines say you should hire a professional mold remediation company to combat the problem. This amount of mold would be too much for your maintenance staff alone to deal with safely.

Correct answer: b False. A bachelor’s degree in social work or a degree in psychology or counseling is preferable, but HUD says that individuals without a degree but with appropriate work experience may be hired.

QUESTION #6

QUESTION #2

Correct answer: a

Correct answer: b

True. However, if your site has a residual receipts account, you can’t ask HUD for a rent increase until you’ve used up all the funds in that account.

QUESTION #3

QUESTION #7

Correct answer: b False. There are currently no government-imposed standards on mold removal or the contractors that perform it. Therefore, you can’t require a mold remediation contractor to be licensed. You can, however, require that the contractor be affiliated with a recognized professional association.

QUESTION #4 Correct answer: b False. You don’t want any of the material, such as contaminated drywall, carpets, or furniture, to be left in a Dumpster at your site. The contractor should dispose of the material properly by carting it away to an approved

Correct answer: b False. HUD hasn’t specified any limits on coordinators’ salaries. But, as with any other site expense, you must be prepared to show HUD that the salary you’re proposing for the coordinator is “reasonable.” Check with other management companies or your local HUD office to see what salary range is reasonable in your site’s area. Or ask applicants to send a resume that includes their salary history and the salary they would want for a job at your site. Base your salary proposal on these applicants’ responses and submit any responses to HUD as evidence that your proposal is reasonable.

HUD Makes First Round (continued from p. 1) most immediate need, while laying the groundwork for the region to rebuild in ways that make communities stronger, more economically sustainable, and more resilient.” The allocations represent 34 percent of the $16 billion in CDBG funding included in the Disaster Relief Appropriations Act. The first allocation is distributed as follows: New York City–$1.77 billion;

State of New York–$1.71 billion; New Jersey–$1.83 billion; Connecticut–$71.8 million; Maryland–$8.6 million; Rhode Island–$3.2 million. The CDBG Disaster Recovery funding gives grantees significant flexibility in determining how best to use their funds to meet the greatest unmet needs. In general, the funds are intended for the restoration of housing and infrastructure

as well as economic revitalization in disaster-impacted areas. The funds are to meet recovery needs that are not otherwise covered by insurance, FEMA, SBA, or other sources. HUD expects the first round of allocations to focus largely on housing and small business needs.  ♦

© 2013 by Vendome Group, LLC. Any reproduction is strictly prohibited. For more information call 1-800-519-3692 or visit www.vendomerealestatemedia.com.

THE TRAINER

The EPA guidelines caution against painting or caulking over moldy surfaces. The paint is likely to peel.

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A s s i s t e d H OUS I NG M ANAGE M ENT I NS I DER

Recent Court Rulings (continued from p. 9) night, use drugs, and urinate in the hallways. In addition, the resident would hold barbecues in front of the building that would gather large crowds until early in the morning. Fights requiring a police response would break out at these barbecues on a regular basis. The resident requested an administrative hearing to dispute her termination from the program. The hearing was informal, and consisted of a discussion among the three participants. Neither the owner nor anyone with personal knowledge of the resident’s conduct was present at the hearing, which lasted approximately 10 minutes. The resident didn’t bring an attorney, and claimed that she wasn’t informed of her right to have one. The hearing officer rendered a decision upholding the resident’s termination from the Section 8 program. Ruling: A New Jersey state court ordered that anoth-

er administrative hearing be held.

March 2013

prompt written notice that the resident may request a hearing. The notice must: (1) contain a brief statement of the reasons for the decision; (2) state that if the resident doesn’t agree with the decision, the household may request an informal hearing on the decision; and (3) state the deadline for the resident to request an informal hearing [24 C.F.R. 982.555(c)(2)]. In this case, the court ruled that the notice was insufficient. There were no specific reasons given for termination. The initial notice stated only that she didn’t submit a package for recertification, didn’t come for recertification, and violated her lease. The second notice sent to her merely provided the resident with the date of her hearing, and didn’t elaborate on the reasons her voucher was being terminated. A valid notice would have identified which lease provisions were violated and listed specific incidences of disruptive conduct. Without adequate notice, the resident couldn’t be given an effective opportunity to defend herself and present her own evidence.  ♦ • Younger v. Jersey City Housing Authority, January 2013

Reasoning: To terminate benefits, the regulations

require that a housing authority give a resident a

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