Permanent Homeless Assistance (PHA)

[EAS 44-211.53]

Permanent Homeless Assistance (PHA) is also often referred to as perm Homeless Assistance (HA), regular permanent HA, or homeless assistance for permanent housing.

PHA can be provided once within a 12-month period. PHA can pay for security deposits, including last month’s rent, and utility deposits (turn-on-fees), to secure permanent housing. Alternatively, where an eligible household is at risk of losing housing, PHA can pay for up to two months of rent arrearages if the payments are a reasonable condition of preventing eviction. Payments for last month’s rent, or for each month of the rent arrearages, cannot exceed 80% of the Assistance Unit (AU)'s Total Monthly Household Income (TMHI).

A PHA payment may be granted after the issuance of a Temporary Homeless Assistance (THA) payment only if the AU has been continuously homeless since receiving the THA payment and the cause of the homelessness remains the same.

Payment Time Frames

The Social Services Benefits Specialist (SSBS) has one working day from the time the AU provides the following information to issue or deny a payment for PHA:

Information necessary for the SSBS to establish eligibility for CalWORKs.
A completed Statement of Facts - Homeless Assistance (CW 42).
Evidence of the availability of permanent housing and the amount of rent, which does not exceed 80% of the AU's TMHI. Acceptable evidence may include, but is not limited to:
- A copy of the written rental agreement.
- An SSBS follow-up telephone call to the landlord, with the written consent of the AU.
- A sworn statement from the AU attesting to the availability and rent amount of the housing, when both the SSBS and the AU are unable to get any confirmation.
- The CalWORKs Homeless Assistance (HA) Shared Housing Agreement/Housing Verification (SCD 2575) or a statement from the housing provider if the person is not in the business of renting.

ExampleExample A family in receipt of CalWORKs receives a notice from their landlord stating the rent will increase the following month. The family determines that they will not be able to afford the rental payment with their monthly income. The family locates new housing within their price range and applies for PHA to help with the cost of the security deposit and last month's rent to avoid eviction and homelessness. In order to verify homelessness, the family provides a sworn statement that they are at risk of experiencing homelessness on the CW 42. For the eligible family, the payment of PHA is issued no later than one working day from the time the family presents a valid lease, sublease, or shared housing agreement.

ExampleExample Mrs. Topic has been staying at the E & G Motel and has been receiving THA. The motel manager has now determined that Mrs. Topic and the family can stay there permanently. If all the requirements are satisfactorily met, the family may receive PHA within one working day.

Landlord

Landlord means an owner of residential rental property or the owner’s agent.

Written Rental Agreement

A written rental agreement refers to a valid lease, sublease, or shared housing agreement that demonstrates the landlord’s intent to rent to the AU.

A valid lease or valid sublease should include:

The name of the landlord,
The address of the rental,
The move-in date,
The terms of rental,
The dollar amount of deposits, and
The amount of monthly rent charged to the AU.

Refer to the Shared Housing section below for the definition of a valid shared housing agreement.

Questionable or Not Available

When the rental agreement submitted is questionable (e.g., incomplete or incorrect address, missing the landlord’s signature, or does not include any key lease terms and conditions) or not available, the SSBS must offer the AU to complete a sworn statement. The completed and signed statement under penalty of perjury must include:

A statement of liability for providing false information,
Name and phone number of the landlord,
Location of the rental,
Terms of the rental,
The dollar amount of the deposits, and
The amount of monthly rent charged to the AU.

The SSBS must also begin efforts to contact the landlord directly (if the AU provides written consent for the SSBS to do so) or verify the permanent housing by some other means. However, if the AU provides a sworn statement, then the SSBS must process the PHA application within one working day of its receipt, even if the SSBS is still in the process of obtaining verification from the landlord or some other means.

Verbal confirmation from the landlord of their intent to rent to the AU at a cost not exceeding 80% of the TMHI is sufficient to confirm the validity of the agreement.

If the SSBS cannot directly contact the landlord or verify by some other means that a rental agreement has been made, the sworn statement must be accepted.

Total Monthly Household Income (TMHI)

PHA payments must not exceed 80% of the total TMHI. The income of the AU members and of any other persons whose income is currently used in calculating the AU's grant must be counted, including but not limited to sanctioned and penalized household members and persons who are excluded by law due to their undocumented non-citizen or fleeing felon status.

Income counted towards the TMHI includes gross earned and unearned income, including the CalWORKs grant or SSI/SSP payments. An AU’s CalWORKs Special Need payments and CalFresh benefits do not count as income and are not included in the TMHI.

ExampleExample In a situation where the client reports on the CW 42 that they have a new job, but will not receive their first check until the future month, since the SSBS knows how much the client will be paid and when they will receive their paychecks, the income from the new job is counted in the TMHI for determining eligibility for and the amount of PHA. In order to consider income that should be included in the TMHI, the SSBS must follow general requirements for “reasonably anticipated income.” If the client has already started a new job and they know how much they will be paid and when they will get their first check, this income can be considered “reasonably anticipated” and must be included in the TMHI for the family. However, if the client only anticipates getting a job, but hasn’t started working yet, or if they have gotten the job, but don’t know how much they will be paid or when, that income must not be included as part of the family’s TMHI. The SSBS must determine how much income is actually going to be available to the family so that the SSBS can determine whether the family is securing a home they can afford.

ExampleExample Mrs. Brown and her son are homeless and have received their 16 days of THA. 80% of her TMHI is $392. She finds a place that rents for $450 per month. Her father is willing to pay $75 a month towards her rent directly to the landlord, and he notifies the SSBS of this in writing. Mrs. Brown's rent is now $375 a month, and she meets the criteria for PHA.

Security Deposits

Effective August 15, 2022, Senate Bill (SB) 1065 requires that PHA be available to pay for last month’s rent and security deposits if they are a condition of securing a permanent residence.

Security deposits include last month's rent and any legal payment, fee, deposit, or charge that is required by a landlord as a condition of assuming occupancy. This would include any fees necessary, such as credit check fees, if required by the landlord.

PHA may not be denied when the total amount of the required last month’s rent and security deposit payment together equals more than twice the renter's TMHI, as long as the rent does not exceed 80% of the TMHI.

Note: PHA can be used to pay a new security deposit that a client pays directly to a landlord, or to pay a client’s share of an existing security deposit that a client pays to the provider of housing.

Security Deposit Refund

If an AU must move within the 12-month time limit specified, the AU shall be allowed to transfer deposits to meet the security deposits for the new residence.

If the SSBS determines that the transfer was within the 12-month time limit, any refunded deposits shall be treated as liquid resources.
For purposes of reapplication to HA, these liquid resources would not impact HA eligibility, as there is no liquid resource limit.

In counting the 12-month period, homelessness begins on the date when the first HA payment was issued.

Utility Deposits

The payment for permanent housing costs may include the actual costs of utility deposits, in addition to the amount allowed for security deposits.

The payment shall cover deposits (turn-on-fees) required for gas, electricity, and/or water. Do not include deposits for telephone.
The payment shall NOT include the costs of overdue utility bills.

Note: Some utility companies do not bill their clients until after the utilities have been hooked up. The SSBS can issue the utilities deposit at a date later than the date for the security deposit payment.

Rent Arrearage Payments

Effective January 1, 2017, PHA is available once every 12 months to help eligible AUs with payment of up to two months of rent arrearages (back rent), if these payments are a reasonable condition of preventing eviction. Each month of the rent arrears must not exceed 80% of the TMHI.

Example Example An AU whose monthly rent is $750 applies for PHA to pay two months of back rent payments totaling $1,500. The AU’s TMHI is $1,000, and 80% of the TMHI is $800 ($1,000 x 0.80 = $800). This AU is eligible to receive the PHA as the amount of back rent for each month ($750) is less than 80% of the TMHI ($800).

Example Example An AU receives a three-day pay or quit notice. On 2/15/17, the AU applies for and receives PHA in the form of rent arrearages. On 10/16/17, the AU falls behind on rent again and receives another three-day pay or quit notice. Unless the AU meets an exception, the AU is not eligible for THA or PHA until 2/15/18.

Example Example An AU whose monthly rent is $900 applies for PHA to pay two months of back rent payments totaling $1,800. The AU’s TMHI is $1,000, and 80% of the TMHI is $800. This AU is not eligible for PHA as their monthly rent ($900) exceeds the TMHI ($800).

Permanent Housing through Housing Authority

When a client locates permanent housing through the Housing Authority or through another subsidized agency, the PHA payment is based upon 80% of TMHI.

Example Example An AU of 3 located housing through the Housing Authority. The monthly rent will be $173. The landlord is charging $500 for the security deposit and $25 for the credit check. Since 80% of TMHI for this AU is $485, the SSBS would be able to issue up to $970 in PHA for this AU. In this situation, the client is eligible for $525 in PHA.

Shared Housing

If it is determined that the AU intends to share housing costs, the AU's share cannot exceed 80% of its TMHI. Shared housing includes, but is not limited to:

Two or more AUs residing together.
SSI/SSP recipients residing with the CalWORKs recipient(s).
An AU residing with an unaided person(s), providing that the AU's share does not exceed 80% of TMHI.

If the AU is unable to provide verification of their amount of rent, the SSBS shall assume that they will be responsible for a prorated share. If the client provides the SSBS with a statement that their share will be a specified amount, this will be accepted as long as the other persons have the ability to meet their share of the expenses.

ExampleExample Mr. and Mrs. Menu and their two children are homeless. Mr. Menu receives SSI/SSP, and the remainder of the family is on CalWORKs. 80% of TMHI for the AU is $485. They find a place to rent for $750 monthly. It is assumed that Mr. Menu is responsible for his prorated share, $187.50 ($750 divided by 4), and the remainder of the family is responsible for their prorated share, $562.50 ($750 divided by 4 = $187.50 X 3 = $562.60). If there is no information to the contrary, the SSBS must deny the AU's request for PHA, as their share of the rent is in excess of 80% of TMHI. Mr. Menu provides a note that he will be responsible for $300 a month rent and that the AU will be responsible for $450. Since he has income to meet this, it is determined that the AU is now within 80% of TMHI, and eligibility for PHA exists for the AU.

ExampleExample Mrs. Kit is an undocumented non-citizen and has no income to meet her needs. She receives CalWORKs for her two children. 80% of TMHI is $392. She locates an apartment for $500, but since she has no income, it is not feasible to determine that she is able to pay her prorated share of the rent. The SSBS must deny the PHA request as the total amount of rent for the AU is in excess of 80% of TMHI. If Mrs. Kit finds a job and receives income of at least $108 monthly, she could pay her portion of the rent. The AU's share would then be $392, and there would be eligibility for PHA.

Valid Shared Housing Agreement

A valid shared housing agreement refers to a written agreement between the AU and another person(s) stating that the parties will be sharing housing. The agreement must include the following information:

Name of the person the AU is sharing housing with,
Address where the AU will be living,
Amount of rent charged to the AU, and
- Per night for short-term housing
- Per month for long-term housing
Date(s)
- For short-term housing, the agreement must also include the dates the AU is staying there.
- For long-term housing, the agreement must also include the move-in date and, if the person sharing housing is not the legal owner or landlord, the agreement should be accompanied by the rental agreement between the owner/landlord and the current tenant.

In instances where the agreement does not include the necessary information, the SSBS may contact the landlord/property owner to ensure the housing agreement is allowable, with the written consent of the AU.

Habitability

The SSBS does not need to ensure that the agreement will not result in overcrowding. There are no HA regulations regarding the maximum number of people per room. However, some landlords may, for example, be unwilling to rent a two-bedroom unit to a family of 8.

There are also no requirements for the SSBS to do a habitability check on a property prior to approving HA. However, a discussion regarding safety concerns with the family is encouraged.

Broken Agreements

The SSBS does not need to ensure that the client receives the agreed upon housing. However, ensuring that the shared housing agreement is “valid” and doesn’t violate the terms of the lease should be done prior to issuing the HA benefits.

If the housing provider breaks the shared housing agreement with the client, HA benefits cannot be replaced. Clients should be encouraged to use their HA benefits with a reliable provider of housing to avoid these situations from occurring.

ExampleExample The client uses their second payment of seven days of THA for a short-term housing agreement. The housing provider prematurely evicts the client after two days without returning the remaining five days' worth of payments, and the client becomes homeless again. HA benefits cannot be replaced.

ExampleExample A CalWORKs family requests THA and would like to enter into a short-term housing agreement with the applicant’s sister and her family. The sister rents her apartment from a property management company; however, she agrees to the short-term housing without consulting the property manager or her lease. Seven nights of THA are issued. After three days, the property manager is notified that the family is staying at the residence, and that it violates the lease. The property manager posts an"Unauthorized Occupant Violation Notice" stating, "The unauthorized occupant must vacate the premises immediately." The CalWORKs family vacates, and HA benefits cannot be replaced.

Return to Former Residence

PHA is NOT available to assist recipients to return to their most recent former residence, unless there are unusual circumstances beyond the recipient's control.

The most recent former residence is defined as the house or the same unit in a duplex or apartment complex in which the recipient lived just prior to being determined homeless.
The SSBS must carefully document the case record if this should occur and deny the request for PHA.

Example Example A family left a residence in San Jose in order to take advantage of a job offer in Fresno. When they arrived in Fresno, they found that the job was no longer available, so they returned to the San Jose area and were homeless. Their former residence became available and was less expensive than anything else they could locate, so they requested PHA to move into their former residence. This would be granted due to the unusual circumstances that prompted their return to the San Jose area.

ExampleExample A client was living with a relative for several years and reports that they can no longer live at the residence free of charge and are told to leave. After receiving THA, the client requests a deposit to return to the relative’s home, where they formerly lived free of rent, and provides a shared housing agreement stating they will now be obligated to pay rent. The client has already been evicted from this property, so PHA cannot be issued to pay a security deposit and last month's rent at this location.

Verification

Within 30 calendar days of receiving PHA, the AU must provide verification of the following:

The amount expended for permanent housing, and
The PHA was paid to a person or establishment with whom the AU has a valid lease, sublease, or shared housing agreement.

Mismanagement of Funds

The AU's failure or inability to provide the verification listed above constitutes a presumption of mismanagement of funds by the AU.

When it has been established that there has been a mismanagement of funds, all further HA payments must be issued using the “restricted payment” process. Refer to Homeless Assistance Payment Information.

Example Example Mr. Jones received his security deposit and last month's rent. He returns for payment of utility deposits. He must verify that the first payment was spent for housing deposits, or the utility deposits must be made as a “restricted payment” payable to the vendor, computer-generated, and mailed.

Example Example Mrs. Jones has located permanent housing. However, due to her credit standing, she must rent the apartment using her sister's name. All requirements are met, and she applies for PHA. The SSBS must secure a Sworn Statement (GEN 853), completed by the client with the entire story written up and signed under penalty of perjury. The PHA payment is issued directly to Mrs. Jones.