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Administrative Plan 7/1/2025 <br /> <br />Page 4-15 <br />Income Targeting Requirement [24 CFR 982.201(b)(2)] <br />HUD requires that extremely low-income (ELI) families make up at least 75 percent of the <br />families admitted to the HCV program during the PHA’s fiscal year. ELI families are those with <br />annual incomes at or below the federal poverty level or 30 percent of the area median income, <br />whichever number is higher. To ensure this requirement is met, a PHA may skip non-ELI <br />families on the waiting list in order to select an ELI family. <br />Low-income families admitted to the program that are “continuously assisted” under the 1937 <br />Housing Act [24 CFR 982.4(b)], as well as low-income or moderate-income families admitted to <br />the program that are displaced as a result of the prepayment of the mortgage or voluntary <br />termination of an insurance contract on eligible low-income housing, are not counted for income <br />targeting purposes [24 CFR 982.201(b)(2)(v)]. <br />SAHA Policy <br />SAHA will monitor progress in meeting the income targeting requirement throughout the <br />fiscal year. Extremely low-income families will be selected ahead of other eligible <br />families on an as-needed basis to ensure the income targeting requirement is met. <br />Order of Selection <br />The PHA system of preferences may select families based on local preferences according to the <br />date and time of application or by a random selection process (lottery) [24 CFR 982.207(c)]. If a <br />PHA does not have enough funding to assist the family at the top of the waiting list, it is not <br />permitted to skip down the waiting list to a family that it can afford to subsidize when there are <br />not sufficient funds to subsidize the family at the top of the waiting list [24 CFR 982.204(d) <br />and (e)]. <br />SAHA Policy <br />Families will be selected from the waiting list based on the targeted funding or selection <br />preference(s) for which they qualify, and in accordance with the SAHA’s hierarchy of <br />preferences. Within each targeted funding or preference category, families will be <br />selected by assigned lottery number (score), if lottery was performed when placed on the <br />waiting list. Documentation will be maintained by SAHA as to whether families on the <br />list qualify for and are interested in targeted funding. If a higher placed family on the <br />waiting list is not qualified or not interested in targeted funding, there will be a notation <br />maintained so that SAHA does not have to ask higher placed families each time targeted <br />selections are made. <br />EXHIBIT 1