Section 145.10  Purpose

 

The goal of the Department of Human Services-Division of Mental Health (DHS-DMH) Permanent Supportive Housing (PSH) and Bridge Subsidy model is to provide persons who have serious mental illnesses access to housing that is safe, decent and affordable and within the resources that the tenant has available and that the living environments meet standards of safety.  The purpose of this Part is to:

 

a)         Assure that PSH that is paid for by DHS-DMH programs meet all applicable standards for environmental safety and management of the property;

 

b)         Detail the processes and conditions under which DHS-DMH will provide funding for PSH and transitional assistance into that housing;

 

c)         Assure that access to a PSH unit is not contingent on the tenant receiving any specific services or support;

 

d)         Assure that PSH permits the tenant to receive appropriate available services or supports requested in a flexible manner;

 

e)         Assure that monthly case management wellness visits (in-home, at alternative locations, or virtual) to tenants occur by a designated DHS-DMH or State Service Provider; and

 

f)         Define the roles and responsibilities of the DHS-DMH contracted Subsidy Administrators (SA) for the Bridge Subsidy model.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.20  Definitions

 

Adult – An individual who is 18 years of age or older or a person who is emancipated pursuant to the Emancipation of Mature Minors Act [750 ILCS 30].

 

Agency – The local DHS or State contracted Service Provider.  An "Agency" may also be referred to as "Provider."

 

Annual Income Re-examination Review – The annual review of the tenant's annual income to determine continued eligibility for rent payments under the PSH models.  The annual re-examination is completed to determine the Housing Assistance Payment Contract by calculating applicant's rent share/30% of income toward their rent.

 

Area Median Income or AMI – The federal Department of Housing and Urban Development's (HUD) calculation of income limits for eligibility in a variety of housing programs.

 

Bridge Subsidy – Payment by DHS-DMH of a portion of the rent for a PSH unit through the Bridge Subsidy model of PSH until the tenant is able to secure a permanent housing subsidy through a local, State or federal program. 

 

Case Management Services – Assessment, planning, coordination and advocacy services for clients who need multiple services and require assistance in gaining access to and in using mental health, social, vocational, educational, housing, public income entitlements and other community services to assist the client in the community.  Case management activities may also include identifying and investigating available resources, explaining options to the client and linking the client with necessary resources.

 

Code – The Mental Health and Developmental Disabilities Code [405 ILCS 5].

 

Care Manager – A staff member of a State-contracted Service Provider who is assigned to monitor and/or provide support services to a tenant residing in a DHS-DMH Permanent Supportive Housing and/or Bridge Subsidized unit.

 

Community Vendor – A DHS contracted entity.

 

Confidentiality Act – The Mental Health and Developmental Disabilities Confidentiality Act [740 ILCS 110].

 

Consumer – An adult with a diagnosis of mental illness as defined in 59 Ill. Adm. Code 132 and/or other disability contributing to eligibility for long-term care.  For the purpose of this Part, all consumers who are living in a unit supported in whole or in part with DHS-DMH funding may also be referenced as "tenants".

 

DCFS or Illinois Department of Children and Family Services – The State child welfare agency responsible for:  protecting children who are reported to be abused or neglected and to increase their families' capacity to safely care for them; providing for the well-being of children in care; providing appropriate, permanent families as quickly as possible for those children who cannot safely return home; supporting early intervention and child abuse prevention activities and working in partnerships with communities to fulfill this mission.

 

Department or IDHS or DHS or The Illinois Department of Human Services – The State agency responsible for providing a wide variety of safety net services to Illinois residents in poverty who are facing other economic challenges or who have any of a variety of disabilities or health challenges.

 

DHS-DMH or DMH or The Illinois Department of Human Services-Division of Mental Health – A program division of DHS that, as the State Mental Health Authority pursuant to Department of Human Services (Mental Health and Developmental Disabilities) Law [20 ILCS 1710], is responsible for assuring that children, adolescents and adults throughout Illinois have the availability of and access to public-funded mental health services.

 

Employee – Any person who provides direct services or supports to a tenant of Permanent Supportive Housing at the direction of a DHS contracted vendor.  This includes staff on the agency payroll, contractors, interns and volunteers, regardless of number of hours or schedules worked or volunteered.

 

Engagement Services – Home-based or community-based visits that assist the individual with maintaining their housing, and providing other wrap-around support, including linkage to mental health or substance use recovery support services. Such engagement services shall align with Medicaid-covered tenancy support services, and Medicaid community-based mental health and substance use treatment services, including case management, to ensure alignment with any existing or future Illinois Medicaid benefits, waivers or State plan amendments that include these services, and to maximize any potential federal Medicaid matching dollars that may be available to support engagement services [405 ILCS 125/3]

 

Fair Market Rent or FMR – Maximum rental amounts payable in specific geographical areas established by HUD.

 

Family Support Program (FSP) – Formerly known as the Individual Care Grant program, this program of the Illinois Department of Healthcare and Family Services (HFS) provides access to intensive mental health services and supports to youth with a severe emotional disturbance.  The goal of the FSP is to support eligible youth and their families by strengthening family stability, improving clinical outcomes, and promoting community-based services.

 

HIPAA – The Health Insurance Portability and Accountability Act (42 U.S.C. 1320 et seq.) (45 CFR 160 and 164 (2013)).

 

Homeless – An individual or family meeting the definition used by the U.S. Department of Health and Human Services, Health Resources and Services Administration in Section 330(h)(5)(A) of the Public Health Services Act (42 U.S.C. 254(b)).  A homeless individual under this definition is an individual who lacks housing (without regard to whether the individual is a member of a family), including an individual whose primary residence during the night is a supervised public or private facility that provides temporary living accommodations, and an individual who is a resident in transitional housing.  This includes individuals who are doubled up with other households [405 ILCS 125/3].

 

Housing Assistance Payment Contract or HAP Contract – A contract executed between the Subsidy Administration or PSH Provider and the leasing agent (landlord or property management entity).

 

Housing Dwelling – A house rented according to the same Fair Market Rate as an apartment located in the same geographical area.  This type of PSH is applicable in rural areas.

 

Housing Quality Standards or HQS – HUD's specifications and guidance that outline inspection standards for all PSH units that fall under this Part.

 

HUD – The U.S. Department of Housing and Urban Development.

 

Individual at High Risk of Overdose – A person with a substance use disorder who is homeless (or will be homeless upon hospital discharge or correctional facility release) who has:

 

had three or more hospital inpatient or inpatient withdrawal management or community-based withdrawal management stays for a substance use disorder within the most recent 12-month period;

 

had three or more stays in a State or county correctional facility in the State of Illinois within the most recent 12-month period; or

 

been incarcerated in a State or county correctional facility in Illinois for the most recent 12 consecutive months; or

 

had one or more drug overdoses in the last 12 months [405 ILCS 125/3].

 

Individual at High Risk of Unnecessary Institutionalization – A person who has a serious mental illness who is homeless (or will be homeless upon hospital discharge or correctional facility release) and who has:

 

had three or more psychiatric inpatient hospital admissions within the most recent 12-month period;

 

had three or more stays in a State or county correctional facility in the State of Illinois within the most recent 12-month period; or

 

been incarcerated in a State or county correctional facility in Illinois for the most recent 12 consecutive months; or

 

had a disability determination due to a serious mental illness and has been incarcerated in a State or county correctional facility in Illinois within the most recent 12 consecutive months [405 ILCS 125/3].

 

Landlord Property Management Entity – The owner of one or more units/apartments receiving or approved to receive rental payments from DHS‑DMH, inclusive of private market and not-for-profit housing providers.

 

Long Term Care Facility or LTC Facility – A facility designated as a nursing home under the Nursing Home Care Act [210 ILCS 45].

 

Open Round – The point in time when DHS-DMH allows applications to be submitted for consideration of a Bridge Subsidy, excluding a court order, lawsuit or settlement.

 

Permanent Supportive Housing or PSH – A self-contained (inclusive of kitchen and bathroom facilities) unit that is decent, safe and affordable community-based housing.  The tenant has rights of privacy and access; holds a lease, sublease, or occupancy agreement; and has full rights of tenancy under State and local landlord and tenant laws.  Any services or supports received are voluntary, flexible and designed to meet the tenants' needs and preferences.

 

Provider – The local DHS or State contracted Service Provider.  A Provider may also be referred to as "Agency."

 

PSH Provider – The DHS-DMH contracted entities responsible for conducting income verifications, unit inspections, development of HAP contracts or other agreements with landlords, and ongoing rental payments in accordance with Section 145.70 through a model of PSH other than the Bridge Subsidy model.

 

Rental Assistance – The DHS-DMH subsidized rental amount paid to a landlord for a unit occupied and leased by a tenant eligible and approved for a DHS-DMH Bridge Subsidy or PSH program utilizing a similar model of housing assistance.

 

Rental Payments – Any payments made to a landlord in accordance with a lease agreement for a housing unit in which an individual or family receiving services from a Provider is residing, whether the executed lease is between the landlord and the Provider (leasing) or between the landlord and the tenant (rental assistance).

 

Service Provider – An entity contracted by DHS or the State to provide publicly-funded support services to residents of Permanent Supportive Housing.

 

Serious Mental Illness – Meeting both the diagnostic and functioning criteria consistent with the definition of Serious Mental Illness in the most current edition of the Illinois Department of Human Services/Division of Mental Health Community Mental Health Provider Manual [405 ILCS 125/3].

 

Site – Any building, under one continuous roof, in which a tenant receiving DHS‑DMH Bridge rental assistance lives.  This includes houses, apartment buildings, duplexes and other living arrangements owned, leased or managed by a rental agent, management company, property owner, landlord or development entity.

 

Subsidy Administrator or Subsidy Administration or SA – The DHS-DMH contracted entities responsible for conducting income verifications, unit inspections, development of HAP contracts with the landlord, and ongoing subsidized rental payments in accordance with Section 145.70 through the Bridge Subsidy model.

 

Substance Use Disorder – As defined in Section 1-10 of the Substance Use Disorder Act [20 ILCS 301].

 

Tenant – For the purpose of this Part, the words "tenant" and "consumer" are interchangeable.  The tenant must be a consumer of a DHS or State contracted Service Provider and be in one of the priority populations defined in Section 145.110(g).

 

Transition Assistance Funds or TAF – A one-time allocation, as determined by DHS‑DMH, for the specific purpose of paying security deposits and utility connections (but not for arrearages) and to assist the tenant in purchasing basic allowable household needs.  Transition Assistance Funds used for the purchase of obtaining allowable household goods are handled by the Care Manager (see Section 145.200).

 

Unit – A rental apartment (efficiency, studio, one bedroom or multiple bedroom apartments) or housing dwelling that receives DHS-DMH funded rental payments.  Housing intended as transitional or temporary housing does not qualify as a PSH Bridge unit.

 

(Source:  Amended at 47 Ill. Reg. 7096, effective May 15, 2023)

 

Section 145.30  Compliance with Federal and State Laws

 

Notwithstanding anything to the contrary, this Part shall be construed in conformity and compliance with applicable federal and State law.

 

Section 145.40  Nondiscrimination

 

Landlords and property management entities shall comply with the applicable provisions of the Illinois Human Rights Act [775 ILCS 5] and the regulations under that Act (see 38 Ill. Adm. Code 800; 44 Ill. Adm. Code 750; 56 Ill. Adm. Code 2500, 2510, 2530 and 2540; and 71 Ill. Adm. Code 2300), the Fair Housing Act (42 USC 3601), section 504 of the Rehabilitation Act of 1973 (29 USC 794), the Illinois Accessibility Code (71 Ill. Adm. Code 400), and all other State, federal and local statutes and regulation concerning discrimination and fair housing.

 

Section 145.50  Permanent Supportive Housing Models

 

All PSH models will utilize Scattered Sites (as described below).  The DMH PSH Bridge Subsidy model provides rental payments for all of the following:

 

a)         Scattered Sites

Dwellings that exist in the private and public rental market for which the tenant holds the lease and rental payment agreements are made directly with the property owner.  Units are not concentrated in any one building.  Living arrangements in scattered-site housing include:

 

1)         Single room occupancy (SRO) or studio/efficiency apartments that have self-contained kitchens and bathrooms;

 

2)         One-bedroom apartments;

 

3)         Two-bedroom or larger shared apartments as needed to accommodate larger households, live-in aides, or storage of necessary medical equipment (with no more than two unrelated consumers per unit under an arrangement agreed to by both consumers); or

 

4)         Single family homes.

 

b)         Project Based Developments

Multifamily dwellings that were developed and financed as a project for the purpose of providing supportive or affordable housing.  The tenant holds the lease and rental assistance agreements are made directly with the landlord or property owner.  If the project development receives public financing, in addition to funding from DHS-DMH, the funding regulations and tenant selection plans of the public funding entity (e.g., HUD) supersedes this Part.  Living arrangements in project-based developments include:

 

1)         SRO or studio/efficiency apartments that have a self-contained kitchen and bathroom; or

 

2)         One-bedroom apartments or two-person two-bedroom shared apartments.

 

c)         Master Leasing

Master leasing is a flexible resource that creates a variety of housing options in terms of housing type, density and location.  This model is based on mutually beneficial relationships with private landlords or property management entities for which long-term agreements are made with guaranteed payment in exchange for discounted rental rates. The master leasing approach shall be focused primarily on existing rental housing to secure a targeted number of rental units as outlined in Section 145.210.  DHS-DMH will utilize the SA entity to conduct all activities in accordance with Section 145.70.

 

(Source:  Amended at 47 Ill. Reg. 7096, effective May 15, 2023)

 

Section 145.60  Permanent Supportive Housing Service Linkage

 

a)         All DHS-DMH PSH models assure that needed services and supports are available to the tenant living in a PSH/Bridge Subsidy unit.

 

1)         The tenant should have access to a flexible and comprehensive array of recovery-oriented services and supports to assist the tenant in achieving a successful community adjustment. 

 

2)         Services shall be elective,  support the tenant's clinical/therapeutic or treatment needs to function and live independently in the community, and must be based on medical necessity.  All services shall be provided in mutual agreement with the person receiving the services.

 

b)         As part of the enrollment process for PSH, the tenant will be required to consent to case management visits conducted by the DHS or State contracted vendor at the tenant's residence, at an alternatively arranged location, or virtually with assistive technology to help determine the wellness of the tenant.

 

c)         Service Providers are encouraged to proactively seek to engage tenants in on-site and community-based services and supports.  In addition, Care Managers are encouraged to work with landlords, as appropriate, to develop and execute coordinated strategies for addressing issues that may threaten housing stability for the tenant, such as mental health crisis, substance use and relapse.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.70  Administration Requirements

 

As determined by DMH, the SA or PSH Provider shall:

 

a)         Serve as the authorized entity for the administration of rental payments to landlords and property management entities. 

 

b)         Fulfill the roles outlined in Subpart B, including income certification and annual income recertification, unit inspections, rent reasonableness determinations, and lease review.  Specifically, the SA or PSH Provider shall:

 

1)         Conduct initial and annual income verification;

 

2)         Conduct an inspection of the unit in consideration for leasing, using HUD HQS and annual reinspection upon lease renewal.  The HQS can be found at 24 CFR 982.401;

 

3)         Where the lease is held by the tenant, initiate a HAP contract with the leasing agent, landlord or property management entity, as a commitment to pay the remaining rental balance;

 

4)         Disburse and ensure that rental payments are received by the landlord and property management entities by the established rent due date;

 

5)         Maintain a database and analyze data on the number of PSH housing units utilized by tenants; and

 

6)         Report to DMH, as requested, all fiscal and tenant information and participate in all audits referred by DMH.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.100  Tenant Rights and Choices

 

a)         To assure that tenant rights are protected and that owners/landlords who establish leases for PSH and/or Bridge subsidized units comply with written law, providers and rental agents (landlords or property management entities) shall ensure that:

 

1)         The tenant's rights are protected in accordance with Chapter 2 of the Mental Health and Developmental Disabilities Code;

 

2)         The tenant's right to confidentiality is governed by the Mental Health and Developmental Disabilities Confidentiality Act and HIPAA;

 

3)         The tenant has full rights to make choices concerning the level of any services received;

 

4)         The tenant has full rights to select a service provider from which services are delivered;

 

5)         The tenant has full rights to identify the geographic or community areas where he/she wants to establish residency;

 

6)         The tenant has rights to be free from abuse, neglect and exploitation; and

 

7)         The tenant has rights to contact DMH or its designee and to be informed of DMH policy or protocol for filing complaints or grievances.

 

b)         The information in this Section shall be explained by the Service Provider responsible for conducting the case management wellness visits, using language or a method of communication that the tenant understands.  Documentation of the explanations shall be placed in the tenant's record maintained by the contracted Service Provider.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.110  Eligibility Criteria for the DHS-DMH Permanent Supportive Housing Bridge Subsidy Model

 

a)         Individuals eligible for the PSH Bridge Subsidy model shall meet the following criteria:

 

1)         Have a clinical diagnosis of serious mental illnesses (SMI) with an exception only for anyone identified as a Colbert Class Member, including functional duration, history and severity, for one or more of the following diagnoses:

 

A)        Schizophrenia;

 

B)        Schizophreniform Disorder;

 

C)        Schizo-Affective Disorder;

 

D)        Delusional Disorder;

 

E)        Psychotic Disorder;

 

F)         Bipolar Disorders;

 

G)        Cyclothymic Disorder;

 

H)        Disruptive Mood Dysregulation Disorder;

 

I)         Major Depressive Disorders;

 

J)         Obsessive-Compulsive Disorder;

 

K)        Anorexia Nervosa;

 

L)        Bulimia Nervosa;

 

M)       Post-Traumatic Stress Disorder;

 

2)         Be an adult;

 

3)         Have a current household income at or below 30% of Area Median Income (AMI) as defined by HUD;

 

4)         Be a current Medicaid recipient;

 

5)         Be on a current Public Housing Authority waiting list for a Housing Choice Voucher (HCV) or agree to register or apply for an HCV or comparable permanent rental subsidy when registration or application opportunity becomes available;

 

6)         Currently not receiving rental assistance under a local, State or federal housing program; and

 

7)         Meet one of the following criteria:

 

A)        A resident of an LTC facility as described under the Nursing Home Care Act;

 

B)        At risk of placement in an LTC facility described under the Nursing Home Care Act;

 

C)        A patient of an Illinois State-operated psychiatric hospital for eight months or longer;

 

D)        An aging-out adolescent or young adult transitioning from the HFS Family Support Program (FSP);

 

E)        A DCFS ward aging out of guardianship (89 Ill. Adm. Code 306);

 

F)         A resident of a DHS-DMH contracted 24-hour Supervised Transitional Residential or Supported Residential setting including Mental Health Community Integrated Living Arrangement (59 Ill. Adm. Code 115).

 

G)        Experiencing homelessness as defined in this Part.

 

b)         Potential tenants with criminal justice histories may be eligible for the PSH Bridge Subsidy model contingent on clinical documentation supporting his or her appropriateness to live independently in the community without 24-hour supervision, as determined by DMH.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.115  Eligibility Criteria for the Housing is Recovery Pilot Program Model

 

Individuals eligible for the Housing is Recovery Pilot Program model shall:

 

a)         Meet one of the following criteria:

 

1)         An individual at high risk of unnecessary institutionalization who is 18 years of age or older or is aging out of guardianship under DCFS, and who is eligible to enroll in, or is enrolled in, Medicaid for the purposes of receiving mental health treatment pursuant to 89 Ill. Adm. Code 140.

 

2)         An individual at high risk of overdose who is 18 years of age or older or is aging out of guardianship under DCFS, and who is eligible to enroll in, or is enrolled in, Medicaid for the purposes of receiving substance use treatment.  [405 ILCS 125/10]

 

b)         Have a current household income at or below 30% of Area Median Income (AMI) as defined by HUD;

 

c)         Be on a current Public Housing Authority waiting list for a Housing Choice Voucher (HCV) or agree to register or apply for an HCV or comparable permanent rental subsidy when registration or application opportunity becomes available;

 

d)         Be placed on, or agree to register for, or apply to be placed on the Illinois Housing Development Authority's Statewide Referral Network; and

 

e)         Currently not be receiving rental assistance under a local, State, or federal housing program.

 

(Source:  Amended at 49 Ill. Reg. 2353, effective February 18, 2025)

 

Section 145.120  Housing Search Criteria

 

a)         Potential tenants may choose the geographic location where they would like to reside.

 

b)         Housing location assistance will be provided by a DMH contracted vendor.

 

c)         Within 60 days after approval to locate and lease a PSH Bridge Subsidy model unit, the potential tenant must select and identify a unit that passes established HQS inspection standards and rent reasonableness criteria.

 

d)         Extensions beyond the 60 days to select and identify a unit for a PSH Bridge Subsidy will be granted by DMH on a case-by-case basis if the potential tenant has actively sought housing during the 60-day period and can reasonably be expected to complete a successful search for a suitable housing unit during the extended period.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.130  Tenant Income and Documentation

 

Income is any money earned or benefits payment received by the tenant.  Adjusted gross income is the amount of income earned after any deductions are made.  A tenant rent payment amount shall be calculated based on adjusted gross income over the most recent three-month period.

 

a)         Income that is to be considered when calculating a tenant's household gross income includes:

 

1)         Social Security Supplemental Income;

 

2)         Social Security Disability Income;

 

3)         Earned income;

 

4)         Self-employment/business income;

 

5)         Interest and dividend income or income from other assets or family sources;

 

6)         Pension/retirement income;

 

7)         Unemployment income;

 

8)         Temporary Assistance for Needy Families (TANF); and

 

9)         Armed Forces income.

 

b)         Income that shall not be considered when calculating tenant's household gross income includes:

 

1)         Medical expense reimbursements;

 

2)         Deferred and lump sum Social Security and SSI payments;

 

3)         Self-Sufficiency Program income;

 

4)         Student financial aid;

 

5)         Special pay to a family member serving in the Armed Forces who is exposed to hostile fire;

 

6)         Income of full-time students;

 

7)         Income tax and property tax refunds;

 

8)         Stipends or allowances to persons with disabilities for basic needs and expenses associated with integrated and independent living situations or as incentives for participation in vocational service programs that are funded by a government entity; and

 

9)         Other temporary, nonrecurring or sporadic income.

 

c)         The household must provide the SA or PSH Provider with written documentation of the specific sources of income included in the gross income calculation. 

 

d)         The SA or PSH Provider shall gather, maintain and determine the validity of the documentation provided and used to calculate the tenant's rental contribution.

 

e)         If a tenant does not have income due to a psychiatric or other disability, the tenant shall be offered the opportunity for assistance with filing a Supplemental Security Income (SSI)/Social Security Disability Income (SSDI) Outreach, Access, and Recovery (SOAR) application by the PSH Provider or another DMH-contracted provider.  A tenant is not required to apply for a disability determination.

 

(Source:  Amended at 47 Ill. Reg. 7096, effective May 15, 2023)

 

Section 145.140  Tenant Rent Payments

 

a)         Tenants shall not be required to pay more than 30% of their adjusted household gross income for rent for assisted units that meet rent reasonableness and FMR criteria (see Section 145.150), including an allowance for any consumer paid utilities. 

 

b)         The rental payment amount shall be determined by the SA or PSH Provider and communicated and documented to both the tenant and the landlord or property management entity, and reflected on the HAP contract when the lease is held by the tenant.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.150  Amount of Rental Assistance

 

a)         The amount of rental assistance for each unit shall be the difference between the amount of the rent for the unit and the tenant's rent payments.

 

b)         When identifying the appropriateness of the amount of rent to be paid for a unit, the SA or PSH Provider shall complete a rent reasonableness determination.  Prior to approval and signing of a lease, data shall be gathered by the SA or PSH Provider on a variety of units and used to make a comparability determination on the affordability and suitability of the unit.  The unit must pass the rent reasonableness determination to be deemed appropriate for PSH rental payments.

 

c)         Rents shall not exceed the Fair Market Rent (FMR) established for the geographical area, as determined annually by HUD.  An exception exists if rents throughout the local community are above FMR and it is highly unlikely that there will be units available for inclusion in PSH.  In these situations, if a tenant seeks to utilize a housing unit with a rent level greater than the FMR, the SA or PSH Provider must document the circumstances and obtain the approval of DMH.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.160  Rent Redeterminations

 

a)         The tenant shall notify the SA or PSH Provider within 30 days if tenant income increases by 75% or more.  Increases of less than 75% shall be reported during the Annual Income Re-examination Review process.

 

b)         If a decrease in income occurs, the tenant should contact the SA or PSH Provider immediately.  The SA or PSH Provider shall then recalculate the tenant's portion of the rent for the next rent payment based on the decreased income amount.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.170  Tenants with Incomes Exceeding 30% AMI (Over-Income)

 

The SA or PSH Provider shall annually recertify the income of each tenant's household for the most recent three months prior to the renewal of the lease.  If the annual household income exceeds 30% of AMI, the tenant is no longer eligible for PSH, and a transition plan shall be developed among the SA or PSH Provider, the community vendor and the tenant.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.180  Rent Increases

 

Upon request of the landlord or property management entity, DMH may allow an annual increase in the rent for the respective unit. 

 

a)         The rent increase must not exceed the existing rent multiplied by the most recent HUD Annual Adjustment Factor that can be found at http://www.huduser.org/ portal/datasets/aaf.html. 

 

b)         Landlords must address any proposed increases to leases via requests to the SA or PSH Provider in accordance with leases and contracts.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.190  Housing Inspections

 

Before the tenant signs a lease, and annually thereafter, it shall be the responsibility of the SA to conduct housing inspections of the unit or the responsibility of the PSH Provider to ensure that housing inspections are completed to determine compliance with HUD's HQS.  In addition to any violations of compliance with a local code enforcement bureau, the HQS consists of the following performance requirements:

 

a)         Sanitary bathroom facilities;

 

b)         Food preparation and refuse disposal;

 

c)         Space and security;

 

d)         Thermal environment;

 

e)         Illumination and electricity;

 

f)         Structure and materials;

 

g)         Interior air quality;

 

h)         Water supply;

 

i)          Lead-based paint;

 

j)          Private access;

 

k)         Site and neighborhood;

 

l)          Sanitary conditions (the unit must be free of vermin); and

 

m)        Smoke detectors.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.200  Transition Assistance Funds Provided Under PSH/Bridge Subsidy Model and Housing is Recovery Pilot Program Model

 

a)         DMH may provide one-time Transition Assistance Funds (TAF), identified as a set amount to be used solely for the purpose of assisting individuals who are in the process of moving into a PSH unit that has a secured lease.  These funds are to provide basic move-in expenses, obtain basic household items, pre-approved by DMH, in addition to the payment of security deposit and utility connection fees, excluding arrearages.

 

b)         TAF are processed by the designated DHS-DMH contracted Service Provider and released to the Care Manager upon receipt of supporting documentation approved by the respective DMH program staff.  TAF are restricted in use, only available to DHS-DMH contacted Service Providers as specified in their contacts, and may only be applied for the purpose of assisting the tenant in transitioning and moving into a PSH unit.  Responsibility for appropriate expenditure of TAF rests with the DHS-DMH contracted Service Provider.  The tenant, family members and guardians shall have no access to these funds.

 

c)         TAF shall be accessed and approved through an established DMH process.  TAF cannot be used to pay arrearages.

 

d)         TAF may be utilized for items including, but not limited to:

 

1)         Security deposits;

 

2)         Unit application fees;

 

3)         Utility activation deposits;

 

4)         Furniture;

 

5)         Bedding;

 

6)         Small appliances; and

 

7)         Cleaning equipment and supplies.

 

(Source:  Amended at 47 Ill. Reg. 7096, effective May 15, 2023)

 

Section 145.210  Leases

 

Under the PHS Bridge Subsidy model, the lease for the housing unit is held by the tenant.  Flexible leasing options may be made available through alternative PSH programs/models funded by DMH, but PSH Providers will be responsible for compliance with leasing terms as stipulated in their executed contract and/or PSH program-specific guidance provided by DMH.  There are three options to obtain leases in a PSH Bridge Subsidy model:

 

a)         Under Tenant Executed Leases:

 

1)         The landlord or property management entity shall enter into a direct written lease with each tenant. 

 

2)         The lease shall have a term of no less than 12 months (unless reviewed and approved by DMH on a case-by-case basis) and shall contain a HAP contract.

 

3)         The SA shall review each lease to certify to DMH that the lease does not violate any provisions of State or local law or this Part.

 

4)         The landlord or property management entity shall provide each tenant and the SA with a copy of the lease and execute the HAP contract with the SA.

 

5)         The tenant is responsible for his/her portion of the rent up to 30% of his/her income (based on the SA's income verification process) paid directly to the landlord.  The SA will pay the remaining amount of the rental balance.  

 

6)         Lease responsibilities for the unit will rest with the tenant.

 

b)         Under an Executed Master Lease Agreement:

 

1)         The SA under authorization of DMH, will execute a HAP contract with the landlord or property management entity for a select number of rental units that will be held available until a lease is signed with a prospective tenant. 

 

2)         The landlord or property management entities shall enter into a lease with the tenant that shall have a term of no less than 12 months (unless other lease terms are approved by DMH).

 

3)         The SA shall review each lease to certify to DMH that the lease does not violate any provisions of State or local law or this Part.

 

4)         The tenant is responsible for his/her portion of the rent up to 30% of his/her income (based on the SA's income verification process) paid directly to the landlord.  The SA will pay the remaining amount of the rental balance. 

 

5)         Lease responsibilities for the unit will rest with the tenant.

 

c)         Under Project Based Leases:

 

1)         DMH can partner with developers, property managers or landlords to identify apartment unit resources that are either scattered site or within a designated project. 

 

2)         This partnership would be facilitated under all PSH Bridge Subsidy processes in order to set up a leasing arrangement for an identified number of unit resources.

 

3)         The landlord or property management entities shall enter into a lease with the tenant that shall have a term of no less than 12 months (unless other lease terms are approved by DMH).

 

4)         The contracted SA will monitor this arrangement for either scattered site or project-based units.

 

5)         The tenant is responsible for his/her portion of the rent up to 30% of his/her income (based on the SA income verification process) paid directly to the landlord.  The SA will pay the remaining amount of the rental balance.

 

6)         The SA shall review each lease to certify to DMH that the lease does not violate any provisions of State or local law or this Part. 

 

7)         Lease responsibilities for the unit will rest with the tenant.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.220  Contracts with Landlords or Property Management Entities

 

HAP contracts are required for DHS-DMH funded PSH units where the tenant holds the lease.  Flexible leasing options may be made available through alternative PSH programs/models funded by DMH, but PSH Providers will be responsible for compliance with leasing terms and other contractual arrangements as stipulated in their executed contract and/or PSH program-specific guidance provided by DMH.  For rental assistance/subsidy-based units:

 

a)         The SA or PSH Provider shall enter into a HAP contract with each landlord or property management entity for all units that the landlord has negotiated to receive rental payments.

 

b)         The HAP contract shall provide that the SA or PSH Provider will make rental assistance payments to the landlords as instructed by DMH. 

 

c)         The HAP contract shall identify the landlord and SA or PSH Provider.

 

d)         The term of the HAP contract shall not be less than 12 months (unless pre-approved).

 

e)         The units to receive rental assistance must be identified by address and unit designation.

 

f)         The rent amount to be charged is to be set forth for each unit and will identify the tenant's portion of rent (all contracts shall not be greater than the FMR or rent amount approved by DMH).

 

g)         The landlord shall abide by the requirements of this Part as detailed in the HAP contract.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.230  Subsequent Tenant Unit Relocations

 

a)         As the end of the lease agreement approaches, and with the consent of the landlord, the tenant shall have a choice to remain in the current unit if the tenant wishes to do so.

 

b)         If the tenant chooses to move, the tenant shall notify the landlord, SA or PSH Provider, and Care Manager no later than 60 days before the lease end date to facilitate a new housing search.

 

c)         If the tenant elects to move, he/she will be responsible for paying any newly incurred security deposit and utility connections, unless there is an extenuating circumstance.  Extenuating circumstances will be reviewed by DMH on a case-by-case basis.  The Department reserves the right to determine the parameters of extenuating circumstances.

 

d)         To receive rental payments, all units must pass HQS inspection and the rent reasonableness determination by the SA or PSH Provider before a lease can be signed and Bridge Subsidy payment approved.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.240  Temporary Tenant Absences

 

a)         For tenants in PSH programs other than the Housing is Recovery Pilot Program:

 

1)         A tenant shall continue to maintain eligibility for PSH during brief absences lasting no longer than 90 days.

 

2)         Tenants shall continue to maintain eligibility for PSH up to 90 days in cases of required psychiatric or medical hospitalization or temporary absences from the unit, as reviewed and approved by DMH. 

 

3)         Extensions beyond 90 days may be granted by DMH when there is a demonstrated likelihood that the tenant will return to the unit within an additional 30-day period.

 

b)         For tenants in the Housing is Recovery Pilot Program:

 

1)         A tenant shall continue to maintain eligibility for the subsidy during brief absences lasting no longer than six consecutive months.

 

2)         During a stay in a LTC Facility, Institution for Mental Disease (IMD), Specialized Mental Health Rehabilitation Facility (SMHRF), residential substance use disorder treatment program, or correctional facility of less than six months, the program will continue to pay the subsidized portion of the rent.

 

3)         A subsidy does not terminate if the subsidy holder is required to move multiple times due to landlord eviction or does not engage in treatment. Termination shall occur only as outlined in Section 145.250.

 

(Source:  Amended at 47 Ill. Reg. 7096, effective May 15, 2023)

 

Section 145.250  Program Terminations and Appeals

 

a)         A tenant may be terminated from PSH, after all attempts at tenant participation and mitigation have failed, under any one or more of the following circumstances, unless a reasonable modification of this policy is necessary to prevent the exclusion or denial of benefits of the program and service on the basis of disability pursuant to Title II of the Americans with Disabilities Act (42 U.S.C. 12101):

 

1)         Missing their portion of the rent payment three times or more within an existing current lease period (late payments are not an immediate factor);

 

2)         Refusing to pay their portion of the rent as stipulated in the lease agreement;

 

3)         Refusing to allow or respond to requests for case management wellness visits (in-home, at alternative locations, or virtual) as deemed appropriate by the contracted Service Provider;

 

4)         Serious and repeated lease violations that pose a threat or serious hazard to other residents of the rental property;

 

5)         Convictions by a court of law for a felony offense;

 

6)         Failure to accept an offer for a permanent rental subsidy when one is made available;

 

7)         Receiving rental payments while residing in a unit owned by any family member of the tenant (unless DMH has determined and approved the rental of the unit as providing reasonable accommodations for a person with a disability);

 

8)         Subleasing the unit, assignment of the lease or transfer of the unit;

 

9)         Excessive and continuous damage to the unit or premises by the tenant or any guest to the unit or premises;

 

10)         Engaging in or allowing a guest to engage in any behavior that disturbs the peaceful and quiet enjoyment by others of the premises and the neighborhood;

 

11)         Engaging in or allowing a guest to engage in drug-related criminal activity or violent criminal activity or other criminal activity that threatens the health, safety or right to peaceful enjoyment of other residents and persons residing in the immediate vicinity of the premises;

 

12)         Illegal possession or use of a firearm or aggravated assault weapon in violation of federal, State or local criminal or civil laws;

 

13)         Failure to complete an Annual Income Re-examination Review with the SA or PSH Provider; and

 

14)         Fraud, including falsifying income, unauthorized occupants in the housing unit, or deliberate failure to report changes in household composition that would affect program eligibility.

 

b)         If a termination occurs from PSH:

 

1)         The tenant shall be responsible for 100% of the total rent amount as of the date that the final termination determination notice is released by the SA or PSH Provider and as authorized by DMH; and

 

2)         The SA shall inform the landlord in writing directly of the tenant's exit from PSH and the termination of rental payments.

 

c)         A tenant has the right to appeal a termination decision. The tenant or their representative must submit a written notice for an appeal to DMH.  This notice is to be received by DMH within 15 calendar days from receipt of the Bridge Subsidy or PSH termination letter.  The notice must contain a clear statement disputing the reasons for termination.  The notice is to be mailed to:

 

Housing Coordinator

Department of Human Services-Division of Mental Health

122 S Michigan Avenue, 20^th Floor

Chicago IL  60603

 

d)         DMH will convene an appeal hearing within 15 days after receipt of the appeal notice.  The appeal hearing committee members shall be composed of the DMH Housing Coordinator, the Deputy Director of Systems Rebalancing, or the Deputy Director of Community Programs and the assigned SA or PSH Provider.

 

e)         The tenant and/or their representative will be notified of the hearing by phone and mail.  At least three attempts at phone contact should be made to ensure that the tenant and/or their representative are aware of the hearing.  The tenant or representative may be present to provide written or verbal objections to the termination at the time of the hearing.

 

f)         DMH will issue its written determination decision to the tenant and/or representative within two work days after the appeal hearing.

 

g)         Depending on the circumstances of termination, a former PSH tenant may reapply for a Bridge Subsidy, when an open round becomes available, by submitting a formal letter of request to the DMH Housing Coordinator, accompanied with a letter of support from a State contracted Service Provider.

 

(Source:  Amended at 47 Ill. Reg. 7096, effective May 15, 2023)

 

Section 145.260  Forms and Procedures for Permanent Supportive Housing

 

DMH may prepare, use, supplement and amend forms, agreements, documents and procedures as may be necessary to implement PSH and the Bridge Subsidy model.  Except as otherwise permitted by this Part or by DMH, all providers must use the forms prepared by DMH.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.300  Record Submission and Retention

 

Landlords shall maintain monthly records of tenant's rental assistance payments received for each unit, including unit vacancies under Master Leasing Agreements, for the term of the lease.  Landlords shall notify the SA or PSH Provider by phone or mail within seven days after the rent due date if the tenant's portion of the rent has not been received.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.310  Lead-Based Paint

 

a)         All units eligible for PSH must be free of lead-based paint hazards.

 

b)         Before the execution of the lease, the responsible landlord or property management entity shall certify to the SA or PSH Provider that the housing unit contains no lead-based paint hazards.

 

c)         For units in buildings constructed prior to January 1, 1978, this certification must include assurance that the landlord or property management entity has visually inspected the unit for lead-based paint hazards and, if lead hazards have been found, has performed remediation, abatement or encapsulation in conformance with federal and State law (Lead Poisoning Prevention Act [410 ILCS 45]).

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.320  Housing Quality Standards

 

Landlords must maintain each unit in compliance with the HQS that can be found at 24 CFR 982.401.

 

Section 145.330  Compliance with State and Local Laws

 

Landlords must certify to the SA or PSH Provider that the lease for each unit receiving rental assistance does not violate State or local laws or this Part.

 

(Source:  Amended at 45 Ill. Reg. 11027, effective August 30, 2021)

 

Section 145.340  Eviction

 

Landlords shall have the right to evict a tenant from a unit for good cause, as permitted through the lease agreement in accordance with State and local laws.