How to Survive and Ace a Compliance Review THA Annual Conference 2010

Transcription

1
How to Survive and Ace a
Compliance Review
THA Annual Conference
2010
2
What Do I Need to Do to Ace My Next MOR?
• Things you can do something about…
▫ Know what SHCC will be looking for and be prepared
• and things
g that yyou can’t:
▫ Inconsistencies from year to year and from Asset
Manager to Asset Manager
We are going to talk about the things you can do
something
g about to improve
p
yyour rating
g and/or
/ to jjust
“survive” your MOR
3
What Do I Need to Do to Ace My Next MOR?
• Know
K
What
Wh is
i B
Being
i R
Reviewed
i
d&B
Be P
Prepared
d
▫ Don’t Wait Until you Receive your “60-day Letter”
from SHCC!
4
Prepare Throughout the Year
• Sign up for the SHCC ListServ and HUD RHIIP
ListServ notices (“Links & Resources” on the
SHCC website: www.shccnet.org - almost at the
b
bottom
off the
h page))
• Read your SHCC and RHIIP ListServ e-mails
e mails
regularly throughout the year so that you can
keep your policies and forms updated as changes
occur
5
Prepare Throughout the Year
• Know the Date….
The MOR will be conducted about the same time
each year, so mark your calendar (usually within
60 days before or after the date of last one)
• You can find the exact date each year by using
the “Management
Management Review Schedule
Schedule” search
feature on SHCC’s website
p
around
• The schedule should be updated
September 1st each year for the next 12 months
6
Prepare
p
Throughout
g
the Year
• Get Organized – most of the MOR process
does not change from year to year
7
Prepare Throughout the Year – Admin.
• Set up a new Notebook or file for your SHCC
MOR Review documents each year after the
MOR is closed
• Update the Notebook or file with any changes
throughout
g
the yyear and as yyou work on yyour
Desk Review documents to send to SHCC
8
▫ Separate the Notebook or file into Sections:
x
x
x
x
x
x
x
Desk
k Review
i letter
l
to SHCC
Maintenance and Safety Policies, Procedures, Plans, etc.
Leasing and Occupancy Policies and Procedures
Tenant/Management Relations
General Management Practices
Addendum B
Correspondence with SHCC (Copy of the 60 – day Letter, MOR
R
Report,
t Response
R
Letter
L tt to
t SHCC
SHCC, if any, etc.)
t )
* For policies/forms that haven’t changed, insert a page “same
year” in the Notebook – don’t waste time re-copying
py g
as last y
them because you do not need to re-submit them to SHCC
9
• The more documents that you can put into an
electronic format (for example,
example Microsoft
Word), the more efficiently you can prepare for
your MOR each year, so start converting and
scanning (correspondence from SHCC, MOR
reports, etc.) documents this year, if you haven’t
already
10
• Make sure your Tenant Files are organized and each
one is set up
p in the same order ((see sample
p ffile checklist))
▫ If you do not have your Tenant Files in order, start reorganizing them now!
▫ Files that are disorderly are
usually
ll fil
files that
th t are also
l missing
i i
forms, signature, etc., and they are
veryy difficult to audit and often result in more
Errors/Findings
11
• Information you need to track if you do not have
a software program that does it for you:
1)
Track your Move-Ins and Move-outs (and
evictions and terminations) and Turn Around time
on an annuall b
basis
i – be
b ready
d tto explain
l i any
vacancies that were in excess of 60 days (see
sample unit turnaround schedule)
2)
Track your Work Order Turn Around time – be
ready to explain any Work Orders that were not
completed within 7 days (see sample work order
turnaround schedule)
12
3)
Track yyour Move-Ins for Income Targeting
g
gp
purposes
p
(see sample income targeting worksheet)
4)
Track any Security
Security-related
related issues that occur on
on-site
site –
be ready to discuss how they were handled by
you/your staff (see sample security monitoring)
• Update these tracking forms (if you don’t use a software
program that will do this for you) as part of your close
outt process each
h month
th – you will
ill need
d the
th iinformation
f
ti
on the day of the on-site visit
13
• Set up an EIV Notebook to keep “hard copies” of
required documents:
• These documents must be retained on-site and made
available
il bl to SHCC or HUD upon request:
▫ Written authorization from the owner to access EIV data for
the property
▫ List
Li t off EIV C
Coordinator(s)
di t ( ) and
d EIV User(s)
U ( ) who
h currently
tl h
have
access to the EIV system
▫ HUD approved EIV Coordinator Access Authorization
Form(s) (CAAFs) for each EIV Coordinator assigned to the
property (original and current)
14
▫ EIV Coordinator approved EIV User Access Authorization
Form(s) (UAAFs) for each employee assigned access to EIV
data for the property (original and current)
▫ Signed
g
Rules of Behavior document for each p
person that does
not have access to the EIV system, but will be reviewing EIV
data for authorized purposes
Additionally,
▫ Set up a “Master file” to retain copies of the other EIV Reports
that are “stand-alone”
stand-alone reports that identify potential issues
which may impact a family’s assistance
15
▫ The “Master file” should contain:
x Sections for each required Report
x Documentation and/or notations as indicated in the
HUD Notice H 2010-10
x Refer to the following for assistance:
x EIV Data Flow Chart (Attachment 5
5, HUD Notice H
2010 -10)
x Use of EIV Reports (Attachment 6, HUD Notice H
2010 10) – this
2010-10)
thi iis a very useful
f ld
documentt
16
Prepare Throughout the Year – Maintenance
▫ If yyou conduct thorough
g Annual Inspections
p
during
g
the year, follow up on all of the Work Orders that are
issued, and maintain the exterior of your buildings and
y should do well on the Physical
y
common areas,, you
Inspection part of the MOR
▫ Other things you can do:
▫ Prior to the MOR and the “60-day Letter” (if possible),
review the most recent REAC Inspection report
17
▫ Make sure that you have corrected all of the
deficiencies noted on the most recent REAC
inspection for each unit (especially Level 2 and 3
and any “Life Threatening” or EH&S items) –
don’tt wait until right before the MOR to complete
don
these Work Orders, if possible
▫ SHCC will usually choose some of the units that
had deficiencies as part of the Physical Inspection
part of the MOR to see if these deficiencies have
p
been corrected, so be prepared
18
x If a non EH&S site deficiency (such as
as, site
drainage issues or heaving sidewalks or parking
lots, etc.) is noted on the most recent REAC
inspection or on the previous MOR, and you
have not been able to remedy the issue, be
prepared to explain why – it is important to
talk to the Asset Mgr. about these issues –
often they do not realize the financial constraints
that a Property has to deal with
19
▫ If you plan to do a “pre
pre – MOR
MOR” inspection
(recommended), and there are a lot of Work
Orders as a result of the Unit Inspections, the
turnaround time may be longer than is normal
for your property, and the larger number of
Work Orders may insinuate that there are
more issues on the property than there really
are
20
▫ SHCC will be looking at the turnaround time for the
Work Orders that are requested as part of the Desk
Review and for Work Orders that are “open” on the
day of the on-site visit, so be prepared to explain “why”
if there are some Work Orders that took more than 7
days to complete (ie. we just did a unit inspection on
all of the property)
▫ Otherwise, you might receive an Observation or
Fi di for
Finding
f having
h i too
t many “outstanding”
“ t t di ” W
Work
k
Orders
21
• The Property Assistant Manager/Manager should go
inside each unit on the property at least once a
year – no matter how good your Maintenance staff
is
22
After You Receive Your “60-day Letter”
• “60-day Letter” – Notice of your upcoming
MOR on-site
on site visit:
isit:
23
▫ Look at the Notebook/electronic file you
created after your last MOR or start one now if
you don’t have one (preferably an electronic
file)
▫ Look at the list of documents/information that
is being requested this year (pages 3 and 4 of
the 60 – day Letter)
x These are the “Desk Review documents” or items
that
h you will
ill need
d to submit
b i to SHCC 30 d
days prior
i
to your on-site visit
24
• If there is something new,
new and you do not
recognize what is being requested, e-mail your
Asset Manager (the person who signed the
letter), and ask for some clarification – do not
hesitate to talk to the Asset Manager
25
• Copy and use the list on pages 3 and 4 of the 60 – day
Letter – or make one of your own based on this list
• You can use this as a checklist as you update and collect
the information you will need to submit to SHCC
• Start by marking off all of the items that have not changed since
the last MOR and ones that are not applicable to your
p p y
property
• You might want to use different colored highlighters for items
that have not changed and do not need to be re-submitted, ones
that are current “annual” documents, ones that have been
updated since last year, ones that are not applicable to your
property, etc.
26
• As you know,
know there is a lot of information that
you have to put together, so it is easier to keep it
organized if you can “mark
mark it off”
off as it is
completed
27
Each year, before you submit your Desk Review documents,
review the following to make sure you have implemented all
of the changes that have been released since your last MOR:
•
•
•
•
•
•
Tenant Selection Plan
Lease and Addendums
Tenant file checklist (update it with new, required forms)
EIV Policies and Procedures
Oth fforms/policies
Other
/ li i
Waiting List – make sure it is being
Utilized and Documented correctly
28
• How do you know what is new?
29
1) Review the SHCC and RHIIP ListServ
e-mails you have received
2) Check the SHCC website
3) Contact your Asset Manager
30
1)
Review the SHCC and RHIIP ListServ
ee-mails
mails that you have received during
the previous 12 months (if you were
registered
g
and have time)) – it is g
good to “flag”
f g
the ones that you think are important during
the year
These e-mails will notify you of new HUD
Notices, dates that the EIV System is “down,” etc.
31
2) Check the SHCC website - (“Home Page”
and “Management
g
Reviews”)) to see what is
new
Also,
so, go to
o “Forms”
o s o
on thee S
SHCC
CC Home
o ep
page,
ge, then
e to
o
“Management Reviews Forms” to review the current
HUD Leases, forms, and sample HUD forms – make
sure you are using the current versions of the forms
(l k att th
(look
the d
dates
t on the
th HUD fforms))
EIV – go to the “EIV” link, and you can obtain the
SHCC EIV P
Policy
li Ch
Checklist
kli t under
d the
th “EIV
Policies/Procedures” section – it is a very useful tool
32
• Tenant Selection Plan ((TSP)) – Use SHCC’s
website to get the most recent update on Tenant
Selection Plan Requirements (“Tenant Selection
Plan )
Plan”)
and
““click
li k h
here”” at the botto
bottom of the sa
samee page
age fo
for
the complete list of TSP requirements (it is
always good to re-check to make sure your TSP
i l d everything
includes
hi that
h iis required)
i d)
33
• If you just need to update your TSP because a
new HUD Regulation was recently issued
issued, you
can usually go to the SHCC website and “cut and
paste” the “Update
paste
Update on TSP Requirements
Requirements”
information, and put it into your Tenant
Selection Plan to save yourself time and to make
sure you include all of the correct “language”
34
• Sometimes you will need to “tweak”
tweak the wording
a little, but you will not have to try to figure out
what has to be added based on the latest HUD
Regulation that was issued and how to state it
• Remember - you must follow what is in your
Tenant Selection Plan – don’t just add the
information
35
3) Contact the your Asset Manager
(person who signed the “60-day Letter”)
x Why is it important to contact your Asset
Manager?
x He/she can usually advise you of any new
changes
g or issues that SHCC is concentrating
g
on at the current time – but you have to ask!
36
▫ He/she can often review a policy for you and
let you know, prior to the MOR, if
adjustments need to be made to it to avoid a
Finding
▫ Although SHCC is not allowed to provide
written policies, SHCC can tell you what is
missing or incorrect in your policy if you ask
37
▫ One more important step…
step
Read the MOR report from last year and
make sure you have corrected all of the
Errors/Findings
/
g (“Summary
(
y Report
p
–
Findings” - 2nd page of the 9834 Form)
38
• If there were Observations/Recommendations
that were listed for improving certain areas of
Management, be prepared to respond to these if
you did not follow the Recommendations – you
are NOT required to make the suggested
changes, so if you do not feel they are practical
for your particular situation, do not make the
changes,
h
b
butt be
b ready
d to
t explain
l i why
h
39
• Once yyou have reviewed and updated
p
all of the
applicable policies, forms, etc., you will be ready to
write your Desk Review Letter (use the same one as
last year and update it to include any changes –
(see sample Desk Review Letter to SHCC)
• Organize
g
the documents either in the same order as
you have them listed on your Desk Review Letter to
SHCC or in the same order as they are listed on the
60-day
y Letter from
f
SHCC - the easier it is for the
Asset Manager to review your documents, the better
40
▫ You do not need to re-submit
re submit any documents
that have not changed since the last MOR
▫ Try to send all of the documents within 30
days
y of the receipt
p of yyour 60 – day
y Letter so
that you will have time to discuss any
questions you might have about new
regulations, etc.
41
• If you are not sure that you have re-written
re written your
Tenant Selection Plan correctly or started
utilizing a new form correctly, etc. – do not
hesitate to talk to your Asset Manager before
the on-site visit – you can adjust your TSP, etc.
after you send it in for the Desk Review
42
After you Submit the Desk Review Letter &
Before the On-site Visit
30 days left…
1)
Conduct a “mini” file audit – 4-5 files
x Use your own file audit form or the Addendum A
form that SHCC will be using during the on-site visit
(
(see
Addendum
Add d
A)
x If you do not find any/many errors, your files are
probably in good shape
43
x If you do find a lot of errors, and you have a small
propert you
property,
ou should audit as many
man files as you
ou can
before the on-site visit; however, if you have a large
property, you should start auditing your files on an
ongoing
g g basis throughout
g
the yyear to avoid file Findings
g
next year
2) Make sure you have the current Fair Housing
posters and
d SHCC Call
C ll C
Center posters
displayed
3)) M
Make
k sure th
the Fair
F i H
Housing
i
logo
l
is
i on your
site sign and advertisements and forms
44
After you Submit the Desk Review
Letter & Before the On-site
On site Visit
4) Make sure you are using the current
Income Limits
5) Make sure you are using the VAWA
Addendum, EIV & You Brochure, etc.
45
6)
Give your Tenants a least 48 hours notice
prior to the on-site review
x Keep a copy of the notice on file for SHCC to review
during the on-site visit
46
7)
Make sure you have the documents listed on page
4 of the 60-day Letter available for the Asset
Manager on the day of the on-site visit:
x Safety program documentation related to monitoring and
f ll
follow-up
on security
it events
t th
thatt h
have occurred
d iin th
the llastt 12
months
x # of open
p Work Orders as of the dayy of the on-site visit and an
explanation for any that have been backlogged for more than 7
days
Avg. unit make
make-ready
ready time for the last 12 months and
x Avg
explanation for units that were vacant for more than 60 days
47
• List of documents (continued)
▫ If there is an extended vacancy problem (several units remaining
vacant for more than 60 days), an explanation for the vacancies
and steps to correct them
▫ # of evictions/terminations during the past 12 months
48
Dayy of MOR and Final Report
p
• Relax…it is almost over!
49
p
• Your Asset Manager must issue the Final Report or form HUD-9834
within 30 days of your on-site visit
• If you feel that any of the issues that were discussed during the “exit
interview” on the day of the on-site visit were questionable, do not
h it t tto gett more iinformation
hesitate
f
ti ffrom th
the A
Assett M
Manager after
ft th
the
on-site visit and continue the discussion if you feel that there is an
error
• Ask for the Regulation that is being referenced, and read the
Regulation and see if you agree
• It is easier to correct a problem prior to the issuance of the Final
Report
50
p
• Once you receive your MOR Report, please read
more than the first page of the letter from SHCC
with
i h the
h Rating
i and
d the
h fi
first page off the
h form
f
HUD9834 with the list of Corrective Actions required, if
any
• If you do have a Finding or Error, make sure you
understand it and then, respond
p
to SHCC (see the
sample Response Letter to SHCC) as quickly as
possible so that you can get the MOR “closed”
• You should “Ace” your next MOR!
51
Most Recent Changes
▫ New Social Security Number disclosure
requirements
q
– HUD
U Final Rule effective J
Januaryy
31, 2010 and HUD Notice H 2010-08 that
provides clarification and implementation
▫ New EIV Requirements – HUD Final Rule
effective January 31, 2010, HUD Notice H 201008, and HUD Notice H 2010-10 that was issued
July 1, 2010 that provides updated instructions to
Owners and Management
g
Agents
g
regarding
g
g the
use of the EIV system
52
Most Common Findings
g
• Waiting List Management
▫ Must contain all required data fields:
Date and time the applicant submitted an application
Name of Head of Household
Annual Income Level (EL, VL, L)
Identification of need for an accessible unit, including the
need for accessible features
x Preference status
x Unit Size
x And all changes (date offered unit
unit, date housed
housed, date
removed and why, etc) must be documented on the WL
x
x
x
x
53
Most Common Findings
g
• Tenant Rent and HAP verification and/or
calculation errors
• Lack of implementation of HUD updates on
forms and policies
• Lack of use of the new EIV & You Brochure
54
Information
• Please note that all of the Sample Forms provided are
ONLY Sample forms to give you a “starting point” on
how to structure some of your forms – they are not
meant to be used without adaptations to the latest
regulations and to agree with your agency’s policies
and procedures
• If you have any questions or need any additional information,
please feel free to contact me:
• [email protected]
• (830) 627-7100
• (830) 627-7102
ADDENDUM A
OMB Approval No. 2502-0178
Exp. 11/30/2011
Tenant File Review Worksheet
Instructions: Review the appropriate number of tenant files and complete this worksheet for each file reviewed. Indicate the initial move-in date
in the appropriate box. Indicate by marking the appropriate box (Yes, No, or N/A) for each document available in the tenant file. For move-out
and applicant rejections files, reviewer should only complete the pertinent sections.
Name of Reviewer:
Type of Review:
Applicant Rejection
Tenant Move-In
Tenant Move-Out
Certification/Recertification
Effective date of certification(s) reviewed:
If Certification/Recertification, indicate certification type:
Certification Type:
Initial
Annual
Interim
Family Name:
Bedroom Size:
Other
Unit Number:
0 Bedroom
1 Bedroom
2 Bedroom
A. HOUSEHOLD INFORMATION
1. Is the application complete, including the date and time
received by the owner/agent?
Move-in Date:
3 Bedroom
4 Bedroom
5 or more Bedrooms
Yes
No
Comments:
2. Are the household members identified correctly?
(head, spouse, dependent, co-head, other adult(s), live-in
aide)
3. Is the unit size appropriate for household?
Yes
No
Comments:
Yes
No
Comments:
4. Was household income eligible at move-in?
(This question applies only to a tenant file move-in
review.)
Yes
No
Comments:
No
Over income?
Very low income?
Comments:
5. If household was not income eligible at move-in, was
an exception granted?
6. Is the lead-based paint acknowledgement in the file?
Yes
Yes
No
N/A
Low income?
Extremely low income?
Comments:
7. Does the file contain the ethnicity and racial Data
Certification as provided to the owner/agent?
Yes
No
Comments:
8. Have the HUD-9887/9887-A Consent Forms been
signed by head, spouse, co-head regardless of age and
family members at least 18 years of age?
9. Was the HUD-9887 Fact Sheet provided to the tenant?
Yes
No
Comments:
Yes
No
Comments:
10. Does the file contain the Resident Rights and
Responsibilities acknowledgement?
Yes
No
Comments:
form HUD-9834 (6/2009)
Ref. HUD Handbook 4350.1, REV-1
and HUD Handbook 4566.2
Page 1 of 4
ADDENDUM A
Exp. 11/30/2011
B. VERIFICATION
Have the following items been properly verified and documented?
1. Social security numbers for all family members at least
Yes
6 years of age and older or certification, if no SSN
No
Comments:
2. Eligible immigrant status or citizenship
Yes
No
Comments:
3. Criminal and drug screening; sex offender registration
Yes
No
Comments:
4. Other screening as disclosed in Tenant Selection Plan
Yes
No
Comments:
5. Disability
Yes
No
N/A
Comments:
6. Student status
Yes
No
N/A
Comments:
7. Age
Yes
No
N/A
Comments:
8. Did the household certify whether or not they disposed
of assets during the past two years?
Yes
No
N/A
Comments:
C. LEASE
1. Is the correct HUD model lease used?
2. Is the original lease and subsequent leases or
addendums signed by the owner/agent, head, spouse, cohead, and all other adult members of the household?
3. Are applicable attachments attached to the lease, e.g.,
house rules, pet rules, unit inspection report?
Yes
No
Comments:
Yes
No
Comments:
Yes
No
Comments:
4. If security deposit is required, was it correct?
Yes
No
N/A
Comments:
If required, enter amount here:
5. If pet deposit required, was it correct?
Yes
No
N/A
Comments:
Yes
No
N/A
Comments:
If required, enter amount here:
6. If pet deposit was paid in installments, was payment in
accordance with the pet regulations?
7. Is the move-in inspection dated and signed by tenant
and owner/agent?
Yes
No
Comments:
8. Are Annual inspections documented in file?
Yes
No
Comments:
D. CERTIFICATION/RECERTIFICATION ACTIVITIES
1. Were recertification notices provided within the
required timeframes?
Yes
No
Comments:
2. Were recertifications completed on time?
Yes
No
Comments:
3. Is the certification signed and dated by the appropriate
parties?
Yes
No
Comments:
form HUD-9834 (6/2009)
Page 2 of 4
ADDENDUM A
Exp. 11/30/2011
3rd Party Verification?
All reported income and deductions verified
and calculated correctly?
Amount Reported
on 50059
4. Wages
Yes
No
$
5. Social Security Benefits
Yes
No
$
6. Welfare/Public Assistance/TANF
Yes
No
$
7. Other income
Yes
No
$
8. Actual Income from Assets
Yes
No
$
9. Imputed income when assets are greater than
$5,000
10. Dependent Allowance
Yes
No
$
Yes
No
$
11. Medical Expenses
Yes
No
$
12. Disability Expenses
Yes
No
$
13. Childcare Expenses
Yes
No
$
14. Elderly/disabled household allowance
Yes
No
$
15. Are all expenses/allowances claimed
eligible under the HUD Handbook 4350.3 REV1?
16. Was the correct unit rent used for rent
determination?
Enter the reviewer verified amounts for the
following:
Yes
No
Comments:
Yes
No
Comments:
Did income information on the 50059 agree with
verified file information? If no, comment on
discrepancies identified
Amount Reported on the
50059
$
Did income information on the 50059 agree with verified file
information? If no, comment on Discrepancies Identified.
Comments:
$
Comments:
$
Comments:
$
Comments:
17. Total Tenant Payment
$
18. Tenant Rent
$
19. Utility Reimbursement
$
20. Assistance Payment
$
21. Is the tenant paying minimum rent?
Yes
No
N/A
Comments:
22. Has a hardship exception been granted for
paying minimum rent?
Yes
No
N/A
Comments:
23. Was a 30-day rent increase notice provided
to tenant?
Yes
No
N/A
Comments:
24. If applicable, has tenant entered into a
written payment plan for monies due to the
project?
Yes
No
N/A
Comments:
form HUD-9834 (6/2009)
Page 3 of 4
ADDENDUM A
Exp. 11/30/2011
E. BILLING
1. Does the assistance payment requested on
the monthly billing (HUD-52670-A, Part 1)
agree with the assistance payment on the 50059
data requirements?
2. If required, have adjustments been made to
the monthly billing?
Yes
No
N/A
Comments:
Yes
No
N/A
Comments:
F. MOVE-OUT FILE REVIEW ONLY
1. Was there a move-out notice from tenant?
Yes
No
Comments:
2. Was there a move-out inspection?
Yes
No
Comments:
3. If there is a move-out inspection, is it dated?
Yes
No
Comments:
4. Was the security deposit refunded to tenant
within 30 days or in accordance with state/local
laws whichever is shorter?
5. Was an itemized list of the damages and
charges provided to the tenant?
Yes
No
N/A
Comments:
Yes
No
N/A
Comments:
6. Were any additional charges paid by tenant?
Yes
No
N/A
Comments:
7. Does the tenant move-out date on voucher
match the date the tenant vacated unit?
G. APPLICANT REJECTION REVIEW ONLY
1. Was the reason the applicant was denied
admittance in accordance with the Tenant
Selection Plan?
2. Did the rejection letter provide the applicant
the right to appeal?
3. If the applicant appealed, was the appeal
reviewed by someone other than the person who
made the original decision?
4. Was the appeal processed and applicant
notified of appeal decision within five days of
the meeting?
Yes
No
Comments:
Yes
No
Comments:
Yes
No
Comments:
Yes
No
N/A
Comments:
Yes
No
N/A
Comments:
form HUD-9834 (6/2009)
Page 4 of 4
Attachment 5: Using EIV Data Flow Chart
EIV
SSA DATA
HHS DATA
O/A accesses data and compares
EIV income data to the income the
tenant reports he/she receives
Benefits reported in EIV
agree with income
tenant reports he/she
receives – O/A uses EIV
data as 3rd party
verification and to
calculate tenant’s
income
O/A accesses data and compares
EIV data to what tenant reports
he/she receives
If the benefits reported in
EIV do not agree with the
amount the tenant reports
receiving or if the tenant
disputes benefits reported
in EIV – O/A requests
tenant to obtain Proof of
Income Letter from SSA
Tenant agrees with
income/income source
reported in EIV – O/A uses
EIV as 3rd party verification
and uses tenant provided
documents, e.g., pay stubs,
to calculate tenant income.
O/A reviews EIV data for previous years to
determine any unreported income. If unreported
income is discovered for previous years, O/A
must discuss with tenant. O/A is limited to
requesting third party verification on income the
tenant may have received to the past 5 years for
which the tenant was assisted (see forms HUD9887 and HUD-9887-A).
If tenant does not dispute, O/A determines
amount of under-payment of rent either by
obtaining 3rd party verification or using
income data reported in EIV. O/A either
requires repayment in full or enters into a
repayment plan with the tenant. O/A will
make an adjustment to the voucher to return to
HUD amount(s) received from tenant minus
amount(s) retained to cover costs. See Section
IX.C.4 of this Notice.
Information in EIV does
not agree with
source/amount the tenant
reports receiving or
tenant disputes
income/income source
reported in EIV – O/A
obtains 3rd party
verification directly from
3rd party source. O/A
uses 3rd party verification
to calculate tenant’s
income.
If tenant disputes, O/A must verify with
third party source. If unreported income,
owner determines amount of underpayment of rent. O/A either requires
payment in full or enters into repayment
plan with tenant. O/A will make an
adjustment to voucher to return to HUD
amount(s) received from tenant minus
amount(s) retained to cover costs. See
Section IX.C.4 of this Notice.
65
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Special Attention of:
NOTICE: H 10-08
Multifamily Hub Directors
Multifamily Program Center Directors
Rural Housing Services (RHS) Directors
Supervisory Housing Project Managers
Housing Project Managers
Contract Administrators
Multifamily Owners and Management Agents
Issued: April 13 2010,
Subject:
I.
Expires: April 30, 2011
___________________
Cross References:
Implementation of Refinement of Income and Rent Determination Requirements
in Public and Assisted Housing Programs: Implementation of the Enterprise
Income Verification System - Amendments; Final Rule
Purpose
The purpose of this Notice is to provide instructions to owners and management agents
(O/As) participating in one of Multifamily Housing’s rental assistance programs listed in
Section III of this Notice, on the new requirements found in the Refinement of Income
and Rent Determination Requirements in Public and Assisted Housing Programs:
Implementation of the Enterprise Income Verification System – Amendments; Final
Rule, published in the Federal Register on December 29, 2009. A copy of the final rule
is attached to this Notice and is also located at
http://edocket.access.gpo.gov/2009/pdf/E9-30720.pdf.
II.
Background of Final Rule
In 2001, OMB released the President’s Management Agenda which established the
reduction of erroneous payments as a key government-wide priority, evidenced by the
Eliminating Improper Payments initiative, which required agencies to measure improper
payments annually, develop improvement targets and corrective actions, and track
results. At that time, HUD established the Rental Housing Integrity Improvement Project
(RHIIP) to address the causes of errors and improper payments in HUD’s assisted
housing programs and to ensure that the right benefits go to the right persons.
On June 19, 2007, to be consistent with the RHIIP initiative, HUD published for public
comment a proposed rule to revise HUD’s public and assisted housing program
regulations. The purpose of the proposed rule was to address HUD’s priority of reducing
errors in subsidy payments to public housing authorities and O/As caused by incorrect
income determinations and rent calculations in both HUD’s public housing program and
in tenant-based and project-based rental assistance programs. After consideration of
public comments, the final rule was published on January 27, 2009. To be consistent
with Administration policy to review rules issued during the transition from one
Administration to another, HUD re-opened the January 27, 2009, final rule for public
comment, and specifically solicited public comment on extending the effective date of
the rule. The public comments received highlighted certain regulatory provisions that
required further clarification and ones that were outside the purpose of the rule, which is
full implementation of the Enterprise Income Verification (EIV) system. By final rule
published on August 28, 2009, HUD delayed the effective date of the January 27, 2009,
final rule to January 31, 2010, and requested public comment on the proposed
amendments to the final rule entitled Refinement of Income and Rent Determination
Requirements in Public and Assisted Housing Programs: Implementation of Enterprise
Income Verification through publication of a proposed rule on October 15, 2009. The
Refinement of Income and Rent Determination Requirements in Public and Assisted
Housing Programs: Implementation of the Enterprise Income Verification System—
Amendments; Final Rule was published December 29, 2009, making this rule effective
January 31, 2010, superseding the January 27, 2009, final rule. This rule also supports
Executive Order 13520, Reducing Improper Payments, signed by President Barack
Obama on November 20, 2009.
In accordance with the directions from the Office of the Federal Register, the December
29, 2009, final rule, because it is the later published rule, supersedes the January 27,
2009, final rule, which also took effect on January 31, 2010. Accordingly, only the
regulatory amendments of the December 29, 2009, final rule are effective and applicable.
The use of the EIV system by O/As as an upfront income verification (UIV) technique,
will serve as a valuable tool in validating tenant reported income during interim and
annual recertifications of family income; as well as in streamlining the income
verification process, resulting in less administrative burden in complying with third party
verification requirements. EIV will help to identify and cure inaccuracies in housing
subsidy determinations, which will benefit O/As, tenants and taxpayers by ensuring that
the level of benefits provided on behalf of families is proper. Finally, the use of EIV will
assist in preventing fraud, waste and abuse within Multifamily Housing’s rental
assistance programs.
To make the EIV system as effective as possible, the subject final rule also made certain
changes to the requirements for disclosure and verification of a Social Security Number
(SSN). The SSN requirement stems from the Housing and Community Development Act
of 1987 which granted the Secretary of HUD the authority to require applicants and
participants (including their household members) to disclose their SSN in order to
participate in a HUD rental assistance program. The purpose of this statutory provision
was to enable the Department to provide accurate rental assistance on behalf of the family
and to prevent fraud, waste and abuse in the rental assistance programs covered under the
HCD Act.
The SSN, along with the name and date of birth of an individual, is used by HUD to
2
verify the individual’s identity, obtain employment and income information about the
individual through computer matching programs for verification purposes at
recertification and to ensure that the Department is not paying duplicate rental assistance
on behalf of that individual.
III.
Applicability
This Notice applies to the following programs:
A.
B.
C.
D.
E.
F.
G.
H.
IV.
Project-based Section 8
1. New Construction
2. State Agency Financed
3. Substantial Rehabilitation
4. Section 202/8
5. Rural Housing Services Section 515/8
6. Loan Management Set-Aside (LMSA)
7. Property Disposition Set-Aside (PDSA)
Section 101 Rent Supplement
Section 202/162 Project Assistance Contract (PAC)
Section 202 Project Rental Assistance Contract (PRAC)
Section 811 PRAC
Section 236
Section 236 Rental Assistance Payment (RAP)
Section 221(d)(3) Below Market Interest Rate (BMIR)
Change in Social Security Number (SSN) Requirements
A.
Change in Regulation
1.
Revised Regulation
The regulation at 24 CFR 5.216 now requires that assistance applicants
and tenants, excluding tenants age 62 and older as of January 31, 2010,
whose initial determination of eligibility was begun prior to January 31,
2010, and those individuals who do not contend eligible immigration
status, to disclose and provide verification of the complete and accurate
SSN assigned to them. The requirement to disclose and provide
verification of a SSN is no longer limited to those assistance applicants
and tenants six years of age and older. In addition, the process of having
an applicant household certify they have a SSN for each household
member six years of age and older, and continuing with the recertification
process until the time of their move-in certification is no longer applicable.
2.
Exceptions to Disclosure of SSN
The SSN requirements do not apply to:
3
(a)
Individuals who do not contend eligible immigration status.
(1)
Mixed Families: For projects where the restriction on
assistance to noncitizens applies and where individuals are
required to declare their citizenship status, the existing
regulations pertaining to proration of assistance or
screening for mixed families must continue to be followed.
In these instances, the owner will have the tenant’s
Citizenship Declaration on file whereby the individual did
not contend eligible immigration status to support the
individual not being subject to the requirements to disclose
and provide verification of a SSN.
NOTE: The O/A may not deny assistance to mixed
families due to nondisclosure of a SSN by an individual
who does not contend eligible immigration status.
(2)
For Section 221(d)(3) BMIR, Section 202 PAC, Section
202 PRAC and Section 811 PRAC properties, the
restriction of assistance to noncitizens does not apply.
Individuals living at one of these properties who do not
contend eligible immigration status must sign a
certification, containing the penalty of perjury clause,
certifying to that effect. The certification will support the
individual not being subject to the requirements to disclose
or provide verification of a SSN. The certification must be
retained in the tenant file.
(See Handbook 4350.3 REV-1, Paragraphs 3-12 N, O and P
for more information on mixed families and proration of
assistance.)
NOTE: HUD regulations do not prohibit an individual (head of household
with other eligible household members) with ineligible immigration status
from executing a lease or other legally binding contract. However, if your
state law prohibits this, the family must not be admitted into the program.
(b)
Individuals age 62 or older as of January 31, 2010, whose initial
determination of eligibility was begun before January 31, 2010.
The eligibility determination is based on participation in either a
Public and Indian Housing or Multifamily HUD assisted program.
The eligibility date is based on the initial effective date of the form
HUD-50059 or form HUD-50058, whichever is applicable.
4
(1)
The exception status for these individuals is retained if the
individual moves to a new assisted unit under any HUD
assisted program or if there is a break in his or her
participation in a HUD assisted program.
(2)
When determining the eligibility of an individual who
meets the exception requirements for SSN disclosure and
verification, documentation must be obtained from the
owner of the property where the initial determination of
eligibility was determined prior to January 31, 2010, that
verifies the applicant’s exemption status. This
documentation must be retained in the tenant file. An O/A
must not accept a certification from the applicant stating
they qualify for the exemption.
Example:
Mary Smith does not have a SSN. Mary does not
have to disclose or provide verification of a SSN
because she was 73 years old as of January 31,
2010, and her initial eligibility for HUD’s rental
assistance program was determined when she
moved into Hillside Apartments on February 1,
2009 (initial eligibility was determined prior to
January 31, 2010.)
Mary moved out of Hillside Apartments on April
10, 2010, and moved in with her daughter who
was not receiving HUD’s rental assistance.
Mary then applied at Jones Village, another HUD
subsidized apartment complex, on November 5,
2010. Because Mary’s initial eligibility to
receive HUD’s rental assistance was begun prior
to January 31, 2010 (February 1, 2009), Mary is
not required to meet the SSN disclosure and
verification requirements as long as the owner
can verify Mary’s initial eligibility date at
Hillside Apartments was begun prior to January
31, 2010.
(c)
Existing tenants as of January 31, 2010, who have previously
disclosed their SSN and HUD has determined their SSN to be
valid.
5
O/As may confirm HUD’s validation of the tenant’s SSN by
viewing the household’s Summary Report or the Identity
Verification Report in the EIV system.
B.
Timeframe for Providing Social Security Numbers
1.
Applicants
(a)
Applicants currently on or applying to waiting list
Applicants do not need to disclose or provide verification of a SSN
for all non-exempt household members at the time of application
and for placement on the waiting list. However, applicants must
disclose and provide verification of a SSN for all non-exempt
household members before they can be housed.
(b)
Housing applicants from the waiting list
If all non-exempt household members have not disclosed and/or
provided verification of their SSNs at the time a unit becomes
available, the next eligible applicant must be offered the available
unit.
The applicant who has not disclosed and/or provided verification
of SSNs for all non-exempt household members has 90 days from
the date they are first offered an available unit to disclose and/or
verify the SSNs. During this 90-day period, the applicant may, at
its discretion, retain its place on the waiting list. After 90 days, if
the applicant is unable to disclose and/or verify the SSNs of all
non-exempt household members, the applicant should be
determined ineligible and removed from the waiting list.
2.
Tenants
(a)
Timeframe for providing SSN
(1)
All tenants, except those individuals age 62 or older as of
January 31, 2010, whose initial determination of eligibility
was begun before January 31, 2010 (based on the effective
date of the form HUD-50059 or form HUD-50058,
whichever is applicable), and those individuals who do not
contend eligible immigration status, must disclose and
provide verification of their SSN at the time of their next
interim or annual recertification if:
(i)
They have not previously disclosed a SSN;
6
(2)
(b)
(ii)
Previously disclosed a SSN that HUD or the SSA
determined was invalid; or
(iii)
Been issued a new SSN.
If a tenant fails to provide a valid and verified SSN, the
household is subject to termination of tenancy in
accordance with 24 CFR 5.218. See Paragraph E.1. below.
SSN Not Previously Disclosed
The head of household must bring SSN verification, through one
or more of the documents listed in Section IV.D Verification, to
the recertification meeting for any household member who has not
disclosed and provided verification of their SSN.
(c)
Invalid SSN Disclosed
The head of household must be notified when EIV pre-screening or
the SSA validation determines that a household member has
provided an invalid SSN. See Section IV.D.1(d) for information
on the Failed EIV Pre-Screening Report and the Failed
Verification Report and Section IV.D.2 for acceptable SSN
verification documentation.
(d)
Assignment of a New SSN
If a tenant or any member of a tenant’s household is or has been
assigned a new SSN, the tenant must provide the SSN and
documentation to verify the SSN (see Section D. Verification
below) to the O/A at:
(e)
(1)
The time of receipt of the new SSN; or
(2)
The next interim or regularly scheduled recertification;
or
(3)
Such earlier time as specified by the O/A.
Adding a Household Member
(1)
Age Six or Older
When a tenant requests to add a household member who is
age six or older, the documentation of the SSN as
7
referenced in Section IV.D.2 of this notice for the new
household member, must be provided to the O/A at the
time of the request or at the time the recertification that
includes the new household member is processed. The O/A
must not add the new household member until such time as
the documentation is provided.
(2)
Child Under the Age of Six
(i)
With a SSN - When adding a household member
who is a child under the age of six with a SSN, the
child’s SSN must be disclosed and verification
provided at the time of processing the recertification
of family composition that includes the new
household member.
(ii)
Without a SSN - If the child does not have a SSN,
the O/A must give the household 90 days in which
to provide documentation of a SSN for the child.
An additional 90-day period must be granted by the
O/A if the failure to provide documentation of a
SSN is due to circumstances that are outside the
control of the tenant. Examples include but are not
limited to: delayed processing of the SSN
application by the SSA, natural disaster, fire, death
in family, etc. During this time period, the child is
to be included as part of the household and will
receive all of the benefits of the program in which
the tenant is involved, including the dependent
deduction.
A TRACS ID will be assigned to the child until the
documentation of the SSN is required to be
provided. At the time of the disclosure of the SSN,
an interim recertification must be processed
changing the child’s TRACS ID to the child’s
verified SSN. If the SSN is not provided, the
household is subject to the penalties described in
Paragraph E. below.
C.
Applying for a Social Security Number
An individual who has never been issued a SSN card or who has lost their SSN
card may complete Form SS-5 – Application for a Social Security Card to request
an original or replacement SSN card, or change information on his/her SSA
record. The form is attached to this Notice and also available online at
8
www.ssa.gov, or can be obtained at the local SSA office. O/As should provide
assistance in applying for a SSN to any applicant or tenant who requests it.
D.
Verification
1.
2.
The O/A shall verify and document each disclosed SSN by:
(a)
Obtaining the documentation listed in 2 below from each member
of the applicant’s or tenant’s household.
(b)
Making a copy of the original documentation submitted, returning
the original to the individual and retaining the copy in the file
folder;
(c)
Recording the SSN on line 45 of the form HUD-50059 and
transmitting the data to TRACS in a timely manner. O/As are
encouraged to transmit the form HUD-50059 data within 30
calendar days, to enable HUD to initiate its computer matching
efforts; and
(d)
To ensure that the SSN transmitted to TRACS is valid, O/As must
use the Failed EIV Pre-Screening Report and the Failed
Verification Report in EIV in accordance with the instructions in
the current HUD Housing Notice, Enterprise Income Verification
System.
(1)
The Failed EIV Pre-Screening Report identifies tenants
who failed the EIV pre-screening test due to invalid or
missing personal identifiers.
(2)
The Failed Verification Report identifies tenants that have
had their personal identifiers sent to SSA, via HUD’s
computer matching program with the SSA, but the data
could not be verified by SSA due to missing or invalid
information or other SSA issues.
Acceptable Verification Documents – Most individuals should be able to
verify all SSNs with a Social Security card. However, if the applicant or
tenant cannot produce the Social Security card for any or all non-exempt
household members, other documents showing the household member’s
SSN may be used for verification. He or she may be required to provide
one or more of the following alternative documents to verify his or her
SSN.
(a)
Original document issued by a federal or state government agency
which contains the name, SSN, and other identifying information
9
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
of the individual.
Drivers license with Social Security Number
Earnings statements on payroll stubs
Bank statement
Form 1099
SSA benefit award letter
Retirement benefit letter
Life insurance policy
Court records
Further information regarding acceptable verification documents can be
found in HUD Handbook 4350.3, REV-1 Occupancy Requirements of
Subsidized Multifamily Housing Programs.
3.
Rejection of Documentation
The O/A must reject a document that:
(a)
Is not an original document; or
(b)
Is the original document but it has been altered, mutilated, or is not
legible; or
(c)
Appears to be a forged document (e.g., does not appear to be
authentic).
The O/A must explain to the applicant or tenant the reason(s) why the
document(s) is not acceptable and request the individual obtain acceptable
documentation of the SSN and submit it to the O/A within a reasonable
time frame.
4.
Actions Once SSN is Verified
(a)
Once the individual’s SSN has been verified, the O/A should
remove and destroy the copy of the documentation referenced in
Paragraph D.1.b above by no later than the next recertification of
family income or composition.
(1)
Paper documentation should be destroyed by shredding,
pulverizing or burning.
(2)
Electronic documentation should be destroyed by erasing
or permanently deleting the file.
(3)
Additional guidance related to destruction of records is
available in HUD Handbook 2400.25, REV-2: HUD
10
Information Technology Security Policy, dated October 1,
2008. The handbook is available online at:
http://www.hud.gov/offices/adm/hudclips/handbooks/admh
/2400.25/index.cfm.
(b)
E.
The retention in the tenant file of the Household Summary Report
from the EIV system which will report the status of the identity
verification process provides verification of the SSN. Retaining
this report in the tenant file and destroying the copy of the SSN
documentation will minimize the risk of exposing the individual’s
SSN. O/As are encouraged to minimize the number of tenant
records that contain documents which display the full nine-digit
SSN.
Penalties for a Tenant’s Non-disclosure of SSN
1.
2.
Termination of Tenancy – O/As must terminate the tenancy of a tenant
and the tenant’s household if the tenant does not meet the SSN disclosure,
documentation and verification requirements in the specified timeframe as
the household is in non-compliance with its lease.
(a)
This termination of tenancy includes those households who have
not disclosed and verified the SSN for any child under the age of 6
who did not have a SSN when added to the household with the
understanding that this SSN would be provided within 90 days
after admission, or within the 90-day extension period, if
applicable.
(b)
There is no proration of assistance for those household members
who are required to obtain a SSN but who fail to disclose and
verify their SSN.
(c)
Termination of tenancy does not apply to those households with
individuals who do not contend eligible immigration status or who
are age 62 or older as of January 31, 2010, whose initial
determination of eligibility was begun before January 31, 2010
(based on the effective date of the form HUD-50059 or form
HUD-50058, whichever is applicable), unless there are other
members of the household who have not disclosed or provided
verification of their SSNs.
Deferring Termination of Tenancy – The O/A may defer termination of
tenancy and provide the tenant with an additional 90 days past their next
regularly scheduled recertification of income and family composition to
become compliant with the SSN disclosure and verification requirements.
11
V.
(a)
The deferral is at the O/A’s discretion and must only be provided if
failure to meet the SSN requirements was due to circumstances
outside the control of the tenant and there is likelihood that the
tenant will be able to disclose and provide verification of the
needed SSN(s) by the deadline date.
(b)
After this 90-day deferral, if the tenant has not disclosed and
provided verification of the needed SSN(s), the O/A must pursue
termination of tenancy.
Mandatory Use of the Enterprise Income Verification (EIV) System
A.
New Regulation
The new regulation at 24 CFR 5.233 requires O/As to incorporate use of EIV in
its entirety:
B.
1.
As a third-party source to verify tenant employment and income
information during mandatory recertifications of family composition and
income, and
2.
To reduce administrative and subsidy payment errors.
Implementing the Use of the EIV System
1.
2.
C.
Effective January 31, 2010, it is mandatory that O/As use EIV:
(a)
At the time of recertification of family composition and income.
(b)
At other times as specified:
(1)
By HUD in the current Housing Notice Enterprise Income
Verification (EIV) System.
(2)
In the O/A’s Tenant Selection Plan and Policies and
Procedures.
In order to account for the 120 days permitted to process an annual
recertification, all recertifications with an effective date of June 1, 2010,
and beyond must reflect use of the EIV system. This date was determined
by adding 120 days to the January 31, 2010, effective date of the final
rule.
EIV System
12
1.
EIV Access
The EIV system is part of HUD’s Secure Systems. In order to access the
EIV system, a user must obtain access rights to the EIV system as either
an EIV Coordinator or EIV User depending upon the required level of
functionality in the system.
Instructions for obtaining access to EIV are posted at:
http://www.hud.gov/offices/hsg/mfh//rhiip/eiv/eivapps.cfm
2.
EIV Use
The current Housing Notice, Enterprise Income Verification System,
provides instructions on use of EIV data for verifying, at the time of
recertification, the employment and income of individuals participating in
one of Multifamily Housing’s rental assistance programs listed in Section
III of this Notice. The Notice also provides instructions for using the
various reports in the EIV system. The Notice is posted at:
http://portal.hud.gov/portal/page/portal/HUD/program_offices/administrati
on/hudclips/notices/hsg
3.
Monitoring Compliance
Contract Administrators (Performance Based Contract Administrators
(PBCAs), Traditional Contract Administrators (TCAs), and HUD staff)
(CAs) must monitor the O/A’s compliance with the requirement to use
EIV and the data contained in the EIV system. Information on monitoring
EIV compliance is discussed in the Rent and Income Determination
Quality Control Monitoring Guide for Multifamily Housing Programs. A
copy of the Guide is located on the Multifamily RHIIP page at:
http://www.hud.gov/offices/hsg/mfh//rhiip/mfhrhiip.cfm
D.
Penalties for Not Having Access To and/or Using EIV
Effective January 31, 2010, O/As are required to have access to and begin using
the EIV system as a third party verification source and as a supplement to
reducing administrative and subsidy payment errors.
1.
No Penalty Imposed
Listserv and iMAX messages were posted beginning in mid-November
2009, with instructions to submit a hardcopy Coordinator Access
Authorization Form (CAAF) to the Multifamily Help Desk by December
15, 2009, and complete the online request for certification by January 15,
2010, in order to be assured of EIV access by January 31, 2010. If an O/A
is able to provide verification that it met these deadlines, but has not yet
13
received access at the time of an on-site review, they will not be penalized
for the inability to begin using the system on January 31, 2010.
The O/A must:
2.
(a)
Present the initial hardcopy CAAF sent to the Multifamily Help
Desk in order to verify that it was submitted by December 15,
2009.
(b)
Present a copy of the online CAAF for certification to verify that it
was submitted by January 15, 2010.
(c)
Follow-up with the Multifamily Help Desk if access has not been
granted.
(d)
Begin implementing use of EIV immediately upon receiving
access.
Penalty Imposed
(a)
If it is determined that the O/A did not receive access to the EIV
system by January 31, 2010, because it did not submit its CAAF to
the Multifamily Help Desk by December 15, 2009, and/or did not
complete the property assignment process by January 15, 2010, as
instructed in Listserv and iMAX messages posted beginning midNovember 2009, did not begin using EIV as of January 31, 2010,
or is not using EIV in accordance with the current EIV HUD
Housing Notice:
(1)
The CA must make this a finding on its report to the O/A.
(2)
The O/A will incur a penalty of a five percent decrease in
the voucher payment for the month following the date the
violation was found.
(3)
The O/A must make an adjustment on its next scheduled
voucher to adjust for the five percent decrease.
(4)
The CA must monitor the O/A to ensure the adjustment is
made.
14
(b)
VI.
The O/A will have 30 days to cure the finding as a result of the onsite review.
(1)
Once the O/A cures the finding by obtaining access to
and/or using EIV, another adjustment to the voucher will be
made by the O/A to collect the funds previously returned to
HUD.
(2)
If the O/A fails to cure the finding within the time allotted,
both the owner and the management agent will be flagged
in HUD’s Active Partners Performance System (APPS).
Once the finding is cured, the flag will be removed.
Notification to Applicants/Tenants of Regulation Changes
A.
Change in the SSN Disclosure and Verification Requirements
1.
Applicants
O/As must contact applicants currently on the waiting list notifying them
of the change in SSN requirements and that they will have to disclose and
provide verification of SSNs for all non-exempt household members
before they can be admitted.
2.
Tenants
(a)
(b)
Notice must be given to the head of household indicating SSN
documentation must be brought to the recertification meeting for
all household members, except for those individuals over the age
of 62 as of January 31, 2010, whose initial determination of
eligibility was begun before January 31, 2010 (based on the
effective date of the form HUD-50059 or form HUD-50058,
whichever is applicable), and for those individuals who do not
contend eligible immigration status, who have:
(1)
Not disclosed their SSN;
(2)
Previously disclosed a SSN that HUD or the SSA
determined was invalid; or
(3)
Been issued a new SSN.
Notice must be given to all tenants indicating the change in SSN
requirements when adding a new household member (see Section
IV.B.2.e).
15
(c)
B.
Concerning subparagraphs (a) and (b) above, ensure that these
requirements are provided in a translated form to individuals with
limited English proficiency.
Mandatory Use of EIV
Tenants must be notified of the mandatory use of EIV by O/As. The Department
has developed an EIV brochure titled EIV & You to assist the O/A in notifying
tenants and applicants who have been selected from the waiting list for screening
and final application processing. This brochure can be found on the Multifamily
EIV website at http://www.hud.gov/offices/hsg/mfh/rhiip/eiv/eivhome.cfm. The
brochure can also be ordered by calling HUD at 800-767-7468 or faxing 202-7082313. The brochure is required by Housing Notice H 2010-02 to be distributed at
each annual recertification and when an applicant household has been selected
from the waiting list for screening and final application processing.
VII.
Updating O/A’s Tenant Selection Plans and Policies and Procedures
A.
B.
The Tenant Selection Plan must be updated to include:
1.
Changes in SSN requirements; and
2.
Use of the EIV Existing Tenant Search as a part of the applicant screening
process.
Policies and Procedures must be updated to include use of the EIV reports:
1.
At the time of recertification of family composition and income;
2.
As required by HUD, e.g., monthly use of the Failed EIV Pre-screening
Report and Failed Verification Report (see the current Housing Notice,
Enterprise Income Verification (EIV) System); and
3.
At other times as determined by the O/A.
VIII. Tools and Resources
Refinement of Income and Rent Determination Requirements in Public and Assisted
Housing Programs: Implementation of the Enterprise Income Verification System –
Amendments; Final Rule
http://edocket.access.gpo.gov/2009/pdf/E9-30720.pdf
Current Housing Notice, Enterprise Income Verification (EIV) System; found on
HUD’s HUDCLIPS Housing Notices Website at:
http://portal.hud.gov/portal/page/portal/HUD/program_offices/administration/hudclip
s/notices/hsg
Multifamily Housing EIV Website:
16
http://www.hud.gov/offices/hsg/mfh//rhiip/eiv/eivhome.cfm
Enterprise Income Verification (EIV 9.0) System User Manual for Multifamily
Housing Program Users
http://www.hud.gov/offices/hsg/mfh/rhiip/eiv/usermanual.pdf
Rental Housing Integrity Improvement Project (RHIIP) website
http://www.hud.gov/offices/hsg/mfh/rhiip/mfhrhiip.cfm
“Resolving Income Discrepancies Between Enterprise Income Verification (EIV)
System Data and Tenant-Provided Income Information”
http://www.hud.gov/offices/hsg/mfh//rhiip/eiv/eivhome.cfm
Handbook 4350.3 REV-1, Occupancy Requirements of Subsidized Multifamily
Housing Programs
http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4350.3/index.cfm
EIV Multifamily Help Desk
Telephone: 202-708-7588
Email: [email protected]
EIV Training conducted on December 16 and December 17, 2008, December 2009
and February 25, 2010; Webcasts
http://portal.hud.gov/portal/page/portal/HUD/webcasts/archives/multifamily
EIV Training conducted on December 16 and December 17, 2008, and December
2009; PowerPoint presentation
http://www.hud.gov/offices/hsg/mfh/rhiip/eiv/eivtraining.cfm
A Guide to Interviewing for Owners of HUD Subsidized Multifamily Housing
Programs
http://www.hud.gov/offices/hsg/mfh/rhiip/casestudy/app_4.pdf
HUD Notice H 2010-02 EIV & You Brochure – Requirements for Distribution and
Use
http://portal.hud.gov/portal/page/portal/HUD/program_offices/administration/hudclip
s/notices/hsg/files/10-02hsgn.doc
EIV & You Brochure:
http://www.hud.gov/offices/hsg/mfh/rhiip/eiv/eivhome.cfm
Rent and Income Determination Quality Control Monitoring Guide for Multifamily
Housing Programs
http://www.hud.gov/offices/hsg/mfh/rhiip/qcguide.pdf
If you have questions regarding this Notice, please contact your local Contract
Administrator or local HUD field office.
IX.
Paperwork Reduction
The information collection requirements contained in this notice have been approved by
the Office of Management and Budget (OMB) under the Paperwork Reduction Act of
1995 (44 U.S.C. 3520) and assigned OMB Control Number 2502-0204. In accordance
with the Paperwork Reduction Act, HUD may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless the collection displays a
currently valid OMB control number.
17
_______________________________
David H. Stevens
Assistant Secretary for Housing –
Federal Housing Commissioner
Attachments:
Final Rule 2009
SS-5 Social Security Card Application
18
Attachment 8: MOR Findings for EIV Compliance (List is not all inclusive)
What is considered a Management and Occupancy Review
(MOR) Finding?
(Mandatory EIV Use)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20
O/A does not have access to EIV
O/A is not using EIV for recertifications effective June 1, 2010
Missing/incomplete EIV documents as listed on the Addendum C.
(Email HUD Headquarters immediately to Terminate the coordinator’s/user’s
access at the following address: [email protected])
• Name, property, MOR date and missing documentation
• Advise O/A mitigate and contact CA to reinstate access
Rules of Behavior for non-system users missing where applicable
EIV data being shared with other entities, e.g., state officials monitoring tax
credit projects, rural Housing staff monitoring Section 515 projects, or Service
Coordinators
EIV data not kept secure
O/A has not updated Policies and Procedures to include EIV use
O/A has not updated Tenant Selection Plan to include use of Existing Tenant
Search
EIV Income Reports are not in tenant files as third party verification
Tenant files do not have documentation to support EIV income discrepancy
resolution
O/A is not using Existing Tenant Search
O/A is not reviewing New Hires Report
Unresolved Failed Verification (SSA Identity Test) and Pre-screening
discrepancies
Deceased Tenants Report has not been reviewed and/or errors corrected
Multiple Subsidy Report has not been reviewed and/or errors corrected
O/A is not following HUD’s record retention requirements
Missing/Incomplete form HUD-9887
O/A is not providing tenants with the EIV& You brochure when selected from
waiting list to move-in and at annual recertification
Individual’s having access to the EIV system or data had annual security
training?
O/A is sharing access Ids and passwords
76
Sample Checklist for House Rules: Are the rules related to the safety and comfort of the Tenants? Examples: noise levels, fire safety, security Are the rules related to the care of the property? Examples: trash disposal, littering, graffiti, parking on the grass Are the rules compliant with HUD requirements? Do the rules discriminate against individuals based upon membership in a protected class? Do the rules comply with state and local requirements? Example: abandonment of a unit definition, if applicable Are the rules “reasonable”? Examples: 1) requesting that all visitors sign in when entering the building 2) not allowing smoking in the common area of the building 3) asking tenants to turn down sound equipment after a certain time at night 4) asking children under the age of 12 to be accompanied by an adult resident when using building facilities Rules regarding extended absence from a unit, if applicable May be defined as greater than 60 continuous days, or for longer than 180 continuous days for medical reasons; may allow for exceptions Tenants conducting incidental business (computer work, limited babysitting, etc.) in their unit May establish rules for the following: 1)
2)
3)
4)
Amount of traffic (foot and motor) Amount of noise Prohibition of signs in unit windows Use of parking within a project grounds for such incidental business use 5) Hours the incidental work can be performed if it could disturb the rights or comfort of the neighbors • If you have a Section 515 Property, make sure you do not charge for mowing the lawn You must give Tenants a written, 30‐day notice prior to implementing new House Rules Sample "Desk Review" Letter to SHCC
page 1 of 3
Housing Authority of the City of AnyTown
1 North St.
Anytown, TX 70000
September 06, 200X
Mr. Sum One
Southwest Housing Compliance Corp.
PO Box 6430
Austin, TX 78762
RE: Anytown Housing Authority/TX1111111
Dear Mr. Sum One:
This letter and the enclosed documents are in response to the receipt of your letter dated
August 6, 200X. Your letter stated that SHCC would be conducting a Management and
Occupancy Review on the above referenced property on September 18, 200X.
The information that you requested that is specific to this property is enclosed.
I previously submitted the following documents, and these policies forms have not changed
since the closing of the last MOR:
¾ Preventive Maintenance policies/procedures (no checklist is used)
¾ General Maintenance policies/procedures
¾ Unit Inspection policies/procedures
¾ Make-ready and/or vacancy policies/procedures
¾ Applicant Rejection Letter
¾ Tenant
Questionnaire’s
and/or
Interview
Form(s)
used
for
Certifications/Recertifications
¾ Affirmative Fair Housing Marketing Plan (approved 06/01/200X) (if less than 5
years ago)
¾ Lease and all Attachments (including VAWA, House Rules, and all Addendums)
¾ Pet Rules/Agreement and Pet Deposit Policies
¾ Rent Collection Policy, including policy for late fee assessment
¾ Tenant Damages Charge-back list
¾ Eviction policies/procedures, including a sample 10-day notice for termination of
tenancy
page 2 of 3
¾ Procedures for tenant file security, who has access to files, retention time, and
how files are disposed of
¾ Utility reimbursement check distribution procedures
¾ Security measures and procedures that have been put in place to secure and
safeguard EIV data
¾ Procedures for resolving tenant complaint/concerns, including written grievance
procedures that have been implemented
¾ Formal ongoing training
¾ Current List of Principals
The following documents are enclosed with this letter:
¾
¾
¾
¾
¾
Work Orders for the 30 days prior to the date of this letter (August 1 – August 31)
Current Waiting List (12 months)
Copies of any advertising and outreach performed to comply with the AFHMP
Copies of two Security Deposit disposition forms
Description of EIV training that has been provided to and/or attended by staff that
has access to EIV data
¾ List of all on-site staff charged to the project
The following policies are attached and have been updated since the last Management and
Occupancy Review:
¾ Tenant Selection Plan
¾ Security Deposit Policy
¾ Written EIV policy that a current, signed and dated HUD-9887/9887A must be on
file before EIV data is access for a Tenant
¾ Written guidelines for use of EIV employment and income data and reports
at the time of recertification,
¾ Written guidelines for the use of other EIV reports at times other than at
recertification, and
¾ Written guidelines for the use of EIV’s “Existing Tenant Search” function
¾ Written guidelines for the property’s monthly review of the Identity Verification
Report
page 3 of 3
The following are not applicable to this Project:
¾
¾
¾
¾
¾
Safety Patrol Daily Activity Log \Police Department for the last 12 months
Copy of current contract for safety patrol company/officers
List of safety measures that are utilized on-site
Supporting documentation for HUD approved Lead-Hazard Control Plan
There are no charges in addition to rent (e.g., cable TV, excess utilities,
parking, meals, etc.)
¾ There are no social services provided at the Project
¾ There is not a Neighborhood Network Center & START business plan
¾ The Property has not received any awards, etc.
The following documents will be sent by e-mail later this week:
¾ Application, Supplement to Application (Form: HUD-92006)
If you need any other information, please let me know.
Respectfully,
AnyOne
Executive Director
[Enclosures]
Sample File Organization/Checklist
page 1 of 6
Section 1 (Leases and Lease Addendum(s)/Amendments/Policies)
Lease and Lease Addendums/Amendments (divider)
Lease Addendum(s)/Rent Adjustment Notices/Initial Notice(s) with current version on top
Lease Agreement(s) with current version on top
(Place a colored sheet of paper between each set of Leases and Lease Addendum(s)/Initial Notice(s))
Initial Lease up Documents (divider)
Initial Lease and First Initial Notice form
Move-in Inspection form
House Rules
Lead Based Paint Notice*
Live-in Aide Addendum*
Pet Addendum*
VAWA Lease Addendum
List of Charges for Repair
Policy for Drug-Free Housing Form
EIV and You Brochure
Pet Policy
Occupancy Policy
Accessible Unit Availability Policy*
Rent Collection Policy
Renter’s Insurance form
Smoke Detector Policy*
Energy Conservation Policy*
Security Guidelines*
Controlled Access Policy*
Parking Policy*
Application Information (divider)
Appointment for Lease-up Letter
Criminal/Credit History Check
Landlord Verification form
Ready to House form
Application Renewal form
Active Waiting List Terms and Conditions form
Application for Admission
Proof of Qualification for a Preference*
Race & Ethnic Data Reporting form
9887/9887-A Packet
Final Decision on Immigration Status form*
Owner’s Summary of Family Sheet
Family Summary form
Verification Consent form* (must be signed before you use the SAVE system)
Declaration Format form & Citizenship Documentation
Owner’s Notice #1 form
Driver’s License/TX ID Card – all members 18 years old and older
Social Security Card(s) or Certification – all members*
Birth Certificate(s) – all members of the household
1
page 2 of 6
Section 2 Annual Recertification(s) Year:_______ _________ 50059 _________ 50059‐A _________ Asset Verification(s) _________ Income Verification(s) _________ Expense Verification(s) _________ 9887/9887‐A Packet _________ Recertification Questionnaire form _________ Third Reminder Notice * _________ Second Reminder Notice * _________ First Reminder Notice * Annual Recertification(s) Year:_______ Interim Exam and Gross Rent Chg. 50059s should be placed in chronological order behind corresponding Annual Recert divider. The documentation for an Interim Exam should be organized in the following way: 50059 50059‐A Asset Verification(s) Income Verification(s) _________ 50059 _________ 50059‐A _________ Asset Verification(s) _________ Income Verification(s) _________ Expense Verification(s) _________ 9887/9887‐A Packet _________ Recertification Questionnaire form _________ Third Reminder Notice * _________ Second Reminder Notice * _________ First Reminder Notice * Annual Recertification(s) Year:_______ _________ 50059 _________ 50059‐A _________ Asset Verification(s) _________ Income Verification(s) _________ Expense Verification(s) _________ 9887/9887‐A Packet _________ Recertification Questionnaire form _________ Third Reminder Notice * _________ Second Reminder Notice * _________ First Reminder Notice * Move‐In/Initial Certification Date:__________ _________ 50059 _________ 50059‐A _________ Asset Verification(s) _________ Income Verification(s) _________ Expense Verification(s) _________ 9887/9887‐A Packet Expense Verification(s) Personal Declaration form page 3 of 6
Section 3 (Unit Inspections) (Place a colored sheet of paper between each year’s inspection(s)
Results of Unit Inspection (letter to Tenant)*
Annual Inspection form
Inspection Notice form
All of the documents must be placed in chronological order with the most recent
document on top.
Complete the certification below as part of the Annual Recertification each year:
I certify that I have reviewed the documents that are located in this section of the file, and all of
the required documents are present and are placed in chronological order.
Initial:
Date:
Date & Initial of File Auditor
3
page 4 of 6
Section 4 (Lease Violation Notices and Complaints)
Lease Violation Log
Past Due Notices and Complaints/Notices involving lease violations (these must be
placed in chronological order)
document on top.
Initial:
Date:
Date
4
Initial of File Auditor
page 5 of 6
Section 5 (Security Deposit Receipt(s), Repayment Agreements, Invoices)) (Place the
Security Deposit Receipt in the file first, followed by a colored sheet of paper)
Repayment Agreement(s)
Invoice(s) for damages, etc.
Security Deposit Receipt(s)/Security Deposit Distribution form (if applicable)/Pet Deposit
Receipt(s)
document on top.
Initial:
Date:
Date
5
page 6 of 6
Section 6 (Notes to Resident, Contacts, Pet info, etc.)
Designated Person Agreement (always keep this form on top and update it during
each Annual Recertification
Notes to Tenant File form
Notes to Resident (not lease violations or complaints – those are placed in Section 4)
*Vehicle/Parking Agreement
*Pet Information (must be updated annually)
Other (Vehicle registration, Utility information, etc.)
* When applicable
Initial:
Date:
Date
6
Sample Income Targeting Worksheet FY Beginning: 01/01/2010 Name of Tenant Income Level (EL, VL, L) # of EL Move‐Ins Divided by the Total # Move‐Ins % of EL Move‐Ins (should be 40% or Greater Annually) T. Smith EL 1 /1 = 1 100% J. Jones VL 1 /2 = .50 50% L. Wilson EL 2 /3 = .66 66% Move‐In Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1/1/2010 2/1/2010 3/15/2010 Sample Response Letter to SHCC
Housing Authority of the City of Anytown
1 North St.
Anytown, TX 70000
The Anytown Housing Authority does not discriminate on the basis of disability status in the admission or access to, or treatment or
employment in, its federally assisted programs and activities.
November 5, 200X
Mr. Sum One
Southwest Housing Compliance Corp.
PO Box 6430
Austin, TX 78762
RE: Anytown Housing Authority/TX00000000
Dear Mr. Sum One:
This letter and the enclosed documents are in response to the receipt of the Annual Management
and Occupancy Review Report dated October 15, 200X.
The following documents are enclosed in response to the Error #1 E19:
9 A copy of the signed, corrected Interim Recertification form HUD-50059 for Unit B
9 A copy of a refund to the Tenant in Unit B for the amount of $145.00 ($29 x 5 months)
The Observation #2, E14 has been noted, and the following language will be added to the
Housing Authority’s written communication with the public: The Anytown Housing Authority does
not discriminate on the basis of disability status in the admission or access to, or treatment or
employment in, its federally assisted programs and activities.
If you need any other information, please let me know.
Respectfully,
AnyOne
Any One
Executive Director
[Enclosures]
Sample Security Monitoring Schedule Documented in Tenant File (Y or N) Date Incident Occurred Unit #/Tenant(s) Involved Comments (explain what happened, how the conflict was resolved, etc) Sample Unit Turn Around Schedule
Total Days for Make Move‐In Date Ready Process Make Ready Start Date Move‐Out Date Make Ready Completion Date Comments (Evictions/Terminations, etc) Total Turn Around Time Sample Work Order Turn Around Schedule
Date Reported Unit # Date Completed Comments (note if it was an Emergency Work Order, etc.) Total # of Days EIV Policy Checklist
EIV System Security Measures to protect EIV data
Technical Safeguards
Administrative Safeguards
Physical Safeguards
EIV Existing Tenant Search
Description that the search will be performed during the application process for all household
members listed on the application
Description of procedures for follow-up on all applicants reported as being assisted at another
property or through another program
EIV Identity Verification Reports
Frequency that the Failed Pre-Screening and Failed Verification Report will be reviewed and
resolved (minimum monthly)
Description of procedures that will be followed to resolve discrepancies
EIV Multi-subsidy Report
Frequency that the Multi-subsidy Report will be reviewed and resolved (minimum quarterly)
Description of procedures that will be utilized to follow-up on all tenants reported as being
assisted at another location
Deceased Tenant Report
Frequency that the Deceased Tenant Report will be reviewed and researched (minimum
quarterly)
Description of procedures that will be utilized to follow-up on all tenants reported as deceased
New Hires Report
Frequency that the New Hires Report will be reviewed and acted upon (minimum quarterly)
Description of procedures to be followed when a resident is reported to have started a new job
No Income Report
Frequency that the No Income Report will be reviewed and acted upon (minimum quarterly)
Description of procedures that will be utilized to follow-up on a tenant reporting zero income who
does not appear on the No Income Report
EIV Employment and Income Data Reports
Statement that each household’s Income, Summary, and Income Discrepancy Report will be
printed and reviewed during the recertification process
Description of how each of the Reports will be reviewed and utilized
Description of Income Discrepancy resolution procedures, to include how cases of identity theft
and tenant fraud will be handled
If any of the Reports are utilized at any other time than recertification, e.g., the Income
Discrepancy Report or No Income Report, a description of when each Report will be accessed
© 2010 Southwest Housing Compliance Corporation
Distributed by SHCC based upon HUD guidance as of 2/25/2010
Attachment 6: Use of EIV Reports
USE OF EIV REPORTS
REPORT
Summary Report
*UPDATE
TSP
P&P
X
Summary of
household information
from the current,
active certification in
the TRACS file at the
time of the income
match.
Provides Identity
Verification Status by
identifying tenants
whose personal
identifiers:
•
•
•
•
Match the SSA
database “Verified”
Does not match
the SSA database
– “Failed”
Have not been
sent by HUD to
SSA for validation
or have not yet
been matched by
SSA for validation
– “Not Verified”
SSA’s records
indicate the
person is deceased
– “Deceased”
REPORT USE
FILE DOCUMENTATION
Summary Report(s) as
verification of the SSN for all
household members whose
Identity Verification Status is
“Verified”.
Must be used at
recertification (annual
and interim)
•
To validate a
tenant’s SSN
•
To review and
resolve discrepant
or invalid personal
identifiers of
tenants with a
“failed” or
“deceased” status
Note: Nothing has to
be done at the time of
recertification with
those tenants with an
Identity Verification
Status of “Not
Verified”. However,
the Failed SSA
Identity Test report
must be checked
monthly as a change in
the Identity
Verification Status
may occur.
See Section VII.A.1
*TSP = Tenant Selection Plan
P&P = Policies and Procedures
66
Correspondence or
documentation received to
resolve a tenant’s “Failed” or
“Deceased” status.
Documentation for household
members identified as exempt
from disclosing and providing
verification of a SSN:
•
•
Tenants who were 62 years
of age or older as of
January 31, 2010 and
whose initial determination
of eligibility was begun
before January 31, 2010;
and
Individuals who do not
contend eligible
immigration status
If the Summary Report in the
tenant file shows an Identity
Verification Status of
“Verified” for all household
members required to have a
SSN, the Owner does not have
to continue to print out the
Summary Report at
recertification unless there is a
change in household
composition or in a household
member’s identity verification
status
RETENTION
Tenant file
Summary Report and
supporting documentation must
be retained in the tenant’s file
for term of tenancy plus 3
years.
Note: O/As may remove and
destroy copies of verification
documentation received from
the tenant to verify their SSN
once the Identity Verification
Status shows “Verified”.
O/As are encouraged to
minimize the number of tenant
records that contain documents
that display the full nine-digit
SSN.
USE OF EIV REPORTS
REPORT
*UPDATE
TSP
P&P
O/A REPORT USE
FILE DOCUMENTATION
RETENTION
INCOME REPORTS
Note: A current, signed form HUD-9887 must be on file to view and/or use the income reports.
A current, signed form HUD-9887-A must be on file to obtain written third party verification of income.
No Dispute of EIV
X
Mandatory use at
Tenant File
Income Report
Information:
Recertification Retain copy of Income Report
Annual and Interim
and supporting documentation
• EIV Income Report
Provides employment
with applicable form HUD• Current, acceptable tenant
and income reported
May be used at other
50059 for term of tenancy plus
provided documents
by HHS and SSA for
times
as
indicated
in
3 years.
• Third party verification
each household
O/A’s
policies
and
from the source, if
member that passes the
procedures.
Note: The O/A must make
necessary
SSA identity test.
copies of any tenant provided
documents and return the
• Serves as third
Disputed EIV Information:
Identifies tenants who:
originals to the tenant.
party verification
• May not have
of employment
reported complete
and income.
and accurate
from the source for the
income
disputed information
New Admissions:
information
• Review new
Tenant-reported income not
• May be receiving
admissions within verified through the EIV
multiple subsidies
90 days after the
system:
move-in
See Section VII.A.2
information is
• Current, acceptable tenanttransmitted to
provided documents,
TRACS to
and/or
confirm/validate
the income
from the source
reported by the
household.
Any correspondence with/from
tenant relating to disputes of
the employment or income
reported in EIV.
Resolve discrepancies
in reported income
with the family within
30 days of the EIV
Income Report date.
Form HUD-50059(s)
67
USE OF EIV REPORTS
REPORT
*UPDATE
TSP
P&P
O/A REPORT USE
FILE DOCUMENTATION
RETENTION
INCOME REPORTS Cont’d.
All correspondence to/from the Tenant file
X
Mandatory use at
Income
Retain copy of Income
tenant regarding the income
Recertification
Discrepancy
Discrepancy Report and any
discrepancy.
Annual and Interim
Report
documentation related to the
resolution of the discrepancy,
Report may be used at Documentation received to
Identifies households
including any repayment
resolve the discrepancy,
other times as
where there is a
agreements for term of tenancy
including written third party
indicated in O/A’s
difference of $2,400 or
plus 3 years.
verification of income, if
policies and
more in the wage,
applicable.
procedures.
unemployment and
SSA benefit
The file must be documented
Must print the
information reported
regardless of whether the O/A
report at the same
in EIV and wage,
determines the discrepancy to
time the Income
unemployment and
be valid or invalid.
Report is printed.
SSA benefit
information reported
Discrepancies must be Corrected form HUD-50059(s),
in TRACS for the
reviewed and resolved if applicable.
period of income used
at the time of
for discrepancy
Repayment Agreement, if
recertification or
analysis.
applicable.
within 30 days of the
The report serves as a
tool to alert O/As that
there may be a
discrepancy in the
income reported by the
tenant during the
period of income used
for the discrepancy
analysis.
EIV Income Report
date.
Review data in
TRACS to make sure
agrees with the form
HUD-50059 data.
Correct any discrepant
data in the TRACS
database.
See Section VII.A.3
68
USE OF EIV REPORTS
REPORT
*UPDATE
TSP
P&P
O/A REPORT USE
FILE DOCUMENTATION
RETENTION
X
As identified in O/A’s Third party verification from
Tenant file
No Income
Any documentation or third
policies
and
income
sources
of
other
Report
party verifications for other
procedures.
income reported by tenant, if
income reported by the tenant
Interview tenants,
applicable.
Identifies tenants who
asking the right
passed the SSA
years.
questions to provide
Correspondence/documents
identity test but no
the tenant the
received for re-verification of
income was reported
opportunity to disclose zero income tenants.
by HHS or SSA.
any income.
This does not mean
that the tenant does not
have any income. O/A
must obtain written
third party verification
of any income reported
by the tenant.
.
Recommend “zero”
income tenants be
required to disclose
and O/A re-verify
income at least
quarterly. These are
tenants who report no
income at all.
See Section VII.A.4
69
USE OF EIV REPORTS
REPORT
*UPDATE
O/A REPORT USE
FILE DOCUMENTATION
RETENTION
TSP
P&P
New Hires Report with
X
At least quarterly
Master file
New Hires Report
notation of action(s) taken.
Retain New Hires Summary
Report in a master “New Hires
Contact tenant
No Dispute of EIV
Report” file for 3 years.
regarding new
have new employment
Information:
employment
within the last 6
Tenant file
months. Report is
Retain New Hires Detail
Confirm
new
•
Current,
acceptable
tenant
updated monthly.
Report for the tenant along
employment with
provided documents
with any correspondence with
tenant. Request tenant • Third party verification
See Section VII.A.5
tenant, third party verifications,
provided documents to
from the source, if
form HUD-50059(s), etc., .for
support current income
necessary.
term of tenancy plus 3 years.
and/or third party
verification from
Disputed EIV Information:
employer, as
applicable.
from the source for
Process Interim
disputed information
Recertification to
include new income, if Any correspondence with/from
applicable.
tenant relating to new
employment and/or disputes of
the employment or income
reported in EIV.
Form HUD-50059(s)
.
70
USE OF EIV REPORTS
REPORT
*UPDATE
TSP
P&P
O/A REPORT USE
FILE DOCUMENTATION
RETENTION
VERIFICATION REPORTS
Note: A form HUD-9887 is not required to view and/or use verification reports.
Search results for each member
X
At the time of
Existing Tenant
of the household.
processing
an
Search
applicant for
Results of any contact with
admission
Identifies applicants
applicant must be recorded on
who may be receiving
and/or with the search results
Search
each
applicant
assistance at another
for affected household
and
applicant
Multifamily or PIH
member.
household
member
to
location.
see if receiving
Results of any contact with
assistance at another
See Section VII.B.2.a
PHA, owner, management
location.
agent where applicant is
reported as receiving assistance
Discuss with tenant
must be recorded on and/or
regarding
circumstances relative with the search results for
affected household member.
to being assisted at
another Multifamily or
PIH property.
Follow up with
respective PHA or
O/A to confirm the
individual’s program
participation status
before admission.
Coordinate movein/out dates with PHA
or O/A.
71
Application file
If not admitted – retain search
results and any supporting
documentation with the
application for 3 years.
Tenant file
If admitted – retain search
results and any supporting
documentation with the
application for term of tenancy
plus 3 years.
USE OF EIV REPORTS
REPORT
*UPDATE
O/A REPORT USE
FILE DOCUMENTATION
TSP
P&P
VERIFICATION REPORTS Cont’d.
Search results
X
At least quarterly
Multiple Subsidy
Report
may be receiving
rental assistance at
more than one
location.
See Section VII.B.2.b
Must search both
queries:
• Search within MF
• Search within PIH
Provide tenant
opportunity to explain
any circumstances
relative to his/her
being assisted at
another location.
Documentation to support any
action taken if household
and/or household member is
receiving multiple subsidies.
Follow up with
respective PHA or
O/A, if necessary, to
confirm tenant is being
assisted at the other
location. Depending
on the results, may
need to take action to
terminate the
assistance or tenancy
and repay subsidy to
HUD.
Documentation supporting any
contacts made or information
obtained to determine if
household and/or household
member is receiving multiple
subsidies.
72
Note: If a tenant’s multiple
subsidies were discussed and
resolved at the time of
recertification, this must be
noted on the printed report and
no further action is required.
RETENTION
Master file
Retain Multiple Subsidy
Summary Report and
supporting documentation in a
master “Multiple Subsidy
Tenant file
Retain a copy of the Multiple
Subsidy Detail Report for the
tenant along with any
documentation of action taken
for a household member for
term of tenancy plus 3 years.
USE OF EIV REPORTS
REPORT
*UPDATE
TSP
P&P
O/A REPORT USE
FILE DOCUMENTATION
RETENTION
Failed EIV Pre-screening
X
Monthly
Failed EIV PreReport documented with action
screening Report
Follow up with tenants taken to resolve invalid or
identified on the report discrepant personal identifiers.
where discrepant
have missing or
Note: This report will include
personal identifiers
invalid personal
those persons who are exempt
were
not
corrected
at
identifiers (last name,
from the SSN disclosure and
the
time
of
date of birth, SSN) in
verification requirements. In
recertification.
TRACS. These
these instances the O/A will
tenants will not be sent
note on the copy of the report
Check
accuracy
of
to SSA from EIV for
retained in the “Failed EIV
data
entry,
e.g.,
the SSA identity test.
Pre-Screening Report” master
numbers not
file that tenant(s) is exempt
transposed
in
SSN.
from SSN requirements.
need to disclose a
Contact
tenant
and
SSN, e.g., replace
Note: If a tenant’s information
confirm to verify
TRACS generated id
was corrected at the time of
discrepant
personal
number.
recertification but the EIV data
identifiers
has not yet been updated, this
See Section
must be noted on the printed
Correct
TRACS
data
VII.B.2.c.(1)
report and no further action is
required.
date of the report.
Failed
Verification
Report (Failed
SSA Identity
Test)
Identifies tenants
whose personal
identifiers (last name,
date of birth, SSN) do
not match the SSA
database.
See Section
VII.B.2.c.(2)
X
Monthly
Follow up with tenants
identified on the report
where discrepant
personal identifiers
were not corrected at
the time of
recertification.
Check accuracy of
data entry, e.g.,
numbers not
transposed in SSN.
Contact tenant and
confirm to verify
discrepant personal
identifiers.
Correct TRACS data
date of the report.
73
Failed Verification Report
(Failed SSA Identity Test)
report documented with action
taken to resolve invalid or
discrepant personal identifiers
Note: If a tenant’s information
was corrected at the time of
required.
Master file
Retain copy of report in a
master “Failed EIV Prescreening Report” file for 3
years.
Tenant file
Documentation to verify
years.
Master file
mater “Failed EIV SSA
Identity Test” file for 3 years.
Tenant file
Documentation to verify
years.
.
USE OF EIV REPORTS
REPORT
*UPDATE
TSP
P&P
O/A REPORT USE
FILE DOCUMENTATION
RETENTION
Deceased Tenants Report
X
At least quarterly
Deceased Tenants
Report
Identifies tenants
reported by SSA as
being deceased.
See Section VII.B.2.d
Confirm, in writing,
with head of
household, next of kin
or contact person or
entity provided by the
tenant to determine
whether or not the
person is deceased.
Documentation obtained to
resolve discrepancy.
If deceased, within 30
days from date of
report:
• Update family
composition, and,
if applicable,
income and
allowance, on the
form HUD-50059.
See Paragraph 713D of Handbook
4350.3 REV-1 for
effective date.
Note: If action was taken to
remove the deceased tenant
from the household or to
terminate tenancy of a
deceased single member of a
household at the time of
required.
Form HUD-50059 with change
of family composition.
Form HUD-50059-A for moveout.
•
Single member of
a household,
process move-out
using form HUD50059-A.
Effective date
retroactive to
earlier of 14 days
after date of death
or date unit
vacated.
Note: Overpayment
of subsidy must be
returned to HUD.
Any discrepant data in
TRACS must be
updated within 30 days
from the date of the
report.
Encourage tenant to
contact SSA if SSA’s
data is incorrect.
74
Master file
master “Deceased Tenants
Tenant file
Form HUD-50059 and/or form
HUD-50059-A plus any other
documentation received for a
particular tenant must be
retained for term of tenancy
plus 3 years.

How to Survive and Ace a Compliance Review THA Annual Conference 2010

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