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 Prepare Throughout the Year – Admin. ▫ 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 Prepare Throughout the Year – Admin. • 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 Prepare Throughout the Year – Admin. • 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 Prepare Throughout the Year – Admin. • 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 Prepare Throughout the Year – Admin. 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 Prepare Throughout the Year – Admin. • 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 Prepare Throughout the Year – Admin. ▫ 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 Prepare Throughout the Year – Admin. ▫ 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 Prepare Throughout the Year – Maintenance ▫ 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 Prepare Throughout the Year – Maintenance 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 Prepare Throughout the Year – Maintenance ▫ 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 Prepare Throughout the Year – Maintenance ▫ 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 Prepare Throughout the Year – Maintenance • 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 After You Receive Your “60-day Letter” ▫ 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 After You Receive Your “60-day Letter” • 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 After You Receive Your “60-day Letter” • 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 After You Receive Your “60-day Letter” • 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 After You Receive Your “60-day Letter” 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 After You Receive Your “60-day Letter” • How do you know what is new? 29 After You Receive Your “60-day Letter” 1) Review the SHCC and RHIIP ListServ e-mails you have received 2) Check the SHCC website 3) Contact your Asset Manager 30 After You Receive Your “60-day Letter” 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 After You Receive Your “60-day Letter” 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 After You Receive Your “60-day Letter” • 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 After You Receive Your “60-day Letter” • 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 After You Receive Your “60-day Letter” • 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 After You Receive Your “60-day Letter” 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 After You Receive Your “60-day Letter” ▫ 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 After You Receive Your “60-day Letter” ▫ 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 After You Receive Your “60-day Letter” • 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 After You Receive Your “60-day Letter” • 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 After You Receive Your “60-day Letter” ▫ 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 After You Receive Your “60-day Letter” • 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 After you Submit the Desk Review Letter & Before the On-site Visit 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 After you Submit the Desk Review Letter & Before the On-site Visit 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 After you Submit the Desk Review Letter & Before the On-site Visit 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 After you Submit the Desk Review Letter & Before the On-site Visit • 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 Dayy of MOR and Final Report 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 Dayy of MOR and Final Report 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 OMB Approval No. 2502-0178 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) Ref. HUD Handbook 4350.1, REV-1 and HUD Handbook 4566.2 Page 2 of 4 ADDENDUM A OMB Approval No. 2502-0178 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) Ref. HUD Handbook 4350.1, REV-1 and HUD Handbook 4566.2 Page 3 of 4 ADDENDUM A OMB Approval No. 2502-0178 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) Ref. HUD Handbook 4350.1, REV-1 and HUD Handbook 4566.2 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) 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 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) 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 5 Initial of File Auditor 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 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 6 Initial of File Auditor 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. Attachment 6: Use of EIV Reports 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 • EIV Income Report • May not have of employment reported complete • Third party verification 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 • EIV Income Report See Section VII.A.2 information is • Current, acceptable tenanttransmitted to provided documents, TRACS to and/or confirm/validate • Third party verification 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. *TSP = Tenant Selection Plan Form HUD-50059(s) P&P = Policies and Procedures 67 Attachment 6: Use of EIV Reports USE OF EIV REPORTS REPORT *UPDATE TSP P&P O/A REPORT USE FILE DOCUMENTATION RETENTION INCOME REPORTS Cont’d. 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. 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 *TSP = Tenant Selection Plan P&P = Policies and Procedures 68 Attachment 6: Use of EIV Reports USE OF EIV REPORTS REPORT *UPDATE TSP P&P O/A REPORT USE FILE DOCUMENTATION RETENTION INCOME REPORTS Cont’d. 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. 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 for term of tenancy plus 3 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 *TSP = Tenant Selection Plan P&P = Policies and Procedures 69 Attachment 6: Use of EIV Reports USE OF EIV REPORTS REPORT *UPDATE O/A REPORT USE FILE DOCUMENTATION RETENTION TSP P&P INCOME REPORTS Cont’d. 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. 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 Identifies tenants who No Dispute of EIV Report” file for 3 years. regarding new have new employment Information: employment within the last 6 Tenant file • EIV Income Report 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 • EIV Income Report applicable. • Third party verification 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) . *TSP = Tenant Selection Plan P&P = Policies and Procedures 70 Attachment 6: Use of EIV Reports 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. *TSP = Tenant Selection Plan P&P = Policies and Procedures 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. Attachment 6: Use of EIV Reports USE OF EIV REPORTS REPORT *UPDATE O/A REPORT USE FILE DOCUMENTATION TSP P&P VERIFICATION REPORTS Cont’d. Note: A form HUD-9887 is not required to view and/or use verification reports. Search results X At least quarterly Multiple Subsidy Report Identifies tenants who 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. *TSP = Tenant Selection Plan Documentation supporting any contacts made or information obtained to determine if household and/or household member is receiving multiple subsidies. P&P = Policies and Procedures 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 Report” file for 3 years. 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. Attachment 6: Use of EIV Reports USE OF EIV REPORTS REPORT *UPDATE TSP P&P O/A REPORT USE FILE DOCUMENTATION RETENTION VERIFICATION REPORTS Cont’d. Note: A form HUD-9887 is not required to view and/or use verification reports. 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. Identifies tenants who 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. Identifies tenants who 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 within 30 days of the 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 within 30 days of the date of the report. *TSP = Tenant Selection Plan P&P = Policies and Procedures 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 recertification but the EIV data has not yet been updated, this must be noted on the printed report and no further action is required. Master file Retain copy of report in a master “Failed EIV Prescreening Report” file for 3 years. Tenant file Documentation to verify discrepant personal identifiers for term of tenancy plus 3 years. Master file Retain copy of report in a mater “Failed EIV SSA Identity Test” file for 3 years. Tenant file Documentation to verify discrepant personal identifiers for term of tenancy plus 3 years. . Attachment 6: Use of EIV Reports USE OF EIV REPORTS REPORT *UPDATE TSP P&P O/A REPORT USE FILE DOCUMENTATION RETENTION VERIFICATION REPORTS Cont’d. Note: A form HUD-9887 is not required to view and/or use verification reports. 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 recertification but the EIV data has not yet been updated, this must be noted on the printed report and no further action is 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. *TSP = Tenant Selection Plan Encourage tenant to contact SSA if SSA’s data is incorrect. P&P = Policies and Procedures 74 Master file Retain copy of report in a master “Deceased Tenants Report” file for 3 years. 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.
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