Common Findings. MOR Tips 7/10/2018. Common Finding. 4A Lease. Common Finding. Common Finding. Application. 4A Lease. Common Finding 4B Lease (202/8)

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1 4A Lease MOR Tips s Paragraph 2 The initial lease term must be at least one year (365 days). Paragraph 15 - Software often times defaults to the incorrect month. Make sure month inserted is 4 months prior to recert effective date. See Handout/Cheat Sheet. Paragraph 8 Make sure correct Security Deposit amount is inserted. Paragraph 27 Do not modify this paragraph by adding attachments or addendums. Application Not completed/signed. Date and/or time received not recorded. () 4A Lease If using 4A lease and property is available for occupancy only by elderly and/or disabled tenants. Must have a Pet Lease Addendum, that includes pet provisions from Paragraph 16 of the Appendix 4B lease. HUD Handbook REV-1, paragraph 6-5 C.4. Application Application does not ask whether the applicant or any member of the household is subject to a State lifetime sex offender registration in "any" state. For example - Some applications only ask for current state or for you. See HUD Handbook REV-1 Paragraph 4-14 B.2. The application does not ask for a listing of states where the applicant and members of the applicant's household have resided. 4B Lease (202/8) The inapplicable language, namely, the text referring to Project Assistance Contract or project assistance payments, not stricken or removed from the second and third WHEREAS paragraphs and from paragraph 5 of the lease. 1

2 VAWA Lease Addendum- HUD VAWA Lease Addendum Missing Effective date blank or incorrect Not Signed by management or tenant Not using current version (6/30/2017 OMB exp) Missing signatures/dates VAWA Lease addendum, 92006, Race Ethnic Data form, HUD 50059, Lease, Move-in Inspection, Initial Notice, 9887-A, other - signed/dated by the residents and management. Citizenship Declarations - signed/dated by residents signed/dated by all residents 18 and older. Move-out 50059A - signed/dated by management. GRC 50059A (with UA) - signed/dated by resident and management. GRC 50059A (no UA) - signed/dated by management. House Rules/Pet Rules Not maintaining copy of the house rules and/or pet rules (if elderly/disabled property) in file. Proof of Age & Social Security Number Proof of age not verified for all family members. Social Security number - documentation for all family members. Tip: Remember to obtain for new family member when adding to household. HUD Forms not current Make sure that all HUD forms and brochures are the current version. See Handout with current forms and expiration dates. Make sure old versions are discarded so they are not accidentally used. Resident Rights and Responsibilities Brochure, EIV & You Brochure, & Fact Sheet on How Your Rent is Determined Tenant not signing the property s acknowledgement for receipt of the above these documents. Acknowledgement not in file. Tip: Use an acknowledgement form. 2

3 Citizenship Declaration Form Missing for one or all of the family members. Form not checked that they are a citizen. Not checked that an adult signed for a child. Not filled out completely and/or signed/dated. Tip: Remember to complete one for new family member when adding to household. Criminal/Sex Offender Registration Make sure both are done at move-in and file clearly shows they were done. If O/A choses to do these at AR (not mandatory) make sure the reports are documented within the AR package. Family Summary for Citizenship Package Missing from the file. Does not include all family members. Tip: remember to update when adding new family member to household or removing a household member from the family. Pet Registration Tenant has a pet; however, some or all of the pet registration requirements not completed (for example): 1. Did not obtain a certificate of inoculation; 2. Did not obtain information sufficient to identify the pet; or 3. Did not obtain the name, address and phone number of the person(s) who will be the alternate caretaker. Screening - Landlord Landlord verification missing if required by TSP (Common Finding). Tip If no landlord due to various reasons, document the file to indicate this. The easiest way is to take a blank LL verification form and write on it N/A living with daughter, N/A came from a shelter, N/A owns home, etc. Pet Registration Most is pet registration not being updated annually as required by HUD. Tip: Add this to your recertification checklist. 3

4 Race Ethnicity Form Missing for one or more of the household members. Not signed/dated or the top part not filled out. Tip: Remember to complete one for new family member when adding to household. 30 Day Notice Tenant must receive notification of rent change if rent increased and they responded before the cutoff date, they must get 30-day notice before paying the higher rent. (Common finding notice missing, or notice not issued at least 30 days prior to the rent increase effective date). Example AR due 8/1/18, tenant supplied all information before cutoff date of 6/10/18 (reported on 5/25/18), due to delays by third party or other reasons, cert not processed until 7/15/18 and tenant is notified 7/15/18 of new rent. TIP modify the rent change letter produced by software to indicate rent will be effective 9/1/18, not 8/1/18. OR attach separate letter. Make sure rent credit shows on rent roll. Move-In Inspection Missing from the file. Not signed and dated by both management and tenant. Not completed, specifically, not documenting the condition of the unit, essentially a blank report. Report does not state that the unit is in Decent, Safe, and Sanitary condition. Income/Assets/Expenses not included Income/Assets/Expenses are indicated by tenant on application or AR Questionnaire, but not verified or included on Review their answers to ensure all items are verified and included on Not done for year. Annual Inspection Assets Disposed of Question Assets disposed of for less than fair market value question not answered by resident or; Question not asked at AR/MI. 4

5 Student Rule Student Rule question not answered by resident or; Student Rule question not asked at AR/MI. s HUD Form 9887 HUD Form 9887: Boxes not completed on top or with incorrect address. Note: PBCA properties - Upper right box - PHFA address; 211 North Front Street. Middle box O/A address. Left box HUD address. Non-PBCA properties check with your CA on upper right box if not sure not signed and dated by all members over a not completed for all adults (one each). Also, ensure, printed name, signature, and dates for tenant and management. Must give copy of 9887/9887A packet, including the 9887 Fact Sheet to the tenant. Reminder Notices Sent late - 1 st (120 days), 2 nd (90 days), 3 rd /Final (60 days). Missing Notices - must send 2 nd if no response to 1 st, must send 3 rd (final) if no response to 2 nd. Not containing all requirements per HUD Handbook REV-1, paragraph 7-7 B. TIP - If 1 st of month is on weekend or holiday, send before, not after. s GRC Missing GRC A Missing from the file. Needed for a change in the contract rent and utility allowance change. If UA change is on different date than the contract rent change date, then a second GRC A is required. DISCUSS SIGNATURE REQUIREMENT. Initial Notice for Next Year s Cert. Missing Initial Notice for next year s annual recertification. Not containing all requirements per HUD Handbook REV-1, paragraph 7-7 B. Cutoff date or language incorrect. See Handout/Cheat Sheet for correct cutoff dates. Over/Under Housed Not putting residents on Transfer List. Not making the transfers. 5

6 Pet Lease Addendum If elderly/disabled property (but not a 202/8) then additional lease addendum needed for pet provisions from paragraph 16 of the 202/8 lease. The Pet Lease Addendum must be in all files even if the tenant does not have a pet at the time of move-in. This requirement does not apply to family properties even if an elderly tenant wants to have a pet or the property allows pets. $400 Elderly Allowance Elderly family deduction (allowance) of $400 not included on Usually because management did not indicate the proper code when processing the OR $400 allowance given but verification in file missing or was not obtained. For example tenant is in an elderly/disabled property, $400 allowance given, but tenant is not 62 and is not getting SSI. Tip - Obtain 3 rd party verification for disability when tenant is less than 62. Income Limits Income limits not correct on Tip: New Income limits recently posted for Effective 4/1/18. Bonus Tip: Reprint the completed May and June recertifications that were printed and signed before the system was updated for the new income limits. Income Social Security Use the Gross unless there is a deduction is for past due overpayments. Use the Gross unless there is an adjustment for a previous overpayment. If cents are included in the gross amount, use cents in the calculation. Be careful as there are now more deductions than just Medicare (child support, other prescription plans, health plans). Pre-Post Universe Pre-Post Universe status not correct on (Item #91). Also, check TSP to make sure they match. If property is Pre- 1981; TSP would allow applicants up to Low Income Limit. If property is Post-1981; TSP can only allow applications up to the Very Low Income Limit. Income - Wages Get 4 to 6 paystubs and double check to make sure you pull the correct amounts from the stubs. Use highlighter or circle, or run tape to show the calculation you used. Make sure the gross income is used on the paystubs, as often there are different levels of pay, OT etc. 6

7 Income - Wages Be careful if they get paid on 15 th and 30 th of every month Bimonthly (multiply by 24, not 26). If tenant gets paid every two weeks then multiply by 26. Asset Overview Cash Value: The cash value of an asset is market value less reasonable expenses that would be incurred in selling or converting the asset to cash, such as: (1) Penalties for premature withdrawal; (2) Broker and legal fees; and (3) Settlement costs for real estate transactions. The cash value is the amount the family could actually receive in cash, if the family converted an asset to cash. Income - Unemployment Multiply by 52 weeks the benefit amount no matter how many weeks they have in their award. When unemployment stops they can report this and it can be removed. Assets CD Example Certificate of deposit (CD) - Amount $5,000 - Interest rate 4%. The penalty for early withdrawal is three months of interest. $5,000 x 0.04 = $200 in annual income (income earned on 50059) $200/12 months = $16.67 interest per month $16.67 x 3 months = $50.00 (Penalty for early withdrawal) $5,000 - $50 = $4,950 cash value of CD (cash value amount on 50059) Income Gift Income This is often missed even when the tenant reports it on the application or AR questionnaire. Any help by outside source/family on a period basis is gift income; paying utilities, paying car payment, monthly gift income, etc. Assets Checking and Savings Checking Account Use Average Six Month Balance. Savings Account Use Current Balance. Tip When using 3 rd party verification, make sure to pull the correct value from the 3 rd party verification form especially when both amounts are requested. Bonus Tip If possible, revise form to only ask for the required amount for each asset 6 month average for checking and current balance for savings. 7

8 Assets Checking Checking Account Average Six Month Balance. Tip When using bank statements provided by tenant - use the current balance on each of the six bank statements and divide by 6. Show calculation for the checking account s average six-month balance in file by including calculator tape. Note - Do not use other balances on the statement (i.e. average daily balance etc.) Tip - Tenant only has 5 bank statements, use previous balance on oldest statement to get 6 th amount for calculation. Tip Tenant only has three bank statements, (checking account recently opened); use those three statements for calculation, but make sure file is noted this is a new account. Assets Disposed Assets Disposed for less than fair market value Any asset that is disposed of for less than its full value is counted, including cash gifts, as well as property. To determine amount given away, must compare cash value of asset to any amount received in compensation. If the total is less than $1,000, does not apply. Assets House Example Real Estate Example: Market value is $100,000. Tenant owes $60,000 on mortgage. The cost to sell house (closing costs) would be $8,000 per realtor. Determine the cash value as follows: Market Value $100,000 Mortgage amount - $60,000 Cost of selling asset(real estate commission/other costs of sale) -$8,000 Cash Value of House on $32,000 Assets Disposed Example 1 Example 1 Gave away less than $1,000 During the past two years, tenant gave (gifted) one her daughters $750. Because the total disposed of was less than $1,000, the donations are not treated as assets disposed of for less than fair market value. Assets Important point to remember for House! It does not matter whether the house is on the market or not. The cash value calculation is still required because this is treated like a what if scenario. The asset value to include on the is the cash value if the house had to be sold today. Assets Disposed Example 2 Example 2 Gave away (gifted) more than $1,000. Tenant gave each of his three children $5,000. Because the total exceeds $1,000, the gifts are treated as assets disposed of for less than fair market value. $15,000 would be listed as an Imputed I Asset on the for two years. 8

9 Overview An annuity is a contract sold by an insurance company designed to provide payments, usually to a retired person, at specified intervals. Fixed annuities guarantee a certain payment amount, while variable annuities do not, but have the potential for greater returns. Most annuities charge surrender or withdrawal fees. In addition, early withdrawal usually results in tax penalties. Depending on type of annuity and current status of the annuity, O/A will need to ask different questions of the verification source (likely tenant s insurance broker). Generally, a person who holds an annuity and is not yet receiving payments will also be earning income on that asset. In most instances, a fixed annuity will be earning interest at a specified fixed rate (similar to interest earned by a CD). Income after the holder begins receiving payments. When verifying an annuity, owners should ask the verification source whether holder of annuity has the right to withdraw the balance of the annuity. For annuities without this right, the annuity is not treated as an asset. A variable rate annuity will earn (or lose) based on market fluctuations (as in a mutual fund.) Annuity as Income Generally, when holder begins to receive annuity payments, the holder can no longer convert it to a lump sum of cash. In this situation, the holder will receive regular payments from the annuity that will be treated as regular income, and no calculations of income from assets will be made. 9

10 RMD Required Minimum Distributions. If annuity, due to IRS or other laws, requires an RMD, whether it be 1 time a year, monthly, or quarterly, the amount received would be treated as regular income on the (List as Other on Section D of 50059). If RMD required, then no longer an Asset on the Annuity as an Asset. O/A will need to verify with appropriate source: The right of the holder to withdraw the balance (even if penalties are involved). The basis on which the annuity may be expected to grow during the coming year. When tenant has the option of withdrawing the balance, the annuity will be treated like any other asset. It will be necessary to determine the cash value of the annuity in addition to determining the actual income earned. Annuity as an Asset. O/A will also need to verify: The surrender or early withdrawal penalty fee. The tax rate and the tax penalty that would apply if the family withdrew the annuity. Annuity as an Asset. In most instances, an annuity from which payments have not yet been made is earning income on the balance in the annuity. A fixed annuity will earn income at a fixed rate in the same manner that a CD earns income. A variable annuity will earn (or lose) based on current market conditions, as with a mutual fund. Annuity as an Asset. The cash value of the annuity will be the full value of the annuity, less the surrender (or withdrawal) penalty, and less any taxes and Tax penalties that would be due. 10

11 The income earned on the annuity would be calculated by taking the balance in the annuity times the percentage (either fixed or variable) at which the annuity is expected to grow over the coming year. Even if the income earned on the asset is to be reinvested into the annuity, it is still considered actual income earned on that asset. Would be included on the as interest income next to the asset. Move-in files Medical Expenses Past one-time nonrecurring medical expenses that have been paid in full are not applicable when calculating anticipated medical expenses at move-in. However, if the tenant is under a payment plan, the expense would be counted as anticipated. Direct Express Federal Benefits are issued electronically. Wired to Checking or Savings accounts. If a tenant does not have a bank account, then ask if they have a Direct Express card. To verify balance on Direct Express card, request recent ATM receipt from tenant. The Direct Express Card is treated like a savings account (use current balance). Show it on the as Other Asset: Direct Express Medical Expenses Make sure your AR questionnaire or application asks about medical expenses so that any expense the tenant can claim or they are eligible for can be included. There are times when we see files or properties where it does not appear that the medical questions are covered in enough detail or at all. Medical Expenses Medicare expense reported on the does not match the amount supported by the EIV report. Check the EIV Report if gross and net are the same, Medicare should not be included as a medical expense. If they are different, likely difference is Medicare, but not always. Important to review carefully. TIP - Highlight the amount. Medical Expenses Life alert pendant is not an eligible medical expense. Life Insurance premiums are not eligible expenses. Household Help even if recommended by doctor, is not an eligible expense. Note: Nursing type services are allowed. 11

12 Medical Expenses Nutritional Supplements, vitamins, herbal supplements are not eligible unless recommended in writing by licensed medical practitioner. Must be for treatment for a specific medical condition. Personal Use Items are not eligible unless recommended by medical practitioner as treatment for a specific medical condition. Medical Expenses Key Reference is Exhibit 5-3 of HH and Chapter 5. Always go here first. Medical Expenses Health Club dues/gym memberships/clubs are generally not eligible expenses. Exception may be if reason is to relieve a physical or mental discomfort related to a particular medical condition. VAWA Final Rule published in Federal Register on 11/16/16. Requires owners to provide Form HUD-5380 and Form HUD at the following times: 1) To all existing tenants by 12/15/17. 2) With any notification of eviction or termination of assistance. Medical Expenses Over-The-Counter (OTC) items. According to HUD Handbook REV-1, Exhibit 5-3, OTC items (i.e. nonprescription medicines, supplements, and vitamins) need to have something from a physician or other third party stating that they are recommended for treatment for a particular medical condition. VAWA 3) When assistance is being denied. 4) At the time a new household moves in to the property. References - Federal Register Document 81 FR 80724, HUD Notice H , and Forms HUD-5380 and HUD-5382 on HUD Clips. 12

13 s VAWA TIP Create an acknowledgement form for file to document receipt of the 5380 and 5382 by the tenant. TIP Modify the rejection letter and the notification of eviction/termination of assistance notice to include the following: Attachment: Form HUD-5380 and Form HUD VAWA The TSP and House Rules must describe VAWA policies and procedures covering VAWA protections. The 11/16/16 Final Rule added victims of Sexual Assault to the list of groups deserving protection: TIP: If needed, update TSP & House Rules to ensure Sexual Assault is included in the VAWA provisions. s VAWA Form HUD-5380 Not replacing HP throughout the Notice with specific Housing Provider information. References: See Federal Register Document 81 FR 80724, RHIIP Listserv #376 issued 12/21/16, HUD Notice , X, and Form HUD VAWA The O/A must maintain any information with regard to a specific tenant VAWA issue in a separate file away from the tenant s file. s VAWA Form HUD Not having the VAWA Emergency Transfer Plan in place. The emergency transfer plan (Form 5381) was to be adopted by June 14, Not replacing the HP throughout the transfer plan with Housing Provider information. Reference: Form HUD-5381 and HUD Notice H dated June 30, s VAWA Form HUD-91066, Certification form for VAWA protections, is now obsolete. If still referenced in TSP/House Rules could be finding in an MOR. TIP - Check both TSP and House Rules and revise as needed. New form for VAWA victim to complete would be Form HUD

14 EIV Enterprise Income Verification System EIV Policies and Procedures Property must have written EIV Policies and Procedures. TIP - Review HH Chapter 9 for guidance in developing or to update EIV Policies and Procedures. TIP Make sure all of the questions in the HUD 9834 MOR questionnaire (pages 9-11) are addressed in the properties EIV Policies and Procedures EIV EIV Policies and Procedures Chapter 9 HH , provides guidance for HUD s Enterprise Income Verification System (EIV). Owners should use information in Chapter 9 of for EIV questions and procedures. Exhibit 9-5 Use of EIV Reports is the best reference guide that summarizes report use, file and master file requirements. TIP - Have this Exhibit close by or posted by computers or work area for quick reference. Any new staff or anyone needs training for EIV have them read this Exhibit. TIP Be aware of the EIV policies for the property, specifically, the frequency of when the EIV reports are to be run. TIP - Do not do more or less than your EIV Policies and Procedures indicate. Example: HUD and the property s EIV P&P requires the Income Report only at AR/IR and (90 days after MI transmission). HUD requires the Discrepancy Reports only at AR and IR. We find some print these reports monthly and place them in the Master Binder. This creates unneeded follow-up for staff and could result in findings from auditors EIV See Handout Titled EIV Master Binder System and EIV Tenant File Requirements; Good reference material for a sample binder system and EIV. Note: In sample handout use Quarterly for three HUD reports. If O/A has chosen to do these monthly and in EIV P&P, then adjust on your handout. How you set up your master file is up to O/A. EIV Policies and Procedures TIP New Hires, print quarterly as per HUD Example: HUD requires the New Hire Report at least quarterly. Some O/As have chosen to require this report to be printing monthly per the property s EIV P&P. Although this is permissible if stated in the EIV P&P, this likely causes additional follow-up by managers. At a family property the additional followup can be quite extensive

15 Tenant consent to disclose EIV income Data may not be shared or a copy provided or displayed with another adult household member or to a person assisting the tenant with the re-certification process, unless the individual has provided written consent to disclose such information. Sample disclosure found in the HUD Handbook, REV-1, Change 4, Chapter 9, Exhibit 9-4. This sample or a version of it must be used when there is more than one adult on the EIV report or when a tenant requests someone else to assist in the certification process. EIV Tenant File Report Requirements Existing Tenant Search (all family members) at application screening Income Report (90 days within MI transmission, and at AR, IR) Summary Report (AR, IR) (Exception to be discussed) Discrepancy Report (AR/IR) When in EIV there are 4 tabs at top. The 4 th one, Certification Page, is not required. Many O/A s print this with the EIV packet at AR or IR. No guidance from HUD requiring it be in file HUD-9887 and EIV Existing Tenant Search Current form HUD-9887 and HUD-9887a, must be signed by all applicants and tenants in the household 18 years of age and older, and on file before owners/agents access information on the EIV system. EIV Individual File Requirement Owners must use Existing Tenant Search as part of their screening criteria for new tenants. TSP must include written policies for using Existing Tenant Search. TIP - Make sure the TSP references the report Existing Tenant Search and not just EIV. Could result in a finding by an auditor /9887a - Tenants turning 18 years of age Existing Tenant Search Tenant who turns 18 years of age between annual recertifications, required to sign HUD-9887/9887a within 30 days of turning 18 years of age. TIP O/A should have a tickler file to remind you of when a household has a member turning 18. Maybe the software has one. Existing Tenant Search shows if applicant is currently living in another subsidized property. Manager must coordinate the move-out day with the manager of the vacating property. HUD will only pay subsidy on one unit at a time for the same tenant. If the vacating property does not move the tenant out prior to you moving this tenant into your property, you will not receive subsidy payment until the move out is completed

16 Existing Tenant Search Existing Tenant Search not in file or not in file for all family members. Existing Tenant Search printed after the move-in. Not documenting the results of O/A contact with the applicant or landlord where they were reported as receiving assistance. This must be recorded on or with the Existing Tenant Search reports. TIP update any MI checklist the O/A may use to ensure that this is printed for all family members as part of the screening. These are some of the most common MOR findings lately. Income Report, Discrepancy Report and Summary Report EIV Individual File Requirement One or more of the three reports not printed at AR or IR. Many forget to print these when completing an IR. Not documenting or following up when there is discrepancy noted on the discrepancy report. One of the most common MOR findings EIV Income Report 90 Days from MI Transmission EIV Individual File Requirement Must print EIV income report for all new move-ins within 90 days of requesting HAP and place in file. (). TIP best practice: writing at top of report 90-day Income Report. TIP - to prevent findings, add to any file checklist, have tickler system, see if software has one, if not mark on calendar etc. Must compare income on EIV report to income included on the MI If discrepancy, management must determine if any correction needs to be made within 30 days. EIV Income Information Summary Report Summary report shows verified or non-verified. Verified means that the last name, DOB and SSN match the SSA database. Non-Verified means information does not match the SSA database. Review for accuracy and make any necessary correction. If documentation appears to be correct, there may be additional reasons that this information can t be verified. Document the file that it was investigated and outcome. 95 Income Report, Discrepancy Report and Summary Report EIV Individual File Requirement All three reports must be printed at every AR and IR and placed in the file. One Exception - Summary Report: Once all family members are indicated as Verified on Summary Report, HUD guidelines allow O/A to stop printing this at AR/IR unless change in family composition. TIP Recommend printing the EIV Summary at AR/IR, as it becomes part of the routine, to print all three reports across the tabs at the top when on EIV System. EIV Discrepancies Management must investigate and verify all income discrepancies for the past 5 years and complete corrected 50059s for those 5 years as needed

17 Important New Hire Report Income Discrepancy Report - must print same time as Income Report. Why? Each week a completely new report is generated based on the current information in the system for each tenant. The old report is over-written with the current data. Must resolve within 30 days. EIV Individual File Requirement Resident is listed on New Hire Summary Report. Must print the New Hire Detail report and place in the individual tenant file. (This a common MOR finding). Also, correspondence with tenant, third party verifications, contacts with employers, corrected HUD-50059(s) etc. must be maintained in file Income Discrepancy Report Multiple Subsidy Detail Report If Discrepancy: File Requirements include: Correspondence to/from the tenant regarding income discrepancy. Documentation received to resolve the discrepancy, including written third party verification of income, if applicable. EIV Individual File Requirement Resident is listed on Multiple Subsidy Summary Report (Master File Report). Must print the Multiple Subsidy Detail report and place that in the individual tenant file along with any documentation of actions taken with tenant. Don t see this often, but need to be aware Income Discrepancy Report If Discrepancy: File Requirements include: Corrected form HUD-50059(s), if applicable. Repayment Agreement, if applicable. Important: File must be documented regardless of whether the O/A determines the discrepancy to be valid or invalid. TIP At minimum provide explanation/notations on the report that discrepancy not valid and why. Failed EIV Pre-Screening or Failed Verification Report EIV Individual File Requirement These reports are required to be run monthly for Master File. The individual file must also be documented as follows: Failed EIV Pre-screening Report documented with action taken to resolve invalid or discrepant personal identifiers. Failed Verification Report (Failed SSA Identity Test) report documented with action taken to resolve invalid or discrepant personal identifiers

18 EIV Master File (Binder) Review of EIV user IDs Do you have procedures to review all EIV User IDs periodically to determine if the users still have a valid need to access EIV data? Owners/coordinator must terminate access within 30 days for any User that no longer needs access to EIV EIV Coordinator Authorization Each property must have an EIV Coordinator assigned to that property. The owner of the property must sign the EIV Owner Approval Letter allowing this person to be the property s Coordinator. The approval letter must be available for reviewers at MOR. Keep copy in EIV Master Binder at site. (). TIP review approval to make sure letter specifically states that the owner (name) approves (name) to be the EIV Coordinator for the property. A letter stating ABC management can access the EIV system on behalf of the owner may not be acceptable as an owner approval letter by an auditor. Documentation to be Maintained in EIV Master File Documents related to EIV access, authorizations or security, must be maintained at each property and available for audit purposes. Tip If any of the following noted documents are maintained at the corporate office make sure they are at the property on the date of the MOR. 1. EIV Coordinator Access Authorization form(s) signed original copy and current copy. 2. EIV User Access Authorization form(s) signed original copy and current copy EIV Users EIV Users are approved by the property s EIV coordinator. The coordinator is the only one who can re-verify the user s authorization to the EIV system every six months. You must keep initial and updated (current) copies of Coordinator and User authorization verification (CAAF) and (UAAF) in the EIV Binder at site. Reviewers will ask for these. s. Documentation to be Maintained in EIV Master File 3. EIV owner approval letter for Coordinator 4. Current Cyber Awareness Training Certificates for Coordinator, Users and Viewers. 5. One page Rules of Behavior for staff, service bureau staff (if applicable), and IPAs

19 TRACS Rules of Behavior EIV Master Reports Binder Rules of Behavior for TRACS must be completed by whomever is handling your TRAC queries to review and monitor your transmissions. Security (Cyber) Awareness Training, which is required for all EIV users, must also be completed by those individuals who transmit TRACS files. Both of these requirements must be met annually and the appropriate documents must be kept in the EIV Binder. 109 No Income Report (As per owner s EIV P&P - monthly, quarterly etc.) Not required to print or maintain copy of report in Master Binder. O/A can view the No Income Report as opposed to printing. Tip: I recommend printing for master file as best practice or at a minimum make a notation that it was reviewed. 112 EIV Master Reports Binder New Hires Report (Summary) Quarterly Deceased Tenant Report - Quarterly Multiple Subsidy Summary Report (and supporting documentation) Quarterly EIV Master File Recommendation TIP - Keep a separate Master binder for your permanent documents for your Users/Coordinators, Training Certificates, ROBs and EIV Policies and Procedures. TIP - Keep another binder for your Monthly/Quarterly EIV reports. TIP - The systems for maintaining this EIV Information is up to management. Whatever way is best for you make sure to keep the EIV files up-to-date, complete, documented and organized EIV Master Reports Binder Repayment Agreements Failed EIV Pre-Screening - Monthly Failed Verification Report (Failed SSA Identity Test) Monthly Property s EIV Policies and Procedures, should match the procedures in Chapter 8, Paragraphs 8-22 and

20 Disclosure of EIV System to Tenant EIV At move-in and thereafter at each certification, owner/agent must disclose at the tenant briefing, to the prospective tenant or tenant, its intent to use the EIV system. Questions? 115 EIV Running reports and placing them in the binder or file without follow-up or notations. Creates audit findings. Also - depending on amount or type of EIV findings, a 5% reduction in HAP penalty can be assessed in the MOR until resolved. Rejection Letter Letter did not state reason for rejection (was not stated in specific terms/plain language). Letter did not provide applicant right to appeal. Letter did not provide applicant right to request reasonable accommodations to participate in the informal hearing process. See HH REV-1, paragraph 4-9 C. Letter has as reason for rejection: Insufficient income to pay rent. Not permitted for Section 8 program. 116 New Income Discrepancy Report under EIV Verification Reports HUD has clarified that this new report is for OIG and for HQ only. Not for external users. Rejection Letter Not distributing Forms HUD-5380 or HUD-5382 to applicant at the time of rejection (when assistance was denied). Tip at bottom of rejection letter suggest adding Attachment HUD Form 5380/5382. This will serve as reminder to management to provide and will assist the reviewer at the MOR

21 Move-out File Security Deposit/disposition letters not returned/sent within 30- days. Move-out Inspection not done, not signed/dated by management, or condition of unit not noted, including damages assessed to resident not documented on report. Tips To Prepare for MOR: Outside Have outside looking good, grass cut, shrubs trimmed, litter free, graffiti free, dumpster area checked, snow removed (in winter), signage etc. MO A missing. Move-out File MO A not signed/dated by management. Tips To Prepare for MOR: Inside Have inside clean, hallways, garbage chutes, stairwells, mechanical rooms, community room, laundry facilities, office, lobby etc. Move-out File Itemized list of damages or rent not provided to resident or not in file for reviewer. If move-out due to the death of tenant, file should include documentation of the date of death to support that no more than 14 days of subsidy was paid after date of death. Tips To Prepare for MOR: Security Be prepared to discuss how many incidents have occurred over last year. Be prepared to advise what actions management took (i.e. evictions, lease violation letters, cameras, work with police, etc.). Be prepared to advise reviewer what things management does, work with police, task force, cameras (how many), other. 21

22 Tips Tips To Prepare: Go over your last REAC to make sure that findings have been corrected and are still fixed. Weeks prior to MOR - recommend Manager review the HUD 9834 Addendum A (HUD File Review Checklist) with staff and if time available check the files to ensure they are compliant with the questions on the Addendum A. In addition, Addendum A should be used on an ongoing basis for training and internal file reviews. Tips Tips MOR Binder - this may include all documents a reviewer may request to see or request copies of. For example: Rent Schedule, Energy Conservation Plan, AFHMP, HUD Approval letters, written policies, grievance procedure, lease, house rules, pet policy (if applicable), All HUD Forms/Brochures, Application, Tenant Services Summary (if applicable), Newsletters, etc. Do not create additional lease addendums. Instead, recommend put policies in house rules where they are enforceable. Tips Recommend Manager review the HUD 9834 questionnaire with either Maintenance Superintendent and/or supervisor/staff to be prepared. Answer the questions. This will have you better prepared and will allow you gather info prior to MOR to support your answers. Tips EIV Clarification Record (Form) Some O/A s have developed EIV Clarification Record form - states issue and/or discrepancy. Form not required by HUD, documentation is. Samples that we have seen at MORs or Training The form would document issue, attempts at verification, information gathered at tenant interview, correspondence with tenant and resolution

23 Tips EIV Clarification Record (Form) If used, good idea to have tenant sign and date the clarification record certifying they understand and agree with the resolution. If used, attach Clarification Record to the EIV report requiring the follow-up (New Hire Detail, Discrepancy Report, other) and keep in the tenant file. Report C- Maintenance and Standard Operating Procedure; (10%) D- Financial (If PMAM does your MOR we do not rate this; your CA or HUD may); E Leasing and Occupancy (highest 25%) F Tenant Management Relations (10%) G General Management Practices (10%) 133 Which Files Will Be Reviewed? Report Move-ins ( Make sure you perform internal review of as many Move-in files as possible) Units on the EIV reports Move out files (See Addendum A for limited type of questions) Rejected Applicant (See Addendum A for limited type of questions) Remaining will be random AR files. Report Summary 1. Cover Letter with overall rating 2. HUD 9834 Summary - will list all scores and ratings for each category and overall score. 3. Report will address any Comments, Recommendation, Findings. Corrective Action(s) will be listed for each finding. TIP Important to read the corrective action closely and respond to each corrective action requested. Report Report Within 30 days of MOR Ratings - Superior, Above Average, Satisfactory, Below Average, and Unsatisfactory. Final score 0 to has different categories each given score and rating as per above. Categories are weighted. A General Appearance (10%) B - REAC Follow-up (10%) Report Summary There may be individual file findings. There may be general findings that may apply to all or most files. There may findings or recommendations on policies, TSP, House Rules, or any of the other categories or questions on the

24 Report Report Report Summary If your CA asks for certifications to close a finding be sure to provide certification or statement they are looking for. Also, make sure to include any support documentation requested (i.e. corrected leases, revised TSP, corrected 50059s, HAP requests, rent ledgers etc.) TIP - When responding try to follow the order of the MOR report. TIP Even if all the corrective actions are not resolved, respond within 30 days. TIP - Be professional -A well written cover letter helps. Sample Finding (Condition/Criteria)/Corrective Action Condition/Criteria: Although management has incorporated the EIV Existing Tenant Search as part of their applicant screening they have not established written procedures in their Tenant Selection Plan (TSP) for how the report is to be used. See HUD Handbook REV-1, paragraph 4-7 B.3 and 4-7 D. Cause: Effect: Corrective Action: Please update the property s TSP to include written procedures of how the Existing Tenant Search report is to be used and provide CA with a copy of the revised page of the TSP. Certify to CA that in the revised TSP has been implemented. Report Report Sample Finding for Individual File Employment income in the amount of $ was listed on the MI 50059; however, based on documentation in the file, the correct amount should be $. (Reason stated if known). See HUD Handbook REV-1, paragraph 5-5. Please complete a corrected MI and send CA a copy. Send CA documentation the tenant was not charged for the rent increase until a 30-day notice was provided and a copy of the HAP voucher showing the refund of subsidy. Sample Response Attached please find a copy of the revised TSP that now includes procedures of how the Existing Tenant Search report will be used. Management certifies to CA that the revised TSP has been implemented. Report Report Sample Response: Management has corrected the employment income. Attached is a corrected MI and a 30-day notice showing the tenant was not charged for the rent increase until a 30-day notice was provided. Also, attached is copy of the HAP request with the refund of subsidy. Response If 1 st response addresses all findings should receive a close letter from CA. If there are open items you will be required to provide responses until all findings have been closed. 24

25 Stay Up To Date Join a HUD Mailing List Click the green/white icon that says Subscribe to HUD Updates Scroll down to: HUD NEWS HUD Proposed Rent Reforms - Making Affordable Housing Work Act Only proposal at this time. Summary of Act Questions? 25