LA LOMOD Corporation 515 Columbia Street, 3 rd Floor Los Angeles, CA (213)

Transcription

1 Administrative i ti Requirements of EIV LA LOMOD Corporation 515 Columbia Street, 3 rd Floor Los Angeles, CA (213)

2 Housekeeping Did you get a raffle ticket?? Please put all cell phones on silent or vibrate. Please hold questions until the end of each section. Bth Bathrooms. Breaks. Please complete the LOMOD survey and leave on table/chair or hand to LOMOD staff. 2

3 Handouts For a copy of this presentation, please visit our website at: 3

4 Helpful epu Resources: HUD Handbook REV-1, CHG-3 HUD Notice H (issued 8/17/11) EIV HUD Webcasts hud (multimedia) RHIIP List Serve HUDBlast HUD Clips 4

5 Administrative Requirements of EIV What information is required to be listed in project s EIV Policies & Procedures. What will be reviewed at MORs. Documentation showing that reports are being run as required. Documentation showing use and reconciliation of reports. 5

6 Administrative Requirements of EIV Procedures for processing and reporting over and underpayments of subsidy. How and when the 5% HAP Penalty is applied and how to correct timely. What EIV information is required to be listed in Tenant Selection Plans. 6

7 EIV Policies & Procedures 7

8 What information is required to be listed in your project s EIV Policies & Procedures? At minimum, O/As must have written policies & procedures for staff to follow for using the EIV Income Report as third party verification of employment and income and for using all other EIV reports. The Policies & Procedures may also include instructions i for staff to follow to ensure EIV information is kept secure and confidential. 8

9 Best Practices -The ideal EIV Policies & Procedures will include: EIV reports (frequency of use and instructions on use): a) Summary Report (annual and interim) b) Income Report (annual, interim, initial, & 90 days after the move-in information is transmitted to TRACS) c) Income Discrepancy Report (must print at the same time the Income Report is printed) d) No income Report (recommend re-verifying zero income at least quarterly) e) New Hires Report (at least quarterly) f) Multiple Subsidy Report (at least quarterly) g) Failed Verification Report (monthly) h) Failed Pre-Screening Report (monthly) i) Deceased Tenants Report (at least quarterly) 9

10 Best Practices -The ideal EIV Policies & Procedures may also include instructions for: HUD-9887 consent forms Investigating and Resolving Income Discrepancies Unreported or Underreported Income Over-reported td Income Repayment Agreements Record Retention Requirements Safeguarding EIV Data: a) Administrative Safeguards (Authorized Access only) b) Technical Safeguards (Reduce risk of a security violation, no sharing of passwords, etc.) c) Physical Safeguards (Documents locked and secured) 10

11 What will be reviewed at MORs? 11

12 What will be reviewed at MORs? Master EIV Folder EIV User Access Folder Tenant Files 12

13 What EIV Reports must my Master EIV Folder contain? Identity Verification Reports (Failed Verification i and Failed Pre-Screening) ) Multiple Subsidy Report New Hires Report Deceased Tenant Report 13

14 Why is the EIV Master Folder important? The Master EIV folder helps O/As monitor compliance of existing residents. Regular review of the EIV reports maintained in the folder help reduce assistance paid in error. The folder serves as a compliance tickler system because when reports list possible discrepancies it requires O/As to make sure that: o Data Recorded d in TRACS is correct o Information provided by residents is correct. Residents are complying py with reporting requirements. A well-organized Master EIV folder helps the CA review and audit for compliance. 14

15 Helpful Tips/Reminders about the EIV Master Folder: It is good practice to print the reports during the first 10 days of the month corresponding with ih the TRACS file transmission. The EIV Master File can be set up as an actual file or in a binder or set of binders. If you use a binder, create a tab for each report. The Master File must be kept secure in the same manner that resident files are kept secure. The Master File must be maintained for 3 years. O/As must document the file when EIV records are destroyed. 15

16 What documentation will the Contract Administrator be looking for in my EIV Master Folder? 16

17 Master EIV Folder The CA will review the Master EIV Folder to ensure that O/As are running each of the reports as required (i.e. monthly, quarterly, or as indicated on the project s EIV policies). If a report lists discrepant information, the CA will review the file to ensure that the O/A followed up on and resolved the discrepancies noted on the report. Note: O/As should make notes on the reports, but copies of notices to residents, verification documents, corrected HUD-50059s, etc. should be maintained in resident files. 17

18 Failed Verification Report This report is required to be run on a monthly basis and printed regardless of whether or not a discrepancy is noted. This report identifies household members who failed the SSA identity test because their personal identifiers (SSN, last name or DOB) do not match the SSA s records as well as identifies deceased household members. Discrepant information is required to be corrected within 30 days from the date of the report. In many cases, failed verification discrepancies are caused by data entry errors. 18

19 Failed Verification Report (cont d) O/As must follow up with tenants identified on the report when discrepant personal identifiers were not corrected at the time of recertification. Encourage the tenant t to contact t the SSA to correct any inaccurate data in their databases if the personal identifiers on the form HUD and in TRACS are accurate. If a tenant s information was corrected but the EIV data has not yet been updated, d this must be noted on the printed report and no further action is required. 19

20 Failed Verification Report (cont d) Important : When you are prompted by the EIV system to select the re-certification month always select ALL. 20

21 Failed Pre-Screening This report is required to be run on a monthly basis and printed regardless of whether or not a discrepancy is noted. This report identifies tenants who have missing or invalid personal identifiers (last name, DOB, SSN) in TRACS. Discrepant information is required to be corrected within 30 days from the date of the report. This report will include those persons who are exempt from the SSN disclosure and verification requirements. In this case write a note that tenant is exempt from SSN requirement. These individuals will continue to have a TRACS generated identification number in the SSN field. 21

22 Identity Verification Reports There are two reports that can be accessed from the Identity Verification Link. 22

23 Multiple Subsidy Report This report is required to be run at least quarterly regardless of whether or not a discrepancy is noted. Update: The EIV system will now perform a search within MF and PIH. Note: This report is not the same as the Existing Tenant Search report. O/As must discuss with the tenant if the search shows that a tenant is being assisted at another location. The tenant must be given the opportunity to explain any circumstances relative to his/her being assisted at another location. 23

24 Multiple Subsidy Report (cont d) O/As must follow up with the respective PHA or O/A to confirm that the tenant is being assisted at the other location. Depending on the investigation, O/As may need to take action to terminate the tenant assistance or tenancy. O/As must print out and retain a copy of the report along with notations as to the outcome of contacts with the tenant and PHA/Owner and actions taken if a household or a household member is receiving multiple subsidies. HUD does not prohibit owners of partially subsidized projects from housing tenants who are receiving assistance through the Housing Choice Voucher program. 24

25 Multiple Subsidy Report (cont d) Reasons for False/Positives: a) O/A did not update family composition on HUD to remove family members who have moved out of the unit. (i.e. a household member shows up as the HOH in one unit and as the HOH in another unit.) ) 25

26 Multiple Subsidy Report Example A: Not properly moved out 26

27 Multiple Subsidy Report (cont d) Reasons for False/Positives: b) Family is using voucher at eligible project- based Sect. 8 program (i.e. unit address is the same.) 27

28 Multiple Subsidy Report Example B: Obtained Housing Choice Voucher 28

29 New Hires Report This report is required to be run at least quarterly and printed regardless of whether or not the report lists new employment information. This report is accessed from the monthly summary report when querying by project number. If the report name is underlined, this indicates it is an active link. 29

30 New Hires Report (cont d) This report identifies tenants who have started new jobs within the last six months. O/A must contact tenant to discuss the new employment information. If the tenant agrees with the information being reported, request tenant provided documents (i.e. 4 consecutive paystubs) to support current income and/or third party verification from employer. If the tenant disputes the employment information, O/As must obtain 3 rd party verification from the employer. Process Interim Recertification to include new income, if applicable, in accordance with Chapter 7, paragraph 7-12.B of the HUD Handbook , REV-1, CHG-3. 30

31 New Hires Report (cont d) O/As must reach out to their tenants to report the income changes so that rent adjustments can be made in a timely manner, thus eliminating/reducing the amount of retroactive rent payments. py 31

32 Deceased Tenant Report This report is required to be run at least quarterly and printed regardless of whether h or not the report lists a discrepancy. This report identifies tenants who are reported by SSA as being deceased. When running the report, the O/A must select recertification month All. O/As must confirm, in writing, with the HOH, next of kin, or emergency contact person or entity provided by the tenant whether or not the person is deceased. 32

33 Deceased Tenant Report (cont d) If the person is deceased: Update the family composition, income and allowances, if applicable, on the HUD In the case of a deceased single member of a household, process a MO HUD The effective date of the HUD will be retroactive to the earlier of 14 days after the tenant s death or the date the unit was vacated. 33

34 Deceased Tenant Report (cont d) If the person is deceased: Any overpayment of subsidy that was paid on behalf of the deceased tenant must be repaid to HUD. Discrepant information must be corrected in TRACS within 30 days from the date of the report. 34

35 Deceased Tenant Report (cont d) If the person is NOT deceased: Encourage the tenant to contact the SSA to correct any inaccurate data in their database. If action was taken to remove the deceased tenant from the household or a move-out was processed for a single member household, but the EIV data has not yet been updated, this must be noted on the printed report and no further action is required. 35

36 What documentation will the Contract Administrator be looking for in my EIV User Access Folder? 36

37 EIV User Access Folder Owner Approval Letter(s) Coordinator Access Authorization Form(s) (CAAF) User Authorization Access Form(s) (UAAF) Rules of Behavior 37

38 Owner s Letter Approving Coordinator(s) access to EIV 38

39 Coordinator Access Authorization Form (CAAF) Signed original (hardcopy) and current online (unsigned) CAAF(s). CA will review the EIV access form to verify that coordinator obtained access to and began using the EIV system by January 31, EIV Coordinators are required to recertify annually. 39

40 User Access Authorization Form (UAAF) Signed, original hardcopy and current online (unsigned) UAAF(s), if applicable. EIV Users s are required e to recertify bi- annually. 40

41 Rules of Behavior (ROB) Signed Rules of Behavior for all individuals who do not have access to the EIV system, but are required to use EIV information provided to them by authorized system users for the performance of official HUD business. (i.e. independent auditors, consulting agencies, etc.) All EIV users who have access to the EIV system must adhere to the EIV ROB. ROB serve as an administrative safeguard. O/A staff who do not have access must have security training annually. 41

42 What EIV reports/documentation will the Contract Administrator be looking for in tenant files? 42

43 Existing Tenant Search Report: Purpose & Requirements Identifies applicants who may be receiving assistance at another Multifamily or Public and Indian Housing (PIH) location. The Existing Tenant Search report is also intended d to be used to further assist in reducing subsidy payment errors. Required for all move-ins effective 7/1/10. 43

44 What are O/As required to do with the EIV Existing Tenant Search Report? O/As must use this report at the time they are processing the final application for admission to determine if the applicant or any applicant household members are currently being assisted at another location. Note: The HUD-9887 consent form signed by the applicant and each applicant family member 18 years of age and older does not need to be on file in order to use the Existing Tenant Search Report at the time of application processing and tenant screening. 44

45 What are O/As required to do with the EIV Existing Tenant Search Report? (cont d) O/As must discuss with the applicant if the report identifies that the applicant or any member of the applicant s household is residing at another location. This gives the applicant the opportunity to explain any circumstances relative to his/her being assisted at another location. Example: Applicant wanting to move from his/her present location. 45

46 What are O/As required to do with the EIV Existing Tenant Search Report? (cont d) O/As must follow up with the respective PHA or O/A to confirm the individual s program participation i before admission, i if necessary, depending on the outcome of the discussion with the applicant. The report gives O/As the ability to coordinate move-out and move-in dates with the PHA or O/A of the property at the other location. 46

47 What are O/As required to do with the EIV Existing Tenant Search Report? (cont d) O/As must retain the search results with the application along with any documentation obtained as a result of contacts with the applicant and the PHA or O/A at the other location. Results of the Existing Tenant Search must be retained with the application: a) If applicant is not admitted, the application and search results must be retained for 3 years. b) If the applicant is admitted, the application and search results must be retained in the tenant file for the term of tenancy plus 3 years. 47

48 Summary Report This report must be used at the time of recertification (annual and interim). Required for all annual and interim re- certifications processed effective 7/1/10. This report provides a summary of information taken from the current, active certifications contained in the TRACS file at the time of the income match. Provides Identity Verification for each household member. 48

49 Summary Report There are 4 verification statuses identified: 1) Verified personal identifiers (last name, DOB, SSN) match the SSA database. 2) Failed personal identifiers do not match the SSA database. 3) Not Verified personal identifiers have not yet been sent by HUD to SSA for validation or the validation is in process by SSA. 4) Deceased SSA s records indicate the person is deceased. 49

50 Summary Report O/As must retain in the tenant file the Summary Report as verification of the SSN for all household members whose Identity Verification Status is Verified Verified. If the Summary Report in the tenant file shows an Identity Verification Status of Verified for all household h 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 h composition or in a household member s identity verification status. Note: O/As may remove and destroy copies of the verification documentation (i.e. SSC) received from the tenant at the of disclosure of their SSN once the Identity Verification status shows Verified. d 50

51 Summary Report 51

52 Summary Report O/As must resolve the status of any household member(s) with a Failed or Deceased status. O/As do not have to do anything at the time of recertification when the status is Not Verified. However, the O/A must check the Failed SSA Identity Test report monthly, as changes in the Identity Verification Status for these tenants may occur. Retain any correspondence or documentation received to resolve the Failed or Deceased status. 52

53 Summary Report Retain documentation for household h members not required to disclose and provide verification of a SSN: 1. Tenants who were 62 years of age or older as of January 31, 2010 and whose initial determination of eligibility had begun before January 31, Individuals who do not contend eligible immigration status. Note: These individuals will continue to have a TRACS generated ID# in the SSN field. No employment or income information will be provided in the EIV system for these individuals; therefore, third-party verification from the income source will have to be obtained. 53

54 Income Report Provides employment and income reported by the Department of Health and Human Services and SSA for each household member that passed the SSA identity test. Identifies tenants who may not have reported complete and accurate income information or may be receiving multiple subsidies. 54

55 Income Report Mandatory use at Recertification (Annual and Interim) Required e to be used for all Re- certifications effective 6/1/10. May be used at other times as indicated in O/A s policies and procedures. Serves as third party verification of employment and income. 55

56 Income Report For move-ins (including Initial Certifications) effective 7/1/10, O/As are required to run the income report within 90 days after the information is transmitted to TRACS to confirm/validate the income reported by the household. O/As are required to resolve discrepancies in reported income with the family within 30 days of the EIV income report date. 56

57 Income Report The Income Report identifying the employment, wage and unemployment income information must be used as 3 rd party verification of the tenant s employment and is not to be used to calculate the tenant s income. 57

58 Income Report: Wage Example 58

59 Income Report Wage Example: Tenant reported working at Kmart; EIV Income Report shows tenant s employment at Kmart; Tenant brought in four (4) most current, consecutive paystubs. O/A will use the Income Report as 3 rd Party Verification that the tenant is employed at Kmart; O/A will use the gross pay shown on the paystubs to determine tenant s income. 59

60 Income Report The report does not include other income the household may receive such as welfare benefits, most pensions, child support, or wages that an employer did not report to the State Workforce Agency. 60

61 Income Report: Other Income Sample 61

62 Income Report If the tenant does not dispute the EIV Information, O/A must maintain in tenant files: EIV income report; Current, acceptable tenant provided documents (i.e. 4 consecutive pay stubs); and Third party verification from the source, if necessary. 62

63 Income Report If the tenant disputes the EIV information, O/A must maintain in tenant files: EIV income report Third party verification i from the source for the disputed information Note: Any correspondence with/from tenant relating to disputes of the employment or income reported in the EIV system. 63

64 Income Report If the tenant-reported income is not verified through the EIV system (i.e. TANF, Child Support, etc.) or O/A requires additional information the tenant files must include: EIV income report Third party verification from the source, and/or Current, acceptable tenant provided d documents 64

65 Income Report (SS/SSI) The Income Report identifying the SS benefit information in the EIV system must be used as 3 rd party verification of the tenant s income and will be used to calculate the tenant s income. A copy of the award or benefit letter is not required unless the tenant disputes the SSA information in the EIV system. If the tenant agrees that the SS benefit information reported is correct, the O/A must use the GROSS benefit amount reported in the EIV system for calculating the tenant s income by annualizing the gross benefit amount projected for the next 12 months. 65

66 Income Report (SS/SSI) Gross and Net Social Security Benefit are the same 66

67 Income Report (SS/SSI) Gross and Net Social Security Benefit differ 67

68 Income Report (SS/SSI) Example when gross & net differ: EIV shows tenant is receiving SS benefits per month: A gross SS benefit of $790.40; A net SS benefit of $694; The Medicare premium of $96.40 is being paid by the tenant. O/A will use the EIV Income Report as 3 rd Party Verification as receipt of benefits; If the tenant agrees with these amounts, O/A will use the gross benefit amount for calculating tenant s income. 68

69 Income Report (SS/SSI) Calculation of the sample report: Gross annual income: $9, = $ x 12 Medical Expense (Medicare Premium): $1, = $96.40 x 12 NO DOUBLE DIPPING! 69

70 Income Report (SS/SSI) When Medicare Buy-In indicates Yes DO NOT include as Medical Expense on HUD

71 Income Report REMINDER: EIV is not a valid verification of Disability 71

72 So.. What about the pennies? 72

73 HUD Clarifies the use of Cents in -income RHIIP ListServ 256, 231 and 229 If using EIV to verify income: Use amounts reflected on the EIV report to calculate income, even though EIV will not include cents. What about the report printed 90 days after move-in? If using alternative verification (i.e. benefit/award letter) to verify income: Use cents in the income calculation if it is included on the benefit/award letter. Note: A SS award letter must not be older than 120 days from date of receipt. 73

74 Social Security UPDATE Social Security Announces 3.6 % Benefit Increase for (RHIIP Listserv #263) The 3.6 % COLA will begin with benefits that nearly 55 million SS beneficiaries receive in January Increased payments to more than 8 million SSI beneficiaries will begin on 12/30/11. However, the SSA COLAs are not available from SSA for uploading into the EIV system until the end of the calendar year. 74

75 SSA COLAs and EIV When processing re-certifications effective Jan. 1, Feb. 1, Mar. 1 and Apr. 1 O/As must use one of the following methods for determining the tenant s income: Use the benefit information reported in EIV that does not include the COLA as 3 rd party verification as long as tenants confirm that the income data in EIV is what he/she is currently receiving. 75

76 SSA COLAs and EIV (cont) Use the SSA award letter provided by the tenant the includes the COLA adjustment if the date of the letter is within 120 days from the date of receipt by the O/A. Determine the tenant s income by applying the COLA increase percentage to the current verified benefit amount and document the tenant t file with how the tenant s income was determined (more on this in a second.) ; or Request 3 rd party verification directly from SSA when the income in the EIV system does not agree with the income the tenant reports he/she is receiving. ii All re-certifications effective after April 1 must reflect the SSA benefit that includes the COLA. 76

77 Medicare Update & EIV There will be a predicted double digit increase in Medicare Premiums For some beneficiaries, their SS increase may be partially or completely offset by increases in Medicare premium. Medicare premium amount is expected to be released sometime in November. 77

78 Medicare Update & EIV This may create a potential minefield for some O/As who would opt to include the anticipated COLA increase for annual recertifications that are effective in the first few months of the year. Without knowing the Medicare amount it is not possible to accurately calculate l medical expenses and allowances for household whose HOH, co-head or spouse is either 62 years age or older, or disabled. 78

79 Income Discrepancy Report Mandatory use at Recertification (Annual and Interim) Required to be used for all Re-certifications effective 6/1/10. May be used at other times as indicated in O/A s policies and procedures. Must be printed at the same time as the Income Report and maintained i in the tenant t file whether or not a discrepancy exists. 79

80 Income Discrepancy Report The Income Discrepancy Report identifies households where there is a difference of $2,400 or more annually in the wages, unemployment compensation and/or SS benefit income reported by National Directory of New Hires and amounts reported on the HUD for the period of income used for the discrepancy analysis. 80

81 Income Discrepancy Report The report identifies tenants whose income may have been under or over reported. Negative numbers on the report represent potential tenant under reporting of income. Positive numbers represents a potential decrease in a tenant s income. In either case, O/As must investigate all discrepancies identified to determine whether or not they are valid. Note: The O/A is not expected to reconcile dollar amounts to the penny when resolving discrepancies. 81

82 Income Discrepancy Report Example 1: Valid Discrepancy 82

83 Example 1: Valid Discrepancy (cont) The report shows the tenant had reported annual wages and benefits during the period of income used for the discrepancy analysis However, no projected annual wages or benefits reported on HUD O/A must investigate this to determine if the tenant did not report income at time of recertification. If they did not = valid discrepancy If not a valid discrepancy, O/A must document the file with the results of the investigation supporting this determination. 83

84 Example 1: Valid Discrepancy (cont) If valid, O/A must: Obtain 3 rd party verification of the tenant s income; Process a corrected HUD to include any unreported or underreported income; Notify tenant of funds due and their obligation to reimburse the O/A; Collect funds due from tenant and/or enter into repayment agreement and reimburse HUD. 84

85 Income Discrepancy Report Example 2: Valid Discrepancy 85

86 Example 2: Valid Discrepancy (cont) The report shows the tenant had reported annual wages that exceeds the $2400 discrepancy threshold. O/A must investigate this to determine if the tenant should have reported the increase in income as required by his/her lease. If they should have = valid discrepancy If not a valid discrepancy, O/A must document the file with the results of the investigation supporting this determination. 86

87 Example 2: Valid Discrepancy (cont) If valid, O/A must: Obtain 3 rd party verification; Process an IR HUD in accordance with Chapter 7, Paragraph 7-13.D of HUD Handbook , REV-1, CHG-3; Notify tenant of funds due and their obligation to reimburse the O/A; Collect funds due from tenant and/or enter into repayment agreement and reimburse HUD. 87

88 Income Discrepancy Report Example 3: Invalid Discrepancy 88

89 Example 3: Invalid Discrepancy (cont) The report shows the tenant had reported annual wages or benefits during the period of income used for the discrepancy analysis. However, there are no reported wages or benefits on the HUD The HUD used in the discrepancy analysis was the tenant s move-in HUD O/A must investigate this to determine if the tenant accurately reported his/her income at the time of move-in. If verification received indicates tenant was not working at time of move-in = invalid discrepancy No action required other than a notation. 89

90 Income Discrepancy Report O/As must print the report at the same time as the income report. It is important that the report be printed at the same time because each week a completely new report is generated by the system. O/As must review and resolve any discrepancies in income with the household at recertification or within 30 days of the report date. Retain a copy of the report along with detailed information on the resolution of the reported discrepancy in the tenant file regardless of whether or not the discrepancy is valid or invalid. Make sure the information in TRACS agrees with the information on the HUD in the tenant s file. 90

91 Investigating g Discrepancies O/As must determine whether the income appearing on the report should be included as income. O/As must not suspend, terminate, reduce, or make final denial of rental assistance, or take any other adverse action against an individual based solely on the data in the EIV system. O/A must independently verify the disputed information by obtaining 3 rd party verifications. 91

92 Investigating g Discrepancies (cont d) O/As must notify the tenant of the results of any 3 rd party verification and request the tenant come into the office within 10 days of notification to discuss results. If O/A determines that tenant is not in compliance with terms of the lease because he/she knowingly provided incomplete or inaccurate information, the O/A must terminate the tenant s tenancy and file a civil action against the tenant to recover improper subsidy payments. 92

93 Procedures for processing and reporting over and under payments py of subsidy 93

94 Unreported or Underreported Income O/As must: Go back to the time the unreported or underreporting of income started, not to exceed the 5 year limitation that the tenant was receiving assistance. Calculate the difference between the amount of rent the tenant should have paid and the amount of rent the tenant was charged. Notify the tenant of any amount due and their obligation to reimburse the O/A. 94

95 Unreported or Underreported Income (cont d) O/As must: A record of the calculation must be provided to the tenant and also retained in the tenant s file. Tenants with unreported income that goes back further than 5 years can be reported to OIG for fraud. 95

96 Unreported or Underreported Income (cont d) O/A must have the HUD-50059(s) on file that was in effect ect during the period(s) that the tenant had unreported or underreported income, in order to calculate the amount the tenant must reimburse the owner. 96

97 Tenant s obligation to Reimburse Tenants are obligated to reimburse the O/A if charged less rent than required by HUD s rent formula. The tenant is required to reimburse the O/A for the difference between the rent that should have been paid and the rent that was charged. Tenants are not required to reimburse the O/A for undercharges caused by O/A calculation errors. 97

98 Tenant s obligation to Reimburse Tenants who do not agree to repay amount due will be in non-compliance with their lease agreement and may be subject to termination of tenancy. Tenant may also be required to repay funds to the O/A due to a civil action taken by the O/A or court actions as a result of an OIG audit. 98

99 Repayment Options: Tenants can repay amounts due: In a lump sum By entering into a payment agreement with O/A Combination of the above Example: A tenant may owe $1000, make a lump sum payment of $300 and enter into a repayment agreement for the remaining $

100 Repayment Agreements The tenant s monthly ypy payment must be what the tenant can afford to pay based on the family s income. The monthly payment plus the amount of TTP should not exceed 40% of family s adjusted income. 100

101 Repayment Agreements Determining Monthly Payment 101

102 Repayment Agreements: Time Period Examples Example 1: (Based on tenant agreement amount) Tenant agrees to repay $1000 at a monthly amount of $25. Time period will equal 40 months. $1,000/$25 = 40 months 102

103 Repayment Agreements: Time Period Examples (cont) Example 2: (Based on tenant agreed timeframe) Tenant agrees to repay $1000 in 24 months. The monthly amount will equal $42 for 23 months and $34 for one month. 103

104 Repayment Agreements: Time Period Examples (cont) Example 2 (continued): $1,000/24 = $41.67 = $42 $1,000/$42 = 23.8 months $42 x 23 = $966 $1,000 - $966 = $34 104

105 Required Language in Repayment Agreements: Include the total retroactive rent amount owed, the amount lump sum paid at time of execution of the agreement (if applicable) and the monthly payment amount. Reference the paragraphs in the lease where tenant could be in non-compliance if agreement is not adhered d to. Contain a clause whereby the terms of the agreement will be renegotiated if there is a decrease or increase in the family s income of $200 or more per month. 105

106 Required Language in Repayment Agreements: (cont) Include a statement that the monthly retroactive rent repayment amount is in addition to the family s monthly rent payments and is payable to the O/A. Late and missed payments constitute default of the repayment agreement and may result in termination of assistance and/or tenancy. Be signed and dated by tenant(s) and O/A. Do not apply monthly rent payments to the amount due on the payment agreement. 106

107 Disposition of Funds: All funds collected from the tenant must be reimbursed to HUD in accordance with Chapter 8, paragraph 8-20 of HUD Handbook , REV-1, CHG-3. After verifying the tenant s income, the O/A must complete corrections to the prior certifications affected by the income change. 107

108 Disposition of Funds: (cont) O/As may retain a portion of the repayments they actually collected from the tenants to help defray the cost of pursuing these cases. O/As may only retain an amount to cover their actual costs, which is the lesser of: 1) Their actual costs 2) 20% of the amount received from the tenant. Example: Amount received from tenant is $500. Actual cost for pursuing and collecting amount due from tenant $125. The O/A is entitled to retain $

109 MOR Findings for EIV System Compliance 109

110 What is considered a MOR Finding? 1) O/A does not have access to the EIV system. 2) O/A is not using the EIV system for re- certifications effective 6/1/10. 3) Missing/incomplete EIV documents as listed on the Addendum C. ( HUD Headquarters immediately to Terminate the coordinator s/user s access) 110

111 What is considered a MOR Finding? (continued) 4) Rules of Behavior for non-system users missing where applicable. 5) EIV data being shared with other entities, t es, e.g., state officials monitoring tax credit projects, rural Housing staff monitoring Section 515 projects, or Service Coordinators. 6) EIV data not kept secure. 111

112 What is considered a MOR Finding? (continued) 7) O/A has not updated Policies & Procedures to include EIV system use. 8) O/A has not updated TSP to include use of Existing Tenant Search. 9) EIV Income Reports are not in tenant files as third party verification. 10) Tenant files do not have documentation to support EIV income discrepancy resolution. 112

113 What is considered a MOR Finding? (continued) 11) O/A is not using Existing Tenant Search. 12) O/A is not reviewing New Hires Report. 13) Unresolved Failed Verification (SSA Identity Test) and Pre-screening discrepancies. 14) Deceased Tenants Report has not been reviewed and/or errors corrected. 113

114 What is considered a MOR Finding? (continued) 15) Multiple Subsidy Report has not been reviewed and/or errors corrected. 16) O/A is not following HUD s record retention requirements. 17) Missing/Incomplete form HUD ) O/A is not providing tenants with the EIV & You brochure when selected from waiting ii list to move-in and at annual recertification. 114

115 What is considered a MOR Finding? (continued) 19) Individual with access to the EIV system or data has not had annual security training. 20) O/A is sharing access IDs and passwords. 115

116 Penalty for Failure to have Access to and/or Use the EIV system 116

117 Penalties for Failure to have Access to and/or Use the EIV system O/As will incur penalties if they: Did not obtain access to the EIV system by January 31, 2010, because they did not submit a 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 mid- November

118 Penalties for Failure to have Access to and/or Use the EIV system (cont) O/As will incur penalties if they: Did not begin using the EIV system as of January 31, 2010; 0; or Are not using the EIV system at the time of the MOR. 118

119 Penalties for Failure to have Access to and/or Use the EIV system (cont) The O/A will receive a finding on the MOR report. The O/A will incur a penalty of 5% decrease in the voucher payment for the month following the date the violation was found and each subsequent voucher payment until the MOR finding is cured. The O/A must make an adjustment on the next scheduled voucher to adjust for the 5% decrease. The O/A will be monitored by the CA to ensure the adjustment is made. 119

120 Penalties for Failure to have Access to and/or Use the EIV system (cont) The O/A will have 30 days to cure the finding. The finding will be cured by obtaining i access to and/or using the EIV system and the O/A will make an adjustment to the next scheduled voucher to collect the funds previously returned to HUD. If the finding is not cured during the 30 day period, both the owner and the management agent, if applicable, will be flagged in HUD s Active Partners Performance System. Once the finding is cured, the flag(s) will be removed. 120

121 EIV User Access Notes: When there is a change in ownership or management, the new O/MA must obtain access to and begin using the EIV system within 90 days from the date the owner takes possession of the property p or the effective date of the management agreement with the owner. Failure to do so will result in a finding and the O/A is subject to the 5% penalty. 121

122 Which EIV MOR Findings warrant a 5% decrease in voucher payment penalty? 122

123 Assessing the 5% Decrease in Voucher Payment Finding: Owner does not have access to the EIV system. 5% Decrease Assessed? Yes Documents to be provided: O/A must obtain access and provide documentation. Owner Certification: N/A 123

124 Assessing the 5% Decrease in Voucher Payment (cont.) Finding: Owner is not using the EIV system at all. 5% Decrease Assessed? Yes Documents to be provided: O/A must follow procedures for specific report below. Owner Certification: N/A 124

125 Assessing the 5% Decrease in Voucher Payment (cont.) Finding: Existing Tenant Search report not used during the applicant screening process of the tenant. 5% Decrease Assessed? No Documents to be provided: N/A Owner Certification: Certify the report will be used as a screening criteria as described in their TSP. 125

126 Assessing the 5% Decrease in Voucher Payment (cont.) Multiple Subsidy, Identity Verification, Deceased Tenant, and New Hires Reports Finding: O/A has never printed the report. 5% Decrease Assessed? Yes Documents to be provided: O/A must print current report and show evidence s/he is actively working on the report. Owner Certification: Certify the report will be used as described in their Policies and Procedures. 126

127 Assessing the 5% Decrease in Voucher Payment (cont.) Multiple Subsidy, Identity Verification, Deceased Tenant, and New Hires Reports Finding: O/A did not print out the current report. 5% Decrease Assessed? No Documents to be provided: O/A must print current report and show evidence s/he is actively working on the report. Owner Certification: Certify the report will be used as described in their Policies and Procedures. 127

128 Assessing the 5% Decrease in Voucher Payment (cont.) Multiple Subsidy, Identity Verification, Deceased Tenant, and New Hires Reports Finding: Has printed and provided the most current report but has not printed one or more reports in the past. 5% Decrease Assessed? No Documents to be provided: N/A Owner Certification: Certify the report will be used as described in their Policies and Procedures. 128

129 Assessing the 5% Decrease in Voucher Payment (cont) Income Report Finding: Tenant has provided d pay stubs to determine income but income has not been verified through the EIV system or employer 5% Decrease Assessed? Yes Documents to be provided: Owner must obtain 3 rd party verification of income from the employer Owner Certification: Certify the report will be used to verify income or if EIV was not available the file will be documented to reflect this. 129

130 Assessing the 5% Decrease in Voucher Payment (cont) Income Report Finding: Tenant has provided pay stubs to determine income; income was verified through employer and not the EIV system. 5% Decrease Assessed? No Documents to be provided: N/A Owner Certification: Certify the report will be used to verify income or if EIV was not available the file will be documented to reflect this. 130

131 Assessing the 5% Decrease in Voucher Payment (cont) Income Discrepancy Report, No Income Report Finding: The report was not printed at the time of the certification 5% Decrease Assessed? No Documents to be provided: N/A Owner Certification: i Certify the report will be printed at the time of the certification and other times as described in owner s policies and procedures to ensure accuracy in household income. 131

132 Frequent MOR Findings O/As not printing the reports because the reports did not report discrepant information. O/As not printing the reports consistently. O/As not documenting what was done to resolve the discrepancy. O/As not printing i Income Discrepancy Report at the same time as the Income Report. 132

133 Frequent MOR Findings O/As not printing the Income Report/IDR 90 days after the move-in HUD was submitted to TRACS. Identity Verification Reports not resolved in a timely manner resulting in income reports not being able to be accessed at recertification. Existing Tenant Search report not used during the applicant screening process and/or maintained in the tenant file. 133

134 Best Practices Document! Pi Print out error screens when EIV is unavailable. Follow-up on discrepant information. 134

135 What EIV Information is required to be listed in Tenant Selection Plan? O/As must use the Existing Tenant Search in the EIV system as part of their screening criteria for new tenants and must include written policies for using the search in their Tenant Selection Plan. Use of all other EIV reports must be addressed in the O/A s EIV policies and procedures. 135

136 Questions? 136

137 LA LOMOD Corporation Contacts Director Nancy Wesoff Asst. Director Constance Alvarez Asst. Compliance Manager Asst. Compliance Manager Christina Wong Earl Hearvey Compliance Specialist Gregory Romero 137