HUD Basics Series Managing Tenant Files February 13, 2014
Question: POP QUIZ! What does ACC and PBCA mean? Answer: Annual Contributions Contract and Performance-Based Contract Administration
HUD Invitation to Bid February 28, 2011 HUD released an Invitation for Bid for CAs to administer PBCA program July 1, 2011 HUD awards ACCs, effective October 1, 2011 Decision challenged by states/complaint filed with GAO HUD amends ACCs and removes MOR task from PBCAs effective October 1, 2011.
HUD NOFA Notice of Funding Availability 3/9/12 US Court of Appeals/Federal Circuit August 1, 2013 HUD awards NOFA Lawsuit against HUD s NOFA pending August 27, 2013 Court of Appeals grants stay
HUD NOFA cont. October 10, 2013 US Court of Appeals heard oral arguments October 28, 2013 HUD issues notice of short-term contract renewal effective January 1, 2014, ending March 31, 2014 When will the US Court of Appeals render a decision?
News from HUD Washington HUD will extend all 53 PBCAs ACCS through June 30, 2014 US Court of Appeals Decision in favor or against HUD? Procurement HUD to develop 18 24 months MORs Risk Based or Reset?
What is an MOR? HUD Handbook 4350.1, Chapter 6 Management Occupancy Review Desk Review On-Site Review with Addendum Interview with Owner/Agent (O/A) File Review Physical Inspection of Common Areas and Vacant Units Summary Report
What is an MOR? HUD Handbook 4350.1, Chapter 6 Form HUD-9834 A. General Appearance and Security; (10% ) B. Follow-up and Monitoring of Project Inspections; (10%) C. Maintenance and Standard Operating Procedures;(10%) D. Financial Management/Procurement; (25%- Not Rated by CA) E. Leasing and Occupancy; (25%) F. Tenant/Management Relations; and (10%) G. General Management Practices (10%)
MOR Ratings HUD Handbook 4350.1, Chapter 6 Superior (90-100) Above Average (80-89) Satisfactory (70-79) Below Average (60-69) Unsatisfactory (59 and Below)
POP QUIZ! Question: Up to what percentage of your MOR score is based on the accuracy of tenant files? a.55% b.25% c.65% d.40%
How Important are your Tenant Files? Your tenant files may effect up to 55% of your overall score. Tenant Files will effect the following MOR Categories C. Maintenance and Standard Operating Procedures;(10%) E. Leasing and Occupancy; (25%) F. Tenant/Management Relations; and (10%) G. General Management Practices (10%)
Document Retention HUD Handbook 4350.3, Chapter 4, Paragraph 4-22 Current Tenants Keep all documents. Previous Tenants Three Years after Move out. Current Applicants Keep all Documents. Previous Applicants Three years after removal from list. February 13, 2014
What is Required Tenant Documentation? List of documents provided in folder Management policies may require additional documents Focus on Required documents as stated in HUD Handbook 4350.3 February 13, 2014
Required Tenant Documents HUD Handbook 4350.3, Chapter 4, Paragraph 4-14 Original Application Form HUD-92006 Supplement to Application for Federally Assisted Housing Form HUD 27061-H Race and Ethnic Data Reporting Form February 13, 2014
Form HUD-92006 & HUD-27061-H
Required Tenant Documents HUD Handbook 4350.3, Chapter 3, Paragraph 3-28, 3-31 Verification of Family s Social Security Numbers Date of Births Disability (if applicable) Reasonable Accommodations (if applicable) Live-in Aide Assistance Animal
Required Tenant Documents HUD Handbook 4350.3, Chapter 3, Paragraph 3-12 Citizenship Declaration All family members must declare citizenship or immigration status. Citizens Signed declaration Noncitizens Other additional verification US Birth Certificate or US Passport. A signed declaration of eligible immigration status A signed consent form One of the Department of Homeland Security (DHS) approved documents DHS documents must be verified via SAVE
FIGURE 3-4
Required Tenant Documents Notice H2012-11 and HUD Handbook 4350.3, Chapter 4, Paragraph 4-4 and 4-7 Screening Information BCI - Owner s must prohibit the admission of State lifetime sex offender registration for all adults admitted after June 25, 2001. Individuals who have engaged in certain drug-related criminal behavior. Individuals whose abuse of alcohol interferes with the health, safety and right to peaceful enjoyment of the premises. Landlord Reference (if in Management s TSP) Credit Check (if in Management s TSP) Any other screening as disclosed on the Tenant Selection Plan (TSP.) **Keep in mind that all screening should be conducted uniformly.**
Required Tenant Document HUD Handbook 4350.3, Chapter 3, Paragraph 3-13 Student Eligibility (part or full time) Move-in Annual recertification Initial Certification At the time of an interim recertification if one of the changes is that a household member is enrolled as a student.
POP QUIZ! Question: Name one or more requirements of the O/A when modifying the HUD model lease? Answer: Obtain CA approval. O/A must modify the lease using a lease amendment Must provide 60 written notice to tenants of change.
Required Tenant Documents HUD Handbook 4350.3, Chapter 6, Paragraph 6-4 and 6-5 Leases Original Move-in HUD Model Lease and all of its attachments. Current HUD Model Lease and all of its attachments. Generally lease terms should be for one year.
Figure 6-4
Required Tenant Documents HUD Handbook 4350.3, Chapter 6, Paragraph 6-5 and 6-7 Lease Attachments Move in Inspection House Rules Lead based paint disclosure form Pet Rules Owner s Live-in Aide addendum Owner s police or security personnel addendum VAWA Lease Addendum Form HUD-50059 or HUD-50059-A
Required Tenant Documents HUD Handbook 4350.3, Chapter 6, Paragraph 6-29 Inspections Move in inspections Owner and Tenant must sign the inspection. The inspection must include the statement: The unit is in decent, safe and sanitary condition. Boilerplate must be completed. Must be performed before executing the HUD Model Lease.
Required Tenant Documents HUD Handbook 4350.3, Chapter 6, Paragraph 6-9 House Rules (not required but recommended) If they are listed in the lease as an attachment must be attached to the lease Owners must give 30 day written notice prior to implementing new house rules If HUD or CA find issues with House Rules you must make necessary changes
Required Tenant Documents HUD Handbook 4350.3, Chapter 6, Paragraph 6-8 Lead Based Paint Disclosure Requirements apply to all properties built prior to January 1, 1978. Prior to leasing, owners must provide the tenant with two items EPA/HUD/Consumer Product Safety Commission (CPSC) Lead Hazard Information Pamphlet (Protect Your Family from Lead In Your Home), Lead Based Paint Disclosure form
Lead Based Paint Documents
Required Tenant Documents HUD Handbook 4350.3, Chapter 6, Paragraph 6-5 and 6-24 Pet Rules (Elderly/Disabled housing only) Addendum to Lease for Elderly/Disabled Sites that are not under specific HUD Model Leases. Pet Deposit Elderly/Disabled Sites only Total deposit cannot exceed $300 Initial deposit cannot exceed $50.00 Gradual payments not to exceed $10
Required Tenant Documents HUD Handbook 4350.3, Chapter 6, Paragraph 6-5 Owner s Live-in Aide Addendum Required attachment with required wording. Owner s Police or Security Personnel Addendum Required attachment with suggested wording.
Required Tenant Documents HUD Handbook 4350.3, Chapter 6, Paragraph 6-5, also Chapter 4, Paragraph 4-4.C Violence Against Women and Justice Department Reauthorization Act of 2005 Lease Addendum (VAWA) (form HUD-91067) Allows for Lease Bifurcation Owners must retain all documentation relating to an individual s domestic violence, dating violence or stalking in a secure, separate file.
VAWA Addendum
Question: When is the tenant signature required on the form HUD-50059-A? Answer: POP QUIZ! Whenever there is a change in the tenant s rent or utility allowance.
Required Tenant Documents HUD Handbook 4350.3, Chapter 5, Paragraph 5-31, Chapter 9, Paragraph 9-4 & 9-8 Form HUD-50059 Must be signed by all adult members to the household and the owner Owner should keep original Move-in form HUD-50059 in file. Form HUD-50059A Must only be signed by owner; unless Members of the Household do not sign unless there is a change that effects the tenant s portion of the rent.
Required Tenant Document HUD Handbook 4350.3, Chapter 5, Paragraph 5-15 Form HUD-9887 Authorizes Owner to access EIV. Must be signed by every adult family member at Movein, Initial and Annual Recertification Form HUD- 9887-A Allows owners to request and receive information from third-party sources about the applicant or tenant. Must be signed by every adult family member and Owner/Agent at Move-in, Initial and Annual Recertification.
Required Tenant Document HUD Handbook 4350.3, Chapter 5, Paragraph 5-15 Acknowledgements Form HUD 9887 Fact Sheet Acknowledgement Must be signed acknowledgement whenever applicant/tenants sign form HUD-9887 & 9887-A Resident Rights and Responsibilities Acknowledgement Must be signed by Head of Household at Move-in and Annually EIV & You Acknowledgement Must be signed by Head of Household at Move-in and Annually How Your Rent is Determined Acknowledgement Must be signed by Head of Household at Move-in and Annually
Required Tenant Documents HUD Handbook 4350.3, Chapter 4, Paragraph 4-24 & Chapter 5, Paragraph 5-7 Acknowledgements Disposal of Asset Verification Must be completed by Head, Spouse or Co-head The certification must include a list of all assets disposed of, the dates disposed of, the amount received, and the asset s market value at the time of disposition HUD Does not prescribe a form for this certification
Required Tenant Documents HUD Handbook 4350.3, Chapter 7, Paragraph 7-7, Figure 7-4 Recertification Paperwork Initial 1 year tenant notification First Notice, Second Notice and Third Notice 1 ST Notice 120 days Recertification notice 2 ND Notice 90 days Recertification notice 3 RD Notice 60 days Recertification notice
Required Tenant Documents HUD Handbook 4350.3, Chapter 7, Figure 7-4
Required Tenant Documents HUD Handbook 4350.3, Chapter 5 Paragraph 5-26, Chapter 6, Paragraph 6-29, & Chapter 7, Paragraph 7-13 Minimum Rent Waiver (if applicable) Annual Unit Inspection. 30 day Notice of Rent Increase or evidence as to why the Owner/Agent was not able to give one.
Required Tenant Documents HUD Handbook 4350.3, Chapter 9 Enterprise Income Verification (EIV) System Owner s must ensure signed Form HUD- 9887 are on file for all adult family members. Owner s must use EIV in its entirety. Must document the tenant s file whenever their name shows on an EIV report.
POP QUIZ! QUESTION: EIV is used to verify? a. Wages and income b. Social Security or SSI c. Employment d. b & c e. All of the above
Required EIV Reports HUD Handbook 4350.3, Chapter 9 EIV Income Report Use this report as a 3 RD party source to verify a tenant s employment and income during certifications. If you cannot or do not use EIV you must document if the tenant: Disputes EIV Information; or The tenant reported income is not verified through EIV.
Social Security Administration As of February 2014, the Social Security Administration will no longer offer Social Security number (SSN) printouts and benefit verification information in our field offices. However, to ensure a smooth transition, we will continue providing these services if requested until April 2014. Beneficiaries and recipients needing a benefit verification letter can obtain one immediately by registering at: mysocial Security, or through the mail within 5-7 days by calling the national toll-free number, 1-800-772-1213.
Required EIV Reports HUD Handbook 4350.3, Chapter 9 Existing Tenant Search Must use as part of EIV Screening One for each member of the household (adult or child) Multiple Subsidy Report (if applicable) Deceased Tenant Report (if applicable) For New Admission Income Report within 90 days after transmission of the move in certification
Required EIV Reports HUD Handbook 4350.3, Chapter 9 Summary Report Income Discrepancy Report (if applicable) New Hires Report (if applicable)
Required Tenant Documents HUD Handbook 4350.3, Chapter 5 Paragraph 5-16 and 5-18 Third Party Verifications Owner s must include verification documents in the tenant file. Requested information is restricted to data that is no more than 12 months. Valid for 120 days from the date of receipt by the owner. O/A should be date stamping verification upon receipt
Required Tenant Documents HUD Handbook 4350.3, Chapter 5 Paragraph 5-13 New Third Party Verification Hierarchy In order of Acceptability 1. Upfront-income verification (UIV) with use of EIV being mandatory and use of non-eiv UIV being optional; 2. Third-party verification from source (written), 3. Third-party verification from source (oral), and 4. Family certification.* If third-party verification is not available, owners must document the tenant file to explain why third-party verification was not available.
Required Tenant Documents HUD Handbook 4350.3, Chapter 5 Paragraph 5-13 Upfront-income verification (UIV) with use of EIV being mandatory and use of non-eiv UIV being optional; UIV is verification of income before or during a certification and/or recertification, through an independent source that systematically and uniformly maintains income information in a computerized form.
Required Tenant Documents HUD Handbook 4350.3, Chapter 5 Paragraph 5-13 5-16 Third-party verification from source (written) Two types of written 3 RD Party from source 1. An original or authentic document generated by a third party source 4-6 Consecutive Pay stubs, Payroll Summary Report, SSA Benefit Letter, Child support statement, welfare benefit letter, unemployment benefit notice, etc.
Required Tenant Documents HUD Handbook 4350.3, Chapter 5 Paragraph 5-13 5-16 Written documentation sent directly by the third-party source by mail or electronically by fax, email or internet. Must have tenant signature Must Include Title 18, Section 1001 Electronic Verifications fax, email and Internet have other requirements
Language Required on all Consent Forms
Required Tenant Documents HUD Handbook 4350.3, Chapter 5, Paragraph 5-13 5-16 Third-party verification from source (oral) Third-party s name, position, and contact information; Information reported by the third party; Name of the person who conducted the telephone interview; and Date and time of the telephone call. Family Certification Only as a last resort. O/A must document file.
Required Tenant Documents HUD Handbook 4350.3, Chapter 8, Paragraph 8-21, 8-23 and 8-24 Repayment Agreements Owners cannot go back more than five years. Owner s must have signed form HUD-50059(s) on file during the period(s) the overpayment of assistance occurred, along with any supporting documentation. HUD has issued required wording. (provided in package) Reimbursement to Tenant for overpayment of rent HUD has issued required wording. (provided in package)
Move out - Required Documents Move out form HUD-50059-A Move Out Notice Security Deposit Disposition Letter (w/in 20 days after Move-out) Attach all supporting documentation of damages, etc. Copy of refund check (if applicable) If tenant is deceased verification of date of death. Move out inspection
Applicant Rejection - Required Documents HUD Handbook 4350.3, Chapter 4, Paragraph 4-9 Original Application Screening Documents verifying reason for rejection. Copy of the Rejection letter to the applicant Appeal Documentation (if applicable) Appeal Outcome (if applicable)
Recommended Tenant Documents Proof of security deposit A copy of the check or A security deposit receipt signed by O/A and Tenant. Original Move-in Lease and all of its addendums Proof of utility reimbursement (if applicable)
Tenant File Review Checklist Addendum A of Form HUD-9834 Is included in your package. Is the form that will be used to audit your files by Rhode Island Housing Rhode Island Housing recommends you audit someone else s files using the Addendum A. Need help?
QUESTIONS?