Welcome to Housing Help!

2. Welcome to Housing Help! • August 2010 revisions to the NMA Model ACOP • Rent Refinement Final Rule • Notice PIH 2010-19 • EIV requirements • New verification hierarchy

3. Model Administrative Plan Revision • CD contents • Cover letter • Filing instructions • Revision pages for ACOP • Replace individual pages • Full ACOP

4. Revision Steps • Read cover letter • Explanation of changes • Review Guide chapter(s) • Policy decisions as needed • Select your PHA policies • Use default(s) or paste/type in

5. Revision Steps • Board approval • Current revision is mostly mandatory • May implement pending Board review • Incorporate changes • Electronic: paste into current version • Paper: print and file change pages

6. Changes in This Revision • Rent refinement final rule • Federal Register 12/29/09 • Notice PIH 2010-3 • Notice PIH 2010-19 • Effective Use of EIV • New verification hierarchy

7. Model ACOP • Where are the references? • HUDCLIPS: http://www.hud.gov/offices/adm/hudclips/ • NAHRO website: http://www.nahro.org/index.cfm

8. Model ACOP • The HUD changes covered in this revision tend to narrow the PHA’s policy options rather than expand the options • Areas in which PHAs formerly had discretion are now mandated by HUD • Model ACOP chapters revised to remove discretionary policies

9. Rent Refinement Final Rule

10. Final Rule Background • The Rent Refinement rule was published & withdrawn in early 2009 • A new “proposed rule” was published 10-15-09 • The “final” final rule was published 12-29-09 • Effective date 1-31-10

11. Final Rule • Two components of the previous versions of the rule were dropped in the final rule: • Change to citizenship verification regulation • Change to definition of “annual income” • The regulations remain unchanged in these areas

12. Final Rule • The final rule makes regulatory changes to: • SSN requirements • HUD published Notice PIH 2010-3 on SSN verification • Records retention • EIV usage

13. Social Security Numbers

14. New SSN Regulations Regulations were revised effective 1/31/10 SSNs must be provided for all household members except persons who are exempt Includes foster child & live-in aide Children under 6 are no longer exempt

15. Who Is Exempt? Noncontending family members Current participants who have not provided a SSN and who were at least 62 on 1/31/10 Should be very rare No requirement to re-verify SSNs for household members already validated through EIV

16. Acceptable Documentation PHA must accept any of the following: SS card SSA-issued document Original document issued by federal, state or local government agency Containing name & SSN

17. Acceptable Documentation PHA can only reject documents if: They are not original They appear to be forged, or They appear to be altered or not legible All SSNs will be verified through EIV

18. Acceptable Documentation • PHA should explain to family reason for rejection and request acceptable documentation within a specified time frame

19. Removing File Documentation Once SSN is verified in EIV, HUD strongly recommends that documentation should be removed from file At next annual or interim reexam Purpose: safeguard data, prevent identity theft

20. Documentation Time Frames Applicants: SSNs for each household member must be disclosed and documented at time of eligibility determination Except noncontending members Family cannot be admitted to program until the requirement is met

21. Documentation Time Frames:Residents Current residents who have not previously disclosed SSN: next interim or annual reexam Includes children under 6 & non-exempt HH members who haven’t previously provided If a HH member is not exempt & has no SSN, must obtain one 21

22. Documentation Time Frames:Residents Adding new HH member who is 6 or over OR is under 6 but already has SSN: Must disclose & document SSN during processing (interim) Cannot add new member until requirement is met

23. Documentation Time Frames:Residents Adding new HH member who is under 6 & has no SSN: Must disclose & document SSN within 90 days of addition to HH May allow 90-day extension Must add child to HH and provide deductions during this period

24. Penalties: Applicants PHA must deny assistance if SSN requirements are not met Disclosure & documentation of SSNs for all HH members (except noncontending persons) is a condition of eligibility for public housing

25. Penalties: Residents PHA must terminate assistance or tenancy of entire family if SSN requirements are not met Must defer termination for 90 days if: Failure to meet requirement was due to unforeseen circumstances/outside family’s control, and “Reasonably likely” family can meet requirement within 90 days

26. Model ACOP New SSN requirements reflected in chapters: 3 (Eligibility) 7 (Verifications) 13 (Termination) Minor changes in other chapters (i.e. interim requirements)

27. Mandatory EIV Usage

28. EIV Usage • New regulation at 24 CFR 5.233 • Notice PIH 2010-19 • PHAs must use EIV as a third-party source during reexams • Most PHAs already use EIV

29. EIV Usage • PHAs must use EIV “in its entirety” as a third-party source • In its entirety includes using EIV reports, i.e. Deceased Tenant Report, Failed Verification Report, etc. • Failure to use EIV may result in sanctions

30. Model ACOP • Changes due to mandatory use of EIV are in chapters 6 and 7 • EIV mandated use of management reports is a procedural requirement • No policy issues or need for Board approval

31. Verification Notice 2010-19

32. Notice PIH 2010-19 • Administrative Guidance for Effective and Mandated Use of the Enterprise Income Verification (EIV) System • Published May 17, 2010 • Discusses new verification hierarchy, using EIV “in its entirety”, and repayment agreements

33. Notice PIH 2010-19 • Replaces verification hierarchy in Notice PIH 2004-1 with a new, 6-level hierarchy • New definition of “third party verification” • Tenant-provided documents generated by a third party are now considered “third-party written” verification

34. Hierarchy of Verification Methods • HUD has established a hierarchy of six verification levels • Using this hierarchy, PHAs should develop and adopt verification policies as to what qualifies as adequate verification • Policies must be consistent with the regulatory requirements

35. Recommended Levels of Verification • Up-front income verification (UIV) using EIV • UIV using other sources • Written third-party docs provided by family • Written third-party verification form • Third-party oral • Tenant declaration

36. Upfront Verification Using EIV • Use of EIV is required for annual and interim reexams • EIV is not available for applicant families or new members added to currently assisted households

37. HUD Guidance on EIV • EIV is sufficient as third-party verification of employment when • The family does not dispute the data, AND • Current tenant provided documents (i.e. paystubs) are available

38. HUD Guidance on EIV • The PHA MUST obtain additional third-party verification when the family disputes EIV employer data

39. HUD Guidance on EIV • The PHA MAY obtain additional third-party verification when the PHA determines that additional information is necessary, such as • Effective dates of employment • Pay rate, hours worked for new jobs • Confirmation of a change in circumstances (reduced hours, reduced rate of pay)

40. UIV Using Other Sources • Second most preferable form of verification • PHAs are encouraged to use non-HUD UIV tools, such as • The Work Number • State government databases/SWICA (continued…)

41. UIV Using Other Sources • PHAs are encouraged to use non-HUD UIV tools, such as • State TANF systems • Credit Bureau Association (CBA) credit reports • Internal Revenue Service (IRS) – tax transcript • Request with IRS form 4506-T

42. Written Third-Party Verification • An original or authentic document generated by a third-party source • Includes documents provided by family • Dated within 60 days of reexam or PHA request

43. Written Third-Party Verification • Examples of acceptable tenant-provided documents generated by a third party • Pay stubs/payroll summary • SSA award letters • Bank statements • Welfare/unemployment notices • Etc.

44. Written Third-Party Verification • The PHA may reject tenant-provided third-party documents only if they are • Not original • Forged • Altered, mutilated, or not legible • Must explain to family and request additional documentation

45. Written Third-Party Verification Form • The “traditional” third-party written verification • Standardized form filled out by third party • Tenant-provided documents generated by a third party now rank higher than third-party forms

46. Written Third-Party Verification Form • Notice PIH 2010-19 states that there are administrative burdens and risks associated with this verification method • Incomplete or falsified information • Documents from computerized systems or databases are considered more reliable

47. Oral Third-Party Verification • PHAs contact the independent sources by telephone or in person • Third-party oral verification may be used when requests for written verification have not been returned within a reasonable time – e.g. 10 business days

48. Tenant Declaration • An applicant or resident submits an affidavit or notarized statement to certify income or expenses that s/he has reported • This method should be used as a last resort when no other verification method is possible

49. Model ACOP • Revisions to chapter 6 (income projection) and chapter 7 (extensive changes throughout chapter) • Chapter 8 (leasing and inspections) revised to include EIV informing notice at orientations

50. Notice 2010-19 – Repayments