1 / 90

Verification and Rent Calculation

Verification and Rent Calculation. Angela Foster, PH Revitalization Specialist Claunella Richardson, Financial Analyst Chandra Broadnax, Program Analyst U. S. Department of Housing and Urban Development Detroit HUD Field Office, Office of Public Housing

astrid
Download Presentation

Verification and Rent Calculation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Verification and Rent Calculation Angela Foster, PH Revitalization Specialist Claunella Richardson, Financial Analyst Chandra Broadnax, Program Analyst U. S. Department of Housing and Urban Development Detroit HUD Field Office, Office of Public Housing Willie C.H. Garrett, Public Housing Hub Director

  2. Training Outline • Lesson 1: Eligibility For Admission • Notification Letter • Interview Process • Required forms and documents • Lesson 2: Verification Process • Document Verification • What is and is not Income? • Methods of Income Verification • How to access and use EIV • Lesson 3: Rent Calculation • How to calculate deductions • How to calculate Rent

  3. Benefits • Reduce rent underpayments and overpayments by residents. • Maximize HUD’s limited housing resources. • The Dollar Impact of Rent Errors

  4. Lesson 1: Eligibility For Admission

  5. Lesson 1: Objectives • Tips to construct a clear and concise notification letter so the Family is not confused about what documents they must bring to the interview. • Tips to construct a detailed Annual Income Checklist to reduce the risk of overlooking eligible income. • Insight on how to conduct a respectful and productive interview with the Family to ensure all required documents are collected, the verification process is thoroughly explained, questions are answered and forms requiring signatures are signed. • Review the purpose of HUD form 9886 and the Declaration Of Section 214 Status form to ensure the PHA has permission to use the Family’s information for verification purposes and are eligible citizens.

  6. Notification Letter The Notification Letter commences the verification process. It should state the date, time, and location of the interview and a list of what documents the Family should bring. A clear and concise letter can reduce the time of the verification process and expedites housing the Family. • Date: • Time: • Location: • What to bring:

  7. The Interview The PHA’s interview with the Family is the beginning and most important component of the verification process. It is where the PHA lays the groundwork to build trust with the Family, collect information, and explain the housing program requirements. The interview includes the review of documents and the signature and exchange of documents between the PHA and the Family. *Give the family copies of what they sign.

  8. The Interview (cont.) • The PHA must conduct the interview with dignity and respect. Establish an area to conduct interviews in private. Treat the Family with excellent customer service with a • Establish a partnership with the Family. The process to obtain Public Housing should not deplete the spirit of those who need our help. The PHA is not checking to see if the family is worthy, the PHA is verifying if the Family is eligible per HUD regulations. Be objective not judgmental! “Treat the Family the way you want to be treated”

  9. The Interview (cont.) • During the interview, the use of interpersonal communication skills such as empathy, sympathy,effective listening and reflecting are essential. These skills help the PHA to communicate effectively with the Family. An effective interview reduces the risk of missing vital information needed to verify the Family’s eligibility for housing assistance and alleviates the burden on the Family to making unnecessary trips back and forth to the PHA. This is especially challenging for Families that have to rely on others or unreliable public transportation.

  10. The Interview (cont.) • The PHA benefits from a well conducted interview. It lessens the time the PHA staff has to take to verify information and increases the time it takes the PHA to house a Family.

  11. Documentation Check List • Social Security Card • Birth Certificate • Driver’s License or Valid Government Issued IC • INS Documentation

  12. Form HUD 9886Authorization for the Release of Information/Privacy Act Notice (cont.) • Uses of Information to be Obtained: HUD is required to protect the income information it obtains in accordance with the Privacy Act of 1974, 5 U.S.C. 552a. HUD may disclose information (other than tax return information) for certain routine uses, such as to other government agencies for law enforcement purposes, to Federal agencies for employment suitability purposes and to HAs for the purpose of determining housing assistance. The HA is also required to protect the income information it obtains in accordance with any applicable State privacy law. HUD and HA employees may be subject to penalties for unauthorized disclosures or improper uses of the income information that is obtained based on the consent form. Private owners may not request or receive information authorized by this form.

  13. Form HUD 9886Authorization for the Release of Information/Privacy Act Notice (cont.) • Who Must Sign the Consent Form: Each member of your household who is 18 years of age or older must sign the consent form. Additional signatures must be obtained from new adult members joining the household or whenever members of the household become 18 years of age.

  14. Form HUD 9886Authorization for the Release of Information/Privacy Act Notice (cont.) • Failure to Sign Consent Form: Failure to sign the consent form may result in the denial of eligibility or termination of assisted housing benefits, or both. Denial of eligibility or termination of benefits is subject to the HA’s grievance procedures and Section 8 informal hearing procedures.

  15. Annual Income Checklist TANF • A detailed Annual Income Checklist reduces the risk of overlooking eligible incomewhich could lead to under and over payments by residents. Unemployment Benefits

  16. Lesson 1: Wrap-up • Construct a comprehensive, clear and concise Notification Letter • Conduct a respectful and thorough Interview with Family • Collect required documents • Review with Family and sign Form HUD 9886 • Review with Family and sign Declaration of Section 214 Status • Collect all Annual Income information.

  17. Lesson 2: Verification Process

  18. Lesson 2: Objectives • Review the purpose of Document Verification. • Review what is and is not Income. • Review the Methods of Income Verification. • Learn how to access and use EIV Effectively

  19. Verifying Social Security Numbers • One of the most important tools for identification is an applicant’s/participant’s Social Security Number. Prior to admission each Family member who has a Social Security Number and who is at least six years of age is required to disclose and verify that Social Security Number. New Family members at least six years of age must provide this verification prior to being added to the lease. This information must be provided for children in assisted households at the first regular reexamination after turning six. When a Family is adding a new baby to the lease, the PHA can help by providing Social Security Number application forms. Children on whose behalf welfare benefits are paid have social security numbers.

  20. Verifying Social Security Numbers (cont.) • The best verification of the Social Security Number is the original Social Security card. If the card is not available, the PHA may accept letters from Social Security that establish and state the number. Documentation from other governmental agencies should also be accepted that establishes and states the number. A driver’s license, military ID, passport, or other official document that establishes and states the number is also acceptable. The documents used to verify social security numbers should be copied and placed in the applicant’s file.

  21. Verifying Social Security Numbers (cont.) • If applicants state that they do not have Social Security Numbers, the PHA should ask if the applicants have ever worked, had a bank account, received any government benefits or attended school in the United States. If applicants respond negatively to these questions and continue to state that they do not have a Social Security Number, they are required to sign a certification to this effect. An example of someone who might not have a social security number would be an eligible immigrant who is retired and living on a pension from their former country. The PHA may not require any individual who does not have a Social Security Number to obtain a Social Security Number.Most methods of verification require the Social Security Number, so the PHA should be familiar with how an applicant may obtain a Social Security Number locally.

  22. Verifying Social Security Numbers (cont.) • If applicants indicate they have Social Security Numbers, but cannot readily verify them, the Family cannot be assisted until verification is provided. Applicants who have Social Security Numbers but refuse to provide them are not eligible for public housing.

  23. Verifying Citizenship:Declaration of Section 214 Status • Section 214 of the Housing and Community Development Act of 1980, as amended, restricts HUD from making financial assistance available for noncitizens, unless they meet one of the categories of eligible immigration status specified in Section 214.

  24. Verifying Citizenship • For noncitizens, the evidence consists of the signed declaration of eligible immigration status and one of the following:

  25. Verifying Citizenship • Alien Registration Receipt Card • Arrival-Departure Record, with one of the following annotations: • a.) Admitted as Refugee Pursuant to Section 207; • b.) Section 208; • c.) Asylum; • d.) Section 243(h); • Deportation stayed by Attorney General; or - Paroled Pursuant to Section 212(d)(5) of the INA.

  26. Verifying Citizenship • Unannotated Arrival-Departure Record, with one of the following: • a.) Final court action granting asylum, if no appeal is taken; • b.) Letter from INS asylum officer or district director granting asylum; • c.) Court decision granting withholding of deportation; or - Letter from asylum officer granting withholding of deportation. • Temporary Resident card, annotated: Section 245A” or “Section 210” • Employment Authorization Card, annotated “Provision of Law 274a.12(11)” or “Provision of Law 274a.12” • Receipt issued by the INS indicating that the application for issuance of a replacement document in one of the above-listed categories has been made and the applicant’s entitlement to the document has been verified.

  27. Verifying Citizenship • Birth Certificates are acceptable forms of verification for Evidence of Citizenship. • The PHA verifies citizenship status through a birth certificate, however a U.S. passport, military identification card or DD-214 formare acceptable. • Copies of all documents must be retained in the resident’s file.

  28. What is Annual Income ?24 CFR 5.609 • Annual income is used both to determine income eligibility and is the first step in income-based rent calculation.

  29. What is Income and how to Verify It All Income MUST be Verified! The PHA is responsible for Verifying Income, NOT the Family! 24 CFR§960.259(c)(i)(ii)(iii)(iv)

  30. What is Income and how to Verify It Asset Income - Amounts derived from assets to which any member of the family has access. Any withdrawal of cash or assets from an investment. If the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current national passbook savings rate, as determined by HUD. Verify the following information 3rdParty Verification Methods: • Bank Statements • Investment Statements • IRS records • Sell of Property documents (homes, stocks, boats) • Property acquisition records

  31. What is Income and how to Verify It (cont.) Asset Income NOTE: The public housing program does not have a dollar limit on the amount of assets a family can possess and still be eligible for the program, but the income produced by net family assets is counted as part of Annual Income.

  32. What is Income and how to Verify It (cont.) Employment Income that includes all wages, salaries, overtime pay, commissions, fees, tips, bonuses. Verify the following information through EIV and 3rd Party Verification Methods: • Start date • Termination date • Pay frequency • Pay rate • Anticipated pay increases • Year-to-date earnings • Bonuses • Severance pay • Overtime

  33. What is Income and how to Verify It(cont.) Self-Employment Income from the operation of a business or profession. Verify the following information through EIV and 3rd Party Verification Methods: • Net income (gross income – expenses) • Withdrawal of cash or assets except to the extent it is a reimbursement of cash or assets invested by the family • Expenditures for business expansion or amortization of capital indebtedness which are not deducted from the gross income. • Allowance for depreciation of assets used in business or profession based on straight line depreciation.

  34. What is Income and how to Verify It (cont.) Social security payments, TANF, Unemployment, and Pension Benefits Verify the following information through EIV and 3rdParty Verification Methods if there are discrepancies: • Social Security and SSI – Verify through EIV • Unemployment – Verify through EIV • TANF – Verify through EIV • Pensions – Verify through EIV or 3rd party verification methods

  35. What is Income and how to Verify It (cont.) Child support Verify the following information: Verify Child Support through 3rd party verification methods; information is not available in EIV. Verify if the family is actually receiving Child Support before counting the court ordered amount. Verify how much the family is receiving. To avoid overpayment by the family, do not count the court ordered amount if it is not the amount received by the family.

  36. What is Income and how to Verify It (cont.) Use 3rd Party Verification Methods to Verify Income Below • Annuity payments, Insurance policies. • Private Retirement funds, disability or death benefits. • Periodic receipts. • All regular and special pay of a member of the Armed Forces, (except for hostile fire pay, which is excluded) • Regular contributions and gifts. Note:Of all the forms of income that should be included in Annual Income, contributions from sources outside the household is the most often missed.

  37. What is Not Annual Income?24 CFR § 5.609(c) • a. Income from employment of children (including foster children) under the age of 18 years. • b. Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone). • c. Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker’s compensation), capital gains and settlement for personal or property losses.

  38. What is Not Annual Income? (24 CFR § 5.609(c) • d. Amounts received by the family that is specifically for, or in reimbursement of, the cost of medical expenses for any family member. • e. Income of a live-in aide. • f. The full amount of student financial assistance paid directly to the student or to the educational institution

  39. What is Not Annual Income? (24 CFR § 5.609(c) • g. The special pay to a family member serving in the Armed Forces who is exposed to hostile fire. • h. Amounts received under training programs funded by HUD. • Amounts received under a resident service stipend. A resident service stipend is a modest amount (not to exceed $200 per month) received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, resident initiatives coordination, and serving as a member of the PHA’s governing Board. • No resident may receive more than one such stipend during the same period of time.

  40. What is Not Annual Income? (24 CFR § 5.609(c) • Incremental earnings and benefits resulting to any family member from participation in qualifying State or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives, and are excluded only for the period during which the family member participates in the employment-training program.

  41. What is Not Annual Income? (24 CFR § 5.609(c) • i. Temporary, nonrecurring, or sporadic income (including gifts); The key element that causes the exclusion of this income is that it is neither reliable nor periodic. • j. Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era. • k. Earnings in excess of $480 for each full-time student 18 years of age or older (excluding the head of household and spouse);

  42. What is Not Annual Income? (24 CFR § 5.609(c) • m. Adoption assistance payments in excess of $480 per adopted child. • n. Deferred periodic amounts from Supplemental Security Income and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts; a lump sum payment covering the period from application to determination of eligibility. • o. Amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling unit; This exclusion would apply to State homestead exemptions, for example.

  43. What is Not Annual Income?(24 CFR § 5.609(c) • p. Amounts paid by a State agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home; the State funds alluded to in this paragraph are paid to prevent the institutionalization of a family member. • q. Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in the above list of excluded income apply.

  44. What is Not Annual Income?(24 CFR § 5.609(c) The following list of benefits is excluded income: • The value of the allotment provided to an eligible household for coupons under the Food Stamp Act of 1977 [7 USC 2017 (h)]. • Amounts of scholarships funded under Title IV of the Higher Education Act of 1965 including awards under the Federal work-study program or under the Bureau of Indian Affairs student assistance programs [20 USC 1087 (uu)]. • Examples of Title IV programs include but are not limited to: • Basic Educational Opportunity Grants (Pell Grants). • Supplemental Opportunity Grants. • State Student Incentive Grants. • College Work Study. • Byrd Scholarships.

  45. Methods of Income Verification • Written Third Party Verification: Independent verification of income and/or expenses by contacting the individual income/expense source(s) supplied by the family. The verification documents must be supplied directly to the independent source by the PHA and be returned directly to the PHA from the independent source. • Oral Third Party Verification: Independent verification of income and/or expenses by contacting the individual income/expense source(s) supplied by the family, via telephone or in-person visit. PHA staff should document in the tenant file, the date and time of the telephone call, the name of the person contacted and telephone number, along with the confirmed verified information. This verification method is commonly used in the event that the independent source does not respond to the PHA’s faxed, mailed, or e-mailed request for information in a reasonable time frame, i.e., ten (10) business days.

  46. Methods of Income Verification 3. Document Review: The PHA reviews original documents provided by the tenant in support of their declaration of income during the income reexamination. This verification method can only be used as the sole source of income verification when third party verification cannot be obtained. When the PHA resorts to reviewing tenant-provided documents, the PHA must document in the tenant file why third party verification was not available.

  47. Methods of Income Verification Acceptable Participant-Provided Documents • Housing program participants have an obligation to the PHA to provide any letter or other notice, including any letter or notice from HUD that provides information concerning the amount or verification of family income, per section 3(f) of the U.S. Housing Act of 1937, as amended. In support of the tenant’s declaration of income, the PHA may review original (authentic) documents provided by the participant. All documents should be dated within the last 60 days of the interview. The PHA should make a photocopy of the original document(s) and maintain the copy in the participant case file. The PHA should also document in the tenant file, the receipt, copy, and review of the original (authentic) document.

  48. Methods of Income Verification Summary of some acceptable participant-provided documents • Consecutive and original pay stubs • Social Security Administration award letter • Bank statements • Pension benefit statements • Temporary Assistance to Needy Families (TANF) award letter • Other official and authentic documents from a Federal, State, or local agency.

  49. Methods of Income Verification • 4. Tenant Certification: The tenant submits an affidavit or notarized statement of reported income and/or expenses. This verification method should be used as a last resort when all other verification methods are not possible. When the PHA relies on tenant certification, the PHA must document in the tenant file why third party verification was not available.

  50. Methods of Income Verification at a Glance

More Related