Event Archive

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Use of Enterprise Income Verification System (EIV)
Held Wednesday, March 3, 2010

This session, held Wednesday, March 3, 2010, focused not on the detailed "how to use the system" but, rather, on real world issues and problems that users have encountered and on advice as to what to do with the information developed by EIV, such as double subsidy questions.

QUESTIONS & ANSWERS
(also see Photos from the Event)

Question 1: EIV for Section 8 residents can be processed now. When will the information of Section 236 residents be included on the EIV system?

Answer: According to HUD Notice H 09-20, (the current EIV protocol), issued on December 7, 2009, the requirements of EIV as stated in the notice, applies to administrators of the following HUD subsidized housing programs:
• Project-based Section 8
• New Construction
• State Agency Financed
• Substantial Rehabilitation
• Section 202/8
• Rural Housing Services (RHS) Section 515/8
• Loan Management Set-Aside (LMSA)
• Property Disposition Set-Aside (PDSA)
• Section 101 Rent Supplement
• Section 202/162 Project Assistance Contract (PAC)
• Section 202 Project Rental Assistance Contract (PRAC)
• Section 811 PRAC
• Section 236
• Section 236 Rental Assistance Payments (RAP)
• Section 221(d)(3) Below Market Interest Rate (BMIR)
(Note: Although not included in the notice itself, the EIV requirements also apply to Section 221(d) (4) Projects with Section 8 Assistance.)

It is important to note the following when speaking about the EIV system and the tenant data it contains: Tenant information in EIV is data from the most recent, active form HUD-50059, “Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures,” in TRACS. At the time Multifamily Housing began using EIV, baseline data was provided to EIV from TRACS consisting of the latest data on all active tenants in Multifamily Housing’s rental assistance programs. Currently, a daily update is provided each morning from TRACS of tenants participating in Multifamily Housing’s rental assistance programs. This data is uploaded into the EIV system the following evening. Therefore, there is a time lag of one day between the tenant data in TRACS and when it appears in EIV. Only tenants with an active certification (50059) in TRACS will be included in the TRACS file sent to EIV.

In addition, a pre-screening of the personal identifiers (i.e., social security numbers, last name and date of birth) of tenants participating in Multifamily Housing’s rental assistance programs contained in the TRACS file is conducted prior to sending the file to SSA for an identity match. Tenants who do not pass this pre-screening because of a missing or invalid personal identifier are not sent to SSA for the identity match. Consequently, O/A’s must use the “Failed EIV Pre-Screening Report” (described in Section VI.B.2.c. of Notice H 09-20) monthly to identify those tenants who did not pass the pre-screening test and the reason(s) they did not pass and make any necessary corrections in the data transmitted to TRACS. Once the corrected information is transmitted to TRACS, the tenant information is included in the SSA identity match the following month.

The SSA identity match takes the information for each participating tenant who has passed the pre-screening test and matches it against SSA’s records. Those tenants who pass the identity match pass through into the system. Those tenants who do not will not have SSA or HHS employment and income information displayed in the EIV system. However, SSA will provide information on why the verification failed. O/A’s can view this information on the “Failed Verification Report” (see Section VI.B.2.c. of Notice H 09-20).

In summation, if a participating tenant fails to pass either the pre-screening process or the SSA identity matching process, that tenant’s employment, income, wage, and benefit information will not be included in EIV. That is why it is imperative for O/A’s to view both the “Failed Verification Report” and the “Failed EIV Pre-Screening Report” on a regular basis (note: Notice H 09-20 requires O/A’s to view the “Failed EIV Pre-Screening Report” at least monthly). These reports will identify those participating tenants who have failed pre-screening and identity matching and who, as a consequence, are not in the EIV system. As the efficiency of the EIV system will be compromised if large numbers of HUD assisted tenants do not make it into the system, O/A’s must make it a priority to identify these tenants, make the necessary information corrections or changes, and above all get them into the system.

Question 2: If the Coordinator assigns a User access to the EIV system, why is permission needed again at the time of the project’s recertification period? Each User’s expiration triggers another round of reassignments to the same property.

Answer: Please note that the EIV system contains extremely sensitive, personal information. Consequently, access to the system must be limited for security purposes. Keep in mind that the number one growing crime in America is “identity theft.” In light of these facts, O/A’s must be careful to assign User rights to only enough staff that is necessary to perform the recertification function. Furthermore, O/A’s must only authorize staff members for whom access is essential to perform their jobs on a daily basis. That being said please note that the requirement that Users be reauthorized prior to annual recertification was eliminated in September 2009. In addition, Users no longer have to be reauthorized on a quarterly basis. Users must now be reauthorized bi-annually (note: Coordinators must be reauthorized on an annual basis).

Question 3: A Section 8 resident has been working or has under-reported income on the last recertification. This is documented through EIV. The resident is placed on market rent. The resident does not comply with efforts to convene a “face-to-face” [i.e., a meeting]. Fraud procedures are begun and the subsidy terminated. The resident does not pay the market rent and is taken to court for non-payment [of rent]. The judge rules the tenant has to pay market rent but will not require the resident to reimburse the housing company for the incorrectly paid subsidy, saying the project must go to Federal Court if it wants to recoup that money. What can be done to reimburse the owner for the lost revenue?

Answer: In accordance with Notice H 09-20, “O/A’s must investigate and confirm possible [income] discrepancies and errors. O/A’s may not suspend, terminate, reduce, make a final denial of rental assistance or take any other adverse action against an individual based solely on the data in EIV. When the employment and income data in EIV is not the same as reported by the tenant or when the tenant disputes the EIV data, O/A’s must independently verify any information by obtaining third party verification directly from the third party source. The O/A must notify the tenant of the results of the third party verification and request the tenant come into the office, within 10 days of notification, to discuss the results (see HUD-Handbook 4350.3 Rev-1, CHG 3, Chapter 8, paragraph 8-17). The tenant may contest the findings in the same manner as applies to other information and findings relating to eligibility factors. If the O/A determines that the tenant is in non-compliance with his/her lease because he/she knowingly provided incomplete or inaccurate information, the O/A must follow the guidance in HUD-Handbook 4350.3 Rev-1, CHG 3, Chapter 8, section 3 for terminating the tenant’s tenancy and Chapter 8, Paragraph 8-18 for the requirements on filing a civil action against the tenant to recover improper subsidy payments. [Furthermore,] where fraud is suspected, the O/A should report this to the HUD OIG Office of Investigation in the District that has jurisdiction in the State the project is located.”

Please note that in those cases of un-reporting and underreporting of income where “repayment agreements” are necessary, O/A’s may retain up to 20% of the repayments they actually collect from the tenant. However, it is important to note that the amount retained cannot exceed the lesser of: 1. 20% of the collected funds; or 2. the actual costs associated with pursuing retrieval of the funds. Note also that all funds retained by the O/A’s must be deposited in project operating accounts to offset expenses incurred for these cases. In addition, O/A’s must make certain to maintain full records, including: 1. Receipts of all amounts collected from tenants; 2. Documentation of all expenses incurred; 3. Documentation of all amounts retained by O/A’s; and 4. Documentation of voucher adjustments indicating repayments to HUD.

Question 4: Is the O/A required to use EIV data at times other than recertification? The Rent & Income Determination Quality Control Monitoring Guide states that the O/A may choose to use EIV data other than at the time of recertification.

Answer: Yes. At the time of recertification, O/A’s must use the EIV reports to verify the employment and income of tenants participating in one of Multifamily Housing’s rental assistance programs. Reports such as the “New Hires Report,” “Income Discrepancy Report,” etc. may be used other than at recertification as addressed in the O/A’s policies and procedures (see Section VI.A.1.b of Notice H 09-20). In addition to detailed reports that provide employment and income information for individual tenants, EIV contains verification reports that O/A’s may access for each of their projects or contracts. O/A’s should refer to the EIV User Manual for Multifamily Housing Program Users for information on accessing the reports and for further descriptions of the reports. The manual is posted at: http://www.hud.gov/offices/hsg/mfh//rhiip/eiv/eivhome.cfm.

Please note that Notice H 09-20 currently provides “recommendations” regarding the frequency of use of the various EIV reports. For example, it is recommended that O/A’s use the “Multiple Subsidy Report” and the “Deceased Tenant Report” no less than quarterly. However, there are two (2) important exceptions that O/A’s need to be aware of. These are the two (2) reports that can be accessed from EIV’s Identity Verification Report, the “Failed EIV Pre-Screening Report” and the “Failed Verification Report.” According to Notice H 09-20, O/A’s must use both of these reports monthly to clear up any invalid, discrepant or missing information in the TRACS database. If O/A’s fail to do so, many subsidized tenants will be left out of the system and the overall effectiveness of EIV will be undermined.

O/A’s should also keep in mind that additional guidance regarding discretionary use and mandatory use of EIV reports and the frequency of their use will be forthcoming before the end of FY 2010. Chief amongst this new guidance will be a new EIV Notice (superseding Notice H 09-20) and HUD-Handbook 4350.3 Rev-1, CHG 4 (including a new chapter dedicated solely to the EIV system and its requirements). It is anticipated that many of the “discretionary” uses and the “recommendations” for the frequency of use will become mandatory uses with prescribed frequencies of use that O/A’s will have to follow. However, until these changes have been issued and made effective, O/A’s must continue to follow the procedures and protocols that have been established by HUD Notice H 09-20 issued on December 7, 2009.
(Note: Copies of Notice H 09-20 can be downloaded by using the following web link: http://www.hud.gov/offices/adm/hudclips/notices/hsg/files/09-20hsgn.doc.)

Question 5: If we find out that a tenant did not report income, is it up to management to determine how far back to go or is it mandatory to go back to the day of hire date?

Answer: If the O/A determines a tenant did not report or underreported his/her income, the O/A must go back to the time the failure to report or the underreporting of income occurred and/or started, and calculate the difference between the amount of rent the tenant should have paid and the amount of rent the tenant was actually charged. A record of this calculation must be provided to the tenant and also retained in the tenant’s file. However, it is important to note that the O/A must not exceed the 5-year limitation for receiving assistance that is discussed on forms HUD-9887 and HUD-9887-A.

Question 6: Some EIV [income] reports reflect medical expenses, but the [tenant] is not really paying. How do [O/A’s] determine?

Answer: In the case of Medical Insurance Premiums, the usual HUD guidance applies. If the premiums are paid by an independent 3rd party source, then the tenant cannot claim this amount as an eligible medical expense. If the premiums are paid directly by the tenant, then the tenant can claim this amount as an eligible medical expense.
When processing these cases O/A’s should be careful to check the Income Report’s “Buy-In” column. A “Y” in this column indicates that a 3rd party source pays for the premium and not the tenant. An “N” in this column indicates that no 3rd party source is involved and that the tenant pays the premiums directly.

Question 7: We were told at a previous training that management must use EIV as the number one [form] of income verification. [However], what if paystubs or 3rd party verification shows a higher amount?

Answer: O/A’s must investigate and confirm possible discrepancies and errors. O/A’s may not suspend, terminate, reduce, make a final denial of rental assistance or take any other adverse action against an individual based solely on the data in EIV.
When the employment and income data in EIV is not the same as reported by the tenant or when the tenant disputes the EIV data, O/A’s must independently verify any information by obtaining third party verification directly from the third party source.
The O/A must notify the tenant of the results of the third party verification and request the tenant come into the office, within 10 days of notification, to discuss the results (see HUD-Handbook 4350.3 Rev-1, CHG 3, Chapter 8, section 3.)

Question 8: If we don’t use the EIV [reported] income due to a discrepancy with other documents, do we leave the EIV report in the tenant’s file?

Answer: Yes, but with a notation about what happened. In addition, please note that O/A’s must retain the following:
• The social security benefit reports and the new hires (W-4) wage and unemployment income reports obtained from EIV that are used as third party verification for the term of tenancy plus three years after tenancy is terminated;
• Any tenant provided documentation or other third party verification of income received to supplement the SSA or HDNH (W-4) data for the term of tenancy plus three years after tenancy is terminated.
Remember, O/A’s should follow one basic rule when it comes to record retention, document, document, document!
(Note: Once the retention period has expired, O/A’s must dispose of the data in a manner that will prevent any unauthorized access to personal information, e.g., burn, pulverize, shred, etc.)

Question 9: A User has experienced conflicting reports, saying that EIV reported no W-4 [new hires] but still listed income. How should the O/A proceed?

Answer: The answer to question 9 is the same as for question 7. When income discrepancies or possible errors arise, O/A’s must investigate them in accordance with the procedures for investigating income discrepancies found in HUD Notice H 09-20. Consider the following from page 12 of the Notice: “O/A’s must obtain third party verification which is used to complement EIV data when:
• The tenant disputes the EIV data;
• The tenant is unable to provide the O/A with the acceptable and current income documentation;
• There is incomplete EIV data for a tenant; or
• There is no EIV data for a tenant.
(Note: See Section VI.B.1.a. (1)(b) for obtaining Proof of Income Letter, from SSA. Also, see HUD-Handbook 4350.3 Rev-1, CHG 3, Chapter 5, paragraph 5-13 for more information on acceptable verification methods.)”

Please note that when the O/A is unable to obtain third party verification, e.g., the third party does not respond, the tenant file must be documented as to why the third party verification was not available.
(Note: See HUD-Handbook 4350.3 Rev-1, CHG 3, Chapter 5, paragraph 5-19 E.)

It is also important for O/A’s to keep in mind that they always have discretion to obtain additional third party verification of income or verification of other EIV data based on circumstances encountered during the recertification process.

Question 10: In the past, O/A’s were expected to use the last 12 months of income to project income for the next 12 months. Now with the “Income Discrepancy Report” we are asked to re-analyze the time period using actuals. This can really complicate things in working households; while they may report a change in income, they generally will not report that they worked an extra hour here or there. If the extra time is OT, it can really add up.

Answer: The answer to this question is that O/A’s must continue to follow HUD procedures regarding the calculation of income. It has never been HUD policy to have O/A’s calculate annual income by using the prior year’s annual income. The policy has always been for O/A’s to make a projection for the year. HUD-Handbook 4350.3 Rev-1, CHG 3, Chapter 5, paragraph 5-5 states the following: “The requirements for determining whether a family is eligible for assistance, and the amount of rent the family will pay, require the owner to project or estimate the annual income that the family expects to receive. There are several ways to make this projection. The following are two (2) acceptable methods for calculating the annual income anticipated for the coming year:
• Generally the owner must use current circumstances to anticipate income. The owner calculates projected annual income by annualizing current income. Income that may not last for a full 12 months (e.g., unemployment compensation) should be calculated assuming current circumstances will last a full 12 months. If changes occur later in the year, an interim recertification can be conducted to change the family’s rent.
• If information is available on changes expected to occur during the year, use that information to determine the total anticipated income from all known sources during the year. For example, if a verification source reports that a union contract calls for a 2% pay increase midway through the year, the owner may add the total income for the months before, and the total for the months after the increase.
Once all sources of income are known and verified, owners must convert reported income to an annual figure. Convert periodic wages to annual income by multiplying:
• Hourly wages by the number of hours worked per year (2,080 hours for full-time employment with a 40-hour week and no overtime);
• Weekly wages by 52;
• Bi-weekly wages (paid every other week) by 26;
• Semi-monthly wages (paid twice each month) by 24; and
• Monthly wages by 12.
To annualize other than full-time income, multiply the wages by the actual number of hours or weeks the person is expected to work.
Some circumstances present more than the usual challenges to estimating anticipated income. Examples of challenging situations include a family that has sporadic work or seasonal income or a tenant who is self-employed. In all instances, owners are expected to make a reasonable judgment as to the most reliable approach to estimating what the tenant will receive during the year. In many of these challenging situations, midyear or interim re-certifications may be required to reflect changing circumstances.”

Question 11: The earnings schedule shows a list of quarterly earnings ending at this time with the quarter ended 9/30/09. How are we supposed to use this information for work being processed today?

Answer: The answer to question 11 is the same as for question 10; follow HUD procedures regarding the calculation of income (see the answer to question 10 above for more information). However, please note the following: The quarterly wage and unemployment income information provided by the NDNH (New Hires/W-4) must not be used to calculate tenant income. This information is to be utilized for third party verification purposes only. O/A’s will use documentation provided by the tenant, e.g., pay stubs, unemployment benefit information, etc. to calculate the tenant’s income unless circumstances require the O/A to obtain third party verification directly from the employer or unemployment agency (please see pages 12 and 16 of HUD Notice H 09-20).

Question 12: How should O/A’s proceed in “Multiple Subsidy” cases?

Answer: It is recommended that O/A’s use the “Multiple Subsidy Report” no less than quarterly. This report allows the O/A to search within the TRACS and PIH’s PIC databases to identify individuals who may be receiving multiple rental subsidies. The O/A can search by:
• All household members;
• Only adult household members;
• Only household members under the age of 18.
If the report shows that a tenant is being assisted at another location, the O/A should discuss this with the tenant, giving the tenant the opportunity to explain any circumstances relative to his/her being assisted at another location.

The O/A may also need to follow-up with the respective PHA or O/A to confirm that the tenant is being assisted at the other location. Depending on the results of this investigation, the O/A may need to take action to terminate the tenant’s assistance or tenancy.
(Note: For more information regarding this subject, see HUD-Handbook 4350.3 Rev-1, CHG 3, Chapter 8, sections 1 and 2.)

It is important for O/A’s to note that HUD does not prohibit owners of partially subsidized projects from housing tenants who are receiving assistance through the Housing Choice Voucher program. While these tenants may appear on the “Multiple Subsidy Report,” HUD does not consider them as receiving double subsidy (see HUD-Handbook 4350.3 Rev-1, CHG 3, Chapter 3, paragraph 3-21 for a discussion of “Applicants with Housing Choice Vouchers”). In these instances, O/A’s should print out a copy of the “Multiple Subsidy Report” and note that the tenant has a Housing Choice Voucher and is not receiving double subsidy, e.g., tenant is residing in a Section 236 unit and receiving rental assistance through the Housing Choice Voucher program.

NYAHMA’S NEW EPA LEAD PAINT REGULATIONS SEMINAR
Held Wednesday November 18, 2009

This seminar covered: For building Owners, Managers and third party contractors, the new EPA rule will go into effect April 22, 2010 and Contractor EPA firm certification acceptance by EPA beginning October 22, 2009 for all pre 1978 buildings that are not certified “Lead Free”. Find out how to comply and where to get training. Understand the differences between Federal EPA Regulations and existing NYC Laws. What new demands must be put on outside contractors? What new demands must be made on in building staff? Who needs training & how often? In addition, what other training requirement are required for our building staff and the certification of supers. Be aware Penalties can be $32,500 per day per violation! In addition, what other training requirement are required for our building staff and the certification
of supers.

View Videos of the Event (Flash required):

Introduction by NYAHMA President R. Hunter Cushing
Presentation by Lee Wasserman, LEW Corporation

Lee Wasserman, President, LEW Corporation

Margie Russell, NYAHMA Board Member, Executive Director, New York Association of Realty Managers (NYARM) with NYAHMA

NYAHMA LEADS THE WAY with Regulators Seminar

Over 100 participants came to NYAHMA’s all day “Meet the Regulators” forum on March 19.  The leadership and key staff from HUD’s New York office together with high ranking representatives of DHCR, HTF CGI and HPD - and special guest Deborah Lear, HUD’s Deputy Assistant Secretary in charge of the project-based Section 8 contract administrators - were there to make presentations and take questions from the audience.

The day had four sessions. The morning was devoted to the project-based Section 8 program. The start was local with HUD, HTF and CGI giving their views and answering questions from the audience. Next was our special guest Deborah Lear, who brought us up to date on proposed changes to the “ACC,” which is the contract governing the relationship between HUD and the contract administrators around the country. Ms. Lear also took questions from our audience.

The afternoon was all about Mitchell Lama and the Section 8 voucher program. DHCR, HPD and HUD made presentations on their various roles and they, too, answered questions. Finally, ending the day was the Housing Voucher program.  Again, representatives of HUD, PIH, NYCHA, HPD and DHCR presented their agencies’ views and answered all questions asked.

It was a great, informative day. Special thanks go to NYAHMA’s President Hunter Cushing who presided over the entire day, and moderators David Buchwalter and Richard Singer. A very special thank you goes to Related Management and Hector Pinero, who provided the facilities. See pictures of the fabulous event.

Your NYAHMA Board was not through! The very next day representatives of NYAHMA along with the leadership of HUD’s New York office and DHCR were invited to a special all day meeting with Deborah Lear at which we were given a very detailed overview of the proposed new ACC, development of which, Ms. Lear informed us, is well underway. We were particularly honored to learn that this meeting was the first such meeting at which local representatives of owners and managers were given the opportunity to directly comment on and make suggestions regarding this important matter – and we certainly did make comments and offer suggestions on behalf of our members. The NYAHMA Board will be following up and will work closely with Ms. Lear as this contract model nearer completion. Again, thanks go to Related Properties for providing the facilities and lunch.

Deborah Lear, HUD HQ - Deputy Director Office of Assistance

Margaret Ruiz NYCHA, Chris Ingram HUD/PIH, Al Smith DHCR, Alexandra Warren HPD

Morning Panelists with HUD, DHCR,HTF And CGI

Audience participation

Teresa Bainton-HUD Al Smith DHCR Jackie Robotti HTF Les Pierce CGI

Pointed question are asked

Richard Singer Hirschen Singer & Epstein LLP David Cabrera - DHCR