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Office of Multifamily Housing Programs General RHIIP Presentation. June 14, 2004. Introduction. The purpose of this presentation is to: Explain HUD’s Rental Housing Integrity Improvement Project (RHIIP) initiative

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Office of Multifamily

Housing Programs

General RHIIP Presentation

June 14, 2004


Introduction
Introduction

  • The purpose of this presentation is to:

    • Explain HUD’s Rental Housing Integrity Improvement Project (RHIIP) initiative

    • Provide an overview of the extent of the income and rent problem in HUD’s rental programs

    • Communicate your role in RHIIP

Office of Multifamily Housing Programs


Preview
Preview

  • What is RHIIP?

  • Performance Goals

  • Background

  • RHIIP Components

  • Accomplishments

  • Materials and Resources

  • RHIIP and You

Office of Multifamily Housing Programs


What is rhiip

What is RHIIP?

Right Benefits to the Right Persons


About rhiip
About RHIIP

  • Initiated in 2001, RHIIP is a comprehensive strategy to address causes of errors and improper payments

  • Department-wide effort, including:

    • Office of Housing (Housing)

    • Office of Public and Indian Housing (PIH)

    • Office of Policy Development & Research (PD&R)

    • Chief Financial Officer (CFO)

    • Office of General Council (OGC)

    • Office of Administration (OA)

Office of Multifamily Housing Programs


Multifamily housing programs covered under rhiip
Multifamily Housing Programs Covered under RHIIP

  • Project-based Section 8

  • Section 202/811 – Project Rental Assistance Contract (PRAC); 202/162 – Project Assistance Contract (PAC)

  • Section 221(d)(3) Below Market Interest Rate (BMIR)

  • Section 236

  • Rental Assistant Payments (RAP)

  • Rent Supplement

Office of Multifamily Housing Programs


Rhiip objectives
RHIIP Objectives

  • Improve the Department’s program and management performance

  • Reduce errors in project-based rental assistance programs

  • Ensure that the right benefits go to the right persons

Office of Multifamily Housing Programs


Performance goals

Performance Goals

Embracing high standards of management and accountability


Rhiip goals
RHIIP Goals

  • President’s Management Agenda – government wide initiative to reduce program errors

  • RHIIP is HUD’s strategy to reduce errors in the administration of HUD’s rental housing assistance funds.

  • Reduce errors in rent and income determinations by:

    • 15% in 2003

    • 30% in 2004

    • 50% by 2005

Notes:

Error goals are cumulative 15 percent by 2003, 30 percent by 2004, and 50 percent by 2005. Error reduction percentage is determined by comparing error rate in current year with the baseline data.

Office of Multifamily Housing Programs


Rhiip goals1
RHIIP Goals

  • Demand excellence in monitoring, rent and income determination knowledge, and program administrator compliance

  • Reduce the number and dollar amount of errors

  • Complete Management and Occupancy Reviews (MORs) that are designed to find and correct errors

Office of Multifamily Housing Programs


Background

Background

Income and Rent Calculation Dilemma


2001 quality control for rental assistance subsidies determination study qc
2001 Quality Control for Rental Assistance Subsidies Determination Study (QC)

  • Estimated that 60% of all rent and subsidy calculations contained some type of error

  • Dollar error impact:

    • $2.6 billion in HUD annual housing subsidy overpayments

    • $634 million in HUD underpayments

  • Set the baseline for error measurement

Note:

Of the $2.6 billion in annual housing subsidy overpayments, $1.7 billion were attributed to administrative and component errors

and 600-900 million were attributed to unreported tenant income.

Office of Multifamily Housing Programs


Sources of errors
Sources of Errors Determination Study (QC)

Administrative

Component

Rent

Office of Multifamily Housing Programs


Administrative errors
Administrative Errors Determination Study (QC)

  • Consistency errors

  • Calculation errors

  • Transcription errors

  • Recertifications not completed on time

  • Unverified tenant file information

Office of Multifamily Housing Programs


Component errors
Component Errors Determination Study (QC)

  • Income Components

    • Earned income

    • Social Security and pensions

    • Public Assistance (Temporary Assistance for Needy Families (TANF))

  • Expense/Allowance Components

    • Elderly/disabled allowance

    • Dependent allowance

    • Medical, childcare, and disability expenses

Office of Multifamily Housing Programs


Rent error rate by program type
Rent Error Rate by Program Type Determination Study (QC)

Source: 2001 Quality Control for Rental Assistance Subsidies Determination Study, pg. ES-iii

Office of Multifamily Housing Programs


Improper payments information act of 2002
Improper Payments Information Act of 2002 Determination Study (QC)

  • Requires agencies to:

    • Annually review all programs susceptible to significant erroneous payments

    • Estimate the annual amount of improper payments

    • Report to Congress and the President the action being taken to reduce improper payments

Office of Multifamily Housing Programs


2003 qc study
2003 QC Study Determination Study (QC)

  • Update to the 2001 error measurement baseline report

  • Focused on the first half of FY 2003

  • Estimated a 26% reduction in gross erroneous payments:

    • $562 million in rent underpayments annually

    • $987 million in rent overpayments annually

Source: FY 2003 Performance and Accountability Report, Note 17

Office of Multifamily Housing Programs


2003 pd r quality control rental assistance subsidies study results
2003 PD&R Quality Control Rental Assistance Subsidies Study Results

– All values are presented in the thousands

Source: FY 2003 Performance and Accountability Report, Note 17

Office of Multifamily Housing Programs


Results of 2003 qc study
Results of 2003 QC Study Results

* All values are presented in millions.

Office of Multifamily Housing Programs


2004 studies
2004 Studies Results

  • For FY 2004, HUD will submit an error estimate report to OMB and Congress that will include:

    • Errors in subsidy determinations data from QC study conducted for the first half of FY 2003 combined with data from study conducted for the second half of FY 2003

    • Billing error data from billing study conducted by contractor

    • Unreported tenant income data from income match with National New Hires Data Base

Office of Multifamily Housing Programs


National directory of new hires
National Directory of New Hires Results

  • Consolidated Appropriations Act of 2004 provides authority to obtain information from the Directory

  • Authority was given to disclose information to public housing agencies to verify employment and income

  • May be available to owners in the future through HUD

Office of Multifamily Housing Programs


Materials and resources

Materials and Resources Results

Job Aides for Program Administration and Oversight


Materials and resources1
Materials and Resources Results

  • Handbook 4350.3, Revision 1

  • Rent and Income Determination Quality Control Guide

  • Automation Rule Information Sheet

  • Multifamily RHIIP Web Site

  • RHIIP Help Desk Representatives

  • RHIIP Newsletter, brochure, and information sheets

  • Materials Available at: http://www.hud.gov/offices/hsg/mfh/rhiip/mfhrhiip.cfm

Office of Multifamily Housing Programs


Multifamily rhiip web site
Multifamily RHIIP Web Site Results

  • A “Crosswalk between the Old and Revised Handbook”

  • FAQs on occupancy and income and rent determinations

  • Fact sheets on “How Your Rent is Determined”

  • Handbook 4350.3 summaries for owners and tenants

  • Located at: http://www.hud.gov/offices/hsg/mfh/rhiip/mfhrhiip.cfm

Office of Multifamily Housing Programs


Rhiip and you

RHIIP and You Results

A Cooperative Effort


Hud headquarters
HUD Headquarters Results

  • Issue updated guidance

  • Develop tools and resources to assist HUD staff and CAs

  • Ensure adequate and sufficiently trained HUD staff

  • Communicate RHIIP goals and objectives to Industry partners

Office of Multifamily Housing Programs


Hud field staff
HUD Field Staff Results

  • Perform MORs for all properties for which HUD serves as the CA

  • Conduct reviews of non-PBCAs, as well as PBCAs

  • Provide guidance and technical assistance to non-PBCAs, PBCA, and owners/agents

  • Assess compliance with occupancy rules, and assure the correction of compliance deficiencies

  • Verify and ensure owners have corrected voucher errors and taken corrective actions to reduce the chances of errors in the future

Office of Multifamily Housing Programs


Contract administrators
Contract Administrators Results

  • Verify and certify housing assistance payments (HAPs)

  • Ensure owners correct their vouchers and that they take corrective actions to reduce errors

  • Enforce the execution of corrective action plans (CAPs) submitted by owners

  • Track the correction of errors on the quality control tracking log

  • Conduct MORs as required by the annual contributions contract (ACC)

Office of Multifamily Housing Programs


Contract administrators cont
Contract Administrators Results(cont.)

  • Verify that rent and income determination errors have been corrected

  • Document all owner-corrected underpayment and overpayment errors on the quality control tracking log

  • Provide technical assistance and training to owners and management agents

Office of Multifamily Housing Programs


Owners and management agents
Owners and Management Agents Results

  • Know the rules and regulations governing income and rent calculations

  • Submit all tenant certification data to the Tenant Rental Assistance Certification System (TRACS)

  • Ensure that staff are trained on requirements

  • Develop written policies and procedures for onsite staff to ensure compliance with HUD requirements

  • Verify tenant information via third-party verification

  • Maintain complete and up-to-date tenant files/records

Office of Multifamily Housing Programs


Tenants
Tenants Results

  • Provide current and accurate income and expense information at certification/recertification

  • Consent to the release of information for third-party verification

  • Report changes in income, benefits, and family composition

  • Know your rights and follow the rules governing your assisted property

Office of Multifamily Housing Programs


Tenants cont
Tenants Results(cont.)

  • Be aware of allowable exclusions and deductions that will benefit you and your family

  • Contact your property owner/agent regarding questions on how your rent is calculated and documented

Office of Multifamily Housing Programs


Conclusion
Conclusion Results

  • HUD’s top-priority for FY 2004 is to build on 2003 successes and exceed HUD’s goal for FY 2005

  • Awareness, Collaboration and Tenacity (ACT)

  • ACT to ensure that the right benefits go to the right people

Awareness

Collaboration

The right benefits for the right persons

Tenacity

Office of Multifamily Housing Programs


Questions and answers
Questions and Answers Results

Office of Multifamily Housing Programs


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