1 / 86

Annie Stevenson

Verification Techniques. Annie Stevenson. Welcome to Lunch N Learn!. Upcoming topics for the occupancy series: 6/12/08: Public housing rent calculation 9/1/06: HCV rent calculation. Welcome to Lunch N Learn!. Today’s topics: Verification techniques Introduction: error-reduction strategies

Download Presentation

Annie Stevenson

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 Techniques Annie Stevenson

  2. Welcome to Lunch N Learn! • Upcoming topics for the occupancy series: • 6/12/08: Public housing rent calculation • 9/1/06: HCV rent calculation

  3. Welcome to Lunch N Learn! • Today’s topics: • Verification techniques • Introduction: error-reduction strategies • HUD’s verification guidance • Frequently asked questions (FAQs)

  4. Introduction HUD’s Error Reduction Strategies

  5. 2001 Quality Control Report • Published by HUD Policy Development & Research (PD&R) • Available online at http://www.huduser.org/publications/pubasst/qualitycontrol.html • 60% error rate for rent and subsidy calculations in assisted housing programs

  6. 2001 Quality Control Report • Estimated annual subsidy overpayments: • $2.6 billion • Approximately 70% of subsidy payment errors are attributable to tenant under-reporting and/or non-disclosure of income • Intentional or unintentional

  7. 2001 Quality Control Report • Families statistically most likely to conceal income • Families with 2 or more sources of earned income • Families with TANF and at least 1 source of earned income

  8. 2001 Quality Control Report • Most error-prone components of rent calculation (PHA and tenant error) • Earned income • Social Security benefits • Allowances and deductions

  9. 2001 Quality Control Report • Most common sources of errors: • Calculation errors • Failure to verify income/expenses • Failure to use UIV tools & techniques • Incorrect income and deduction amounts

  10. 2001 Quality Control Report • The President's Management Agenda mandated HUD to reduce the number and dollar amount of errors by 50 percent, from 60 percent to 30 percent, by 2005

  11. HUD’s RHIIP Initiative • RHIIP: Rental Housing Integrity Improvement Project • Comprehensive strategy designed to reduce income and rent errors and improper payments in the administration of both public housing and Section 8 programs

  12. RHIIP Components • Upfront Income Verification (UIV) • Training and technical assistance • RHIIP Summits • Program guidance • HCV Guidebook • PH Guidebook • Verification Guidance

  13. RHIIP Components • RIM reviews • Incentives and sanctions • Notice PIH 2003-34 • Notice PIH 2005-7 • Program simplification

  14. Verification Guidebook

  15. HUD’s Verification Guidance • Notice PIH 2004-1 • Introduces a new 5-level hierarchy of verification methods • Provides guidance on forms of acceptable verification at each level of the hierarchy • By income source

  16. Regulatory Verification Requirement • The PHA must obtain and document in the family file third party verification of the following factors, or must document in the file why third party verification was not available: • 24 CFR 982.516 (HCV) • 24 CFR 960.259 (PH)

  17. Regulatory Verification Requirement • Factors requiring verification: • Reported family annual income • The value of assets • Expenses related to deductions from annual income • Other factors that affect the determination of adjusted income

  18. Release Forms • Before requesting any verifications, PHAs must obtain signed consent forms from family members authorizing release of information. • One such consent form must be consistent with 24 CFR 5.230 regulations

  19. Release Forms • PHAs must also use other consent forms to request verification of information not covered by this form • Because of privacy act issues, PHAs are advised to use specific, rather than generic, consent forms

  20. Release Forms • Resource for verification & consent forms: • HUD’s Public Housing Occupancy Guidebook, Appendix VIII • http://www.hud.gov/offices/pih/programs/ph/rhiip/phguidebook.cfm • Sample forms useful for HCV & PH

  21. Authorization for Release of Information • Privacy Act Statement, Form HUD 9886, must be signed by: • All adult family members (18 years or older) • Head, spouse or co-head regardless of age • Form can be used between regular reexams to verify unreported income • Valid for 15 months from date of signature

  22. Authorization for Release of Information • HUD-9886 may be used only for: • Wage & unemployment compensation from SWICAs • Salary and wages from current/former employers • Unearned income from financial institutions

  23. Authorization for Release of Information • PHAs cannot view information available in HUD’s Enterprise Income Verification System (EIV) until they obtain a signed form HUD-9886 in file for each adult household member • Head, spouse or co-head, regardless of age

  24. Hierarchy of Verification Methods • HUD has established a hierarchy of five 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

  25. Recommended Levels of Verification • Highest - Up-front income verification (UIV) • High - Written third- party • Medium - Third party oral • Medium-low - Document review • Low - Tenant declaration

  26. Upfront Income Verification • What is it? • The verification of income, before or during a reexamination, through an independent source that systematically and uniformly maintains income information in computerized form for a large number of individuals.

  27. UIV Resources • Current UIV resources include: • HUD’s EIV system • State Wage Information Collection Agencies (SWICAs) • State TANF systems

  28. UIV Resources • Credit Bureau Association (CBA) credit reports • Internal Revenue Service (IRS) – Tax transcript • Request with IRS form 4506-T • Private sector databases (e.g. The Work Number)

  29. Use of UIV for Verification • UIV is third-party verification • Most preferred form • Meets regulatory requirements • UIV is intended to streamline the verification process • Eliminates the need for written third-party verification in many cases

  30. NEW! HUD Guidance on EIV • HUD webcast 1/16/08 contained revised guidance on use of EIV • Previous guidance is obsolete and has been removed from EIV website • Webcast available at http://www.hud.gov/webcasts/archives/ph.cfm • 4 hours

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

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

  33. 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)

  34. HUD Guidance on EIV • Use tenant-provided documents to project annual income, unless: • The family disputes EIV employer data, OR • The PHA determines that additional information is necessary

  35. HUD Guidance on EIV • HUD recommends that tenant-provided documents should be dated within 60 days of interview date • Current and consecutive

  36. HUD Guidance on EIV • Quote from webcast: • “The PHA will use tenant-provided documents or most current information to calculate anticipated annual income.” • EIV quarterly wages are NOT used to project annual income

  37. HUD Guidance on EIV:File Documentation • If the family does not dispute EIV employer data, and the PHA determines that additional information is not necessary: • EIV income details report • ICN in FL • Tenant-provided documents

  38. HUD Guidance on EIV:File Documentation • If the family disputes, or PHA requires additional information: • EIV printout (except in FL) • Tenant-provided documents • Third-party written verification

  39. Zero Income Families • A family budget or statement of financial responsibility may be required • Use up-front verification, for example: • EIV • Credit report

  40. Zero Income Families • PHAs must attempt to determine the source of income when the family’s regular expenditures conflict with their claim of zero income • Useful tool: • Zero Income Checklist • PH Occupancy Guidebook, Appendix VIII

  41. Third Party Verification • Third-party verification is obtained independently from information sources identified by families • The sources may have income information or expense information

  42. Third Party Verification • Written • Documents must be supplied directly to independent sources by PHAs and returned directly to PHAs from the independent sources (not hand carried by family)

  43. Third Party Verification • Written • PHAs may mail, fax, or email verification requests to independent sources • HUD strongly encourages PHAs to make at least two attempts to obtain third-party verification

  44. Third Party Verification • Oral • 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

  45. Document Review • PHA reviews original documents provided by family as verification of a given income or expense item • Document viewed may be used when third party verification cannot be obtained

  46. Document Review • Acceptable documents: • Consecutive and original pay stubs • SSA award letters • Bank statements • TANF award letters • Other official and authentic documents from federal, state or local agencies

  47. Document Review • To be acceptable for this method of verification, documents must be original and authentic

  48. Document Review • PHA must: • Make and retain copy of document in file • Note in the file that the original has been received, reviewed and copied • Documents should be as current as possible (e.g. dated within 60 days of the family’s interview)

  49. Provisional Verification • When third party verification is not received in time to establish eligibility or complete the reexam • PHA should establish annual income on a provisional basis and recalculate when third party verification has been completed

  50. Tenant Declaration • An applicant or participant 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

More Related