Multifamily EIV for Users - conahro.org

1 5/29/20151 Multifamily EIV for Users05/14/2015 Heather Staggs, AHM, CPO,FHC Copyright 2015 Momentum Training and Consulting, LLC in Partnership with Piltch and Associates Not for duplication or distribution without prior consent 5/29/20152 Feel Free to Ask Questions as We Go Before We of EIV 2001:OMB released the President s Management Agenda which established the reduction of erroneous payments as a key government-wide priority, evidenced by the Eliminating Improper Payments initiative, which requires agencies to measure improper payments annually, develop improvement targets and corrective actions, and track results HUD established the RHIIP initiative to address the causes of errors and improper payments in HUD s assisted housing programs and to ensure that the right benefits go to the right persons5 History of EIV To assist in meeting the RHIIP initiative goals, HUD developed and began implementation of the Upfront income Verification (UIV)

2 System, now known as the EIV system The UIV system was originally only available to PHAs Provided income information on wages and unemployment benefits provided through matching agreements with individual states65/29/20154 History of EIV 2004:HUD received statutory authority to negotiate a matching agreement with the Department of Health and Human Services (HHS) to conduct computer matching with National Directory of New Hires (NDNH) data While the first matching agreement between HUD and HHS only made the NDNH data available to PHAs, a subsequent agreement was reached in FY 2007 making the information available to Multifamily Housing s O/As, CAs and the OIG7 History of EIV HHS later approved disclosure of NDNH information to Independent Public Auditors (IPAs) In addition to the NDNH data, the data received from the Social Security Administration (SSA), formerly available for use by O/As through the Tenant Assessment Subsystem (TASS)

3 , was also made available through the EIV system85/29/20155 History of EIV On December 29, 2009, the Refinement of income and Rent Determination Requirements in Public and Assisted Housing Programs: Implementation of the Enterprise income Verification System Amendments; Final Rule was published in the Federal Register This made the use of the entire EIV system mandatory by PHAs and O/As, effective January 31, 20109 Subsequent Guidance Housing Notice 2013-06 Change 4 of the HUD Occupancy Handbook , REV-1 which was issued by HUD on August 7, 2013, is to provide updated instructions for using EIV by HUD Multifamily Owners and Agents (O/As). 5/29/20156 KEY TERMSKey Terms EIV = Enterprise income Verification UIV = Upfront income Verification SSA = Social Security Administration SSI = Supplemental Social Security HHS = Health and Human Services NDNH = National Directory of New Hires SWICA= State Wage income Collection Agency IPA = Independent Public Auditor5/29/20157 HUD Terminology The Department of Housing and Urban Development (HUD): Must: You are required to take the action specified.

4 Cannot/Must Not: The action is strictly prohibited. May: You may choose to take action or not, must be consistent though Should: The action is recommended. Can: You have permission to take the Players HUD O/A = Owner/Agent Tenant = Resident Head of Household = HOH5/29/20158 Run, Review and Follow-Up on the7 EIV Reports Tenant Search; Reports (Summary Report, income Report and income Discrepancy Report); Hires Report; income Reports (No income Reported on 50059 and No income Reported by HHS or SSA); Subsidy Report; Verification Reports {Not Verified (verification in process), Failed EIV Pre-screening Report and Failed Verification Report (Failed the SSA Identity Test)}; Tenants of the EIV SystemThe EIV System applies to the following 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 202/162 Project Assistance Contract (PAC) Section 202 Project Rental Assistance Contract (PRAC) Section 811 Project Rental Assistance Contract (PRAC) Section 811 Project Rental Assistance Demonstration units under a Rental Assistance Contract Section 236 Section 236 Rental Assistance Payment (RAP) Section 221(d)(3) Below Market Interest Rate (BMIR) Section 101 Rent Supplement5/29/20159 Requirements for Using EIV Data Existing Tenant Search and Other EIV ReportsO/As must.

5 Use the Existing Tenant Searchin EIV as part of their screening criteria to determine if any applicant member is receiving subsidy at another location. Include written policies for using the search in their Tenant Selection Plan; and Have written policies and procedures for staff to follow for using the other EIV Reports, including the income Report as third party verification of employment and HUD Forms:Form HUD-9887 and Form HUD-9887-AForms HUD 9887, Notice and Consent to the Release of Information, and HUD 9887-A, Applicant s/Tenant s Consent to the Release of Information, are valid for 15 months from date of signature. They mustbe signed ANDdated by: The head of household, spouse or co-head, regardless of age Family members 18 and older; and family members upon turning 18. In Order to Conduct: Move-ins; Initials (when a household begins receiving subsidized rent, , when a Section 236 household begins receiving Section 8); and Annual : The EIV Notice states tenants must sign the HUD-9887 on or immediately after their 18thbirthday.

6 5/29/201510 HUD-9887 Requirement for Using EIV System and EIV DataSigned ANDdated HUD-9887:For Applicants: Does notneed to be on file in order to use the Existing Tenant Search in EIV at the time of application processing and tenant screening. For Residents: Mustbe on file before O/A can access EIV reports that contain employment or income data for a Business Practice: Although the form HUD-9887-A is not required to be signed at the time a tenant turns 18, it is illogical to not have them sign and date this document when they sign and date form 3, Paragraph 9-10: Topic Training: Section 1 Introduction to the EIV System Consent to Disclose an Individual s EIV Information to Another Person or Entity The Federal Privacy Act (5 USC 552a, as amended) prohibits the disclosure of an individual s EIV information to another person without the written consent of such O/As are not prohibited from discussing with the head of household how the household s income and rent were determined based on the total income that was reported and verified.

7 NOTE: The Handbook does not state that the head of household has permission to review other members actual EIV Report without written consent. Exhibit 9-4 of the Handbook, Sample Tenant Consent to Disclose EIV income Information, can be used by the O/A to obtain written tenant Notification of EIV EIV & You BrochureO/As mustprovide the EIV & You brochureto:Applicants: Who have been selected from the waiting list for screening and final application processing; andTenants: At the time of annual of EIV Data: Master File(s) Specific EIV Reports that must be maintained in a Master File Hires Summary Subsidy Summary EIV Pre-screening Verification Report (Failed the SSA Identity Test) Tenant Report The Master File may be maintained as an individual file by report title or as a Master Reports Binder separated by report title. The Master File must be kept in a locked, secured location.

8 Each EIV Report must be maintained in the Master Filefor 3 of EIV Data: Master File(s)Good Business Practices: Maintain a Master File Binder organized first by month and then report title. Print and store the income Information Summary Page (screen shot from EIV system), No income Reported on 50059, No income Reported by HHS or SSA and Not Verified (verification in process) in the Master File Binder. Maintain a Monthly Summary Log to document resolutions of discrepant of EIV Data: Resident File Folder Tenant File Folder must: Contain the Detail portion of the following EIV Reports, and documentation of resolution as applicable for the term of tenancy, plus 3 Tenant Search Report, income Report and income Discrepancy Report (Included under the income Information Heading) Hires Detail Subsidy Detail ReportBe kept in a locked, secured location 5/29/201513 Storage of EIV Data: Resident File FolderGood Business Practice: To print and store the following reports in the Resident File Folder: No income Reported on 50059 No income Reported by HHS or SSA Not Verified (verification in process) Failed EIV Pre-screening Report Failed Verification Report (Failed the SSA Identity Test) Deceased Tenant ReportNOTE.

9 Black-out or cut all data regarding other households that may be listed on a report before filing in each resident s ReportReporting Requirement / Frequency of ReportsFile Retention Location/ DurationExisting Tenant SearchFor each applicanthousehold member regardless of age at time of application processingApplication FileNot admitted: Retain with the applicationfor 3 yearsTenant FileAdmitted: Retain with the application for term of tenancy, plus 3 yearsIncome InformationSummary ReportIncome ReportIncome Discrepancy ReportAt time of recertification (annual and interim) or within 90 days after MI / IC transmission to TRACS. Tenant File / Term of Tenancy, plus 3 years(Good Business Practice: income Information (By Contract/Project Number) Summary Sheet: Master File)No income ReportsNo income Reported on 50059No income Reported by HHS or SSAR ecommended By HUD At least Quarterly(Select All Months)Not Required *(Good Business Practice.)

10 Master FileTenant File / Term of Tenancy, plus 3 years)New Hires ReportAt least Quarterly(Select All Months)Master FileNew Hires Summary Reportfor 3 yearsTenant FileNew Hires Detail Report for each tenant / Term of Tenancy, plus 3 yearsMultipleSubsidy ReportAt least Quarterly(Select All household members )Master FileMultiple Subsidy Summary Reportfor 3 yearsTenant FileMultiple Subsidy Detail Report for each tenant / Term of Tenancy, plus 3 yearsIdentityVerification ReportNot Verified (verification in process) Failed EIV Pre-screening ReportFailed Verification Report (Failed the SSAI dentity Test)Monthly(Select All Months)Not Verified (verification in process) Not Required *Master FileFailed EIV Pre-screening Report/ FailedVerificationReport for 3 yearsTenant FileDocumentation to verify discrepant personal identifiers / Term of Tenancy,plus 3 years(Good Business Practice: Run and File Not Verified Report same as both Failed Reports)Deceased TenantReportAt leastQuarterly(Select All Months)Master FileDeceased Tenants Reportfor3 yearsTenant FileDocumentation and/or correspondence to verify / Term of Tenancy,plus 3 years5/29/201514 Existing Tenant Search Purpose8O/As must: Run the Existing Tenant Search for each applicant household member, regardless of age.