EIV Webcast Training Cancelled

The Enterprise Income Verification (EIV) system webcast scheduled for July 8-9, 2008 is cancelled. HUD apologizes for any inconvenience this has caused and will send out another Listserv message as soon as the webcast is rescheduled.

NEW - Enterprise Income Verification (EIV) System Guidance

Housing Notice H 2008-03 http://www.hud.gov/offices/adm/hudclips/notices/hsg/files/08-03HSGN.doc using EIV data was issued on June 25, 2008 and is now posted.

This Notice provides guidance to owners and management agents (O/As) on using EIV data to verify, at the time of recertification, the employment and income of individuals participating in one of Multifamily Housing’s rental assistance programs. It identifies the type of data retrieved from SSA and HHS and provides information about when data on the household’s 50059 is compared to data in other agency databases.

The memo also provides guidance about when it is appropriate to use EIV and required recordkeeping policies for data obtained from EIV.

While EIV use is not mandatory, it is strongly encouraged. Using EIV can help decrease tenant income errors, reducing the number of improper payments.

We strongly recommend review of this document.

Update to HUD’s “HUD Model Lease Questions & Answers” document

HUD continues to provide new clarification to the leasing process. With the release of the new leases, owner/agents have posted questions to HUD Policy staff and they are working diligently to provide clarification. Please note that the “HUD Model Lease Questions and Answers” document posted on the HUD/RHIIP web site has been updated.

New Question added:

Question 33: How should the lease term be completed when the tenant has fulfilled the initial one year term and is now on a month-to-month lease?

Answer 33:

HUD Model Lease for Subsidized Programs, Form HUD-90105-a, paragraph 1 should be completed by inserting the beginning and ending day of the month the lease is issued to the tenant. The “initial” term in this case is for one month. The successive term would be for a “month”. For example, if the lease is issued on July 1, 2008 paragraph 1 would read as follows:

1. The initial term of this Agreement shall begin on July 1, 2008 and end on August 1, 2008. After the initial term ends, the Agreement will continue for successive terms of one month each unless automatically terminated as permitted by paragraph 23 of this Agreement.

HUD Model Leases for Section 202/8 or Section 202 PACs, Section 202 PRACs and Section 811 PRACs, HUD Forms 90105-b, c and d, respectively, will require a lease addendum modifying paragraph 1 of the leases indicating the month to month lease term.

If the addendum only includes modification to paragraph 1 of the lease, the addendum does not have to be approved by the HUD Field Office or Contract Administrator. See Question 30 for additional information on modifications to the lease that were previously approved by the HUD office of CA.

Question 31 revised:

Question 31 What do we do with properties using leases provided by the contract administrator (CA)? Some states have significantly different lease requirements and CAs have developed leases that O/As are required to use. Will the CAs instruct the O/As to use the HUD model leases and the CA will then provide an approved lease addendum?

Answer 31: O/As should be using the HUD model leases and not leases developed by CAs. HUD model leases that have been modified to include state requirements will now have to have the state requirements incorporated by use of a lease addendum. Whether or not the CA will provide the approved lease addendum or whether it will be up to the O/A to develop, we cannot answer. Normally it is the O/A’s responsibility to ensure that the lease is in compliance with state laws.

However, for projects financed by a State Agency and under the jurisdiction of a Traditional Contract Administrator (TCA), the O/A will continue to use the lease provided by the State Agency as addressed in paragraph 6-5 A.2 of Handbook 4350.3 REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs.

A complete listing of the HUD Model Leases Questions and Answers that include the above information is posted on the Multifamily RHIIP website at: http://www.hud.gov/offices/hsg/mfh//rhiip/mfhrhiip.cfm

RBD does not act as a legal advisor nor as a regulatory governing agency. The recipient should understand that any materials or comments contained herein are not designed for, nor should be relied upon as a source of legal guidance or as a final authority with respect to any particular circumstance. Ross Business Development, Inc. makes no warranty of merchantability or fitness for a particular purpose or any other warranty of any type. Owners and management should seek competent legal advice in developing and carrying out policies and procedures. While we have been diligent in our efforts to provide comprehensive and accurate regulatory information, Ross Business Development, Inc. shall not be responsible for errors or inaccuracies.