Wage Information to Part of HUD’s Enterprise Income Verification System

Many of you have successfully obtained access to HUD’s Enterprise Income Verification System (EIV). This database currently allows property managers working under HUD project-based multi-family programs (MFH) to verify Social Security information.

HUD’s plan has always been to allow MFH partners to obtain wage information, which is part of the Department of Health and Human Service’s (HHS) database. At this time, EIV does not provide wage information for MFH partners. HUD’s MFH Division has been working diligently to develop a data-share agreement so MFH partners can ensure that the right assistance is going to the right people.

The Computer Matching Agreement (CMA) has been executed between the Department of Housing and Urban Development (HUD) and the Department of Health and Human Services (HHS) allowing HUD's multifamily business partners (owners, management agents, contract administrators) to have access to HHS' National Directory of New Hires (NDNH) data in HUD's EIV system. Please keep in mind that this agreement is between HUD and HHS. EIV data should not be used for verification of information for IRS (Tax Credits) or RD (515) programs.

Notification of HUD's intent to conduct the computer matching program has also been submitted to Congress and the Office of Management and Budget.

1. By early January 2008, owners and management agents (O/As) of Multifamily Housing properties will be able to access in EIV the new hires (W-4), wage and unemployment benefit information from NDNH for tenants living in their assigned projects/contracts.

2. O/As will be able to use this data, as well as the social security benefit information contained in the EIV system, for verifying and determining the accuracy of tenant and employer reported income for existing tenants at recertification.

3. Contract administrators will use information in EIV for monitoring purposes. A Listserv message will be sent out and an update will be posted on the EIV website of the date when the NDNH information will be available in EIV.

HUD encourages O/As who have not applied for access to the EIV system, to do so. Instructions for obtaining access are posted on the Multifamily EIV web site at: http://www.hud.gov/offices/hsg/mfh//rhiip/eiv/eivhome.cfm#top

RBD makes the following recommendation:

Owner/agents should take this time to review resident files to make sure a new 9887/9887A has been provided to all adult household members and any head, co-head or spouse. A signed copy of the new form should be included in the tenant file. The new form, dated 2/2007, added reference to the Department of Health and Human Services. In order to use information provided in that database, owner/agents must obtain the required release.

HUD Issues 2008 Fair Market Rent Limits

HUD’s fiscal year 2008 fair market rent (FMR) limits became effective on Oct. 1, 2007. FMRs are used to limit rents for certain Section 8 sites and as a payment standard for the Housing Choice Voucher Program.

HUD published the new rent limits in the Federal Register on Sept. 28, 2007. To get a copy of the 2008 FMRs, go to www.huduser.org/datasets/fmr.html.

New Rules for Combo Properties (PBVR and LIHTC)

The rule takes effect on December 19, 2007.

HUD has issued its final rule for Project-Based Voucher Rents for Units Receiving Low-Income Housing Tax Credits. According to HUD:

“This rule revises the low-income housing tax credit rent provisions of HUD's Project-Based Voucher (PBV) program regulations. This rule reinstates the regulatory provision where the LIHTC rent does not serve as a cap on rents in PBV projects receiving Tax Credits.

The rule also re-emphasizes that public housing authorities (PHAs) may not enter into assistance contracts until HUD, or an independent entity approved by HUD, has:

· Conducted the required subsidy layering review and

· Determined that the assistance is in accordance with HUD requirements.”

For more information, go to the HUDClips web site at:

http://hudclips.org/sub_nonhud/cgi/nph-brs.cgi?d=FR07&s1=FR-5034-F-02$[NO]&SECT5=FR07&SECT1=TXTHLB&l=50&u=../cgi/newsdoc_run.cgi&p=1&r=1&f=G

Monthly Report of Excess Income – New HUD Form 93104

On October 15, 2007, HUD published a new version of HUD Form 93104 – Monthly Report of Excess Income. Now, this report should be sent to the Atlanta address.

To obtain a copy of the new form, go to the HUDClips web site at:

http://hudclips.org/sub_nonhud/cgi/pdfforms/93104.pdf

New Final Rule Regarding Mark-to-Market Program Revisions

HUD has released a final rule, “Implementation of Mark-to-Market Program Revisions”. The notice provides the following summary of the rule, which takes effect on December 26, 2007:

“Based on statutory changes and HUD's technical operational experience in administering the program, this final rule implements a number of changes to the Mark-to-Market (M2M) program, HUD's mortgage restructuring program for FHA-insured projects with project-based Section 8 assistance, to facilitate processing.

Unlike the M2M proposed and final rules addressing renewal of expiring Section 8 project-based assistance contracts that HUD published on January 12, 2006, this rule addresses a range of administrative and programmatic issues other than the project-based assistance contracts.”

Specific changes made by this rule include:

· Removal of references to the Office of Multifamily Housing Assistance Restructuring (OMHAR), which was replaced by the Office of Affordable Housing Preservation (OAHP) as of October 1, 2004

· Transfer Fee Exemption

· Revised Tenant Endorsement Procedure

For more information on this rule, go to the HUDClips web site at:

http://hudclips.org/sub_nonhud/cgi/nph-brs.cgi?d=FR07&s1=FR-4751-F-02$[NO]&SECT5=FR07&SECT1=TXTHLB&l=50&u=../cgi/newsdoc_run.cgi&p=1&r=1&f=G.

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.