StreamliningFinal Rule

Last week, HUD releasedHUD Housing Notice 2016-09Streamlining Administrative Regulations for Multifamily Housing Programs.

The Notice providesOwner/agents with Guidance Regarding the Implementation of theStreamlining Final Rule.OAs should review the Notice todetermine if the following changes apply to the contract type associated withthe property.

The StreamliningFinal Rule introduced or confirmed the following changes.

Definition ofExtremely-low Income.In2014, HUD announced a new definition for the extremely-low income limit (ELI) toensure that ELI was never greater than the poverty level in any given area. The2014 Consolidated Appropriations Act defines extremely low-income families asvery low-income families whose income does not exceed the greater of the federalpoverty guidelines as published by HHS or 30 percent of area median familyincome.

Definition ofTuition:This change wasoriginally introduced with HUD Housing Notice 2015-12,Amendment to the Definition ofTuition. HUD hasadopted the Department of Education's definition of tuition which includescertain mandatory fees such as lab fees or other fees associated with thepursuit of a particular degree or certification. If you discuss inclusion ofeducational financial aid in your Tenant Selection Plan, you should update theinformation to explain that you will include educational financial aid in excessof tuition and certain fees unless 1) the student is living with his/her parentsreceiving S8 or 2) the student is over the age of 23 with a dependent child.Financial aid received from people living outside the unit is not counted if thestudent meets the definition of "vulnerable youth".

NewException for SSN Disclosure for Minors at Move-in or Initial Certification.The Streamlining Final Rule was effective April 7, 2016. The rule changed SSNdisclosure exception for children, under the age of six, who were added to thehousehold within six months of the MI/IC effective date. Owner/agents shouldupdate Tenant Selection Plans to incorporate language to describe the newexception. See sample language below:

The Social SecurityNumber requirements do not apply to:

  1. Individuals age 62or older as of January 31, 2010, whose initial determination of eligibilitywas begun before January 31, 2010.

  2. Individuals who donot contend eligible immigration status.

  3. A childunder the age of 6 years added to the applicant household within the 6-monthperiod prior to the household's date of admission. The household will have amaximum of 90-days after the date of admission to provide the Social SecurityNumber and adequate documentation that the Social Security Number is valid.An additional 90 days may be granted under certain circumstances. If thehousehold does not provide the Social Security Number and adequatedocumentation to verify the Social Security Number within the prescribedtimeframe, HUD requires that the owner/agent terminate tenancy. (Note fromRBD: This exemption becomes effective 4/7/2016. See the recent federalregister final rule - streamlining administrative regulations. Please deletethis note before completing the plan.)

While OAs may now allow minors whoare new family members to move-in (or IC), TRACS is not able to accept a MI/ICcertification when the OA uses 999-99-9999 as the Social Security Number and theM (Minor) exception code. This transaction is accepted on IR or ARcertifications.

In order to allow OAs to process theMI/IC certifications, HUD has provided a temporary solution. Until TRACSversion 2.0.3.A is released (fall 2017), OAs should use 999-99-0000 as theSocial Security Number for a minor, under the age of six, added to the applicanthousehold within six months of the MI/IC effective date. The Exception Codefield remains blank.

Use of this temporary solution allowsOAs and HUD to easily identify households with certain minors who have beenadmitted without Social Security Numbers. OAs have 90 days to obtain the SSNand adequate documentation to verify the SSN. An additional 90 days may begranted under certain circumstances. If the household fails to provide the OAwith a valid SSN and adequate documentation to verify the SSN, then the OA mustterminate tenancy for the household. The OA may continue to receive subsidywhile pursuing termination.

Streamlining Verification of FixedIncome.As of April 2016,OAs have the option of verifying fixed income - subject to COLA - every threeyears instead of every year. This would apply to various sources of fixedincome including Social Security, Veterans Disability, State SSI (when SSI isnot subject to change), fixed pensions, etc.

If Social Security income informationis available in EIV, OAs should use EIV to verify income. However, if incomeinformation is not in EIV or if the resident disputes the EIV information, thenOAs may use this new method to verify income.

OAs should read the Notice to obtainmore information about verification of fixed income. We have also attached adocument which includes an in-depth explanation including an example of how thisprocess might work.

Click here for the documentreferenced above.

Join Mary Rossfor Online Training This Fall

Based onpopular request, we have scheduled the following classes:

  • EIVBasics and EIV Discrepancy classes,

  • Aclass to review the effect of disparate impact on how we screen applicants andaddress criminal activity on the property

  • Anadvanced AR/IR class and

  • ASection 504 class for those of you who are responsible for addressing concernsand requests from people with disabilities

JoinMary Ross for the following live online training classes. Classes include atraining workbook and sample forms and checklists.

Clickon the link below for additional information and to register for the class.

New 4thQuarter 2016 Online Training Schedule

Classes Offered


EIV Income Discrepancy(Class length 2.5 hours)

October 27, 2016
EIV Basics(Class length 2 - 2.5 hour sessions)November 9 & 10, 2016
Section 504Coordinator(Class length 2.5 hours)December 8, 2016
CriminalActivity, Screening & Tenancy(Class length 2.5 hours)December 13, 2016
AR / IR &Terminations(Class length 2.5 hours)December 15, 2016

Students who register andattend the entire class will receive a certificate of completion.Students should register individually.Confirmations are unique to each student and cannot be shared.

For additional informationor to register, visit our web site at

Training materials andsample forms are provided to facilitate instruction.Training materials are provided and should beprinted before the training begins.

Instructor-ledTraining From RBD

HUD Management & Occupancy Challenge - Only 1 class leftin 2016!

Since HUDhas indicated that we should expect an increase in the number of Management &Occupancy Reviews (MOR) conducted in 2016, we have created a class to allowowner/agents and property managers to take a step back and review HUD'smultifamily occupancy requirements. This is not a review of basic requirements,but rather a discussion about best practices designed to help you identifycommon mistakes that may otherwise be revealed during the MOR.

Trainingincludes sample forms, notices and checklists.





St. Paul, MN

HUD Management & OccupancyChallengeOctober 25 & 26, 2016

Toregister for training, visit our web site atwww.rbdnow.comor contact our Training Coordinator (Larue Marin)

To sign up for the HUDBlast,visit our web site Just enter your email address in the box in the center ofthe home page.You canview previously posted HUDBlasts from our web site at

We also encourage you to sign-up for theListserv, so you can receive current RHIIP related information from HUD canview the RHIIP Tips Archives, under "Listserv-Multifamily RHIIP Tips" at

RBD does not act as a legal advisor nor as a regulatory governingagency. The recipient should understand that any materials or commentscontained hereinare not designed for, nor should be relied upon as a source oflegal guidance or as a final authority with respect to any particularcircumstance. Ross Business Development, Inc. makes no warranty ofmerchantability or fitness for a particular purpose or any other warranty of anytype. Owners and management should seek competent legal advice in developing andcarrying out policies and procedures. While we have been diligent in ourefforts to provide comprehensive and accurate regulatory information, RossBusiness Development, Inc. shall not be responsible for errors or inaccuracies.