In December 2017 HUD introduced a new Interim Final Rule. This Interim Final Rule provides new options for property managers.
The Streamlined Verification Method for Fixed Income (such as Social Security, VA benefits and Pensions) has given owner/agents the option to verify this income once every three years. Apply COLA or other fixed percentage increases in years two and three. Owner/agents are not required to obtain third-party verification of fixed income in years two and three.
Additional information about Streamlined Verification of Fixed Income can be found on our web site resources page - RBD FASTFacts– Streamlined Verification. Also see HUD HSG Notice 2016-09 Streamlining Administrative Regulations for Multifamily Housing Programs.
The same three-year verification option is available when family assets are valued below $5000.00. Owner/agents will obtain third-party verification in year one and may accept self-certification in years two and three.
Verification methods have also changed for Fixed Income Families - where 90% of the household income is fixed. For these families, owner/agents will conduct third-party verification of income in year one, and in years two and three:
And finally, HUD has added flexibility when Utility Reimbursements (UR) total less than $15.00 per month. In these cases, owner/agents have the option of providing these URs once per quarter instead of once per month.
The changes introduced in this Interim Final Rule are effective March 12, 2018.