HOUSING VOUCHER PROGRAMS - POLICY AND PROCEDURES
MANUAL
Chapter X. INTERIM RE-EXAMINATIONS
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Section |
Title |
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Introduction
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Section A |
Income Change Threshold Exceptions to the
threshold
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Section B |
Verification Procedures |
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Section C |
Income Increases
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Section D |
Income Decreases
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Section
E
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Report of Changes in Family Composition
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Section F |
Contract Rent Increases |
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Section G |
Subsidized Complex Rent Increase |
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Section H |
Zero HAP (no benefit to tenant) |
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Section I |
Repayment Agreement |
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Section
J |
ELITE Procedures |
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Section K |
Applicable
Forms List
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INTRODUCTION
Certain changes in household income or family status
generate a need for processing interim re-examinations. Effective
Changes to MSHDA’s payment standards should not result in an
interim re-examination as payment standards can only be changed at an annual
re-examination or move.
Section A.
Income Change Threshold
All reported gross monthly income increases of
$100 or more (the threshold) must be processed as an interim re-examination.
Gross income increases of less than $100 per month will be disregarded (except
for zero income entire households) until the next annual (or interim exceeding
the threshold) re-examination. If the HS/A determines that the $100
threshold will not be exceeded, document the information on an Income Increase
Threshold Worksheet (MSHDA 490) including written calculations demonstrating
that the threshold will not be exceeded and forward the document to the DT for
inclusion in the official file. Do not process other reported increases
under the threshold until move or annual re-examination, whichever occurs
first.
If an unreported increase in income exceeding the threshold
is discovered at the next annual re-examination, the participant must sign a
Repayment Agreement (MSHDA 103). A Repayment Agreement must be executed
and signed for zero income households who did not report income increases
regardless of whether or not the threshold is exceeded.
Exceptions to the Threshold
Process reported income increases regardless of the amount for the following situations:
a.
Zero Income – Entire Household
Process all increases in income for zero-income households,
regardless of the amount. A zero-income household is defined as a household in
which no members of the family have earned or unearned income. A
household with benefits or non-earned income (i.e. Social Security, child
support, FIA, etc.) to minors (family members age 17 and under) is not
considered a zero-income household. See Chapter
IV for more detail.
If unreported income is discovered for a zero-income
household at the next annual re-examination, the participant must sign a
Repayment Agreement (MSHDA 103) to pay back the inaccurate rent subsidy paid
due to unreported income.
b. Tenant Request
Upon family request, process all interims regardless if
threshold has been met. NOTE: Processed earned income
increases benefit the escrow account for FSS participants. Follow
procedures identified in Section C.1.
c.
Fraud/Unreported Income
Any HS/A suspecting or receiving notification of a
discrepancy must verify it including reviewing allegations (i.e. complaints)
about a participant’s unreported income.
If a HS/A discovers unreported income when reviewing
documents and it is verified the participant was unable or failed to report
income in a timely manner (i.e. guardian didn’t notify HS/A, etc.), process
increase with interim re-examination.
Refer to Section B
of this Chapter; Chapter IV, Income Verifications;
and if appropriate, Chapter XXV. Processing
Tenant Repayment Agreements.
Earned Income Disregard Disallowance Period
At the end of the 12/24-month disallowance period, include
50% (12 months) or all (24
months) of the earned income.
Co-Head/Spouse Turns 18
When a minor co-head/spouse turns 18, they no longer
qualify for the dependant allowance. Change the relationship
code in ELITE by selecting the correct choice from the pull-down menu which
will remove the $480 deduction. Also include any earned income.
Process an interim re-examination/re-examination/move for the change, whichever
occurs first.
Section B. Verification Procedures
After a tenant reports an income change or other change
(i.e. no longer working, change in medical disability status, receiving
unemployment compensation, etc.), which will require processing an interim
re-examination, MSHDA does require verification from a third party source. This
includes employer verification that the tenant is no longer working.
Follow the third-party verification hierarchy and income verification process
as outlined in Chapter IV., Income Verification Requirements. It
may be necessary to pull an EIV Tenant Income Data (TID) Report to view
historical income data for comparison.
Forward the following forms to the
participant:
·
Original Request for Documents (MSHDA 53), which
identifies a deadline of “14 calendar days.”
·
Household, Income, Asset, and Expense Declaration (MSHDA 1890).
·
Certification of Live-In Aide Status (MSHDA 15) if applicable.
·
Authorization to Release Information (HUD 9886) if applicable.
·
Applicant/Tenant Authorization, Certification and Consent (MSHDA 158),
if applicable.
Upon receipt of the completed forms, review the MSHDA 1890
to determine what additional verifications are necessary.
Any items where an adult household member other than head
of household indicates ‘no’ on the Declaration (MSHDA 1890) and signs below,
the certification/ penalty language needs no further verification. The
‘no’ and signature provide adequate documentation that income/assets/expenses
do not apply.
If the entire household has zero income, refer to Chapter IV, Income Verifications, Zero Income for
further instructions.
If the gross monthly income threshold is not exceeded, the
HS/A should complete the Income Increase Threshold Worksheet (MSHDA 490), check
the “threshold not exceeded” box in the MSHDA USE area on the bottom of the
form, sign and date. The original form must be forwarded to the DT for
inclusion in the official MSHDA file.
Enter/change data in ELITE and approve the entry.
Submit a Case Data Summary to the DT. If applicable, execute a Repayment
Agreement.
No Response Procedure
If the tenant fails to respond to a request for documents,
or, verifications are not received from the third party source by the
designated date (usually 14 days); send a Final Notice (MSHDA 14) requesting
receipt of missing documents within 14 days (28 days total). If no
response again occurs, then notify the landlord that assistance will be
terminated via a Contract Termination Notice (MSHDA 95) and the tenant via a
Program Termination Notice (MSHDA 1634b). The effective date of the
termination must always be the end of a month with at least a 30-day notice to
the landlord.
If the tenant requests an informal hearing within the 10
days, refer to Chapter XV, Informal Hearings for procedures.
If the tenant does not request an informal hearing within
10 days, a Case Data Summary (MSHDA 1344E), along with a copy of the MSHDA 95
and MSHDA 1634b, must be forwarded to the DT for cancellation. Follow
cancellation procedures, Chapter XV.
Section C. Income Increases
The tenant must
report all income changes to the HS/A within 14 days. Income changes that
have a gross monthly income increase of $100 or more must be processed as an
interim re-examination.
Effective Date for
Increase
If the threshold
is exceeded and an increase in the tenant rent portion is required, the
effective date of the rent increase for the family will be the first of the
month following 30 days advance written notice to the participant via the
Adjustment Notification (MSHDA 34). There is no pro-rating of the
subsidy. If applicable, execute a Repayment Agreement.
Correction
Upon notification,
the HS/A must correct calculation income errors (i.e. wage increase not
entered). If the tenant’s rent share increases, the HS/A must allow a
30-day notice (no pro-rating) before making the increase effective. State
law requires a 30-day advance written notice to the tenant of all tenant rent
increases.
Example of a
possible correction needed:
·
Utility Assistance Payments (UAP). The DT found
an error, which causes the UAP to be decreased (i.e. UAP was $111; should be
$44). HUD requires a 30-day notice to the tenant.
Notification
Prepare and
distribute an Adjustment Notification (MSHDA 34) at least 30 days in advance of
the effective date.
Submit a Case Data
Summary (MSHDA 1344E) to the DT along with all required documentation.
Refer to the Forms Reference – Submission Chart.
Section D. Income
Decreases
Process all reported
income decreases regardless of the amount of decrease when a family reports a
loss of income or assets, or an increase in expenses except when the
family reports a loss of welfare benefits due to fraud, or a failure to
participate in an economic self-sufficiency or work activity. Imputed
welfare income is the amount of annual income not actually received by the
family due to a welfare benefit reduction or sanction. The family
may dispute the imputed
income and request an informal hearing. Refer to Chapter IV, Income, for more information.
Process decreases in
income if:
·
The decrease period is expected to last one
month or more, provided that the decrease was not considered
in the original calculation. Process this decrease via an interim
re-examination.
Do Not process a decrease if:
·
A lay-off period (or other break) was accounted
for when calculating annual income, and a lay-off period/break
occurs.
·
The decrease is expected to last less than one
month. For example: A decrease in income due to missing two weeks
of work (with no pay during absence) because of illness, etc.
Document on a MSHDA 77 (for inclusion in the MSHDA file) that
the tenant reported an income decrease; however, an interim was not
processed.
Effective Date of Decrease
Changes for decreases in income must become effective the
first day of the following month (no pro-rating) if ALL of the necessary
verifications are received by the 25th of the present month.
·
If receipt of all necessary verifications
occurs after the 25th of the month, the scheduled effective date
will be the first day of the second month following the receipt (i.e. paperwork
is received on November 28, 2005; process the decrease effective January 1,
2006).
Process all reported decreases other than the situations
noted above regardless of the amount of the decrease and annual re-examination
date. For example, process even a $10 reported decrease effective 30 days
prior to the annual re-examination date. The intent of the program is to
assist the family. Any reduction in Tenant Rent benefits the family.
Correction
Upon notification, the HS/A must correct calculation income
errors. If the tenant’s rent share decreases, the HS/A must process a
correction back to the effective date of the transaction.
Example of Correction:
·
An interim re-examination that has been
calculated incorrectly -
Notification
Prepare and
distribute an Adjustment Notification (MSHDA 34).
Submit a Case Data
Summary (MSHDA 1344E) to the DT along with all required documentation.
(Refer to the Forms Reference – Submission Chart [MSHDA 284].)
Section
E. Changes in Family Composition
Program applicants/participants are advised at the initial briefing, mover’s briefing, and via the Applicant/Tenant Authorization, Certification, and Consent form (MSHDA 158) that they are responsible to report all family size changes within 14 days either verbally or in writing. Process an interim re-examination to add or remove members of a household, unless the effective date coincides with the effective date for an annual re-examination or move. An interim re-examination must be performed if a Live-In Aide changes.
Adding Household
Member(s)
The Tenancy
Addendum/HAP Contract requires that all additions to the household must have
written approval. The family must obtain written approval from both the
landlord and MSHDA to add new members to the household such as a new spouse,
children, other relatives, friends, significant others. Adding a child by
birth, adoption, or court-awarded custody to the family composition does not
require approval from the landlord or MSHDA.
A signed and dated
letter from the tenant with a landlord approval statement which includes the
landlord’s signature and date is an acceptable written approval. Completion of an Adjustment Notification form
signifies MSHDA approval.
Adding members to
a household also requires:
a) Criminal
and Sex Offender Screening – The HS/A must perform criminal and sex offender
screening for all persons age 18 or older being added to the family (including
live-in aides). MSHDA cannot approve adult members who do not pass the
screening criteria.
b) Issuance
of a New Voucher (HUD 52646) – If approved additional members increase the
voucher eligibility size, execute a new voucher of the appropriate size
effective with the next annual re-examination or move, whichever occurs first.
c) Issuance
of an Adjustment Notification (MSHDA 34) – Identify the new household members
in the Additional Provisions section of the form, which signifies MSHDA
approval of additional members.
d) For Live-In Aides, the completion of a
Certification of Live-In Aide Status (MSHDA 15).
Removing Household
Members
If the family size
decreases causing a lesser voucher eligibility size, the HS/A must immediately
notify the family in writing via the Family Size Subsidy Decrease form (MSHDA
147). This form includes an explanation of the decision, the circumstances
under which the family may obtain a waiver, and informal hearing rights.
If a waiver is not
requested or approved, decrease to the new eligibility size payment standard
effective with the next annual re-examination or move, whichever occurs first.
Removing members
from a household requires:
·
Issuance of a New Voucher (HUD 52646) – If the
family size decrease reduces the eligibility size, execute a new voucher of the
appropriate size at the next annual re-examination or move, whichever occurs
first.
·
Issuance of an Adjustment Notification (MSHDA
34) – Identify the members no longer residing in the household (or list current
household members) using the Additional Provisions section of the form.
Section
F. Contract Rent Increases
After the initial lease term, with 60-days notice (HUD Contract requirement), and pursuant to lease renewal provisions and rent reasonableness criteria, the landlord may increase the
Contract Rent. Process interim re-examinations for
contract rent increases that do not coincide with annual re-examinations.
If the landlord requests a written mid-term increase, the
HS/A must review the lease to verify the landlord complies with the provisions
identified in the lease. If the increase request complies with the lease
renewal provision (and rent surveys support the increase), process the increase
as an interim revision in ELITE.
·
If the renewal provision in the lease identifies
a renewal term of month-to-month, the HUD Tenancy Addendum supersedes the lease
provision and 60 days written notice is required. The landlord can
increase the contract rent more than once in a one-year period with 60 days
written notice prior to each increase.
·
If the renewal provision identifies a renewal term
of greater than 60 days, the Contract Rent may be increased (following the
60-day written notice requirement) only as designated in the lease terms (i.e.
every six months, every year).
Section G.
Subsidized Development Rent Increase
Process an interim reexamination when a subsidized
development has an approved rent increase that does not coincide with the
annual re-examination. Upon proper notification to the HA by the
subsidized development of the approved rent increase (versus request to
approve), the HA will process the rent increase with an interim reexamination
as of the increase effective date, even if the increase effective date occurs
during the initial lease term.
Document the rent increase by submitting a copy
of the notification to the tenant of the increase, documentation of the rent
increase approval by HUD, Rural Development, or MSHDA, an Adjustment
Notification (MSHDA 34), a Case Data Summary (MSHDA 1344), and new rent comps.
NOTE: If an HA is
unable to give a 30-day notice to a tenant due to a delayed notice to the HA of
an approved rent increase, the HA must call their RS to discuss appropriate
action.
Section
H. Zero HAP
If the interim re-examination change results in a HAP payment of zero, the family remains eligible for the program for six months. HS/A should check back at the end of six months and cancel the contract if the family is still at zero HAP. (NOTE: This cancellation could occur before the end of the HAP Contract). Follow zero HAP procedures identified in Chapter IX, annual re-examinations.
Section
I. Repayment Agreement
If the family does
not report a required change within 14 days of when the change occurs, the
family will have caused an unreasonable delay in the interim re-examination
processing and MSHDA will require repayment of excess assistance received.
·
An
increase in tenant rent will become effective retroactive to the date it would
have been effective had the increase been reported on a timely basis. The
family is liable for any overpaid housing assistance and must sign a Repayment
Agreement or pay the debt in full. Refer to
Section C. 1. – Effective date for Increase.
If unreported
income is discovered for a zero-income household at the next annual
re-examination, the participant must sign a Repayment Agreement (MSHDA 103) to
pay back the inaccurate rent subsidy paid due to unreported income.
Section
J. Elite Procedure
See Elite User Guides for instructions on how to enter Interim Re-examinations in the Elite data system.
Section
K. Applicable Forms List
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MSHDA 14 |
Final Notice |
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MSHDA 15 |
Certification of Live-In Aide Status |
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MSHDA 34 |
Adjustment Notification |
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MSHDA 49 |
Verification of Earnings |
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MSHDA 53 |
Original Request for Documents |
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MSHDA 77 |
Supplemental Information |
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MSHDA 95 |
Contract Termination Notice |
|
MSHDA 103 |
Repayment Agreement |
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MSHDA 107 |
Verification of Public Assistance and State SSI |
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MSHDA 139 |
Mover’s Information |
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MSHDA 146 |
Voucher Information |
|
MSHDA 147 |
Family Size Subsidy Decrease |
|
MSHDA 148 |
Verification of No Income |
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MSHDA 158 |
Applicant/Tenant Authorization, Certification, and Consent |
|
MSHDA 284 |
Forms Reference/Submission Chart |
|
MSHDA 490 |
Income Increase Threshold Worksheet |
|
MSHDA 1344E |
Case Data Summary |
|
MSHDA 1634b |
Program Termination Notice |
|
MSHDA 1890 |
Household, Income, Asset, and Expense Declaration |
|
HUD 9886 |
Authorization for Release of Information |
|
HUD 52646 |
Voucher |
|
|
Plus all income verification
forms/documents for new/changed items |
(February 2007)