Paragraph 2-25 requires owners to the maximum extent feasible to distribute accessible units throughout projects and sites subject to reasonable health and safety requirements. Reasonable requirements include the following:

1. Adhering to building codes that cover the distribution of accessible units.

   a. Any building codes used for a project that are not referenced in the Minimum Property Standards Handbook (4910.1) must be approved by the HUD Field Office.

   b. Note that the Minimum Property standards, ANSI 117.1, and the Uniform Federal Accessibility Standards do not cover the distribution of accessible units.

OR

2. Following local or state health and safety requirements for the distribution of accessible units throughout the project and site when there is no HUD-approved building code that covers the distribution of accessible units.

OR

3. Establishing owner health and safety standards for distributing accessible units in the absence of building codes or local or state health and safety requirements that cover the distribution of accessible units. The Office of Fair Housing may ask to see such standards to determine if they are reasonable.

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HUD Occupancy Handbook, Exhibit 2-1 — 6/07

NOTES:

The extent of actions that owners are required to take under Section 504 are limited by paragraph 2-37

Whether an owner must provide an auxiliary aid or reasonable accommodation will depend on the facts and circumstances of each case.

REQUEST	FULFILL REQUEST?
Visually impaired tenant requests tactile signage on the mailbox.	YES.
Hearing-impaired tenant prefers face-to-face communications and requests the owner to provide a sign language interpreter for all meetings.	The owner may deny this request when a telecommunications device for the hearing-impaired or equally effective system would suffice. However there may be certain types of meetings where the only way to provide effective communication is to provide a sign language interpreter and in such a situation the interpreter must be provided unless it would be an undue financial and administrative burden.
An applicant who is hearing impaired has been determined to be otherwise qualified under program requirements and the owner's tenant selection plan. She asks that her unit be fitted with a visual smoke detector.	YES.
Applicant who is visually impaired asks to review a lease with enlarged print.	Owner must accommodate this request because the owner can easily and inexpensively have these documents photocopied with enlarged print.
Blind applicant requests a copy of application, lease, and HUD-50059 in Braille.	With the initial request, by a tenant or applicant, owner would have to investigate the burdens of providing these documents in Braille. If the owner determines that it is an undue administrative and financial burden, the owner must seek other methods of communication that are not undue burdens. As alternatives, the owner may consider providing the applicant with a tape recording of these documents or having an office staff person or other person read the materials to the applicant/tenant. Applicants/tenants who need material in Braille often know of sources for this service performed at reasonable cost.
An applicant to a family property is a quadriplegic and uses an assistance animal. The applicant requests the owner to waive a policy prohibiting animals in units to permit him to use an assistance animal.	YES. The owner must permit the applicant to keep the assistance animal if needed as a reasonable accommodation to afford him equal opportunity to use and enjoy the unit and property.
Blind tenant requests copies of the day-to-day communications in Braille (notices of recertification, communications regarding maintenance services, eviction notice).	Owner investigates feasibility of providing such communications in Braille. If owner determines that this would be an undue financial and administrative burden, the owner must take other steps to accommodate the tenant (e.g., call tenant on telephone to relay information, provide tape recording of lengthy information or of information for which owner wants to keep record).
Owner requires tenants to pay their rent at the office. Tenant who is mobility impaired requests as a reasonable accommodation to mail the rent check.	YES
Tenant with emotional disability requests assistance animal as reasonable accommodation and provides documentation of relationship between disability and need for the animal.	YES
Otherwise eligible applicant with mobility impairment wishes to rent federally assisted townhouse and asks that an elevator be installed in the unit as a reasonable accommodation.	In all likelihood, provision of an elevator will pose an undue financial and administrative burden. However, the landlord should explore other options (if any), for accommodating the tenant in this or a different unit.
Tenant with mobility impairment requests that a grab bars be installed in her bathroom.	YES unless provision of these grab bars would be an undue administrative and financial burden.
Tenant who uses a walker asks that she be moved to a first floor apartment as an accommodation to her physical disability since she cannot climb stairs.	YES as soon as a first floor apartment is available.

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HUD Occupancy Handbook, Exhibit 2-2 — 6/07

Owners must provide the information specified in paragraph 2-29 in all written communications with the public. Owners may use this exhibit as guidance in providing this information.

INSTRUCTIONS:

Paragraphs 1 and 2 and the name and address apply to owners, managing entities, or projects employing 15 or more people.

Paragraph 1 applies to all other properties.

1. _____(Owner or project name)______ does not discriminate on the basis of disability status in the admission or access to, or treatment or employment in, its federally assisted programs and activities.

2. The person named below has been designated to coordinate compliance with the nondiscrimination requirements contained in the Department of Housing and Urban Development's regulations implementing Section 504 (24 CFR, part 8 dated June 2, 1988).

   __________________________________________ Name

   __________________________________________ Address

   __________________________________________ City   State   Zip

   (____)____________________________________ Telephone - Voice

   (____)____________________________________ Telephone – TTY

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HUD Occupancy Handbook, Exhibit 2-3 — 6/07

(See paragraph 2-29)

Required Criteria	Meets	Does Not Meet
1. Provides a simultaneous connection between calling and receiving parties.
  a. There are two phone lines: one for the TTY and a second for the regular telephone.
  b. An operator serves as a "link" between hearing-impaired and hearing parties, simultaneously typing or "voicing" information they receive from either phone line.
2. Guarantees confidentiality.
  a. Operators do not discuss with other persons names of calling and receiving parties or any information exchanged during conversations.
  b. Operators know their role as a neutral "link" and do not participate in conversations between the two parties or volunteer information to either party.
  c. Any printed copies made of conversations are disposed of routinely.
3. Is usable by both local and long distance callers at no greater cost to the caller than the same call would be if placed on other telephone systems made available by the owner.
4. Is available for use during all normal working hours.
5. Places no time limits on calls.
6. Refuses no calls.
7. Alters no conversations. Operators convey all information accurately; they do not "edit" conversations in any way.
8. Has the capacity to handle a reasonable number of calls without undue delay.
  a. Appropriate outreach efforts have been published and the system has been appropriately advertised so that callers in both the hearing-impaired and hearing communities are aware of its existence.
  b. If there is a heavy volume of calls, the system has the ability to place callers on "hold" for short periods of time until an operator becomes available.

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HUD Occupancy Handbook, Exhibit 2-4 — 6/07

Actions that would result in a fundamental alteration in the nature of a recipient's (owner's) program or activity may include the following:

1. Actions that would require substantial modifications to or the elimination of essential lease or program requirements;

2. Actions that would require the owner to provide supportive services, e.g., counseling, medical, or social services that fall outside the scope of the services that the owner offers to tenants; and

3. Actions that would require the owner to offer housing of a fundamentally different nature than the type of housing that the owner does offer.

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Example – Fundamental Alterations

Example of alterations in the nature of the program or activity.

IMPORTANT - In evaluating whether a fundamental alteration would occur, owners must consider the facts and circumstances of each case.

Jim suffers from a neurological disorder that requires 24-hour nursing care. The owner does not provide this medical service in the housing that he offers. Although the owner must allow Jim to obtain the nursing care on his own, it would constitute a fundamental alteration in the nature of the program or activity to require the owner to provide this medical service at the owner's expense.

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Examples of alterations in the nature of the program or activity that are not fundamental are the following.

Jean is a quadriplegic and uses a dog to assist her in her daily living. She lives in a family project that forbids tenants from keeping animals in their units. It would not constitute a fundamental alteration in the nature of the program or activity to require the owner to make an exception to the rule so that Jean can keep her assistance animal.

Delores is hearing impaired and requests that the owner provide closed captioning on the television in the project's community room. It would not constitute a fundamental alteration in the nature of the program or activity to require the owner to purchase a closed caption decoder and attach it to the television.

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HUD Occupancy Handbook, Exhibit 2-5 — 6/07

Neither Section 504 nor the Fair Housing Act requires owners to provide accommodations that are an undue financial and administrative burden. Whether a particular accommodation will be an undue financial and administrative burden will depend on the facts and circumstances of the individual case. The following examples describe circumstances in which the owner generally would not be required to provide the particular accommodation requested. See also paragraph 2-46, which provides further guidance on determining whether undue financial and administrative burdens exist.

1. Marge, who suffers from chemical sensitivity disorder, has requested that the owner survey all tenants in the building to determine the time of day and the chemicals they will use to clean their units. She has asked that the owner compile this information for her on a weekly basis so that she can plan to be away from her unit at the time certain chemicals are used. For the owner to accommodate Marge, it would require an ongoing administrative burden that could not be handled by the existing staff. However, it would not be an undue financial and administrative burden for the owner to notify Marge in advance before cleaning common areas and to use nonchemical alternative cleaning methods where practical.

2. The owner has made the community room available to a local service organization every Wednesday morning to provide routine health screening to the tenants. William, Delores, Ann, and Rene, who are individuals with disabilities, all have conflicts with the scheduled day because of their own regularly scheduled medical appointments. Each has requested that the screening services be provided on a different day. It would be an undue financial and administrative burden for the owner to coordinate these requests and to decide which tenant will be accommodated and which ones will not. However, it would not be an undue financial and administrative burden for the owner to request that the local service organization vary its schedule so that more tenants could be accommodated.

3. Tom has a mobility impairment. He requests that the owner of his HUD assisted project make his unit accessible by making extensive modifications to the unit. The owner gets two estimates of the cost of doing the modifications. The project rental income will not cover even the lower of the bids without a rent increase or a reduction in services or benefits to other tenants. However, the project has a large residual receipts account. The owner in this example requests HUD approval to use money from this account to accommodate Tom's request. The owner receives HUD approval and makes the requested alterations.

   NOTE: HUD will consider a request to use residual receipts to pay for alterations under Section 504. If this property was owned by a housing provider that was not covered by Section 504, then under the Fair Housing Act, Tom would still have the right to make the alterations he needs at his own expense.

4. Diane has a mobility impairment. She asks the owner of her HUD assisted project to make her unit accessible by making extensive modifications to the unit. As in the first example, the project rental income will not cover the cost of the alterations. In this example, the project does not have funds in the residual receipts account, but does have a large reserve for replacement account.

   In this case, the cheapest estimate to accommodate Diane's request is sizable enough to require a rent increase to replenish the reserve for replacement account within one year. It would be a financial and administrative burden for the owner to make all of the modifications requested, but it may not be a financial and administrative burden for the owner to make some of the modifications and allow Diane to make the rest at her own expense.

5. Midtown Apartments is a HUD assisted housing project. There are five parking spaces located outside the main entrance to the building and another parking lot with 20 spaces a half block away. All five of the parking spaces near the entrance to the building have been assigned to disabled residents who need a parking space near their door because of their disabilities. A sixth tenant with a mobility impairment moves into Midtown Apartments and requests a parking space near his door. The owner has explored the options and concluded that the only way to provide more parking spaces near the door would be to widen the parking area by purchasing valuable real estate next door. It would be an undue financial and administrative burden for the owner to provide the sixth tenant with a parking space near the entrance, however, it would be an appropriate accommodation for the owner to provide the sixth tenant with an assigned parking space in the lot a half block away until such time as one of the five spaces near the door becomes available.

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HUD Occupancy Handbook, Exhibit 2-6 — 6/07

U.S. Department of Housing and Urban Development Office of Housing — Federal Housing Commissioner OMB Approval No. 2502-0204 | Form HUD-90104 (12/2007)

Note: This exhibit is a fillable form (Form HUD-90104). The official form may be viewed and obtained in the PDF version of this handbook at: https://www.hud.gov/hudclips/handbooks/housing-4350-3

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Overview

This form is used to request permission to lease units in a project to families with incomes between 51% and 80% of the area median income. The owner or owner's representative must certify that:

a. All available very low-income, qualified applicants have been admitted; and

b. Assisted units will be leased to families with incomes above 50% of median income only when no very low-income, qualified applicants are available.

NOTE: The certification in item (b) is required only if requesting an exception for Situation 6D.

Warning: Under 18 U.S.C. 1001, whoever willingly makes or uses a document or writing he/she knows has any false or fraudulent statement or entry, in any matter under the jurisdiction of any department or agency of the United States, may be fined up to $10,000 or imprisoned for up to five years, or both.

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Supporting Justification Requirements

IMPORTANT: At a minimum, requests for exceptions must include the supporting justification listed below. Situations (1) through (6) are described in paragraph 3-7 D of this handbook.

Situation 1: Displaced Tenant

A. State the name of the tenant for whom the exception is being requested.

B. State approximately when the tenant would be displaced and why. Name the program under which the rehabilitation is being funded.

C. State how long the tenant has lived in the project, the tenant's current rent, and the rent the tenant would pay after rehabilitation (without assistance).

Situation 2: Project Financed Under Section 11(b) or Section 103

A. Submit a copy of the portion of the bond documents or other controlling document that specifically obligates the project to lease to low-income families with incomes above 50% of the area median. Provide evidence of the date the document was signed and the period for which it is effective.

B. Submit evidence that the bondholder or mortgagee has and will continue to enforce that policy. This could be a statement signed by the entity that established a policy.

C. State what penalties the project will incur for failure to comply with the economic mix described in subparagraph A above.

Situation 3: Project Supervised by a State Agency

A. Submit a copy of the State agency's policy and any document you signed obligating the project to that policy. Provide evidence of the date the policy was first published, the date your agency signed that document, and the term of the document you signed.

B. Submit evidence that the State agency has been and will continue to enforce its income mix policy. This evidence could be a statement signed by the Agency. The statement must clearly explain both how and how frequently the State agency has monitored and enforced its requirements.

Situation 4: Project Approved Based on Agreement to Comply with Local Government's Income Mix Requirements

A. Submit a copy of the letter the local government sent to the HUD Field Office during development. Be sure the letter shows the date the local government wrote the letter. Also submit a copy of any document you signed or any letter the HUD Field Office issued obligating you to comply with the local government policy.

B. Discuss whether and how the local government has monitored and enforced its income mix policy.

Situation 5: Units Designed for a Specific Occupant Group

A. Name the group.

B. Submit a chart showing occupancy of assisted units by unit type (e.g., 2-bedroom, 1-bath; 2-bedroom, 2-bath) for the specific occupant group. (See the PDF form for the required chart format.)

C. Provide the information requested in subparagraphs B-3, 4, 5, and 6 under Situation 6, but consider ONLY UNITS DESIGNED FOR THE SPECIFIC OCCUPANT GROUP.

D. State the average number of days these units were vacant during the last six months. Divide the total days vacant by the number of units that were vacant. (If this is a new project, use the period since the project has been occupied.)

Situation 6: Insufficient Number of Very Low-Income Applicants

A. Submit a chart showing total occupancy and occupancy of assisted units by unit type (e.g., 2-bedroom, 1-bath; 2-bedroom, 2-bath). (See the PDF form for the required chart format.)

B. Submit the following data:

1. Average number of days units were vacant during the last six months. Divide the total days vacant by the number of units that were vacant. (If this is a new project, use the period since the project has been occupied.) Provide separately for Section 8 units, PRAC units, and all other units.

2. State the vacancy factor used in development processing.

3. Admission data: number of assisted families admitted in last two years (for new projects, state date of initial occupancy and period the data covers); number of those families who were very low-income at admission; and the ratio of very low-income admissions to total admissions.

4. Number of current tenants who are low-income but not very low-income, very low-income, and paying market rent.

5. Describe what you have done to attract very low-income applicants. Specify dates, methods, and whom you contacted. Marketing must include contacting the local Housing Authority to verify if there is anyone on the Housing Authority waiting list that is income/age eligible. Include copies of recent advertisements. The text of each advertisement must mention the availability of the subsidy to reduce tenant rent to 30% of income and give an example of income eligibility.

6. Describe what more you will do to attract qualified very low-income applicants and indicate how many you expect to attract during each of the next four quarters.

C. Submit the following only if you are requesting an exception because the very low-income population is too small to provide sustaining occupancy.

List all market studies and surveys of which you are aware. Include studies you, State agencies, the Rural Housing Service, or anyone else has done. Briefly summarize those studies' conclusions as to the income levels of potential applicants in your project's market area and any nearby market area.

D. Submit the following additional information if you are requesting an exception because a default is likely.

1. Explain why vacancy payments will not provide adequate protection while you seek very low-income applicants.

2. State the cause of any vacancy payments or cash-flow problems. State which types of units, if any, are particularly hard to rent.

3. For each of the last six months, provide the financial and vacancy information listed below. If some of this information is available on monthly accounting reports already sent to the Field Office, the Field Office may authorize you to submit only the information those reports don't cover. (See the PDF form for the detailed financial and vacancy data table required for Situation 6D exceptions.)

Federal Register / Vol. 63, No. 243 / Friday, December 18, 1998 / Notices

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR–4405–N–01]

Fair Housing Enforcement—Occupancy Standards Notice of Statement of Policy

AGENCY: Office of the Assistant Secretary for Fair Housing and Equal Opportunity, HUD.

ACTION: Notice of statement of policy.

SUMMARY: This statement of policy advises the public of the factors that HUD will consider when evaluating a housing provider's occupancy policies to determine whether actions under the provider's policies may constitute discriminatory conduct under the Fair Housing Act on the basis of familial status (the presence of children in a family). Publication of this notice meets the requirements of the Quality Housing and Work Responsibility Act of 1998.

DATES: Effective date: December 18, 1998.

FOR FURTHER INFORMATION CONTACT: Sara Pratt, Director, Office of Investigations, Office of Fair Housing and Equal Opportunity, Room 5204, 451 Seventh Street, SW, Washington, DC 20410, telephone (202) 708–2290 (not a toll-free number). For hearing- and speech-impaired persons, this telephone number may be accessed via TTY (text telephone) by calling the Federal Information Relay Service at 1–800–877–8339 (toll-free).

SUPPLEMENTARY INFORMATION:

Statutory and Regulatory Background

Section 589 of the Quality Housing and Work Responsibility Act of 1998 (Pub. L. 105–276, 112 Stat. 2461, approved October 21, 1998, "QHWRA") requires HUD to publish a notice in the Federal Register that advises the public of the occupancy standards that HUD uses for enforcement purposes under the Fair Housing Act (42 U.S.C. 3601–3619). Section 589 requires HUD to publish this notice within 60 days of enactment of the QHWRA, and states that the notice will be effective upon publication. Specifically, section 589 states, in relevant part, that:

[T]he specific and unmodified standards provided in the March 20, 1991, Memorandum from the General Counsel of [HUD] to all Regional Counsel shall be the policy of [HUD] with respect to complaints of discrimination under the Fair Housing Act . . . on the basis of familial status which involve an occupancy standard established by a housing provider.

The Fair Housing Act prohibits discrimination in any aspect of the sale, rental, financing or advertising of dwellings on the basis of race, color, religion, national origin, sex or familial status (the presence of children in the family). The Fair Housing Act also provides that nothing in the Act "limits the applicability of any reasonable local, State or Federal restrictions regarding the maximum number of occupants permitted to occupy a dwelling." The Fair Housing Act gave HUD responsibility for implementation and enforcement of the Act's requirements. The Fair Housing Act authorizes HUD to receive complaints alleging discrimination in violation of the Act, to investigate these complaints, and to engage in efforts to resolve informally matters raised in the complaint. In cases where the complaint is not resolved, the Fair Housing Act authorizes HUD to make a determination of whether or not there is reasonable cause to believe that discrimination has occurred. HUD's regulations, implementing the Fair Housing Act (42 U.S.C. 3614) are found in 24 CFR part 100.

In 1991, HUD's General Counsel, Frank Keating, determined that some confusion existed because of the absence of more detailed guidance regarding what occupancy restrictions are reasonable under the Act. To address this confusion, General Counsel Keating issued internal guidance to HUD Regional Counsel on factors that they should consider when examining complaints filed with HUD under the Fair Housing Act, to determine whether or not there is reasonable cause to believe discrimination has occurred.

This Notice

Through this notice HUD implements section 589 of the QHWRA by adopting as its policy on occupancy standards, for purposes of enforcement actions under the Fair Housing Act, the standards provided in the Memorandum of General Counsel Frank Keating to Regional Counsel dated March 20, 1991, attached as Appendix A.

Authority: 42 U.S.C. 3535(d), 112 Stat. 2461.

Dated: December 14, 1998.

Eva M. Plaza, Assistant Secretary for Fair Housing and Equal Opportunity.

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Appendix A

March 20, 1991.

MEMORANDUM FOR: All Regional Counsel FROM: Frank Keating, G SUBJECT: Fair Housing Enforcement Policy: Occupancy Cases

On February 21, 1991, I issued a memorandum designed to facilitate your review of cases involving occupancy policies under the Fair Housing Act. The memorandum was based on my review of a significant number of such cases and was intended to constitute internal guidance to be used by Regional Counsel in reviewing cases involving occupancy restrictions. It was not intended to create a definitive test for whether a landlord or manager would be liable in a particular case, nor was it intended to establish occupancy policies or requirements for any particular type of housing.

However, in discussions within the Department, and with the Department of Justice and the public, it is clear that the February 21 memorandum has resulted in a significant misunderstanding of the Department's position on the question of occupancy policies which would be reasonable under the Fair Housing Act. In this respect, many people mistakenly viewed the February 21 memorandum as indicating that the Department was establishing an occupancy policy which it would consider reasonable in any fair housing case, rather than providing guidance to Regional Counsel on the evaluation of evidence in familial status cases which involve the use of an occupancy policy adopted by a housing provider.

For example, there is a HUD Handbook provision regarding the size of the unit needed for public housing tenants. See Handbook 7465.1 REV–2, Public Housing Occupancy Handbook: Admission, revised section 5–1 (issued February 12, 1991). While that Handbook provision states that HUD does not specify the number of persons who may live in public housing units of various sizes, it provides guidance about the factors public housing agencies may consider in establishing reasonable occupancy policies. Neither this memorandum nor the memorandum of February 21, 1991 overrides the guidance that Handbook provides about program requirements.

As you know, assuring Fair Housing for all is one of Secretary Kemp's top priorities. Prompt and vigorous enforcement of all the provisions of the Fair Housing Act, including the protections in the Act for families with children, is a critical responsibility of mine and every person in the Office of General Counsel. I expect Headquarters and Regional Office staff to continue their vigilant efforts to proceed to formal enforcement in all cases in which there is reasonable cause to believe that a discriminatory housing practice under the Act has occurred or is about to occur. This is particularly important in cases where occupancy restrictions are used to exclude families with children or to unreasonably limit the ability of families with children to obtain housing.

In order to assure that the Department's position in the area of occupancy policies is fully understood, I believe that it is imperative to articulate more fully the Department's position on reasonable occupancy policies and to describe the approach that the Department takes in its review of occupancy cases.

Specifically, the Department believes that an occupancy policy of two persons in a bedroom, as a general rule, is reasonable under the Fair Housing Act. The Department of Justice has advised us that this is the general policy it has incorporated in consent decrees and proposed orders, and such a general policy also is consistent with the guidance provided to housing providers in the HUD handbook referenced above.

However, the reasonableness of any occupancy policy is rebuttable, and neither the February 21 memorandum nor this memorandum implies that the Department will determine compliance with the Fair Housing Act based solely on the number of people permitted in each bedroom. Indeed, as we stated in the final rule implementing the Fair Housing Amendments Act of 1988, the Department's position is as follows:

[T]here is nothing in the legislative history which indicates any intent on the part of Congress to provide for the development of a national occupancy code. * * *

On the other hand, there is no basis to conclude that Congress intended that an owner or manager of dwellings would be unable to restrict the number of occupants who could reside in a dwelling. Thus, the Department believes that in appropriate circumstances, owners and managers may develop and implement reasonable occupancy requirements based on factors such as the number and size of sleeping areas or bedrooms and the overall size of the dwelling unit. In this regard, it must be noted that, in connection with a complaint alleging discrimination on the basis of familial status, the Department will carefully examine any such nongovernmental restriction to determine whether it operates unreasonably to limit or exclude families with children.

24 C.F.R. Chapter I, Subchapter A. Appendix I at 566–67 (1990).

Thus, in reviewing occupancy cases, HUD will consider the size and number of bedrooms and other special circumstances. The following principles and hypothetical examples should assist you in determining whether the size of the bedrooms or special circumstances would make an occupancy policy unreasonable.

Size of bedrooms and unit

Consider two theoretical situations in which a housing provider refused to permit a family of five to rent a two-bedroom dwelling based on a "two people per bedroom" policy. In the first, the complainants are a family of five who applied to rent an apartment with two large bedrooms and spacious living areas. In the second, the complainants are a family of five who applied to rent a mobile home space on which they planned to live in a small two-bedroom mobile home. Depending on the other facts, issuance of a charge might be warranted in the first situation, but not in the second.

The size of the bedrooms also can be a factor suggesting that a determination of no reasonable cause is appropriate. For example, if a mobile home is advertised as a "two-bedroom" home, but one bedroom is extremely small, depending on all the facts, it could be reasonable for the park manager to limit occupancy of the home of two people.

Age of children

The following hypotheticals involving two housing providers who refused to permit three people to share a bedroom illustrate this principle. In the first, the complainants are two adult parents who applied to rent a one-bedroom apartment with their infant child, and both the bedroom and the apartment were large. In the second, the complainants are a family of two adult parents and one teenager who applied to rent a one-bedroom apartment. Depending on the other facts, issuance of a charge might be warranted in the first hypothetical, but not in the second.

Configuration of unit

The following imaginary situations illustrate special circumstances involving unit configuration. Two condominium associations each reject a purchase by a family of two adults and three children based on a rule limiting sales to buyers who satisfy a "two people per bedroom" occupancy policy. The first association manages a building in which the family of the five sought to purchase a unit consisting of two bedrooms plus a den or study. The second manages a building in which the family of five sought to purchase a two-bedroom unit which did not have a study or den. Depending on the other facts, a charge might be warranted in the first situation, but not in the second.

Other physical limitations of housing

In addition to physical considerations such as the size of each bedroom and the overall size and configuration of the dwelling, the Department will consider limiting factors identified by housing providers, such as the capacity of the septic, sewer, or other building systems.

State and local law

If a dwelling is governed by State or local governmental occupancy requirements, and the housing provider's occupancy policies reflect those requirements, HUD would consider the governmental requirements as a special circumstance tending to indicate that the housing provider's occupancy policies are reasonable.

Other relevant factors

Other relevant factors supporting a reasonable cause recommendation based on the conclusion that the occupancy policies are pretextual would include evidence that the housing provider has: (1) made discriminatory statements; (2) adopted discriminatory rules governing the use of common facilities; (3) taken other steps to discourage families with children from living in its housing; or (4) enforced its occupancy policies only against families with children. For example, the fact that a development was previously marketed as an "adults only" development would militate in favor of issuing a charge. This is an especially strong factor if there is other evidence suggesting that the occupancy policies are a pretext for excluding families with children.

An occupancy policy which limits the number of children per unit is less likely to be reasonable than one which limits the number of people per unit.

Special circumstances also may be found where the housing provider limits the total number of dwellings he or she is willing to rent to families with children. For example, assume a landlord owns a building of two-bedroom units, in which a policy of four people per unit is reasonable. If the landlord adopts a four person per unit policy, but refuses to rent to a family of two adults and two children because twenty of the thirty units already are occupied by families with children, a reasonable cause recommendation would be warranted.

If your review of the evidence indicates that these or other special circumstances are present, making application of a "two people per bedroom" policy unreasonably restrictive, you should prepare a reasonable cause determination. The Executive Summary should explain the special circumstances which support your recommendation.

[FR Doc. 98–33568 Filed 12–17–98; 8:45 am] BILLING CODE 4210–28–M

Dear (insert name of head of household): Section 214 of the Housing and Community Development Act of 1980, as amended, prohibits the Secretary of HUD from making financial assistance available to persons other than U.S. citizens or nationals, or certain categories of eligible noncitizens, in the following HUD programs: a. Section 8 Housing Assistance Payments programs; b. Section 236 of the National Housing Act including Rental Assistance Payment (RAP); and c. Section 101/Rent Supplement Program. You have applied, or are applying for, assistance under one of these programs; therefore, you are required to declare U.S. Citizenship or submit evidence of eligible immigration status for each of your family members for whom you are seeking housing assistance. You must do the following:

1. Complete a Family Summary Sheet, using the attached blank format (see sample Family Summary Sheet in Exhibit 3-4) to list all family members who will reside in the assisted unit.
2. Each family member (including you) listed on the Family Summary Sheet must complete a Citizenship Declaration (see Sample Citizenship Declaration in Exhibit 3-5). If there are 10 people listed on the Family Summary Sheet, you should have 10 completed copies of the Citizenship Declaration. The Citizenship Declaration has easy-to- follow instructions and explains what, if any other forms and/or evidence must be submitted with each Citizenship Declaration.
3. Submit the Family Summary Sheet, the Citizenship Declarations, and any other forms and/or evidence to the name and address listed below by (insert date).

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   HUD Occupancy Handbook 6/07 Exhibit 3-3

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4350.3 REV-1 This Section 214 review will be completed in conjunction with the verification of other aspects of eligibility for assistance. If you have any questions or difficulty in completing the attached items or determining the type of documentation required, please contact (insert name and telephone number). He/she will be happy to assist you. Also, if you are unable to provide the required documentation by the date shown above, you should immediately contact this office and request an extension, using the block provided on the Citizenship Declaration Format. Failure to provide this information or establish eligible status may result in your not being considered for housing assistance. If this Section 214 review results in a determination of ineligibility, you will have an opportunity to appeal the decision. Also, if the final determination concludes that only certain members of your family are eligible for assistance, your family may be eligible for proration of assistance. That means that when assistance is available, a reduced amount may be provided for your family based on the number of members who are eligible. If assistance becomes available and the other aspects of your eligibility review show that you are eligible for housing assistance, that assistance may be provided to you if at least one member of your household has submitted the required documentation. Following verification of the documentation submitted by all family members, assistance may be adjusted depending on the immigration status verified. You will be contacted as soon as we have further information regarding your eligibility for assistance. 6/07 HUD Occupancy Handbook Exhibit 3-3

Member No.	Last Name of Family Member	First Name	Relationship to Head of Household	Sex	Date of Birth
Head
2
3
4
5
6
7
8
9
10
11
12
13
14
15

6/07 HUD Occupancy Handbook Exhibit 3-4

This exhibit contains the Sample Citizenship Declaration form used to document the citizenship or immigration status of each household member listed on the Family Summary Sheet.

The declaration requires the individual (or a responsible adult signing on behalf of a child) to select one of three options:

1. U.S. citizen or national — The individual declares citizenship or national status and signs the form.
2. Noncitizen with eligible immigration status — The individual provides supporting documentation (e.g., Form I-551, Form I-94 with appropriate annotations, or other DHS-accepted evidence). Individuals 62 years of age or older need only submit proof of age. A Request for Extension section is available if documentation is temporarily unavailable.
3. Not contending eligible immigration status — The individual acknowledges ineligibility for financial assistance.

The complete form may be viewed in the PDF version of this handbook: HUD Handbook 4350.3

This exhibit contains the Sample Verification Consent Form, which must be completed for each noncitizen family member who declared eligible immigration status on the Citizenship Declaration (Exhibit 3-5). If completed on behalf of a child, it must be signed by the responsible adult.

By signing the form, the individual consents to the use of attached evidence to verify eligible immigration status for purposes of receiving housing financial assistance, and to the release of that evidence to HUD and the Department of Homeland Security (DHS) for verification purposes. The form also includes a notification that evidence will be released to DHS only for establishing eligibility and not for any other purpose.

The complete form may be viewed in the PDF version of this handbook: HUD Handbook 4350.3

Member No.	Last Name of Family Member	First Name of Family Member	Relationship to Head of Household	Sex	Date of Birth	Declaration	Date Verified
Head
2
3
4
5
6
7
8
9
10
11
12
13
14
15

HUD Occupancy Handbook 6/07 Exhibit 3-7

Dear (insert name of head of household): I regret to inform you that the primary and secondary verification reviews of immigration status performed by DHS failed to confirm eligibility for the following members of your family: First and Last Name Reason for termination of assistance Based on these reviews, your family is not eligible to continue receiving housing assistance and must begin paying market rent or vacate the unit unless you exercise one of the following options: Option 1 – Appeal the results of secondary verification to DHS; Option 2 – Request an informal hearing with my representative; or Option 3 – Request a determination on your family's eligibility for (a) continued assistance, (b) prorated assistance, or (c) a temporary deferral of termination of assistance. These three types of assistance are explained in an attachment to this letter. If you choose Option 1 and would like to appeal the results of secondary verification to the DHS, you must submit the following information to the DHS office located at (owner should insert address of local DHS office) no later than (insert date 30 days from date of this letter):

1. A copy of this letter (Notice No. 2);
2. A letter to DHS requesting the appeal;
3. Additional documentation of immigration status or a written explanation in support of the appeal;
4. A copy of the enclosed DHS Form G-845S that was used to request secondary verification, marked at the top center of the form in bold print "HUD APPEAL"; and
5. Two stamped envelopes, one addressed to you and one addressed to (owner should insert owner's name and address). A copy of your request and proof of mailing, such as a receipt for certified or registered mail, must also be sent to (owner's name and address). If this appeal is denied by the DHS, you will still have the opportunity to proceed to Option 2 but must do so within 14 days of the date the DHS mailed its decision on the appeal (established by the postmark). If you choose to bypass the DHS appeal process and proceed directly to option 2 and would like to schedule an informal hearing with my representative, contact (insert name and telephone number of contact) no later than (insert date 30 days from date of this letter) to schedule this meeting. If this hearing ends in a negative determination, you can proceed to Option 3. 6/07 HUD Occupancy Handbook Exhibit 3-8

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4350.3 REV-1 If you proceed directly to Option 3 and bypass all other options, you should understand that you have not been determined eligible for one of these types of assistance but are requesting a determination of eligibility. If you wish to choose Options 1, 2, or 3, please check the option of your choice on the attached option sheet and return it to (owner's name and address) no later than (insert date 30 days from date of this letter). Failure to do this will cause this office to believe that you are accepting the results of secondary verification, and you will either pay market rent or vacate the unit. TYPES OF ASSISTANCE AND AVAILABILITY Prorated assistance What it is? The amount of assistance paid for a mixed family is reduced when not all family members have eligible status. Availability. It is available to mixed applicant families and mixed tenant families who meet the conditions below:

1. The family is not receiving continued assistance; and
2. Termination of the family's assistance is not temporarily deferred. Temporary deferral of termination of assistance What it is? Deferral of the termination of assistance a tenant family is currently receiving to permit the family additional time to make an orderly transition to other affordable housing. Deferral period. The initial period is for six months and may be renewed for additional periods of six months, but the aggregate deferral period shall not exceed a period of 18 months. NOTE: If the family receiving assistance on June 19,1995 includes a refugee under section 207 of the Immigration and Nationality Act, or an individual seeking asylum under section 208 of that Act, a deferral can be given to the family and there is no time limitation on the deferral period. The 18 month deferral limitation does not apply. Availability.
3. The family was in residence on June 19, 1995;
4. It is available to a mixed tenant family who qualifies for prorated assistance but decides not to accept prorated assistance;
5. A tenant family who has no members with eligible status and for whom the temporary deferral is necessary to permit the family additional time for the orderly transition of those family members with ineligible status, and any other family members involved, to other affordable housing. HUD Occupancy Handbook 6/07 Exhibit 3-8

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4350.3 REV-1 Conditions. Temporary deferral shall be granted to the family if one of the following conditions is met:

1. The family demonstrates that reasonable efforts to find other affordable housing of appropriate size have been unsuccessful;
2. The vacancy rate for affordable housing of appropriate size is below 5% in the housing market area; or
3. The Consolidated Plan, if it applies to the program, indicates that the local jurisdiction's housing market lacks sufficient affordable housing opportunities for households having a size and income similar to the family seeking the deferral. 6/07 HUD Occupancy Handbook Exhibit 3-8

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4350.3 REV-1 OPTION SHEET _____ Option 1 – DHS Appeal I/We hereby declare our intention to appeal the results of secondary verification of immigration status to the DHS. I/We understand that we must submit the following information to the DHS office:

1. A copy of this letter (Notice No. 2);
2. A letter requesting the appeal;
3. Additional documentation of immigration status or a written explanation in support of the appeal;
4. A copy of the enclosed DHS Form G-845S that was used by the owner to request Secondary Verification, marked at the top center of the form in bold print "HUD APPEAL"; and
5. Two stamped envelopes, one addressed to me and one addressed to the owner.

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   (Signature, head of household) (Date) _____ Option 2 – Informal Hearing with Owner I/We hereby request an informal hearing with a representative of the owner.

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   (Signature, head of household) (Date) _____ Option 3 – Request for a Determination on Other Type of Assistance I/We understand that our family may be eligible for another type of assistance, and I/we are interested in pursuing this option, rather than Options 1 and 2. Please consider this our request for a meeting to discuss the availability of another type of assistance for our family.

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   (Signature, head of household) (Date) HUD Occupancy Handbook 6/07 Exhibit 3-8

Dear (insert name of head of household): I regret to inform you that the primary and secondary verification reviews of immigration status performed by the DHS failed to confirm eligibility for financial assistance for the following members of your family: First and Last Name Reason for denial of assistance NOTE: Also insert any other reasons they may be ineligible in accordance with Handbook 4350.3, paragraphs 3-12 and 4-31. Based on these reviews, your family is not eligible to receive the housing assistance for which you applied. At this point, you can either accept this decision and have your application for housing assistance withdrawn from further consideration or exercise one of the following options: Option 1 – Appeal the results of secondary verification to the DHS; Option 2 – Request an informal hearing with my representative; or Option 3 – Pursue your eligibility for prorated assistance. If you choose Option 1 and would like to appeal the results of secondary verification to the DHS, you must submit the following information to the DHS office located at (owner should insert address of local DHS office) no later than (insert date 30 days from date of this letter):

1. A copy of this letter (Notice No. 2);
2. A letter to the DHS requesting the appeal;
3. Additional documentation of immigration status or a written explanation in support of the appeal;
4. A copy of the enclosed DHS Form G-845S that was used to request secondary verification, marked at the top center of the form in bold print "HUD APPEAL"; and
5. Two stamped envelopes, one addressed to you and one addressed to (owner should insert owner's name and address). A copy of your request and proof of mailing, such as a receipt for certified or registered mail, must also be sent to (owner's name and address). If this appeal is denied by the DHS, you will still have the opportunity to proceed to Options 2 and 3, but must do so within 14 days of the date the DHS mailed its decision on the appeal, established by the postmark. HUD Occupancy Handbook 1 6/07 Chapter 3: Eligibility for Assistance and Occupancy

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Exhibit 3-9 4350.3 REV-1 If assistance becomes available during the appeal process, and your family is otherwise eligible to receive the assistance, it will be provided. However, the assistance may be adjusted or terminated subsequent to the conclusion of the Section 214 review and appeal process. If assistance becomes available after a negative conclusion by the DHS on your appeal and before the conclusion of the informal hearing process (Option 2), the assistance will be delayed until a final conclusion is reached. If you choose to bypass the DHS appeal process and proceed directly to Option 2 and would like to schedule an informal hearing with my representative, contact (insert name and telephone number of contact) no later than (insert date 30 days from date of this letter) to schedule this meeting. Of course, if this hearing ends in a negative determination, you can proceed to Option 3. If you proceed directly to Option 3 and bypass all other options, you should understand that you have not been determined eligible for prorated assistance but are requesting a determination of eligibility. Prorated assistance means that the amount of assistance your family receives would be reduced based on the number of ineligible family members in your family. In other words, the rent you pay may be less than market rent, but would not be reduced to the level it would be if your whole family could evidence eligible immigration status. If you wish to choose Options 1, 2, or 3, please check the option of your choice on the attached option sheet and return it to (owner's name and address) no later than (insert date 30 days from date of this letter). Failure to do this will cause this office to believe that you are accepting the results of secondary verification, and your application for housing assistance will be removed from further consideration. HUD Occupancy Handbook 2 6/07 Chapter 3: Eligibility for Assistance and Occupancy

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Exhibit 3-9 4350.3 REV-1 OPTION SHEET _____ Option 1 – DHS Appeal I/We hereby declare our intention to appeal the results of secondary verification of immigration status to the DHS. I/We understand that we must submit the following information to the DHS office:

1. *A copy of this letter (Notice No. 2);
2. A letter requesting the appeal;
3. Additional documentation of immigration status or a written explanation in support of the appeal;
4. A copy of the enclosed DHS Form G-845S that was used by the owner to request secondary verification, marked at the top center of the form in bold print "HUD APPEAL"; and
5. Two stamped envelopes, one addressed to me and one addressed to the owner.*

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   (Signature, head of household) (Date) _____ Option 2 – Informal Hearing with Owner I/We hereby request an informal hearing with a representative of the owner.

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   (Signature, head of household) (Date) _____ Option 3 – Request for a Determination on Proration I/We understand that our family may be eligible for prorated assistance, and I/we are interested in pursuing this option, rather than Options 1 and 2. Please consider this our request for a meeting to discuss the availability of proration for our family.

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   (Signature, head of household) (Date) HUD Occupancy Handbook 3 06/09 Chapter 3: Eligibility for Assistance and Occupancy

Final Decision On Immigration Status Dear (insert name of head of household): [USE THE FOLLOWING FOR AN ELIGIBLE TENANT FAMILY] We have concluded the Section 214 review (and appeal) process and determined that your family is eligible to continue receiving the financial assistance that you currently receive. If there are any changes to your family (either additions to or removal of any family member or changes in their immigration status), you must contact this office immediately to determine whether a further Section 214 review is necessary. As long as there are no changes to your family and you are continuously assisted, this review will not be repeated unless you move from your present unit to another project with assisted housing. In the event that your family does move and/or change the type of housing assistance you receive, a new Section 214 review will be completed by the new project owner (or other responsible entity). OR [USE THE FOLLOWING FOR A MIXED TENANT FAMILY] We have concluded the Section 214 review (and appeal) process and determined that your family meets the definition of "mixed family." A "mixed family" means a family whose members include those with citizenship or eligible immigration status and those without citizenship or eligible immigration status. Mixed families can, under certain conditions, receive prorated assistance. That means that the amount of assistance paid for a mixed family is reduced based on the number of family members who have ineligible status rather than paid based on the total number of family members. In your case, out of family members are ineligible; therefore, your assistance will be reduced by ___ %, unless the ineligible members move from the family or you request and receive one of the following other types of assistance: Prorated Assistance What it is? The amount of assistance paid for a mixed family is reduced based on the number of family members who have eligible status rather than paid based on the total number of family members. Availability. It is available to mixed applicant families and mixed tenant families who meet the conditions below: HUD Occupancy Handbook 6/07 Exhibit 3-10

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4350.3 REV-1

1. The family is not receiving continued assistance; and
2. Termination of the family's assistance is not temporarily deferred. Temporary deferral of termination of assistance What it is? Deferral of the termination of assistance a tenant family is currently receiving to permit the family additional time to make an orderly transition to other affordable housing. Deferral period. The initial period is for six months and may be renewed for additional periods of six months, but the aggregate deferral period shall not exceed a period of 18 months. NOTE: If the family receiving assistance on June 19,1995 includes a refugee under section 207 of the Immigration and Nationality Act, or an individual seeking asylum under section 208 of that Act, a deferral can be given to the family and there is no time limitation on the deferral period. The 18 month deferral limitation does not apply. Availability.
3. The family was in residence on June 19,1995;
4. It is available to a mixed tenant family who qualifies for prorated assistance (and does not qualify for continued assistance), but decides not to accept prorated assistance;
5. A tenant family who has no members with eligible status and for whom the temporary deferral is necessary to permit the family additional time for the orderly transition of those family members with ineligible status, and any other family members involved, to other affordable housing. Conditions. Temporary deferral shall be granted to the family if one of the following conditions is met:
6. The family demonstrates that reasonable efforts to find other affordable housing of appropriate size have been unsuccessful;
7. The vacancy rate for affordable housing of appropriate size is below 5% in the housing market area; or
8. The Consolidated Plan, if it applies to the program, indicates that the local jurisdiction's housing market lacks sufficient affordable housing opportunities for households having a size and income similar to the family seeking the deferral. Please contact this office immediately to discuss the type of assistance you wish to pursue. At that time, these options will be discussed with you in detail. If you fail to contact this office within 30 days from the date of this letter, your financial assistance will automatically be reduced under the proration of assistance requirements. Also, if there are any changes to your family (either additions to or removal of any family member or changes in their immigration status), you must contact this office immediately to 6/07 2 HUD Occupancy Handbook Exhibit 3-10

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4350.3 REV-1 determine if a further Section 214 review is necessary. As long as there are no changes to your family, this review will not be repeated unless you move from your present unit to another assisted-housing situation. In the event that your family does move and/or you change the type of housing assistance you receive, a new Section 214 review will be completed by the new project owner (or other responsible entity). This decision does not preclude your family from exercising the right that may otherwise be available to seek redress directly through judicial procedures. OR [USE THE FOLLOWING FOR AN INELIGIBLE TENANT FAMILY] I regret to inform you that we have concluded the Section 214 review (and appeal) process and were unable to confirm eligible immigration status for any of your family members. Therefore, your family is not eligible to continue receiving financial assistance except as noted below. You may continue to occupy the unit by paying $_____, which is the market rent for the unit, or you may choose to vacate the unit. Also, your family may be eligible for a temporary deferral of termination of assistance to permit your family additional time to make an orderly transition to other affordable housing. These options will be discussed in detail with you if you contact this office within 30 days from the date of this letter. Failure to arrange this discussion within the 30 days will cause this office to begin termination of tenancy. This decision does not preclude your family from exercising the right that may otherwise be available to seek redress directly through judicial procedures. HUD Occupancy Handbook 6/07 Exhibit 3-10

Final Decision on Immigration Status Dear (insert name of head of household): [USE THE FOLLOWING FOR AN ELIGIBLE APPLICANT FAMILY] We have concluded the Section 214 review (and appeal) process and determined that your family is eligible to receive financial assistance. This office will contact you as soon as assistance is available for your family. OR [USE THE FOLLOWING FOR A MIXED APPLICANT FAMILY] We have concluded the Section 214 review (and appeal) process and determined that your family meets the definition of "mixed family" and is eligible to receive prorated financial assistance. A "mixed family" means a family whose members include those with citizenship or eligible immigration status and those without citizenship or eligible immigration status. Mixed families can, under certain conditions, receive prorated assistance. That means that the amount of assistance paid for a mixed family is reduced based on the number of family members who have ineligible status rather than paid based on the total number of family members. In your case, out of family members are ineligible; therefore, you would receive ___ % of the financial assistance your family would typically be entitled to if all members were eligible. In the event that the family composition changes prior to your receiving assistance, further adjustments may be made to this percentage. When assistance becomes available for your family, this percentage will be finalized and used in calculating the rent you pay for your unit. This decision does not preclude your family from exercising the right that may otherwise be available to seek redress directly through judicial procedures. This office will contact you as soon as assistance is available for your family. OR [USE THE FOLLOWING FOR AN INELIGIBLE APPLICANT FAMILY] I regret to inform you that we have concluded the Section 214 review (and appeal) process and were unable to confirm eligible immigration status for any of your family members. Therefore, your family is not eligible to receive financial assistance. The application that you filed for housing assistance will be removed from further consideration. This decision does not preclude your family from exercising the right that may otherwise be available to seek redress directly through judicial procedures. 6/07 HUD Occupancy Handbook Exhibit 3-11

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4350.3 REV-1 If the immigration status of your family changes in the future and you are able to provide evidence that would confirm eligible status, we would be happy to accept a new application for housing assistance. Any new application will be subject to a complete review, including program and income eligibility determinations. HUD Occupancy Handbook 6/07 Exhibit 3-11

Special Instructions for Determining Prorated Assistance Payment and Prorated Total Tenant Payment/Tenant Rent Tenants Paying a Rent Assisted Under Section 8, Rental Assistance Payment (RAP), and Rent Supplement NOTE: If this tenant receives assistance under one of the programs listed above and this is a Section 236 Project, see Exhibit 3-14. A. Calculate the Total Tenant Payment (TTP) and the resulting assistance payment without prorations.

1. _____ Enter the Gross Rent. Follow the instructions for Gross Rent of the HUD-50059.
2. *_____ Determine the TTP. Follow the instructions for Total Tenant Payment of the HUD-50059. This is the TTP the family would pay without prorations.
3. _____ Subtract the TTP entered in line 2 from the Gross Rent entered in line 1. Enter the difference here. (This is the Assistance Payment the family would receive if they were not subject to the proration requirements. Follow the instructions in Assistance Payment Amount of the HUD-50059 in completing this item.)* B. Calculate the prorated assistance payment. Enter this amount as the Assistance Payment Amount.
4. __ Enter the number of people in the family who are Eligible Persons, i.e., citizens or eligible noncitizens. See the Glossary for the definition of these terms.
5. __ Enter the fraction that represents the number of Eligible Persons (numerator) and the number of persons in the family (denominator). EXAMPLE: There are five persons in the family, of which three are eligible. The fraction for this family would be 3/5.
6. _____ Multiply the amount in line 3 (the Assistance Payment the family would pay if they were not subject to the proration procedures) by the fraction determined in line 5. Enter the product here and in the Assistance Payment field of the HUD-50059. This is the Prorated Housing Assistance Payment for this family. 06/09 1 HUD Occupancy Handbook Chapter 3: Eligibility for Assistance and Occupancy

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4350.3 REV-1 CHG-3 Exhibit 3-12 C. Calculate the prorated TTP. 7. Enter the Gross Rent from, Gross Rent (not Market Rent), the HUD- 50059. 8. Subtract the amount in line 6 (Prorated Housing Assistance Payment) from the amount in line 7 (Gross Rent). This is the Prorated TTP for this family. Transfer this amount to the Total Tenant Payment of the HUD-50059. D. Calculate the prorated tenant rent and any utility reimbursement. 9. Enter the Utility Allowance from Utility Allowance Amount of the HUD- 50059. 10. Subtract the Utility Allowance in line 9 from the Prorated TTP in line 8 and enter the amount here and in Tenant Rent of the HUD-50059. Follow the instructions in Tenant Rent. This is the Prorated Tenant Rent. If you entered zero in line 10 (and in Tenant Rent of the HUD-50059), complete line 11. 11. _____ If the Utility Allowance in line 9 is greater than the Prorated TTP in line 8, enter the difference here and in Utility Reimbursement of the HUD-50059. Otherwise leave this line and Utility Reimbursement, blank. HUD Occupancy Handbook 2 06/07 Chapter 3: Eligibility for Assistance and Occupancy

Special Instructions for Determining Prorated Assistance Payment and Prorated Total Tenant Payment/Tenant Rent Section 236 Tenants Who are Paying Between Basic and Market Rent (WITHOUT the benefit of additional assistance) NOTE: If the tenant receives assistance under Section 8, Rent Supplement, or Rental Assistance Payment and this is a Section 236 project, use Exhibit 3-14. A. Calculate the difference between market rent and tenant rent without prorations.

1. _____ Enter the Market Rent from Market Rent field of the HUD-50059.
2. _____ Determine the Tenant Rent in accordance with the instructions for Tenant Rent of the HUD-50059.
3. _____ Subtract line 2 (Tenant Rent), from line 1 (Market Rent) and enter the result here. This is the difference between the Market Rent and the Tenant Rent, before considering prorations. B. Calculate the prorated difference between the market rent and the tenant rent.
4. __ Enter the number of people in the family who are Ineligible Persons; i.e. persons who do not meet the definition of a citizen or eligible noncitizen. See the Glossary for the definition of these terms.
5. __ Enter the fraction that represents the number of Ineligible Persons (numerator) and the number of persons in the family (denominator). EXAMPLE: There are five persons in the family, of which two are ineligible. The fraction for this family would be 2/5.
6. _____ Multiply the amount in line 3, the difference between the Market Rent and the Tenant Rent before prorations, by the fraction determined in line 5. Enter this amount in Line 6. This represents the prorated difference between the Market Rent and the Tenant Rent. C. Calculate the prorated tenant rent.
7. _____ Add the following amounts and enter the result in line 7: add line 2 (Tenant Rent before prorations) and line 6 (prorated difference between the Market Rent and the Tenant Rent). The result is the Prorated Tenant Rent. Enter the amount in line 7 in Tenant Rent of the HUD-50059. HUD Occupancy Handbook 6/07 Exhibit 3-13

Special Instructions for Determining Prorated Assistance Payment and Prorated Total Tenant Payment/Tenant Rent Section 236 Tenants Who are Paying Between Basic and Market Rent (WITH the benefit of Section 8, RAP or Rent Supplement assistance) A. Calculate the difference between market rent and the contract rent/basic rent for the unit (without prorations).

1. • _____ Enter the Section 236 Market Rent from Market Rent of the HUD-
3. _____ Enter the Section 236 Basic Rent from Basic Rent Amount of the HUD-
4. Note: Basic Rent is a new field on the HUD-50059 starting with the release of TRACS 202C.
5. _____ Subtract line 2, Basic Rent, from line 1, Market Rent, and enter the difference here.* B. Calculate the prorated difference between the market rent and the basic rent.
6. _____ Enter the number of people in the family who are Ineligible Persons; i.e. persons who do not meet the definition of a citizen or eligible noncitizen. See the Glossary for the definition of these terms.
7. __ Enter the fraction that represents the number of Ineligible Persons (numerator) and the number of persons in the family (denominator). EXAMPLE: There are five persons in the family, of which two are ineligible. The fraction for this family would be 2/5.
8. _____ Calculate the prorated difference between the Market Rent and the Basic Rent. Multiply line 3 difference between the Basic Rent and the Market Rent by the fraction determined in line 5. Enter the amount in line 6. C. Calculate the assistance adjustment for Rent Supplement, RAP, or Section 8 assistance the tenant would otherwise receive.
9. _____ Enter the Gross Rent. Follow the instructions in Gross Rent (not Market Rent) of the HUD-50059. HUD Occupancy Handbook 1 06/09 Chapter 3: Eligibility for Assistance and Occupancy

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4350.3 REV-1 CHG-3 Exhibit 3-14 8. Determine the Total Tenant Payment (TTP). Follow the instructions in Total Tenant Payment of the HUD-50059. This is the TTP the family would pay without prorations. 9. Subtract the TTP entered in line 8 from the Gross Rent entered in line 7. Enter the difference here. (This is the Assistance Payment for this family if they were not subject to the proration requirements. Follow the instructions in Assistance Payment Amount of the HUD-50059 in completing this item.) 10. Multiply the amount in line 9 (the Assistance Payment for this family if they were not subject to the proration procedures) by the fraction determined in line 5. Enter the product here. This is the Assistance Adjustment for this family. D. Calculate the prorated TTP. 11. Add the following amounts: line 6 + line 8 + line 10. You are adding the following amounts: the prorated difference between the Market Rent, the TTP the family would pay without prorations, and the Assistance Adjustment the family would otherwise receive. Enter the lesser of line 12 (Gross Rent) and the sum of lines 6, 8 and 10 in line 11. E. Calculate the prorated assistance payment. 12. Enter the Gross Rent for this unit from Gross Rent (not Market Rent) of the HUD-50059. 13. Subtract line 11 from line 12 (Gross Rent minus Prorated TTP). This is the Prorated Assistance Payment. F. Calculate the prorated tenant rent and any utility reimbursement. 14. Enter the Utility Allowance from Utility Allowance Amount of the HUD- 50059 15. * Subtract the Utility Allowance in line 14 from the Prorated TTP in line 11, and enter the amount here and in Tenant Rent of the HUD-50059. Follow the instructions in Tenant Rent. This is the Prorated Tenant Rent.* If you entered zero in line 15 (and in Tenant Rent of the HUD-50059), complete Item 16. 16. _____ If the Utility Allowance in line 14 is greater than the Prorated TTP in line 11, enter the difference here and in Utility Reimbursement of the HUD-50059. Otherwise leave this line and Utility Reimbursement, blank. 0609 2 HUD Occupancy handbook Chapter 3: Eligibility for Assistance and Occupancy

Records of Earned Income

• Paycheck stub
• W-2 forms
• Income tax return – (state and/or federal)
• Wage tax receipts

Records of Other Income

• Pensions and annuities – latest check stub from issuing institution
• Social Security – current award letter, *benefit letter or Proof of Income Letter*
• Unemployment compensation – determination letter Form 2000, Form UC 30, or latest check stub
• SSI – award letter, *Proof of Income Letter*
• TANF – award letter, recent check stub
• Worker's compensation – Form DOL 203, recent check stub
• Alimony – copy of court order
• Child support – copy of court order
• Education scholarships/stipends – award letter
• Trade union benefits – recent check stub
• Other public assistance – award letter
• Income from assets – credit union/bank/S&L statements, etc.

Asset Information

• Bank statements
• Stock/bond certificates
• Mortgage note
• Income tax return
• Certificates of deposit

Records of Family Circumstances/Family Composition/Allowances

• Work permit
• Statement of disability
• Social security record
• Adoption papers
• Income tax returns
• Legal documents showing formal adoption being pursued
• Birth certificates
• Copies of medical bills
• Social security cards/alternative documents
• Payment receipts for dependent care, child care, etc.

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HUD Occupancy Handbook | 1 | 8/13

Form G-845 Supplement (G-845S) is a U.S. Citizenship and Immigration Services (USCIS) verification request form used by federal, state, and local benefit-granting agencies to obtain detailed information about an individual's immigration status, citizenship, and sponsorship. Agencies file the G-845 Supplement alongside the base Form G-845, together with copies of the applicant's immigration documents, when they need more comprehensive verification information than the standard G-845 provides in order to make benefit eligibility determinations.

The current version of the form and its instructions can be accessed at the USCIS website:

https://www.uscis.gov/g-845-supplement

Race and Ethnic Data Reporting Form

U.S. Department of Housing and Urban Development

OMB Approval No. 2535-0113 Expiration Date: 06/30/2026

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HUD Program Title: ____________________________ Grantee/Recipient UEI: ____________________________

Grantee/Recipient Name: ________________________ Grantee Reporting Organization: ___________________

Reporting Period From: (mm/dd/yyyy) ______________ Reporting Period To: (mm/dd/yyyy) ______________

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Racial Categories	Total Number of Race Responses	Total Number of Hispanic or Latino Responses
American Indian or Alaska Native
Asian
Black or African American
Native Hawaiian or Other Pacific Islander
White
American Indian or Alaska Native and White
Asian and White
Black or African American and White
American Indian or Alaska Native and Black or African American
* Other multiple race combinations greater than one percent: [Per the form instructions, write in a description using the box on the right]
Balance of individuals reporting more than one race
Total:

* If the aggregate count of any reported multiple race combination that is not listed above exceeds 1% of the total population being reported, you should separately indicate the combination. See detailed instructions under "Other multiple race combinations."

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Public Reporting Burden Statement: This collection of information is estimated to average 0.50 hours per response, including the time for reviewing instructions, searching existing data sources, gathering, and maintaining the data needed, and completing and reviewing the collection of the requested information. Comments regarding the accuracy of this burden estimate and any suggestions for reducing this burden can be sent to: U.S. Department of Housing and Urban Development, Office of the Chief Data Officer, R, 451 7th St SW, Room 8210, Washington, DC 20410-5000. Do not send completed forms to this address. HUD may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a valid OMB control number. HUD is authorized to collect this information under the authority cited in the Notice of Funding Opportunity (NOFO) for the relevant financial assistance program. This information is required to obtain the benefit sought in the grant program. This information will not be held confidential and may be made available to the public in accordance with the Freedom of Information Act (5 U.S.C. §552).

1 | Form HUD-27061

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Instructions for the Race and Ethnic Data Reporting Form (HUD-27061)

A. General Instructions:

This form is intended to be used by two categories of respondents: (1) applicants requesting funding from the Department of Housing and Urban Development (HUD); and (2) organizations who receive HUD Federal financial assistance that are required to report race and ethnic information.

In compliance with OMB direction to revise the standards for collection of racial data, HUD has revised its standards as depicted on this form. The revised standards are designed to acknowledge the growing diversity of the U.S. population. Using the revised standards, HUD offers organizations that are responding to HUD data requests for racial information, the option of selecting one or more of nine racial categories to identify the racial demographics of the individuals and/or the communities they serve or are proposing to serve. HUD's collection of racial data treats ethnicity as a separate category from race and has changed the terminology for certain racial and ethnic groups from the way it has been requested in the past using two distinct ethnic categories. The revised definitions of ethnicity and race have been standardized across the Federal government and are provided below.

1. The two ethnic categories as revised by the Office of Management and Budget (OMB) are defined below.

   Hispanic or Latino. A person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race. The term "Spanish origin" can be used in addition to "Hispanic" or "Latino."

   Not Hispanic or Latino. A person not of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race.

2. The five racial categories as revised by the Office of Management and Budget are defined below:

   American Indian or Alaska Native. A person having origins in any of the original peoples of North and South America (including Central America), and who maintains tribal affiliation or community attachment.

   Asian. A person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam.

   Black or African American. A person having origins in any of the black racial groups of Africa. A term such as "Haitian" can be used in addition to "Black" or "African American."

   Native Hawaiian or Other Pacific Islander. A person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands.

   White. A person having origins in any of the original peoples of Europe, the Middle East or North Africa.

Note: The information required to be reported may be collected and submitted to HUD via the use of this form or by other means, such as summary reports or via electronic reporting mechanisms. The primary goal is a consistent manner of summarizing, across all HUD programs, the racial and ethnic data of the population(s) served or proposed to be served by your organization.

2 | Form HUD-27061

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B. Specific Instructions for Completing the Form:

Organizations using this form should collect the individual responses from the community of individuals you intend to serve or those that you are serving, as applicable. After the individual collections are gathered, you should report (via this form or by the use of other means such as electronic reports that provide the summary data required by this form) the aggregate totals of the racial and ethnic data that you collect via the applicable categories as described below:

Total Number of Racial Responses: Under this column you should indicate the total number of responses collected in the blocks next to the applicable categories.

Total Number of Hispanic or Latino Responses: Under this column you should indicate the total number of responses collected in the blocks next to the applicable racial categories (e.g., you would enter the total number of Asian respondents that indicated they are Hispanic or Latino). When collecting this information from beneficiaries of the Federal financial assistance all respondents should be required to indicate their ethnic category, which requires either a "yes" or "no" response.

Other Multiple Race Combinations: Next to this racial category, indicate all racial categories (if any) identified by respondents that do not fit one of the five single race categories or four double race combinations above, and which have a total count that exceeds one percent of the total population being reported. You must identify each such racial combination, including the actual count, the percentage of the total population (in parenthesis), and the actual Hispanic or Latino count.

For example, if you obtain data that indicates the total population served is 200 and includes 10 Native Hawaiian or Other Pacific Islander and White and 12 Native Hawaiian or Other Pacific Islander and Asian, and those numbers (of Native Hawaiian or Other Pacific Islander and White and Native Hawaiian or Other Pacific Islander and Asian) each equates to more than one percent of the total population being served, and 2 of the Native Hawaiian or Other Pacific Islander and White indicate they belong to the Hispanic/Latino ethic category and 3 of the Native Hawaiian or Other Pacific Islander and Asian indicate they belong to the Hispanic/Latino ethnic category, you should complete the form as follows:

Racial Categories	Total Number of Race Responses	Total Number of Hispanic or Latino Responses
* Other multiple race combinations: [Per the form instruction, write in a description using the box on the right]	Native Hawaiian or Other Pacific Islander AND White 10 (5%)	2
	Native Hawaiian or Other Pacific Islander AND Asian 12 (6%)	3

How the percentage should apply will vary by program depending on whether the program is required to provide data on the total community, or on the beneficiaries/individuals served or proposed to be served.

Balance of individuals reporting more than one race: This block is intended to capture the balance of any racial categories that are not included in the list of nine above and are not included under "Other multiple race combinations greater than one percent." Indicate the total number of all racial categories reported that do not fit the nine racial categories above, and do not equate to one percent of the total population being reported. Be sure to also indicate the total number of all related Hispanic or Latino responses.

Total: On the last row of the form, you should indicate the aggregate totals of all the information you gathered including the total of all racial categories and the total of all the Hispanic or Latino categories.

3 | Form HUD-27061

HUD Occupancy Handbook | 4350.3 REV-1 | Chapter 5: Determining Income & Calculating Rent

24 CFR 5.609(b) and (c)

Examples included in parentheses have been added to the regulatory language for clarification.

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Income Inclusions

(1) The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services;

(2) The net income from operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family;

(3) Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in paragraph (2) above. Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD;

(4) The full amount of periodic amounts received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount (e.g., Black Lung Sick benefits, Veterans Disability, Dependent Indemnity Compensation, payments to the widow of a serviceman killed in action). See paragraph (13) under Income Exclusions for an exception to this paragraph;

(5) Payments in lieu of earnings, such as unemployment, disability compensation, worker's compensation, and severance pay, except as provided in paragraph (3) under Income Exclusions;

(6) Welfare Assistance.

• (a) Welfare assistance received by the family.
• (b) If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of:
• (c) The amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus
• (d) The maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family's welfare assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this paragraph shall be the amount resulting from one application of the percentage.

(7) Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling; and

(8) All regular pay, special pay, and allowances of a member of the Armed Forces, except as provided in paragraph (7) under Income Exclusions.

(9) For Section 8 programs only and as provided in 24 CFR 5.612, any financial assistance, in excess of amounts received for tuition, that an individual receives under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or from an institution of higher education (as defined under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to that individual, except that financial assistance described in this paragraph is not considered annual income for persons over the age of 23 with dependent children. For purposes of this paragraph "financial assistance" does not include loan proceeds for the purpose of determining income.

(Note: This paragraph also does not apply to a student who is living with his/her parents who are applying for or receiving Section 8 assistance.)

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Income Exclusions

(1) Income from employment of children (including foster children) under the age of 18 years;

(2) Payments received for the care of foster children or foster adults (usually persons with disabilities unrelated to the tenant family, who are unable to live alone);

(3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains, and settlement for personal or property losses, except as provided in paragraph (5) under Income Inclusions;

(4) Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member;

(5) Income of a live-in aide, as defined in 24 CFR 5.403;

(6) The full amount of student financial assistance paid directly to the student or to the educational institution (see Income Inclusions (9), above, for students receiving Section 8 assistance);

(7) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire (e.g., in the past, special pay included Operation Desert Storm);

(8)

• (a) Amounts received under training programs funded by HUD (e.g., training received under Section 3);
• (b) Amounts received by a person with a disability that are disregarded for a limited time for purposes of supplemental security income eligibility and benefits because they are set-aside for use under a Plan to Attain Self-Sufficiency (PASS);
• (c) Amounts received by a participant in other publicly assisted programs that are specifically for or in reimbursement of out-of-pocket expenses incurred (special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program;
• (d) Amounts received under a resident service stipend. A resident service stipend is a modest amount (not to exceed $200 per month) received by a resident for performing a service for the owner, on a part-time basis, that enhances the quality of life in the project. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, and resident-initiative coordination. No resident may receive more than one such stipend during the same period of time; or
• (e) Incremental earnings and benefits resulting to any family member from participation in qualifying state or local employment training programs (including training programs not affiliated with a local government) and training of a family member as a resident management staff person. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives, and are excluded only for the period during which the family member participates in the employment training program.

(9) Temporary, nonrecurring, or sporadic income (including gifts);

(10) Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era. (Examples include payments by the German and Japanese governments for atrocities committed during the Nazi era);

(11) Earnings in excess of $480 for each full-time student 18 years or older (excluding the head of household and spouse);

(12) Adoption assistance payments in excess of $480 per adopted child;

(13) Deferred periodic amounts from supplemental security income and social security benefits that are received in a lump-sum amount or in prospective monthly amounts;

(14) Amounts received by the family in the form of refunds or rebates under state or local law for property taxes paid on the dwelling unit;

(15) Amounts paid by a state agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home; or

(16) Amounts specifically excluded by any other federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(c) apply. A notice will be published in the Federal Register and distributed to housing owners identifying the benefits that qualify for this exclusion. Updates will be published and distributed when necessary.

The following is a list of income sources that qualify for that exclusion:

• (a) The value of the allotment provided to an eligible household under the Food Stamp Act of 1977 (7 U.S.C. 2017 [b]);
• (b) Payments to Volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C. 5044(g), 5058) (employment through AmeriCorps, Volunteers in Service to America [VISTA], Retired Senior Volunteer Program, Foster Grandparents Program, youthful offender incarceration alternatives, senior companions);
• (c) Payments received under the Alaska Native Claims Settlement Act (43 U.S.C. 1626[c]);
• (d) Income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes (25 U.S.C. 459e);
• (e) Payments or allowances made under the Department of Health and Human Services' Low-Income Home Energy Assistance Program (42 U.S.C. 8624[f]);
• (f) Payments received under programs funded in whole or in part under the Job Training Partnership Act (29 U.S.C. 1552[b]; (effective July 1, 2000, references to Job Training Partnership Act shall be deemed to refer to the corresponding provision of the Workforce Investment Act of 1998 [29 U.S.C. 2931], e.g., employment and training programs for Native Americans and migrant and seasonal farm workers, Job Corps, veterans employment programs, state job training programs, career intern programs, Americorps);
• (g) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians (Pub. L. 94-540, 90 Stat. 2503-04);
• (h) The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the U.S. Claims Court and the interests of individual Indians in trust or restricted lands, including the first $2,000 per year of income received by individual Indians from funds derived from interests held in such trust or restricted lands (25 U.S.C. 1407-1408);
• (i) Amounts of scholarships funded under title IV of the Higher Education Act of 1965, including awards under federal work-study programs or under the Bureau of Indian Affairs student assistance programs (20 U.S.C. 1087uu);
• (j) Payments received from programs funded under Title V of the Older Americans Act of 1985 (42 U.S.C. 3056[f]), e.g., Green Thumb, Senior Aides, Older American Community Service Employment Program;
• (k) Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in In Re Agent-product liability litigation, M.D.L. No. 381 (E.D.N.Y.);
• (l) Payments received under the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721);
• (m) The value of any child care provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for such care) under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858q);
• (n) Earned income tax credit (EITC) refund payments received on or after January 1, 1991, including advanced earned income credit payments (26 U.S.C. 32[j]);
• (o) Payments by the Indian Claims Commission to the Confederated Tribes and Bands of Yakima Indian Nation or the Apache Tribe of Mescalero Reservation (Pub. L. 95-433);
• (p) Allowances, earnings, and payments to AmeriCorps participants under the National and Community Service Act of 1990 (42 U.S.C. 12637[d]);
• (q) Any allowance paid under the provisions of 38 U.S.C. 1805 to a child suffering from spina bifida who is the child of a Vietnam veteran (38 U.S.C. 1805);
• (r) Any amount of crime victim compensation (under the Victims of Crime Act) received through crime victim assistance (or payment or reimbursement of the cost of such assistance) as determined under the Victims of Crime Act because of the commission of a crime against the applicant under the Victims of Crime Act (42 U.S.C. 10602); and
• (s) Allowances, earnings and payments to individuals participating in programs under the Workforce Investment Act of 1998 (29 U.S.C. 2931).

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HUD Occupancy Handbook | Exhibit 5-1 | 06/09 (CHG-3)

HUD Occupancy Handbook | 4350.3 REV-1

NOTE: There is no asset limitation for participation in HUD assisted-housing programs. However, the definition of annual income includes net income from family assets.

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A. Net Family Assets Include the Following:

1. Cash held in savings and checking accounts, safe deposit boxes, homes, etc. For savings accounts, use the current balance. For checking accounts, use the average balance for the last six months. Assets held in foreign countries are considered assets.

2. Revocable trusts. Include the cash value of any revocable trust available to the family. See discussion of trusts in paragraph 5-7 G.1.

3. Equity in rental property or other capital investments. Include the current fair market value less (a) any unpaid balance on any loans secured by the property and (b) reasonable costs that would be incurred in selling the asset (e.g., penalties, broker fees, etc.).

NOTE: If the person's main business is real estate, then count any income as business income under paragraph 5-6 G of the chapter. Do not count it both as an asset and business income.

4. Stocks, bonds, Treasury bills, certificates of deposit, mutual funds, and money market accounts. Interest or dividends earned are counted as income from assets even when the earnings are reinvested. The value of stocks and other assets vary from one day to another. The value of the asset may go up or down the day before or after rent is calculated and multiple times during the year thereafter. The owner may assess the value of these assets at any time after the authorization for the release of information has been received. The tenant may request an interim recertification at any time thereafter that a decrease in stock value may result in a decrease in rent.

5. Individual retirement, 401K, and Keogh accounts. These are included when the holder has access to the funds, even though a penalty may be assessed. If the individual is making occasional withdrawals from the account, determine the amount of the asset by using the average balance for the previous six months. (Do not count withdrawals as income.)

Example – Withdrawals from a Keogh Account

Ly Pham has a Keogh account valued at $30,000. When she turns 70 years old, she begins drawing $2,000 a year. Continue to count the account as an asset. Use the guidance in paragraph 5-7 to determine the cash value and imputed income from the asset. Do not count the $2,000 she withdraws as income.

6. Retirement and pension funds.

• a. While the person is employed. Include only amounts the family can withdraw without retiring or terminating employment. Count the whole amount less any penalties or transaction costs. Follow paragraph 5-7 G.4 of the chapter on determining the value of assets.
• b. At retirement, termination of employment, or withdrawal. Periodic receipts from pension and retirement funds are counted as income. Lump-sum receipts from pension and retirement funds are counted as assets. Count the amount as an asset or as income, as provided below.
  • (1) If benefits will be received in a lump sum, include the lump-sum receipt in net family assets.
  • (2) If benefits will be received through periodic payments, include the benefits in annual income. Do not count any remaining amounts in the account as an asset.
  • (3) If the individual initially receives a lump-sum benefit followed by periodic payments, count the lump-sum benefit as an asset as provided in the example below and treat the periodic payment as income. In subsequent years, count only the periodic payment as income. Do not count the remaining amount as an asset.

NOTE: This paragraph and the example below assume that the lump-sum receipt is a one-time receipt and that it does not represent delayed periodic payments. However, in situations in which a lump-sum payment does represent delayed periodic payments, then the amount would be considered as income and not an asset.

Example – Retirement Benefits as Lump-Sum and Periodic Payments

Upon retirement, Eleanor Reilly received a lump-sum payment of $15,000. She will also receive periodic pension payments of $350 a month.

The lump-sum amount of $15,000 is generally treated as an asset. In this instance, however, Eleanor spent $5,000 of the lump sum on a trip following her retirement. The remaining $10,000 she placed in her mutual fund with other savings. The entire mutual fund will be counted as an asset.

The owner has verified that Eleanor is now not able to withdraw the balance from her pension. Therefore, the owner will count the $350 monthly pension payment as annual income and will not list the pension account as an asset.

7. Cash value of life insurance policies available to the individual before death (e.g., the surrender value of a whole life policy or a universal life policy). It would not include a value for term insurance, which has no cash value to the individual before death.

8. Personal property held as an investment. Include gems, jewelry, coin collections, or antique cars held as an investment. Personal jewelry is NOT considered an asset.

9. Lump-sum receipts or one-time receipts. (See paragraph 5-6 P for additional information on what is counted as a lump-sum receipt and how to treat lump-sum receipts.) These include inheritances, capital gains, one-time lottery winnings, victim's restitution, settlements on insurance claims (including health and accident insurance, worker's compensation, and personal or property losses), and any other amounts that are not intended as periodic payments.

10. A mortgage or deed of trust held by an applicant.

• a. Payments on this type of asset are often received as one combined payment of principal and interest with the interest portion counted as income from the asset.
• b. This combined figure needs to be separated into the principal and interest portions of the payment. (This can be done by referring to an amortization schedule that relates to the specific term and interest rate of the mortgage.)
• c. To count the actual income for this asset, use the interest portion due, based on the amortization schedule, for the 12-month period following the certification.
• d. To count the imputed income for this asset, determine the asset value as of the effective date of the certification. Since this amount will continually be reduced by the principal portion paid during the previous year, the owner will have to determine this amount at each annual recertification. See the following example:

Example – Deed of Trust and Imputed Income

Computation of imputed income:

An elderly tenant sells her home and holds the mortgage for the buyer. The cash value of the mortgage is $60,000. The combined payment of principal and interest expected to be received for the upcoming year is $5,000. The amortization schedule breaks that payment into $2,000 in principal and $3,000 in interest. In completing the asset income calculation, the cash value of the asset is $60,000, and the projected annual income from that asset is $3,000. The imputed income would be calculated by multiplying the cash value of $60,000 by the 2% imputed passbook rate. Each subsequent year, the cash value of the asset should be reduced by the principal portion paid. In this example, it would be reduced to $58,000 in the following year ($60,000 – $2,000 principal payment = $58,000). When calculating the imputed income for the following year, the owner would multiply the cash value of $58,000 by the 2% passbook savings rate.

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Regulatory References

(These references are current as of the date of publication. Readers should refer to the latest edition of the Code of Federal Regulations.)

24 CFR part 5.603 defines net family assets as follows:

Net cash value after deducting reasonable costs that would be incurred in disposing of real property, savings, stocks, bonds, and other forms of capital investment, excluding interests in Indian trust land and the equity accounts in HUD homeownership programs. The value of necessary items of personal property such as furniture and automobiles shall be excluded. . . . . In determining net family assets, owners shall include the value of any business or family assets disposed of by an applicant or tenant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application for the program or recertification, as applicable, in excess of the consideration received therefor. In the case of a disposition as part of a separation or divorce settlement, the disposition will not be considered to be for less than fair market value if the applicant or tenant receives important consideration not measurable in dollar terms.

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B. Net Family Assets DO NOT Include the Following:

IMPORTANT: The owner does not compute income from any assets in this paragraph.

1. Personal property (clothing, furniture, cars, wedding ring, other jewelry that is not held as an investment, vehicles specially equipped for persons with disabilities).

2. Interests in Indian trust land.

3. Term life insurance policies (i.e., where there is no cash value).

4. Equity in the cooperative unit in which the family lives.

5. Assets that are part of an active business. "Business" does NOT include rental of properties that are held as investments unless such properties are the applicant's or tenant's main occupation.

Example – Assets that are Part of an Active Business

• Laura and Lester Hines own a copier and courier service. None of the equipment that they use in their business is counted as an asset (e.g., the copiers, the FAX machines, the bicycles).
• Alice Washington rents out the home that she and her husband lived in for 42 years. This home is not an active business asset. Therefore, it is considered an asset and the owner must determine the annual income that Alice receives from it.

6. Assets that are NOT effectively owned by the applicant. Assets are not effectively owned when they are held in an individual's name, but (a) the assets and any income they earn accrue to the benefit of someone else who is not a member of the family, and (b) that other person is responsible for income taxes incurred on income generated by the assets.

NOTE: Nonrevocable trusts (i.e., irrevocable trusts) are not covered by this paragraph. See information on nonrevocable trusts in paragraph 5-7 G.1.

Example – Assets not Effectively Owned by the Applicant

Net family assets do not include assets held pursuant to a power of attorney because one party is not competent to manage the assets, or assets held in a joint account solely to facilitate access to assets in the event of an emergency.

Example: Alexander Cumbow and his daughter, Emily Bornscheuer, have a bank account with both names on the account. Emily's name is on that account for the convenience of her father in case an emergency arises that would result in Emily handling payments for her father. Emily has not contributed to this asset, does not receive interest income from it, nor does she pay taxes on the interest earned. Therefore, Emily does not own this account. If Emily applies for assisted housing, the owner should not count this account as her asset. This asset belongs to Alexander and would be counted entirely as the father's asset should he apply for assisted housing.

7. Assets that are not accessible to the applicant and provide no income to the applicant. Nonrevocable trusts are not covered under this paragraph. See information on nonrevocable trusts in paragraph 5-7 G.1.

Example

A battered spouse owns a house with her husband. Because of the domestic situation, she receives no income from the asset and cannot convert the asset to cash.

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HUD Occupancy Handbook | Exhibit 5-2 | 6/07

HUD Occupancy Handbook | 4350.3 REV-1

The following are examples of eligible items for medical expense deductions. Please note that this list is not exhaustive.

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Deductible Medical Expenses

Type of Medical Expenses	May Include*
Services of recognized health care professionals	Services of physicians, nurses, dentists, opticians, mental health practitioners, osteopaths, chiropractors, Christian Science practitioners, and acupuncture practitioners
Services of health care facilities; laboratory fees, X-rays and diagnostic tests, blood, oxygen	Hospitals, health maintenance organizations (HMOs), laser eye surgery, out-patient medical facilities, and clinics
Alcoholism and drug addiction treatment
Medical insurance premiums	Expenses paid to an HMO; Medicaid insurance payments that have not been reimbursed; long-term care premiums (not prorated)
Prescription and nonprescription medicines	Aspirin, antihistamine only if prescribed by a physician for a particular medical condition
Transportation to/from treatment and lodging	Actual cost (e.g., bus fare) or, if driving in a car, a mileage rate based on IRS rules. If the individual is receiving reimbursement for the cost of transportation to/from treatment or the lodging from another source, the cost or mileage is not eligible for the medical expense deduction.
Medical care of permanently institutionalized family member IF his/her income is included in Annual Income
Dental treatment	Fees paid to the dentist; x-rays; fillings, braces, extractions, dentures
Eyeglasses, contact lenses
Hearing aid and batteries, wheelchair, walker, artificial limbs, Braille books and magazines, oxygen and oxygen equipment	Purchase and upkeep (e.g., additional utility costs to tenant because of oxygen machine [in properties with tenant paid utilities only])
Attendant care or periodic medical care	Nursing services, assistance animal and its upkeep
Payments on accumulated medical bills	Scheduled payments

* Or any other medically necessary service, apparatus, or medication, as documented by third-party verification.

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Nondeductible Medical Expenses

Some items that may not be included in medical expense deductions are listed below.

Medical Expenses	May Not Include
Cosmetic surgery	Do not include in medical expenses amounts paid for unnecessary cosmetic surgery. This applies to any procedure that is directed at improving the patient's appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease. Procedures such as face-lifts, hair transplants, hair removal (electrolysis), and liposuction generally are not deductible. However, if medical complications, e.g., infections, etc., occur as a result of the procedure that requires medical treatment, the medical treatment expenses would be treated as a medical expense deduction. Amounts paid for cosmetic surgery may be deducted if necessary to improve a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease.
Health club dues	Do not include in medical expenses the cost of membership in any club organized for business, pleasure, recreation, or other social purpose, such as health club dues, YMCA dues, or amounts paid for steam baths for general health or to relieve physical or mental discomfort not related to a particular medical condition.
Household help	Do not include in medical expenses the cost of household help, even if such help is recommended by a doctor. However, certain expenses paid to a person providing nursing-type services may be deductible as medical costs.
Medical savings account (MSA)	Do not deduct as a qualified medical expense amounts contributed to an Archer MSA.
Nutritional supplements, vitamins, herbal supplements, "natural medicines"	Do not include in medical expenses the cost of nutritional supplements, vitamins, herbal supplements, "natural medicines," etc., unless they are recommended in writing by a medical practitioner licensed in the locality where practicing. These items must be recommended as treatment for a specific medical condition diagnosed by a physician or other health care provider licensed to make a diagnosis in the locality where practicing. Otherwise, these items are taken to maintain ordinary good health, and are not for medical care.
Personal use items	Do not include in medical expenses an item ordinarily used for personal, living, or family purposes unless it is used primarily to prevent or alleviate a physical or mental defect or illness. For example, the cost of a wig purchased upon the advice of a physician for the mental health of a patient who has lost all of his or her hair from disease or incontinence supplies can be included with medical expenses.
Nonprescription medicines	Do not include in medical expenses nonprescription medicines unless they are recommended in writing by a medical practitioner licensed in the locality where practicing. These items must be recommended as treatment for a specific medical condition diagnosed by a physician or other health care provider licensed to make a diagnosis in the locality where practicing.

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HUD Occupancy Handbook | Exhibit 5-3 | 8/13

Certification of Long-Term Care Insurance

U.S. Department of Housing and Urban Development | Office of Housing | Federal Housing Commissioner

OMB Approval No. 2502-0204 (Exp. 06/30/2017)

Form HUD-90101 (12/2007) | ref. HB 4350.3 Rev. 1

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I certify that the long-term care insurance policy for which I pay premiums,

(insert policy provider name) __,

policy number __ meets the following conditions.

1. It is guaranteed renewable;

2. It does not provide a cash surrender value which can be paid, assigned, pledged, or borrowed;

3. It provides that refunds (other than refunds on the death of the insured or complete surrender or cancellation of the contract) and dividends under the contract may be used only to reduce future premiums or increase future benefits; and,

4. It does not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare (except where Medicare is a secondary payer or the contract makes per diem or other periodic payments without regard to expenses).

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___________________________________________________ Name (print)

___________________________________________________ Name (sign)

___________________________________________________ Unit Number

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Public reporting burden for this collection is estimated to average 10 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This information is required to obtain benefits and is voluntary. HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. Upon completion of the certification, the insurance premiums are then included in the tenant's total medical expenses deduction which is electronically transmitted by the owner/management agent to HUD's Tenant Rental Assistance Certification System (TRACS).

This information is authorized by the 24 CFR 5.611(a)(3)(i) which allows for unreimbursed medical expenses in excess of three (3) percent of annual income be included as a mandatory deduction from annual income for any elderly family or disabled family in order to arrive at the adjusted income used for rent and subsidy determination. This information is considered non-sensitive and does not require any special protection.

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Form HUD-90101 (12/2007) | ref. HB 4350.3 Rev. 1

U.S. Department of Housing and Urban Development

This Package contains the following documents:

1. HUD-9887/A Fact Sheet describing the necessary verifications
2. Form HUD-9887 (to be signed by the Applicant or Tenant)
3. Form HUD-9887-A (to be signed by the Applicant or Tenant and Housing Owner)
4. Relevant Verifications (to be signed by the Applicant or Tenant)

Each household must receive a copy of the 9887/A Fact Sheet, form HUD-9887, and form HUD-9887-A.

Attachment to forms HUD-9887 & 9887-A (02/2007)

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HUD-9887/A Fact Sheet

Verification of Information Provided by Applicants and Tenants of Assisted Housing

What Verification Involves

To receive housing assistance, applicants and tenants who are at least 18 years of age and each family head, spouse, or co-head regardless of age must provide the owner or management agent (O/A) or public housing agency (PHA) with certain information specified by the U.S. Department of Housing and Urban Development (HUD).

To make sure that the assistance is used properly, Federal laws require that the information you provide be verified. This information is verified in two ways:

1. HUD, O/As, and PHAs may verify the information you provide by checking with the records kept by certain public agencies (e.g., Social Security Administration (SSA), State agency that keeps wage and unemployment compensation claim information, and the Department of Health and Human Services' (HHS) National Directory of New Hires (NDNH) database that stores wage, new hires, and unemployment compensation). HUD (only) may verify information covered in your tax returns from the U.S. Internal Revenue Service (IRS). You give your consent to the release of this information by signing form HUD-9887. Only HUD, O/As, and PHAs can receive information authorized by this form.

2. The O/A must verify the information that is used to determine your eligibility and the amount of rent you pay. You give your consent to the release of this information by signing the form HUD-9887, the form HUD-9887-A, and the individual verification and consent forms that apply to you. Federal laws limit the kinds of information the O/A can receive about you. The amount of income you receive helps to determine the amount of rent you will pay. The O/A will verify all of the sources of income that you report. There are certain allowances that reduce the income used in determining tenant rents.

Example: Mrs. Anderson is 62 years old. Her age qualifies her for a medical allowance. Her annual income will be adjusted because of this allowance. Because Mrs. Anderson's medical expenses will help determine the amount of rent she pays, the O/A is required to verify any medical expenses that she reports.

Example: Mr. Harris does not qualify for the medical allowance because he is not at least 62 years of age and he is not handicapped or disabled. Because he is not eligible for the medical allowance, the amount of his medical expenses does not change the amount of rent he pays. Therefore, the O/A cannot ask Mr. Harris anything about his medical expenses and cannot verify with a third party about any medical expenses he has.

Customer Protections

Information received by HUD is protected by the Federal Privacy Act. Information received by the O/A or the PHA is subject to State privacy laws. Employees of HUD, the O/A, and the PHA are subject to penalties for using these consent forms improperly. You do not have to sign the form HUD-9887, the form HUD-9887-A, or the individual verification consent forms when they are given to you at your certification or recertification interview. You may take them home with you to read or to discuss with a third party of your choice. The O/A will give you another date when you can return to sign these forms.

If you cannot read and/or sign a consent form due to a disability, the O/A shall make a reasonable accommodation in accordance with Section 504 of the Rehabilitation Act of 1973. Such accommodations may include: home visits when the applicant's or tenant's disability prevents him/her from coming to the office to complete the forms; the applicant or tenant authorizing another person to sign on his/her behalf; and for persons with visual impairments, accommodations may include providing the forms in large script or braille or providing readers.

If an adult member of your household, due to extenuating circumstances, is unable to sign the form HUD-9887 or the individual verification forms on time, the O/A may document the file as to the reason for the delay and the specific plans to obtain the proper signature as soon as possible.

The O/A must tell you, or a third party which you choose, of the findings made as a result of the O/A verifications authorized by your consent. The O/A must give you the opportunity to contest such findings in accordance with HUD Handbook 4350.3 Rev. 1. However, for information received under the form HUD-9887 or form HUD-9887-A, HUD, the O/A, or the PHA, may inform you of these findings.

O/As must keep tenant files in a location that ensures confidentiality. Any employee of the O/A who fails to keep tenant information confidential is subject to the enforcement provisions of the State Privacy Act and is subject to enforcement actions by HUD. Also, any applicant or tenant affected by negligent disclosure or improper use of information may bring civil action for damages, and seek other relief, as may be appropriate, against the employee.

HUD-9887/A requires the O/A to give each household a copy of the Fact Sheet, and forms HUD-9887, HUD-9887-A along with appropriate individual consent forms. The package you will receive will include the following documents:

1. HUD-9887/A Fact Sheet: Describes the requirement to verify information provided by individuals who apply for housing assistance. This fact sheet also describes consumer protections under the verification process.
2. Form HUD-9887: Allows the release of information between government agencies.
3. Form HUD-9887-A: Describes the requirement of third party verification along with consumer protections.
4. Individual verification consents: Used to verify the relevant information provided by applicants/tenants to determine their eligibility and level of benefits.

Consequences for Not Signing the Consent Forms

If you fail to sign the form HUD-9887, the form HUD-9887-A, or the individual verification forms, this may result in your assistance being denied (for applicants) or your assistance being terminated (for tenants). See further explanation on the forms HUD-9887 and 9887-A.

If you are an applicant and are denied assistance for this reason, the O/A must notify you of the reason for your rejection and give you an opportunity to appeal the decision.

If you are a tenant and your assistance is terminated for this reason, the O/A must follow the procedures set out in the Lease. This includes the opportunity for you to meet with the O/A.

Programs Covered by this Fact Sheet

• Rental Assistance Program (RAP)
• Rent Supplement
• Section 8 Housing Assistance Payments Programs (administered by the Office of Housing)
• Section 202
• Sections 202 and 811 PRAC
• Section 202/162 PAC
• Section 221(d)(3) Below Market Interest Rate
• Section 236
• HOPE 2 Home Ownership of Multifamily Units

O/As must give a copy of this HUD Fact Sheet to each household. See the Instructions on form HUD-9887-A.

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Form HUD-9887: Notice and Consent for the Release of Information

To the U.S. Department of Housing and Urban Development (HUD) and to an Owner and Management Agent (O/A), and to a Public Housing Agency (PHA)

U.S. Department of Housing and Urban Development | Office of Housing | Federal Housing Commissioner

Notice To Tenant

Do not sign this form if the space above for organizations requesting release of information is left blank. You do not have to sign this form when it is given to you. You may take the form home with you to read or discuss with a third party of your choice and return to sign the consent on a date you have worked out with the housing owner/manager.

Authority

Section 217 of the Consolidated Appropriations Act of 2004 (Pub L. 108-199). This law is found at 42 U.S.C. 653(J). This law authorizes HHS to disclose to the Department of Housing and Urban Development (HUD) information in the NDNH portion of the "Location and Collection System of Records" for the purposes of verifying employment and income of individuals participating in specified programs and, after removal of personal identifiers, to conduct analyses of the employment and income reporting of these individuals. Information may be disclosed by the Secretary of HUD to a private owner, a management agent, and a contract administrator in the administration of rental housing assistance.

Section 904 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988, as amended by section 903 of the Housing and Community Development Act of 1992 and section 3003 of the Omnibus Budget Reconciliation Act of 1993. This law is found at 42 U.S.C. 3544. This law requires you to sign a consent form authorizing: (1) HUD and the PHA to request wage and unemployment compensation claim information from the state agency responsible for keeping that information; and (2) HUD, O/A, and the PHA responsible for determining eligibility to verify salary and wage information pertinent to the applicant's or participant's eligibility or level of benefits; (3) HUD to request certain tax return information from the U.S. Social Security Administration (SSA) and the U.S. Internal Revenue Service (IRS).

Purpose

In signing this consent form, you are authorizing HUD, the above-named O/A, and the PHA to request income information from the government agencies listed on the form. HUD, the O/A, and the PHA need this information to verify your household's income to ensure that you are eligible for assisted housing benefits and that these benefits are set at the correct level. HUD, the O/A, and the PHA may participate in computer matching programs with these sources to verify your eligibility and level of benefits. This form also authorizes HUD, the O/A, and the PHA to seek wage, new hire (W-4), and unemployment claim information from current or former employers to verify information obtained through computer matching.

Uses of Information to be Obtained

HUD is required to protect the income information it obtains in accordance with the Privacy Act of 1974, 5 U.S.C. 552a. The O/A and the PHA is also required to protect the income information it obtains in accordance with any applicable State privacy law. After receiving the information covered by this notice of consent, HUD, the O/A, and the PHA may inform you that your eligibility for, or level of, assistance is uncertain and needs to be verified and nothing else.

HUD, O/A, and PHA employees may be subject to penalties for unauthorized disclosures or improper uses of the income information that is obtained based on the consent form.

Who Must Sign the Consent Form

Each member of your household who is at least 18 years of age and each family head, spouse or co-head, regardless of age, must sign the consent form at the initial certification and at each recertification. Additional signatures must be obtained from new adult members when they join the household or when members of the household become 18 years of age.

Persons who apply for or receive assistance under the following programs are required to sign this consent form:

• Rental Assistance Program (RAP)
• Rent Supplement
• Section 8 Housing Assistance Payments Programs (administered by the Office of Housing)
• Section 202; Sections 202 and 811 PRAC; Section 202/162 PAC
• Section 221(d)(3) Below Market Interest Rate
• Section 236
• HOPE 2 Homeownership of Multifamily Units

Failure to Sign Consent Form

Your failure to sign the consent form may result in the denial of assistance or termination of assisted housing benefits. If an applicant is denied assistance for this reason, the owner must follow the notification procedures in Handbook 4350.3 Rev. 1. If a tenant is denied assistance for this reason, the owner or managing agent must follow the procedures set out in the lease.

Consent

I consent to allow HUD, the O/A, or the PHA to request and obtain income information from the federal and state agencies listed on the back of this form for the purpose of verifying my eligibility and level of benefits under HUD's assisted housing programs.

Signatures:

Head of Household	Date
Spouse	Date
Other Family Members 18 and Over	Date
Other Family Members 18 and Over	Date

Additional Signatures, if needed:

Other Family Members 18 and Over	Date
Other Family Members 18 and Over	Date
Other Family Members 18 and Over	Date
Other Family Members 18 and Over	Date

Original is retained on file at the project site

ref. Handbooks 4350.3 Rev-1, 4571.1, 4571/2 & 4571.3 and HOPE II Notice of Program Guidelines

form HUD-9887 (02/2007)

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Agencies To Provide Information

State Wage Information Collection Agencies (HUD and PHA). This consent is limited to wages and unemployment compensation you have received during period(s) within the last 5 years when you have received assisted housing benefits.

U.S. Social Security Administration (HUD only). This consent is limited to the wage and self employment information from your current form W-2.

National Directory of New Hires contained in the Department of Health and Human Services' system of records. This consent is limited to wages and unemployment compensation you have received during period(s) within the last 5 years when you have received assisted housing benefits.

U.S. Internal Revenue Service (HUD only). This consent is limited to information covered in your current tax return.

This consent is limited to the following information that may appear on your current tax return:

• 1099-S Statement for Recipients of Proceeds from Real Estate Transactions
• 1099-B Statement for Recipients of Proceeds from Real Estate Brokers and Barters Exchange Transactions
• 1099-A Information Return for Acquisition or Abandonment of Secured Property
• 1099-G Statement for Recipients of Certain Government Payments
• 1099-DIV Statement for Recipients of Dividends and Distributions
• 1099-INT Statement for Recipients of Interest Income
• 1099-MISC Statement for Recipients of Miscellaneous Income
• 1099-OID Statement for Recipients of Original Issue Discount
• 1099-PATR Statement for Recipients of Taxable Distributions Received from Cooperatives
• 1099-R Statement for Recipients of Retirement Plans
• W2-G Statement of Gambling Winnings
• 1065-K1 Partners Share of Income, Credits, Deductions, etc.
• 1041-K1 Beneficiary's Share of Income, Credits, Deductions, etc.
• 1120S-K1 Shareholder's Share of Undistributed Taxable Income, Credits, Deductions, etc.

I understand that income information obtained from these sources will be used to verify information that I provide in determining initial or continued eligibility for assisted housing programs and the level of benefits.

No action can be taken to terminate, deny, suspend, or reduce the assistance your household receives based on information obtained about you under this consent until the HUD Office, Office of Inspector General (OIG) or the PHA (whichever is applicable) and the O/A have independently verified: 1) the amount of the income, wages, or unemployment compensation involved, 2) whether you actually have (or had) access to such income, wages, or benefits for your own use, and 3) the period or periods when, or with respect to which you actually received such income, wages, or benefits. A photocopy of the signed consent may be used to request a third party to verify any information received under this consent (e.g., employer).

HUD, the O/A, or the PHA shall inform you, or a third party which you designate, of the findings made on the basis of information verified under this consent and shall give you an opportunity to contest such findings in accordance with Handbook 4350.3 Rev. 1.

If a member of the household who is required to sign the consent form is unable to sign the form on time due to extenuating circumstances, the O/A may document the file as to the reason for the delay and the specific plans to obtain the proper signature as soon as possible.

This consent form expires 15 months after signed.

Privacy Act Statement

The Department of Housing and Urban Development (HUD) is authorized to collect this information by the U.S. Housing Act of 1937, as amended (42 U.S.C. 1437 et. seq.); the Housing and Urban-Rural Recovery Act of 1983 (P.L. 98-181); the Housing and Community Development Technical Amendments of 1984 (P.L. 98-479); and by the Housing and Community Development Act of 1987 (42 U.S.C. 3543). The information is being collected by HUD to determine an applicant's eligibility, the recommended unit size, and the amount the tenant(s) must pay toward rent and utilities. HUD uses this information to assist in managing certain HUD properties, to protect the Government's financial interest, and to verify the accuracy of the information furnished. HUD, the owner or management agent (O/A), or a public housing agency (PHA) may conduct a computer match to verify the information you provide. This information may be released to appropriate Federal, State, and local agencies, when relevant, and to civil, criminal, or regulatory investigators and prosecutors. However, the information will not be otherwise disclosed or released outside of HUD, except as permitted or required by law. You must provide all of the information requested. Failure to provide any information may result in a delay or rejection of your eligibility approval.

Penalties for Misusing this Consent

HUD, the O/A, and any PHA (or any employee of HUD, the O/A, or the PHA) may be subject to penalties for unauthorized disclosures or improper uses of information collected based on the consent form.

Use of the information collected based on the form HUD 9887 is restricted to the purposes cited on the form HUD 9887. Any person who knowingly or willfully requests, obtains, or discloses any information under false pretenses concerning an applicant or tenant may be subject to a misdemeanor and fined not more than $5,000.

Any applicant or tenant affected by negligent disclosure of information may bring civil action for damages, and seek other relief, as may be appropriate, against the officer or employee of HUD, the Owner or the PHA responsible for the unauthorized disclosure or improper use.

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Form HUD-9887-A: Applicant's/Tenant's Consent to the Release of Information

Verification by Owners of Information Supplied by Individuals Who Apply for Housing Assistance

U.S. Department of Housing and Urban Development | Office of Housing | Federal Housing Commissioner

Instructions to Owners

1. Give the documents listed below to the applicants/tenants to sign. Staple or clip them together in one package in the order listed.

   • a. The HUD-9887/A Fact Sheet.
   • b. Form HUD-9887.
   • c. Form HUD-9887-A.
   • d. Relevant verifications (HUD Handbook 4350.3 Rev. 1).

2. Verbally inform applicants and tenants that:

   • a. They may take these forms home with them to read or to discuss with a third party of their choice and to return to sign them on a date they have worked out with you, and
   • b. If they have a disability that prevents them from reading and/or signing any consent, that you, the Owner, are required to provide reasonable accommodations.

3. Owners are required to give each household a copy of the HUD-9887/A Fact Sheet, form HUD-9887, and form HUD-9887-A after obtaining the required applicants/tenants signature(s). Also, owners must give the applicants/tenants a copy of the signed individual verification forms upon their request.

Instructions to Applicants and Tenants

This Form HUD-9887-A contains customer information and protections concerning the HUD-required verifications that Owners must perform.

1. Read this material which explains:

   • HUD's requirements concerning the release of information, and
   • Other customer protections.

2. Sign on the last page that:

   • you have read this form, or
   • the Owner or a third party of your choice has explained it to you, and
   • you consent to the release of information for the purposes and uses described.

Authority for Requiring Applicant's/Tenant's Consent to the Release of Information

Section 904 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988, as amended by section 903 of the Housing and Community Development Act of 1992. This law is found at 42 U.S.C. 3544.

In part, this law requires you to sign a consent form authorizing the Owner to request current or previous employers to verify salary and wage information pertinent to your eligibility or level of benefits.

In addition, HUD regulations (24 CFR 5.659, Family Information and Verification) require as a condition of receiving housing assistance that you must sign a HUD-approved release and consent authorizing any depository or private source of income to furnish such information that is necessary in determining your eligibility or level of benefits. This includes information that you have provided which will affect the amount of rent you pay. The information includes income and assets, such as salary, welfare benefits, and interest earned on savings accounts. They also include certain adjustments to your income, such as the allowances for dependents and for households whose heads or spouses are elderly handicapped, or disabled; and allowances for child care expenses, medical expenses, and handicap assistance expenses.

Purpose of Requiring Consent to the Release of Information

In signing this consent form, you are authorizing the Owner of the housing project to which you are applying for assistance to request information from a third party about you. HUD requires the housing owner to verify all of the information you provide that affects your eligibility and level of benefits to ensure that you are eligible for assisted housing benefits and that these benefits are set at the correct levels. Upon the request of the HUD office or the PHA (as Contract Administrator), the housing Owner may provide HUD or the PHA with the information you have submitted and the information the Owner receives under this consent.

Uses of Information to be Obtained

The individual listed on the verification form may request and receive the information requested by the verification, subject to the limitations of this form. HUD is required to protect the income information it obtains in accordance with the Privacy Act of 1974, 5 U.S.C. 552a. The Owner and the PHA are also required to protect the income information they obtain in accordance with any applicable state privacy law. Should the Owner receive information from a third party that is inconsistent with the information you have provided, the Owner is required to notify you in writing identifying the information believed to be incorrect. If this should occur, you will have the opportunity to meet with the Owner to discuss any discrepancies.

Who Must Sign the Consent Form

Each member of your household who is at least 18 years of age, and each family head, spouse or co-head, regardless of age must sign the relevant consent forms at the initial certification, at each recertification and at each interim certification, if applicable. In addition, when new adult members join the household and when members of the household become 18 years of age they must also sign the relevant consent forms.

Persons who apply for or receive assistance under the following programs must sign the relevant consent forms:

• Rental Assistance Program (RAP)
• Rent Supplement
• Section 8 Housing Assistance Payments Programs (administered by the Office of Housing)
• Section 202
• Sections 202 and 811 PRAC
• Section 202/162 PAC
• Section 221(d)(3) Below Market Interest Rate
• Section 236
• HOPE 2 Home Ownership of Multifamily Units

Failure to Sign the Consent Form

Failure to sign any required consent form may result in the denial of assistance or termination of assisted housing benefits. If an applicant is denied assistance for this reason, the O/A must follow the notification procedures in Handbook 4350.3 Rev. 1. If a tenant is denied assistance for this reason, the O/A must follow the procedures set out in the lease.

Conditions

No action can be taken to terminate, deny, suspend or reduce the assistance your household receives based on information obtained about you under this consent until the O/A has independently 1) verified the information you have provided with respect to your eligibility and level of benefits and 2) with respect to income (including both earned and unearned income), the O/A has verified whether you actually have (or had) access to such income for your own use, and verified the period or periods when, or with respect to which you actually received such income, wages, or benefits.

A photocopy of the signed consent may be used to request the information authorized by your signature on the individual consent forms. This would occur if the O/A does not have another individual verification consent with an original signature and the O/A is required to send out another request for verification (for example, the third party fails to respond). If this happens, the O/A may attach a photocopy of this consent to a photocopy of the individual verification form that you sign. To avoid the use of photocopies, the O/A and the individual may agree to sign more than one consent for each type of verification that is needed.

The O/A shall inform you, or a third party which you designate, of the findings made on the basis of information verified under this consent and shall give you an opportunity to contest such findings in accordance with Handbook 4350.3 Rev. 1.

The O/A must provide you with information obtained under this consent in accordance with State privacy laws.

If a member of the household who is required to sign the consent forms is unable to sign the required forms on time, due to extenuating circumstances, the O/A may document the file as to the reason for the delay and the specific plans to obtain the proper signature as soon as possible.

Individual consents to the release of information expire 15 months after they are signed. The O/A may use these individual consent forms during the 120 days preceding the certification period. The O/A may also use these forms during the certification period, but only in cases where the O/A receives information indicating that the information you have provided may be incorrect. Other uses are prohibited.

The O/A may not make inquiries into information that is older than 12 months unless he/she has received inconsistent information and has reason to believe that the information that you have supplied is incorrect. If this occurs, the O/A may obtain information within the last 5 years when you have received assistance.

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I have read and understand this information on the purposes and uses of information that is verified and consent to the release of information for these purposes and uses.

___________________________________________________ Name of Applicant or Tenant (Print)

___________________________________________________ Signature of Applicant or Tenant & Date

I have read and understand the purpose of this consent and its uses and I understand that misuse of this consent can lead to personal penalties to me.

___________________________________________________ Name of Project Owner or his/her representative

___________________________________________________ Title

___________________________________________________ Signature & Date

cc: Applicant/Tenant, Owner file

Penalties for Misusing this Consent

HUD, the O/A, and any PHA (or any employee of HUD, the O/A, or the PHA) may be subject to penalties for unauthorized disclosures or improper uses of information collected based on the consent form.

Use of the information collected based on the form HUD 9887-A is restricted to the purposes cited on the form HUD 9887-A. Any person who knowingly or willfully requests, obtains or discloses any information under false pretenses concerning an applicant or tenant may be subject to a misdemeanor and fined not more than $5,000.

Any applicant or tenant affected by negligent disclosure of information may bring civil action for damages, and seek other relief, as may be appropriate, against the officer or employee of HUD, the O/A or the PHA responsible for the unauthorized disclosure or improper use.

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Original is retained on file at the project site

ref. Handbooks 4350.3 Rev. 1, 4571.1, 4571.2 & 4571.3 and HOPE II Notice of Program Guidelines

form HUD-9887-A (02/2007)

HUD Occupancy Handbook | 4350.3 REV-1

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Section 8, RAP, PRAC, PAC

Total Tenant Payment (TTP) is the greater of:

• 30% monthly adjusted income;
• 10% monthly gross income;
• Welfare rent (welfare recipients in as-paid localities only); or
• $25 minimum rent (Section 8 only).

NOTE: An owner may admit an applicant to the Section 8, RAP, and PAC programs only if the TTP is less than the gross rent. This note does not apply to the PRAC program. In some instances under the PRAC program a tenant's TTP will exceed the PRAC operating rent (gross rent).

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Rent Supplement

Total Tenant Payment (TTP) is the greater of:

• 30% of monthly adjusted income; or
• 30% of gross rent.

NOTE: For move-ins and initial certifications, the amount of Rent Supplement assistance may be no less than 10% of the gross rent. If the initial amount of Rent Supplement assistance would be less than 10% of the gross rent, the tenant is not eligible for Rent Supplement Assistance.

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Section 236—No Utility Allowance

Tenant rent is the greater of:

• 30% of monthly adjusted income; or
• Section 236 basic rent.

Tenant rent is never more than market rent.

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Section 236—With Utility Allowance

Tenant rent is the greater of:

• 30% of the monthly adjusted income less the utility allowance;
• 25% of monthly adjusted income; or
• Basic rent.

Tenant rent is never more than market rent.

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Section 221(d)(3) BMIR (Below Market Interest Rate)

At move-in or initial certification, if the tenant's annual income is:

• At or below the BMIR income limit, the tenant is charged the BMIR rent.
• Above the BMIR income limit, the tenant may not be admitted to the project.

At recertification, if the tenant's annual income is:

• Less than or equal to 110% of the BMIR income limit, the tenant pays the BMIR rent.
• Greater than 110% of the BMIR income limit, the tenant pays 110% of the BMIR rent.

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HUD Occupancy Handbook | Exhibit 5-8 | 6/07

For Section 8 State Agency properties, the lease must contain the following additional provision or addendum:

The following additional lease provisions are incorporated in full in the Lease between ___________ (landlord) and ____________ (tenant) for the following dwelling unit: ___. In case of any conflict between these and any other provisions of the lease, these provisions will prevail.

The total rent will be $___ per month.

Of the total rent, $_____ will be payable by the State Housing Agency (Agency) as assistance on behalf of the Tenant and $_____ will be payable by the Tenant. These amounts will be subject to change by reason of changes in the Tenant's family income, family composition, or extent of exceptional medical or other unusual expenses, in accordance with HUD established schedules and criteria; or by reasons of changes in program rules. Any such change will be effective as of the date stated in a notification to the Tenant.

The landlord will not discriminate against the tenant in the provision of services, or in any other manner, on the grounds of race, color, creed, religion, sex, or national origin.

The landlord will provide the following services and maintenance: ___________________________________________________.

A violation of the tenant's responsibilities under the Section 8 program, as determined by the Agency, is also a violation of the lease.

Landlord: ____________________

By: _________________________

Date: ________________________

Tenant: ______________________

Date: ________________________

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HUD Occupancy Handbook | Exhibit 6-1 | 6/07

**All leases for RHS 515 with Section 8 properties must contain the following information and provisions. Those provisions marked with an asterisk (*) are addressed in the HUD Model Lease for Subsidized Programs. See RHS Handbook HB-2-3560 for additional information pertaining to RHS lease requirements.

• (i) *The name of the tenant, any co-tenants, and all members of the household residing in the rental unit;
• (ii) *The identification of the rental unit;
• (iii) *The amount and due date of monthly tenant contributions, any late payment penalties, and security deposit amounts;
• (iv) *The utilities, services, and equipment to be provided for the tenant;
• (v) *The tenant's utility payment responsibility;
• (vi) *The certification process for determining tenant occupancy eligibility and contribution;
• (vii) *The limitations of the tenant's right to use or occupancy of the dwelling;
• (viii) *The tenant's responsibilities regarding maintenance and consequences if the tenant fails to fulfill these responsibilities;
• (ix) The agreement of the borrower to accept the tenant contribution toward rent charges prior to payment of other charges that the tenant owes and a statement that borrowers may seek legal remedy for collecting other charges accrued by the tenant;
• (x) *The maintenance responsibilities of the borrower in buildings and common areas according to state and local codes, Agency regulations, and Federal fair housing requirements.
• (xi) *The responsibility of the borrowers at move-in and move-out to provide the tenant with a written statement of rental unit's condition and provisions for tenant participation in inspection;
• (xii) *The provision for periodic inspections by the borrower and other circumstances under which the borrower may enter the premises while a tenant is renting;
• (xiii) *The tenant's responsibility to notify the borrower of an extended absence;
• (xiv) *A provision that tenants may not assign the lease or sublet the property;
• (xv) A provision regarding transfer of the lease if the housing project is sold to an Agency-approved buyer;
• (xvi) *The procedures that must be followed by the borrower and the tenant in giving notices required under terms of the lease including lease violation notices;
• (xvii) *The good-cause circumstances under which the borrower may terminate the lease and the length of notice required;
• (xviii) The disposition of the lease if the housing project becomes uninhabitable due to fire or other disaster, including rights of the borrower to repair building or terminate the lease;
• (xix) The procedures for resolution of tenant grievances consistent with the requirements of §3560.160;
• (xx) *The terms under which a tenant may, for good cause, terminate their lease, with 30 days notice, prior to lease expiration; and
• (xxi) *The signature and date clause indicating that the lease has been executed by the borrower and the tenant.**

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HUD Occupancy Handbook | Exhibit 6-2 | 6/07

Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards

Lead Warning Statement

Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips, and dust can pose health hazards if not managed properly. Lead exposure is especially harmful to young children and pregnant women. Before renting pre-1978 housing, lessors must disclose the presence of known lead-based paint and/or lead-based paint hazards in the dwelling. Lessees must also receive a federally approved pamphlet on lead poisoning prevention.

Lessor's Disclosure (initial)

__________(a) Presence of lead-based paint or lead-based paint hazards (check one below):

• [ ] Known lead-based paint and/or lead-based paint hazards are present in the housing (explain). _________________________________________________________________________

• [ ] Lessor has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.

__________(b) Records and reports available to the lessor (check one below):

• [ ] Lessor has provided the lessee with all available records and reports pertaining to lead-based paint and/or lead-based paint hazards in the housing (list documents below). _________________________________________________________________________

• [ ] Lessor has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing.

Lessee's Acknowledgment (initial)

__________(c) Lessee has received copies of all information listed above.

__________(d) Lessee has received the pamphlet Protect Your Family from Lead In Your Home.

Agent's Acknowledgment (initial)

__________(e) Agent has informed the lessor of the lessor's obligations under 42 U.S.C. 4852d and is aware of his/her responsibility to ensure compliance.

Certification of Accuracy

The following parties have reviewed the information above and certify, to the best of their knowledge, that the information provided by the signatory is true and accurate.

_________________	_______	_________________	_______
Lessor	Date	Lessor	Date
_________________	_______	_________________	_______
Lessee	Date	Lessee	Date
_________________	_______	_________________	_______
Agent	Date	Agent	Date

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HUD Occupancy Handbook | Exhibit 6-3 | 6/07

Mandatory Rules [24 CFR 5.350]	Examples of Discretionary Rules [24 CFR 5.318]
Inoculation – Pets need to be inoculated in accordance with state and local law.	Pet size and type – Property owners may place reasonable limitations on the size, weight, and type of common household pets.
Property owners must prescribe sanitary standards to govern the disposal of pet waste. These rules may:	Density of tenants and pets – Property owners may place reasonable limitations on the number of pets that are allowed in each unit. Owners may limit the number of 4-legged, warm-blooded pets to one per unit or group home.
a) Require pet owners to exercise and allow pets to deposit waste only in designated areas;	Pet care standards – Property owners may prescribe standards of pet care and handling to protect the property premises and health, safety, and welfare of tenants, employees, and the public. Standards may:
b) Forbid pet owners from walking pets or allowing them to deposit waste in areas outside designated exercise and waste deposit areas;	a) Require dogs and cats to be spayed or neutered;
c) Require pet owners to remove and properly dispose of all removable pet waste;	b) Bar pets from certain areas, except those that would deny access to the building;
d) Require pet owners to take pets elsewhere to exercise or deposit waste if there are no areas on the premises designated for such purposes;	c) Require pet owners to control noise and odor;
e) Require owners of pets using litter boxes to remove pet waste from litter boxes and prescribe methods for disposal of pet waste, but not more frequently than once each day; and	d) Require pet owners to comply with state/local licensing requirements; and
f) Require owners of pets using litter boxes to change the litter and prescribe methods for disposal of pet waste and used litter, but not more frequently than twice each week.	e) Exclude from the property any pets not owned by a tenant that are being kept temporarily (less than 14 days).
Pet restraint – All household pets must be under the control of a responsible individual while on the common areas of the property. All pets must be effectively and appropriately restrained and under the control of a responsible individual while on the common areas of the property.	Potential financial obligations of tenants –
Registration – Pet owners must register their pets with the project owner/manager before the pet is brought on premises and must update the registration annually. Registration must include the following:	a) Refundable deposit. Property owners may ask tenants who own or keep cats or dogs in their units for a refundable pet deposit. If the owner chooses to collect a deposit, the deposit must:
a) Certification of inoculation;	- Be reasonable;
b) Information sufficient to identify the pet and to demonstrate that it is a common household pet; and	- Not exceed the amount periodically fixed by HUD through notice (current limitation is $300); and
c) Name, address, and phone number of at least one responsible party who will care for pet if owner dies or is unable to provide care.	- Provide for gradual accumulation of the deposit not to exceed an initial $50 when the pet is brought into unit and subsequent monthly payments of $10 per month.
	For allowable uses of the pet deposit, see paragraph 6.24 D.
	The unused portion of the pet deposit must be returned to the tenant within a reasonable time after the tenant moves from the project or no longer owns or keeps a pet in the unit.
	b) Waste removal charge. Owners may impose a separate waste removal penalty of up to $5 per occurrence for failure to comply with pet rule on waste removal.

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HUD Occupancy Handbook | Exhibit 6-4 | 6/07

Owners must use the following procedures to develop pet rules:

A. Notice

Tenants must be given a notice containing the proposed pet rules. The notice must:

1. Include the text of the proposed rules;
2. State that tenants or tenant representatives may submit written comments on the rules;
3. State that all comments must be submitted to the project owner no later than 30 days from the effective date of notice of the proposed rules; and
4. Announce the date, time, and place for a meeting to discuss the proposed rules.

B. Distribution Method

Owners must distribute the notice by one of the following methods:

1. Sending a letter by first-class mail, properly stamped and addressed, to the tenant at the unit, with a proper return address;
2. Giving a copy of the notice to any adult answering the door at the tenant's leased unit, or if no adult responds, by placing the notice under or through the door, if possible, or else by attaching the notice to the door; or
3. In high-rise buildings, posting the notice in at least three places within the building and maintaining the posted notices intact and in legible form for 30 days.

C. Tenant Consultation

Tenants or tenant representatives may submit written comments on the proposed pet rules by the date specified in the notice. In addition, the owner may schedule one or more meetings with tenants during the comment period to discuss the proposed rules. Tenants or tenant representatives may make oral comments on the proposed rules at these meetings. The owner must consider comments made at these meetings only if they are summarized, reduced to writing, and submitted to the owner before the end of the comment period.

1. For the purpose of computing time periods following the distribution of the notice, the notice is effective on the day that all notices are mailed or delivered or posted, depending on the method of distribution.

2. The owner must develop the final rules after reviewing tenants' comments. He/she may meet with tenants and tenant representatives to attempt to resolve issues raised by the comments. The content of the final pet rules, however, is within the sole discretion of the project owner.

3. If pet rules are to be included in the lease provisions, the current lease must be amended:

   a. Upon renewal of the lease and in accordance with any applicable regulation, and

   b. When a tenant registers a common household pet.

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HUD Occupancy Handbook | Exhibit 6-5 | 6/07

The table below displays information that may be relayed to tenants during the briefing. These topics may not apply to all properties.

Signatures

• The lease must be signed by the head, spouse, any individual listed as co-head, and all adult members of the household. This information may have to be conveyed in languages other than English for LEP persons, in accordance with HUD guidance.

Topics Related to Tenant Responsibilities	Topics Related to Owner Responsibilities
Terms of Lease	Termination of Tenancy
- Lease starting date.	- The owner must give the tenant 30-day advance written notice.
- Lease ending date.	- The owner must advise the tenant of his/her rights.
- Automatic renewal of lease, if applicable.	- The tenant agrees that providing recertification or other required information is a material obligation of the lease.
- 30-day written notice by tenant prior to moving out of unit. NOTE: There is a difference between the leases regarding when the tenant may give the 30-day notice. See the section on terminating tenancy in each model lease for further information.

Topics Related to Tenant Responsibilities	Topics Related to Owner Responsibilities
Annual/Interim Recertifications	Termination of Assistance
- Annual recertification for changes in income, family composition, and circumstances. Tenant will be notified. Rent will be adjusted accordingly.	- The owner must give the tenant written notice of intent to terminate assistance.
- Failure to recertify may result in raising rent to market rent, full contract rent, or 110% of BMIR rent, and/or terminating assistance.	- The owner must give the tenant 10 days to meet and discuss termination.
- Failure to recertify for Section 202 PRAC and Section 811 PRAC may result in termination of tenancy.
- Between annual recertifications, reporting required when the household composition changes, or there is a change in employment status or income increases of $200 or more per month.
- A unit transfer may result from changes in household composition. The tenant must move within 30 days or pay market rent, full contract rent, or 110% of BMIR rent.
- *Use of the Enterprise Income Verification system for verification of employment and income and to reduce administrative and subsidy errors.*

Topics Related to Tenant Responsibilities	Topics Related to Owner Responsibilities
Rent	Rent or other payment
- Tenant rent amount.	- The owner must give the tenant 30-day written notice of a rent increase, unless the tenant has violated responsibilities under terms of the lease.
- Rent due date.	- The owner must provide the tenant with opportunity to discuss changes in rent.
- Change in rent if the family circumstances change.

Topics Related to Tenant Responsibilities	Topics Related to Owner Responsibilities
Security Deposit	Security Deposit
- Security deposit amount.	- The owner will hold security deposits until move-out.
- Security deposit due date.	- Deductions may be made to cover the cost of unit damages made by the tenant.
- The security deposit is refundable at move-out.	- The owner will itemize deductions.
- Amounts for damages, unpaid rent, or other unpaid charges permitted in the lease will be taken out of the security deposit.	- The owner will explain if and how interest will be paid.

Topics Related to Owner Responsibilities
Lease Attachments
- HUD-50059 signed by the tenant and the owner.
- HUD-50059-A signed by the owner and, when applicable, by the tenant.
- Move-in inspection report signed by both the owner and tenant.
- House rules. Lead-based paint disclosure form (if applicable).
- Pet rules (if applicable).
- Live-in aide addendum (if applicable).
- Expiration of the Section 8 contract (if applicable).
- *Violence Against Women Act (VAWA) addendum (Section 8 only)*

Other Charges

• Utilities that are paid by the tenant.
• Late rent charge amount.
• Returned check charge amount.
• Unreturned key/lock charge amount.
• Meals requirement amount.

Topics Related to Tenant Responsibilities	Topics Related to Owner Responsibilities
Maintenance/Damages	Maintenance
- Instructions on using appliances properly.	- The owner maintains the common area.
- Cleanliness requirements for units.	- The owner arranges for collection and removal of trash/garbage.
- Prohibition of unit alterations without owner permission.	- The owner maintains equipment and appliances in working order.
- Responsibility for damages made to unit/project. Cost paid to owner.	- The owner makes necessary repairs.
	- The owner gives reasonable notice of intent to enter unit for repairs.
	- The owner complies with health, housing, and building codes and maintains premises in decent, safe, and sanitary condition.

Penalties for Fraud

• Submission of false information may result in fines up to $10,000 and five years imprisonment.

General Rules

• Not subletting the unit.
• Prohibited involvement in unlawful activities in unit/project.
• No installation of washers, dryers, or AC without landlord approval.
• Abiding by noise restrictions and pet rules.
• Obeying the house rules.
• Permitting owner access to unit for inspections and repairs.
• Prohibited use of the unit for purposes deemed hazardous by the landlord's insurance carrier.

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HUD Occupancy Handbook | Exhibit 6-6 | 8/13

U.S. Department of Housing and Urban Development Office of Housing — Federal Housing Commissioner

OMB Approval No. 2502-0204 (Exp. 06/30/2017)

Recertification Notice

Initial Notice [To be signed by resident and owner at initial certification and at subsequent recertifications].

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(Tenant's Name) | (Date) (Address)

Dear ____:

As stated in paragraph [15, 10, or 9—indicate the paragraph number that corresponds to the paragraph of the model lease being used for the tenant] of your lease, the U.S. Department of Housing and Urban Development (HUD) requires that we review your income and family composition every year to redetermine rent and assistance levels.

To complete our review of your income and family composition, you must meet with (Resident Manager, Occupancy Clerk, etc.) and supply the required information each year. (The Resident Manager, Occupancy Clerk, etc.) will conduct your recertification interviews in (month and year). We will send you a reminder notice when it is time for your next recertification interview. At that time you must contact (the Resident Manager, Occupancy Clerk, etc.) to schedule an appointment for an interview.

Cooperation with the recertification requirement is a condition of continued program participation. You must report the required information and provide the required signatures to enable the owner to process the recertification by the (insert the 10th day of the 11th month after the last annual recertification).

When you attend the interview, you must bring the following information: (List all required information.)

I have read and understand this letter describing the requirement for my participation in an annual recertification interview.

Signature of the Head of Family ____ Date

Signature of Witness ____ Date

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Public reporting burden for this collection is estimated to average 10 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This information is required to obtain benefits and is voluntary. HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. This information is authorized by 24 CFR 5.657, 880.603, 884.218, 886.324, 891.410, 891.610 and 891.750 require that the owner must reexamine the income and composition of all families at least annually. By providing tenants notification in advance of the scheduled recertification meeting and the information they need to provide, the tenant is made aware of the documents they need to retain throughout the recertification period in order to reduce their burden at the time of recertification. This information is considered non-sensitive and does not require any special protection.

form HUD-90100 (12/2007) ref. HB 4350.3 Rev. 1

(Tenant's Name) | (Date, at least 120 days prior to the upcoming recertification anniversary date) (Address)

Dear ____:

It will soon be time for your annual recertification. You received a notice of your upcoming annual recertification at an interview just less than a year ago.

Paragraph [15, 10, or 9—indicate the paragraph number that corresponds to the paragraph of the model lease being used for the tenant] of your lease states that the Department of Housing and Urban Development (HUD) requires that we review your income and family composition every year to determine if you are still eligible to receive assistance paying your rent.

To complete our review of your income and family composition, you must meet with (Resident Manager, Occupancy Clerk, etc.) at (place of interview) and supply the required information. (Resident Manager, Occupancy Clerk, etc.) will be available for recertification interviews (dates and times available). Please contact (Resident Manager, Occupancy Clerk, etc.) (by phone, at the office) as soon as possible to schedule an appointment for an interview.

Cooperation with the recertification requirement is a condition of continued program participation. You must report the required information and provide the required signatures to enable the owner to process your recertification. If you respond to this notice after (insert the 10th day of the 11th month after the last annual recertification), paragraph 15 of your lease (if applicable) gives us the right to implement any rent increase resulting from the recertification without providing you a 30-day written notice.

(NOTE: For tenants of all projects, except PRAC projects, add the following sentence.) If you do not respond before (insert recertification anniversary date), paragraph [15 or 14] of your lease gives us the right to terminate your assistance and charge you the (insert type of rent, either market rent, contract rent or 110% of BMIR rent) effective (insert the recertification anniversary date).

(NOTE: For tenants in PRAC projects add the following sentence.) If you do not respond before (insert the recertification anniversary date), your tenancy may be terminated.

When you attend the interview, you must bring the following information:

(List all required information.)

Sincerely,

(Managing Agent, Resident Manager, etc.)

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HUD Multifamily Occupancy Handbook 6/07 Exhibit 7-2

(Tenant's Name) | (Date, at least 90 days prior to the upcoming recertification anniversary date) (Address)

Dear __:

On (date of First Reminder Notice) you received a notice requesting that you contact (Resident Manager, Occupancy Clerk, etc.) to schedule your periodic recertification interview. So far you have not scheduled your interview.

Cooperation in the recertification process is a condition for receiving assistance. Paragraph [15, 10, or 9—indicate the paragraph number that corresponds to the paragraph of the model lease being used for the tenant] of your lease states that the Department of Housing and Urban Development (HUD) requires that we review your income and family composition every year to re-determine rent and assistance levels.

To complete our review of your income and family composition, you must meet with (Resident Manager, Occupancy Clerk, etc.) at (place of interview) and supply the required information. (Resident Manager, Occupancy Clerk, etc.) will be available for recertification interviews (dates and times available). Please contact (Resident Manager, Occupancy Clerk, etc.) (by phone, at the office) as soon as possible to schedule an appointment for an interview.

Cooperation with the recertification requirement is a condition of continued program participation. You must report the required information and provide the required signatures to enable the owner to process your recertification. If you contact (Resident Manager, Occupancy Clerk, etc.) after (insert the 10th day of the 11th month after the last annual recertification), we will process your recertification but you will not receive 30 days notice of any resulting rent increase.

(NOTE: For tenants of all projects, except PRAC projects, add the following sentence.) If you do not respond before (insert recertification anniversary date), paragraph [15 or 14] of your lease gives us the right to terminate your assistance and charge you the (insert type of rent, either market rent, contract rent or 110% of BMIR rent) effective (insert the recertification anniversary date).

(NOTE: For tenants in PRAC projects add the following sentence.) If you do not respond before (insert the recertification anniversary date), your tenancy may be terminated.

To help us process your recertification, you must bring the following information to your interview:

(List all required information.)

Please do not make us increase your rent. Go to the Rental Office today to set up your interview and to discuss your recertification and any possible change in rent. Thank you for your cooperation.

Sincerely,

(Managing Agent, Resident Manager, etc.)

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HUD Occupancy Handbook 8/13 Exhibit 7-3

(Tenant's Name) | (Date at least 60 days prior to the upcoming recertification anniversary date) (Address)

Dear _____:

On (date of First Reminder Notice) and (date of Second Reminder Notice) we sent you notices requesting you to set up your recertification interview. You still have not scheduled your interview. Paragraph [15, 10, or 9—indicate the paragraph number that corresponds to the paragraph of the model lease being used for the tenant] of your lease states that the Department of Housing and Urban Development (HUD) requires that we review your income and family composition every year to redetermine rent and assistance levels.

To complete our review of your income and family composition, you must meet with (Resident Manager, Occupancy Clerk, etc.) at (place of interview) and provide the required information and signatures to enable the owner to process your recertification. Your cooperation with the recertification requirement is a condition of continued program participation. (Resident Manager, Occupancy Clerk, etc.) will be available for recertification interviews (dates and times available). Please contact (Resident Manager, Occupancy Clerk, etc.) (by phone, at the office) as soon as possible to schedule an appointment for an interview.

If you meet with (Resident Manager, Occupancy Clerk, etc.) and provide all of the required information and signatures, we will not terminate your assistance unless your income shows you are no longer eligible for assistance. If you report to the Rental Office after (insert the cutoff date, the 10th day of the 11th month after the last annual recertification), we will process your recertification but will not provide you 30 days notice of any resulting rent increase.

To help us process your recertification, you must bring the following information to your interview. (List all required information.)

(NOTE: For tenants of all projects, except PRAC projects, add the following.) If you do not respond before (insert recertification anniversary date), paragraph [15 or 14] of your lease gives us the right to terminate your assistance and charge you the (insert type of rent, either market rent, contract rent or 110% of BMIR rent) of $__ (insert the rent the tenant will be required to pay) effective (insert the recertification anniversary date). This increase in rent will be made without providing you additional notice. If you fail to pay the increased rent, we may terminate your tenancy and seek to enforce the termination in court.

(NOTE: For tenants in PRAC projects add the following sentence.) If you do not respond before (insert the recertification anniversary date), your tenancy may be terminated.

Please do not make us increase your rent. Go to the Rental Office today to set up your interview and to discuss your recertification and any possible change in rent.

Thank you for your cooperation.

Sincerely,

(Managing Agent, Resident Manager, etc.)

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HUD Multifamily Occupancy Handbook 6/07 Exhibit 7-4

Name of Tenant: ____

Address/Unit No.: ___

1. Date Initial Letter Mailed to Tenant to Arrange Recertification Interview: //___

2. Date and Type of Action Required to Follow Up Initial Letter to Arrange Recertification Interview:

Date	Type of Action
//___ (M D Y)	____
//___	____
//___	____

3. Date Recertification Interview Completed //_. If interview not completed, give reason. __

4. Member #1*

For verifications not available in the EIV System:

Verifications Sent To	Written		Oral
	Sent	Rec'd	Sent	Rec'd
a. __	____	____	____	____
b. __	____	____	____	____
c. __	____	____	____	____
d. __	____	____	____	____
e. __	____	____	____	____

* This information should be completed for all household members. Include additional sheets as needed.

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HUD Multifamily Occupancy Handbook 8/13 Exhibit 7-5

(Tenant's Name) | (Date) (Address)

Dear Tenant:

This is to notify you that on the basis of our recent review of your income and family composition your rent has been adjusted to $__. This new rent is effective beginning (month/day/year). This notification amends Paragraph [3, 4, or 5—indicate the paragraph number that corresponds to the paragraph of the model lease being used for the tenant.] of your lease agreement, which sets forth the amount of rent you pay each month.

Please visit the site office within 7 days of receipt of this notice to sign and receive a copy of the HUD-50059. The HUD-50059 must be signed by the head, co-head, spouse and all other adult members of the household. The copy of the HUD-50059 provides the information on your income that we used to calculate your new rent and the amount of rental assistance, if any, HUD pays monthly on your behalf.

You may call ____ if you wish to arrange a meeting to discuss this change. Thank you for your cooperation.

Sincerely,

(Managing Agent, Resident Manager, etc.)

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HUD Multifamily Occupancy Handbook 6/07 Exhibit 7-6

(Tenant's Name) | (Date) (Address)

Dear ___:

(Management Agent, Resident Manager, etc.) believes that you have failed to report a change in your (income or family composition). If this is true, your failure to report this change is a violation of paragraph (16 or 24) of your lease (if applicable).

If you have failed to report a change, your lease gives us the right to terminate your rental assistance and give it to another family. However, if you meet with (Resident Manager, Occupancy Clerk, etc.) by (10 calendar days from the date of this notice) and report the change in your (income, family composition), if any, we will not terminate your assistance unless your income shows you are no longer eligible for assistance. Please do not make us take such a drastic step. Call (Resident Manager, Occupancy Clerk, etc.) immediately to set up a meeting.

(NOTE: For tenants of all projects, except PRAC projects, add the following sentence.) If you do not respond before (10 calendar days from the date of this notice), paragraph [17 or 24] of your lease gives us the right to terminate your assistance and charge you the (market rent/contract rent/110% of the BMIR rent) effective (insert the date that is the first day of the month following 10 calendar days from the date of this notice).

(NOTE: For tenants in PRAC projects add the following sentence.) If you do not respond before (insert 10 calendar days from the date of this notice), your tenancy may be terminated.

Sincerely,

(Managing Agent, Resident Manager, etc.)

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HUD Multifamily Occupancy Handbook 6/07 Exhibit 7-7

(Tenant's Name) (Address) | (Date)

Dear __:

On (date of interim initial notice), we sent you a notice requesting that you arrange a meeting to discuss a change that (Resident Manager, Occupancy Clerk, etc.) believes occurred in your (income, family composition). Since you did not respond to that notice, your rent will be raised to $___ (market rent/contract rent/110% of the BMIR rent) effective (first day of the month after the 10-day period stated in the initial notice has elapsed).

If you meet with (Resident Manager, Occupancy Clerk, etc.) by (10 calendar days from the date of this notice) and supply all required information or explain that no change occurred, we will not terminate your assistance unless your income shows you are no longer eligible for assistance. If you do not meet with (Resident Manager, Occupancy Clerk, etc.) and supply the required information by that date, we will be free to give your assistance to another tenant.

(NOTE: For tenants in PRAC projects add the following sentence.) If you do not meet with the (Resident Manager, Occupancy Clerk, etc.) and supply the required information by that date, we may terminate your tenancy.

If you have any questions, please call (Resident Manager, Occupancy Clerk, etc.) at __ (phone #).

Sincerely,

(Managing Agent, Resident Manager, etc.)

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HUD Multifamily Occupancy Handbook 6/07 Exhibit 7-8

Failed EIV Pre-screening Report Error Messages

#	Error Message Description	Explanation	Corrective Action
1	Failed DOB check	The date of birth is blank or null in line 42 of form HUD-50059.	Enter DOB on line 42 of form HUD-50059. Ensure only numbers are recorded.
2	Failed last name check	The last name is blank or null in line 35 of form HUD-50059.	Enter last name on line 35 of form HUD-50059. Ensure only alpha characters are recorded.
3	Failed SSN check	The SSN is not numeric or all 9s or LIKE (000%) or LIKE (__00%) or LIKE (%0000).	Enter valid SSN on line 45 of form HUD-50059. Do not use repetitive numbers if tenant has not disclosed a SSN. An alternate ID will be generated by TRACS for household members without a SSN. O/A should follow-up with those households who have members with a TRACS generated ID to obtain documentation of the members SSN, if applicable.
4	Failed effective date check	The effective date of action is more than 15 months old.	Transmit a current recertification to TRACS.

Failed Verification Report (Failed the SSA Identity Test) Error Messages

#	Error Description	Explanation	Corrective Action
1	No benefits reported by SSA MM/DD/YYYY	No benefits reported by SSA. The date of birth (DOB) recorded on line 42 of the form HUD-50059 is not the same DOB reflected in SSA's records.	Request the tenant provide documentation (i.e. birth certificate or state issued identification card) to verify DOB. Update line 42 of form HUD-50059 with the SSA provided DOB.
2	SSN is verified; individual is deceased or SSN is verified; individual is deceased MM/DD/YYYY	The tenant's SSN has been verified by SSA and the individual is deceased. If a date follows the error message, this is the date of death as reflected in SSA's records.	Contact tenant's adult family member, next of kin or contact person/entity provided by tenant on form HUD-92006. Upon confirmation of death, update family composition on form HUD-50059, or if a single member household, take appropriate action to terminate tenancy in accordance with program instructions and transmit move-out form HUD-50059-A to TRACS. If applicable, return any overpayment of assistance to HUD.
3	Surname matched, but DOB did not match	The DOB recorded on line 42 of form HUD-50059 is not the same DOB reflected in SSA's records.	Ask tenant to provide documentation (i.e. birth certificate or state issued identification card) to verify DOB. Update line 42 of form HUD-50059 with the SSA provided DOB.
4	Verification failed – DOB matched but surname did not match with SSA records or Surname does not match; DOB was checked	The surname recorded on line 35 of form HUD-50059 is not the same surname reflected in SSA's records.	Ask tenant to provide documentation (i.e. SSN card, birth certificate, state issued identification card, marriage license or court documents) of the other name he/she is using. Update line 35 of form HUD-50059 with the correct surname.
5	Verification failed – SS/SSI benefits cannot be disclosed due to discrepancy in DOB MM/DD/YYYY	Tenant is receiving SS/SSI benefits; however, SSA cannot disclose the benefit amount because the DOB recorded on line 42 of form HUD-50059 is incorrect. The DOB reflected in SSA's records is listed at the end of the error message.	Request the tenant provide a current SS/SSI benefit letter. Request tenant provide documentation (i.e. birth certificate or state issued identification card) to verify DOB. Update line 42 of form HUD-50059 with the SSA provided DOB, if applicable.
6	Verification failed – SS/SSI benefits cannot be disclosed due to discrepancy in name.	Tenant is receiving SS/SSI benefits; however, SSA cannot disclose the benefit amount because the surname recorded on line 35 of form HUD-50059 is not the same surname reflected in SSA records.	Request tenant provide a current SS/SSI benefit letter. Ask tenant to provide documentation (i.e. SSN card, birth certificate, state issued identification card, marriage license or court documents) of the other name he/she is using. Update line 35 of form HUD-50059 with the correct surname.
7	Verification failed – SSN not found in SSA's records or SSN is not in file or The input SSN was not verified	The tenant's SSN recorded on line 45 of form HUD-50059 is not a valid number issued by SSA or listed in SSA records.	Request original SSN card from tenant. Confirm SSN displayed on the card matches the SSN reported on line 45 of form HUD-50059. For continued SSN failures, notify HUD OIG or other law enforcement agency.
8	Verification failed – SSN not found in SSA records XXXXXXXXX	Tenant SSN recorded on line 45 of form HUD-50059 is not a valid number issued by SSA. However, the SSN reflected in SSA records is listed at the end of the error message.	Update line 45 of form HUD-50059 with the SSA provided SSN.
9	Verification failed – surname matched but DOB did not match with SSA records MM/DD/YYYY	The DOB recorded on line 42 of form HUD-50059 is incorrect. However, the DOB reflected in SSA records is listed at the end of the error message.	Update line 42 of form HUD-50059 with the SSA provided DOB.

NOTE: If the SSA records are wrong, only the tenant can request SSA to correct his/her record by completing and submitting form SS-5, Application for a Social Security Card.

a. TRACS certification information

b. Personal Identifiers: name, date of birth and SSN

c. Employment information

1. New Hire Information (W-4)
   • (a) Date hired
   • (b) Employer name
2. Employer name, address and employer identification number (current and past employers)
3. Quarterly earnings

d. Quarterly unemployment compensation

e. Social Security benefit information

1. Social Security benefits (SS)
   • (a) Payment status code
   • (b) Date of current entitlement
   • (c) Current net monthly benefit amount (if payable)
   • (d) Gross monthly benefit history (last 8 changes in benefit amount)
   • (e) Lump sum payment amount and date
   • (f) Payee name and address
2. Dual Entitlement (Social Security benefits under another person's SSN)
3. Supplemental Security Income (SSI)
   • (a) Payment status code
   • (b) Alien indicator
   • (c) Current net monthly benefit amount
   • (d) Current monthly state supplement benefit amount
   • (e) Gross monthly benefit history (last 8 changes in benefit amount)
   • (f) Payee name and address
4. Medicare data
   • (a) Payee name and address
   • (b) Monthly hospital insurance premium amount, buy-in status and buy-in start and end dates
   • (c) Monthly supplemental medical insurance premium amount, buy-in status and buy-in start and end dates
5. Disability status and onset date

All EIV Income Reports contain the date the report was generated and by whom and the date EIV received each type of information.

Print name of tenant authorizing release | Print name of third party being authorized to view information

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A. Third party to view and/or discuss information for the sole purpose of recertification assistance is an:

• [ ] Adult Household Member
• [ ] Translator / Interpreter
• [ ] Service Coordinator
• [ ] Guardian
• [ ] Temporarily Absent Family Member
• [ ] Individual Assisting Elderly Individual or Person with a Disability
• [ ] Other Individual (Include Relationship): _________________________

B. Enterprise Income Verification (EIV) information to be viewed and/or discussed for the sole purpose of recertification assistance:

• [ ] EIV Income Report
• [ ] EIV Income Discrepancy Report
• [ ] EIV No Income Report
• [ ] EIV New Hires Report
• [ ] Other EIV information: _________________________

C. Penalties for Misuse of Information:

The following federal law prohibits the misuse of the information viewed or discussed pursuant to this consent and certification. Tenants, authorized third parties, and HUD or authorized entities employees may be subject to these penalties.

"[W]hoever, in any matter within the jurisdiction of the executive, legislative, or judicial branch of the Government of the United States, knowingly and willfully - (1) falsifies, conceals, or covers up by any trick, scheme, or device a material fact; (2) makes any materially false, fictitious, or fraudulent statement or representation; or (3) makes or uses any false writing or document knowing the same to contain any materially false, fictitious, or fraudulent statement or entry; shall be fined under this title, imprisoned not more than 5 years or, if the offense involves international or domestic terrorism (as defined in section 2331), imprisoned not more than 8 years, or both. If the matter relates to an offense under chapter 109A, 109B, 110, or 117, or section 1591, then the term of imprisonment imposed under this section shall be not more than 8 years." 18 U.S.C. 1001.

"Any officer or employee of an agency, who by virtue of his employment or official position, has possession of, or access to, agency records which contain individually identifiable information the disclosure of which is prohibited by this section or by rules or regulations established thereunder, and who knowing that disclosure of the specific material is so prohibited, willfully discloses the material in any manner to any person or agency not entitled to receive it, shall be guilty of a misdemeanor and fined not more than $5,000. 5 U.S.C. 552a(i).

"The Secretary [of Health and Human Services] shall require the imposition of an administrative penalty (up to and including dismissal from employment), and a fine of $1,000, for each act of unauthorized access to, disclosure of, or use of, information in the National Directory of New Hires established under subsection (i) of this section by any officer or employee of the United States or any other person who knowingly and willfully violates this paragraph." 42 U.S.C. 653(l).

Federal law also provides penalties for misusing Social Security numbers. 42 U.S.C. 408 (a) (6), (7) and (8).

Any applicant or participant affected by negligent disclosure of information may bring civil action for damages and seek other relief, as may be appropriate, against the officer or employee of HUD or the owner responsible for the unauthorized disclosure or improper use.

D. Certifications:

I hereby authorize the third party listed on this consent to view and/or discuss the EIV information identified above for the sole purpose of assisting in the recertification of my housing assistance in accordance with the rights afforded to me by the Privacy Act of 1974. I understand further use of such information is prohibited by the Privacy Act and Social Security Act, and that it may not be disclosed, redisclosed, copied, duplicated, or removed from the property for any reason. I also have read and understand the penalties for such misuse of the information, as provided on this form.

__________________________________ | __________________________________ | _____________________ Signature of tenant authorizing release | Printed name of tenant authorizing release | Date

I hereby acknowledge and certify that I am permitted to view and discuss tenant information pertaining to the above named individual for the sole purpose of assisting the tenant in the recertification of his/her subsidy. I understand further use of such information is prohibited by the Privacy Act and Social Security Act, and that it may not be disclosed, redisclosed, copied, duplicated, or removed from the property for any reason. I also have read and understand the penalties for such misuse of the information, as provided on this form.

__________________________________ | __________________________________ | _____________________ Signature of authorized third party | Printed name of authorized third party | Date

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*TSP = Tenant Selection Plan · P&P = Policies and Procedures

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Summary Report

Description: Summary of household information from the current, active certification in the TRACS file at the time of the income match.

Provides Identity Verification Status by identifying tenants whose personal identifiers:

• Match the SSA database - "Verified"
• Does not match the SSA database – "Failed"
• Have not been sent by HUD to SSA for validation or have not yet been matched by SSA for validation – "Not Verified"
• SSA's records indicate the person is deceased – "Deceased"

See Paragraph 9-12.A

	Details
*Update	P&P: X
Report Use	Must be used at recertification (annual and interim):
	- To validate a tenant's SSN
	- To review and resolve discrepant or invalid personal identifiers of tenants with a "failed" or "deceased" status
	Note: Nothing has to be done at the time of recertification with those tenants with an Identity Verification Status of "Not Verified". However, the Failed SSA Identity Test report must be checked monthly as a change in the Identity Verification Status may occur.
File Documentation	Summary Report(s) as verification of the SSN for all household members whose Identity Verification Status is "Verified".
	Correspondence or documentation received to resolve a tenant's "Failed" or "Deceased" status.
	Documentation for household members identified as exempt from disclosing and providing verification of a SSN:
	- Tenants who were 62 years of age or older as of January 31, 2010, and whose initial determination of eligibility was begun before January 31, 2010; and
	- Individuals who do not contend eligible immigration status
	If the Summary Report in the tenant file shows an Identity Verification Status of "Verified" for all household members required to have a SSN, the Owner does not have to continue to print out the Summary Report at recertification unless there is a change in household composition or in a household member's identity verification status.
Retention	Tenant file — Summary Report and supporting documentation must be retained in the tenant's file for term of tenancy plus 3 years.
	Note: O/As may remove and destroy copies of verification documentation received from the tenant to verify their SSN once the Identity Verification Status shows "Verified". O/As are encouraged to minimize the number of tenant records that contain documents that display the full nine-digit SSN.

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INCOME REPORTS

Note: A current, signed form HUD-9887 must be on file to view and/or use the income reports. A current, signed form HUD-9887-A must be on file to obtain written third party verification of income.

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Income Report

Description: Provides employment and income reported by HHS and SSA for each household member that passes the SSA identity test.

Identifies tenants who:

• May not have reported complete and accurate income information
• May be receiving multiple subsidies

See Paragraph 9-12.B

	Details
*Update	P&P: X
O/A Report Use	Mandatory use at Recertification - Annual and Interim.
	May be used at other times as indicated in O/A's policies and procedures.
	- Serves as third party verification of employment and income.
	New Admissions:
	- Review new admissions within 90 days after the move-in information is transmitted to TRACS to confirm/validate the income reported by the household.
	Resolve discrepancies in reported income with the family within 30 days of the EIV Income Report date.
File Documentation	No Dispute of EIV Information:
	- EIV Income Report
	- Current, acceptable tenant provided documents
	- Third party verification from the source, if necessary
	Disputed EIV Information:
	- EIV Income Report
	- Third party verification from the source for the disputed information
	Tenant-reported income not verified through the EIV system:
	- EIV Income Report
	- Current, acceptable tenant-provided documents, and/or
	- Third party verification from the source
	Any correspondence with/from tenant relating to disputes of the employment or income reported in EIV.
	Form HUD-50059(s)
Retention	Tenant File — Retain copy of Income Report and supporting documentation with applicable form HUD-50059 for term of tenancy plus 3 years.
	Note: The O/A must make copies of any tenant provided documents and return the originals to the tenant.

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Income Discrepancy Report

Description: Identifies households where there is a difference of $2,400 or more in the wage, unemployment and SSA benefit information reported in EIV and wage, unemployment and SSA benefit information reported in TRACS for the period of income used for discrepancy analysis.

The report serves as a tool to alert O/As that there may be a discrepancy in the income reported by the tenant during the period of income used for the discrepancy analysis.

See Paragraph 9-12.C

	Details
*Update	P&P: X
O/A Report Use	Mandatory use at Recertification - Annual and Interim.
	Report may be used at other times as indicated in O/A's policies and procedures.
	Must print the report at the same time the Income Report is printed.
	Discrepancies must be reviewed and resolved at the time of recertification or within 30 days of the EIV Income Report date.
	Review data in TRACS to make sure it agrees with the form HUD-50059 data. Correct any discrepant data in the TRACS database.
File Documentation	All correspondence to/from the tenant regarding the income discrepancy.
	Documentation received to resolve the discrepancy, including written third party verification of income, if applicable.
	The file must be documented regardless of whether the O/A determines the discrepancy to be valid or invalid.
	Corrected form HUD-50059(s), if applicable.
	Repayment Agreement, if applicable.
Retention	Tenant file — Retain copy of Income Discrepancy Report and any documentation related to the resolution of the discrepancy, including any repayment agreements for term of tenancy plus 3 years.

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No Income Reported on 50059

	Details
*Update	P&P: X
O/A Report Use	As identified in O/A's policies and procedures.
File Documentation	Correspondence/documents received for re-verification of zero income tenants.
Retention	Tenant File — Any correspondence/documents received when re-verifying zero income tenants.

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No Income Reported by HHS or SSA

Description: Identifies tenants who passed the SSA identity test but no income was reported by HHS or SSA.

This does not mean that the tenant does not have any income. O/A must obtain written third party verification of any income reported by the tenant.

Recommend "zero" income tenants be required to disclose and O/A re-verify income at least quarterly. These are tenants who report no income at all.

See Paragraph 9-12.D.1.a

	Details
*Update	P&P: X
O/A Report Use	As identified in O/A's policies and procedures. Interview tenants, asking the right questions to provide the tenant the opportunity to disclose any income.
File Documentation	Third party verification from income sources of other income reported by tenant, if applicable.
	Correspondence/documents received for re-verification of zero income tenants.
Retention	Tenant file — Any documentation or third party verifications for other income reported by the tenant for term of tenancy plus 3 years.

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New Hires Report

Description: Identifies tenants who have new employment within the last 6 months. Report is updated monthly.

See Paragraph 9-12.D.1.b

	Details
*Update	P&P: X
O/A Report Use	At least quarterly.
	Contact tenant regarding new employment.
	Confirm new employment with tenant. Request tenant provided documents to support current income and/or third party verification from employer, as applicable.
	Process Interim Recertification to include new income, if applicable.
File Documentation	New Hires Report with notation of action(s) taken.
	No Dispute of EIV Information:
	- EIV Income Report
	- Current, acceptable tenant provided documents
	- Third party verification from the source, if necessary.
	Disputed EIV Information:
	- EIV Income Report
	- Third party verification from the source for disputed information
	Any correspondence with/from tenant relating to new employment and/or disputes of the employment or income reported in EIV.
	Form HUD-50059(s)
Retention	Master file — Retain New Hires Summary Report in a master "New Hires Report" file for 3 years.
	Tenant file — Retain New Hires Detail Report for the tenant along with any correspondence with tenant, third party verifications, form HUD-50059(s), etc., for term of tenancy plus 3 years.

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VERIFICATION REPORTS

Note: A form HUD-9887 is not required to view and/or use verification reports.

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Existing Tenant Search

Description: Identifies applicants who may be receiving assistance at another Multifamily or PIH location.

See Paragraph 9-13.A

	Details
*Update	TSP: X
O/A Report Use	At the time of processing an applicant for admission.
	Search each applicant and applicant household member to see if receiving assistance at another location.
	Discuss with tenant regarding circumstances relative to being assisted at another Multifamily or PIH property.
	Follow up with respective PHA or O/A to confirm the individual's program participation status before admission.
	Coordinate move-in/out dates with PHA or O/A.
File Documentation	Search results for each member of the household.
	Results of any contact with applicant must be recorded on and/or with the search results for affected household member.
	Results of any contact with PHA, owner, management agent where applicant is reported as receiving assistance must be recorded on and/or with the search results for affected household member.
Retention	Application file — If not admitted – retain search results and any supporting documentation with the application for 3 years.
	Tenant file — If admitted – retain search results and any supporting documentation with the application for term of tenancy plus 3 years.

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Multiple Subsidy Report

Description: Identifies tenants who may be receiving rental assistance at more than one location.

See Paragraph 9-13.B

	Details
*Update	TSP: X
O/A Report Use	At least quarterly.
	Must search both queries:
	- Search within MF
	- Search within PIH
	Provide tenant opportunity to explain any circumstances relative to his/her being assisted at another location.
	Follow up with respective PHA or O/A, if necessary, to confirm tenant is being assisted at the other location. Depending on the results, may need to take action to terminate the assistance or tenancy and repay subsidy to HUD.
File Documentation	Search results.
	Documentation supporting any contacts made or information obtained to determine if household and/or household member is receiving multiple subsidies.
	Documentation to support any action taken if household and/or household member is receiving multiple subsidies.
	Note: If a tenant's multiple subsidies were discussed and resolved at the time of recertification, this must be noted on the printed report and no further action is required.
Retention	Master file — Retain Multiple Subsidy Summary Report and supporting documentation in a master "Multiple Subsidy Report" file for 3 years.
	Tenant file — Retain a copy of the Multiple Subsidy Detail Report for the tenant along with any documentation of action taken for a household member for term of tenancy plus 3 years.

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Failed EIV Pre-screening Report

Description: Identifies tenants who have missing or invalid personal identifiers (last name, date of birth, SSN) in TRACS. These tenants will not be sent to SSA from EIV for the SSA identity test.

Identifies tenants who need to disclose a SSN, e.g., replace TRACS generated ID number.

See Paragraph 9-13.C.1

	Details
*Update	P&P: X
O/A Report Use	Monthly.
	Follow up with tenants identified on the report where discrepant personal identifiers were not corrected at the time of recertification.
	Check accuracy of data entry, e.g., numbers not transposed in SSN.
	Contact tenant and confirm to verify discrepant personal identifiers.
	Correct TRACS data within 30 days of the date of the report.
File Documentation	Failed EIV Pre-screening Report documented with action taken to resolve invalid or discrepant personal identifiers.
	Note: This report will include those persons who are exempt from the SSN disclosure and verification requirements. In these instances the O/A will note on the copy of the report retained in the "Failed EIV Pre-Screening Report" master file that tenant(s) is exempt from SSN requirements.
	Note: If a tenant's information was corrected at the time of recertification but the EIV data has not yet been updated, this must be noted on the printed report and no further action is required.
Retention	Master file — Retain copy of report in a master "Failed EIV Pre-screening Report" file for 3 years.
	Tenant file — Documentation to verify discrepant personal identifiers for term of tenancy plus 3 years.

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Failed Verification Report (Failed SSA Identity Test)

Description: Identifies tenants whose personal identifiers (last name, date of birth, SSN) do not match the SSA database.

See Paragraph 9-13.C.2

	Details
*Update	P&P: X
O/A Report Use	Monthly.
	Follow up with tenants identified on the report where discrepant personal identifiers were not corrected at the time of recertification.
	Check accuracy of data entry, e.g., numbers not transposed in SSN.
	Contact tenant and confirm to verify discrepant personal identifiers.
	Correct TRACS data within 30 days of the date of the report.
File Documentation	Failed Verification Report (Failed SSA Identity Test) report documented with action taken to resolve invalid or discrepant personal identifiers.
	Note: If a tenant's information was corrected at the time of recertification but the EIV data has not yet been updated, this must be noted on the printed report and no further action is required.
Retention	Master file — Retain copy of report in a master "Failed EIV SSA Identity Test" file for 3 years.
	Tenant file — Documentation to verify discrepant personal identifiers for term of tenancy plus 3 years.

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Deceased Tenants Report

Description: Identifies tenants reported by SSA as being deceased.

See Paragraph 9-13.D

	Details
*Update	P&P: X
O/A Report Use	At least quarterly.
	Confirm, in writing, with head of household, next of kin or contact person or entity provided by the tenant to determine whether or not the person is deceased.
	If deceased, within 30 days from date of report:
	- Update family composition, and, if applicable, income and allowance, on the form HUD-50059. See Paragraph 7-13D of Handbook 4350.3 REV-1 for effective date.
	- Single member of a household, process move-out using form HUD-50059-A. Effective date retroactive to earlier of 14 days after date of death or date unit vacated.
	Note: Overpayment of subsidy must be returned to HUD.
	Any discrepant data in TRACS must be updated within 30 days from the date of the report.
	Encourage tenant to contact SSA if SSA's data is incorrect.
File Documentation	Deceased Tenants Report.
	Documentation obtained to resolve discrepancy.
	Form HUD-50059 with change of family composition.
	Form HUD-50059-A for move-out.
	Note: If action was taken to remove the deceased tenant from the household or to terminate tenancy of a deceased single member of a household at the time of recertification but the EIV data has not yet been updated, this must be noted on the printed report and no further action is required.
Retention	Master file — Retain copy of report in a master "Deceased Tenants Report" file for 3 years.
	Tenant file — Form HUD-50059 and/or form HUD-50059-A plus any other documentation received for a particular tenant must be retained for term of tenancy plus 3 years.

The following data elements are requested by HUD from the NDNH database. The following provides information on those data elements that are optional for employers to provide to the various states. All of these data elements may not be elements normally displayed in EIV. For those data elements that are displayed in EIV, information may not be made available because the employer is not required to report the data to the state, therefore, no information is available in the NDNH database.

Quarterly Wage File

• Employee SSN
• Employee Name
• Employer Name
• Employer Address
• Quarterly employee wage amount
• Date quarterly wage record processed by NDNH
• Federal Employee Identification Number (EIN) (optional for an employer to report)
• State EIN (optional for an employer to report)
• Department of Defense indicator, if any

New Hire File

• Employee SSN
• Employee Last Name
• Employee First Name
• Employee Address (optional for an employer to report)
• Employer Name
• Employer Address
• Employee Date of Hire (optional for an employer to report)
• Employee State of Hire (optional for an employer to report)
• Employer Federal EIN (optional for an employer to report)
• Employer State EIN (optional for an employer to report)
• Employer's Second Address, if any (optional for an employer to report)
• Department of Defense indicator, if any
• Date New Hire Record processed by NDNH

Unemployment Insurance File

• Claimant SSN
• Claimant Last Name
• Claimant First Name
• Claimant's Address (optional for an employer to report)
• Benefit Amount
• Unemployment reporting period

The Income Discrepancy Report compares the tenant's projected next year's income as reported in TRACS to the actual income data compiled by EIV. The O/A is not expected to reconcile dollar amounts to the penny when resolving discrepancies.

1. Identifying the Period of Income (POI) for Discrepancy Analysis

The period of income provides the timeline reference governing the collection of the data used to determine whether or not a discrepancy exists between projected household income (as reported in TRACS) and actual income (EIV income data that was available at the time the projection was made). This period of income is determined in order to gather the actual income data needed to make a comparison to the projected income and determine whether a discrepancy exists.

The period of income uses the following timeline of events to assist in determining the specific time span that is taken into consideration when collecting and calculating income data.

• Effective Date of Action – This value represents the effective date appearing on the form HUD-50059 reported in TRACS for the identified tenant. It is used to calculate the Period of Income Start and End Date values selected for the Period of Income for Discrepancy Analysis.

• Period of Income Start Date – This date represents the starting point for the income period. It is calculated by EIV based on the effective date associated with the form HUD-50059 reported in TRACS for the tenant. It is assumed that the Period of Income Start date is 15 months prior to the effective date on the form HUD-50059 reported in TRACS.

• Period of Income End Date – This date represents the end of the period of income and is assumed to be 3 months prior to the effective date on the form HUD-50059 reported in TRACS. (This is the approximate time frame for the tenant interview.) The Period of Income End Date is 12 months from the Period of Income Start Date.

2. Identifying Projected Income

Projected income information is used as the baseline for discrepancy calculations. It is derived from the form HUD-50059 records stored in the TRACS database. The income projected information is used to determine whether or not a given household should have an Income Discrepancy Report. The determination is made using the following evaluation criteria.

• Selected form HUD-50059 records will come directly from the current TRACS database. There is no need to access the TRACS database to obtain projected household income information.
• EIV will review the current TRACS database to locate the most current form HUD-50059 record for a household that falls in the timeline of 3 to 15 months.
• Prior to the Effective Date of Action. The most recent record falling within that timeline is used as the source for projected income information.
• Form HUD-50059 records in TRACS with an effective date that falls within the specified 3 to 15 months timeline, and includes an action type of MI, AR, IR or IC, is included in the Income Discrepancy Report calculations.

Action Types Included in the Income Discrepancy Report Calculations

Action Type	Definition
MI	Move In
AR	Annual Recertification
IR	Interim Recertification
IC	Initial Certification

• Data from households that lack SSA verification or that fails the SSA verification will not be included in the calculations.
• If a form HUD-50059 record in TRACS does not meet the qualification criteria, the household is excluded from the Income Discrepancy Report.

3. Identifying the Actual Income Reported during the Period of Income

Actual income information is used to evaluate the accuracy of an income projection. It is compared to the projected income value stored on the form HUD-50059 in TRACS associated with the household. These values are:

Income Codes

Income Code	Type of Income
B	Business
F	Federal Wage
M	Military Pay
W	Nonfederal Wage
U	Unemployment
SS	Social Security
SI	Supplemental Security Income

Note: Other income the household receives, e.g., welfare benefits, most pensions, child support, etc., may be reported in annual income in TRACS but it is not used for the discrepancy analysis in EIV.

EIV income information is not considered to be conclusive proof if a tenant challenges that it is not current or complete. One factor is time lag in the collection of SSA and NDNH data. In such cases, the employment information, including the "new hires" information will help the O/A research the tenant's income.

4. Prorating Actual Income

When the period of income includes a Period of Income Start Date that coincides with income reporting quarters, the income is simply added for those quarters. In those cases where an income record overlaps the start or end of the period of consideration, the income is prorated, based on the following calculation.

• First Quarter income = (quarter income value / period of time) x length of time in period. For example, if the income is within the period of consideration for 2 or 3 months, the calculation would be (quarter income value / 3 months) x 2 months.
• Sum the quarter income that occurs within the period of consideration. This should be 3 quarters of data.
• Add the final quarter of income data. Quarter income = (quarter income value / period of time) x (length of time considered).

5. Calculating Income Discrepancies

Once projected and actual income data have been captured, the discrepancy evaluation process begins. EIV conducts two separate evaluations during the Income Discrepancy Report generation process. The outcome determines whether or not the results should be included in the Income Discrepancy Report.

Income discrepancies are calculated in the following manner:

Discrepancy 1 – Entire period of consideration versus income projected is calculated as follows:

(Projected Annual Wages and Benefits from form HUD-50059 data in TRACS) – (Reported Annual Wages and Benefits as derived from EIV data.)

Discrepancy 2 – Last quarter of period of consideration annualized against projection is calculated as follows:

Actual EIV Income = final quarter income data (prorated as first and final quarter income in calculating total income for period of income against projection) x 4 quarters.

Projected Annual Wages and Benefits from form HUD-50059 data in TRACS – Actual EIV Income

6. Discrepancy Analysis

Once the income discrepancy calculations are completed, EIV analyzes the results to determine whether an Income Discrepancy Report should be generated. The analysis compares the results to a pre-defined EIV system value – Discrepancy Cutoff.

The Discrepancy Cutoff variable establishes the monetary value that the calculated discrepancy must exceed in order for the household to be included on the Income Discrepancy Report. By default, this value is set to $2,400. This means that the discrepancy between the actual annual income value and the projected income must be at least $2,400 or greater in order for a discrepancy report to be generated. (The $2,400 is based on the requirement that tenants must report to the O/A when the family's income cumulatively increases by $200 or more per month – see Paragraph 7-10.A and the HUD Model Leases in Appendix 4 of Handbook 4350.3 REV-1.)

For example, if the projected income for a household was $10,000 but the actual income was $14,000, the difference of $4,000 is greater than the established cutoff value of $2,400, qualifying it to appear on the report. Conversely, if the projected income for a household was $10,000 but the actual income was $12,000, the difference of $2,000 is less than that of the established cutoff value of $2,400, disqualifying it from appearing on the report.

The Discrepancy Analysis section of the Income Discrepancy Report provides results of the income analysis process. It provides actual and annualized last quarter data. There is a column for each type of data – Actual and Annualized Last Quarter Data.

• Reported Annual Wages and Benefits from EIV Data – This field identifies the actual income reported to EIV for the designated period of Income for Discrepancy Analysis.

• Amount of Annual Income Discrepancy – This field identifies the value of the discrepancy in the annual income that caused the household to be included in the report data. Negative currency values are represented in parentheses. For example, -$800 is represented as ($800). When this value caused the household to be included on the report, it appears in a bold typeface.

• Amount of Monthly Income Discrepancy – This field identifies the value of the discrepancy in the monthly income that caused the household to be included in the report data. Negative currency values are represented in parentheses. For example, -$800 is represented as ($800). When this value causes the household to be included on the report, it appears in a bold typeface.

• Percentage of Income Discrepancy – This field identifies the percentage by which the threshold cutoff value has been exceeded for this household. Negative percentage values are represented in parentheses. For example, -75% is represented as (75%).

7. Report Generation

The Income Discrepancy Report data gathering and calculations are computed automatically on a weekly basis. The data is collected, analyzed, and stored in the EIV database according to the previously specified criteria. The obsolete data set is overwritten with the current data. Users relying on data from a particular Income Discrepancy Report are advised to print that report before it is overwritten.