§ 26-76Introduction.
§ 26-77Methods of verification and time allowed. [24 CFR 982.516]
§ 26-78Release of information. [24 CFR 5.230]
§ 26-79Computer matching.
§ 26-80Items to be verified. [24 CFR 982.516]
§ 26-81Verification of income. [24 CFR 982.516]
§ 26-82Income from assets. [24 CFR 982.516]
§ 26-83Verification of assets.
§ 26-84Verification of allowable deductions from income. [24 CFR 982.516]
§ 26-85Verifying nonfinancial factors. [24 CFR 5.617(b)(2)]
§ 26-86Verification of waiting list preferences. [24 CFR 982.207]
HUD regulations require that the factors of eligibility and total tenant payment/family share be verified by the WHA. WHA staff will obtain written verification from independent sources whenever possible and will document tenant files whenever third-party verifications are not possible as to why third-party verification was impossible to obtain.
Applicants and program participants must provide true and complete information to the WHA whenever information is requested. The WHA's verification requirements are designed to maintain program integrity. This article explains the WHA's procedures and standards for verification of preferences, income, assets, allowable deductions, family status, and changes in family composition. The WHA will obtain proper authorization from the family before requesting information from independent sources.
The WHA will allow four weeks for return of third-party verifications and four weeks to obtain other types of verifications before going to the next method. The WHA will document the file as to why third-party written verification was not used.
For applicants, verifications may not be more than 60 days old at the time of voucher issuance. For participants, they are valid for 120 days from date of receipt.
Methods of verification.
Third-party written verification.
Third-party verification is used to verify information directly with the source. Third-party written verification forms will be sent and returned via first class mail. The family will be required to sign an authorization for the information source to release the specified information.
Verifications received electronically directly from the source are considered third-party written verifications.
The WHA will send requests for third-party written verifications to the source at all times regardless of whether the family provides a computerized printout.
Third-party oral verification. Oral third-party verification will be used when written third-party verification is delayed or not possible. When third-party oral verification is used, staff will be required to complete a person-contacted verification form, noting with whom they spoke, the date of the conversation, and the facts provided. If provided by telephone, the WHA must originate the call.
Review of documents.
In the event that third-party written or oral verification is unavailable, or the information has not been verified by the third party within four weeks, the WHA will annotate the file accordingly and utilize documents provided by the family as the primary source if the documents provide complete information.
All such documents, excluding government checks, will be photocopied and retained in the applicant file. In cases where documents are viewed which cannot be photocopied, staff viewing the document will complete a person-contacted verification form.
The WHA will accept faxed documents and photocopies.
If third-party verification is received after documents have been accepted as provisional verification, and there is a discrepancy, the WHA will utilize the third-party verification.
The WHA will not delay the processing of an application beyond five days because a third-party information provider does not return the verification in a timely manner.
Adult family members will be required to sign the HUD 9886 Release of Information/Privacy Act Form. In addition, family members will be required to sign specific authorization forms when information is needed that is not covered by the HUD Form 9886, Authorization for Release of Information/Privacy Act Notice.
Each member requested to consent to the release of specific information will be provided with a copy of the appropriate forms for his/her review and signature.
Family refusal to cooperate with the HUD-prescribed verification system will result in denial of admission or termination of assistance, because it is a family obligation to supply any information and to sign consent forms requested by the WHA or HUD.
For some time, HUD has conducted a computer-matching initiative to independently verify resident income. HUD can access income information and compare it to information submitted by PHAs on the 50058 Form. HUD can disclose social security information to PHAs, but is precluded by law from disclosing federal tax return data to PHAs. If HUD receives information from federal tax return data indicating a discrepancy in the income reported by the family, HUD will notify the family of the discrepancy. The family is required to disclose this information to the PHA (24 CFR 5.240). HUD's letter to the family will also notify the family that HUD has notified the PHA in writing that the family has been advised to contact the PHA. HUD will send the PHA a list of families who have received "income discrepancy" letters.
When the WHA receives notification from HUD that a family has been sent an "income discrepancy" letter, the WHA will:
Wait 40 days after the date of notification before contacting tenant.
After 40 days following the date of notification, the WHA will contact the tenant by telephone asking the family to promptly furnish any letter or other notice by HUD concerning the amount or verification of family income.
The WHA will fully document the contact in the tenant's file, including written documentation of phone call.
When the family provides the required information, the WHA will verify the accuracy of the income information received from the family, review the WHA's interim recertification policy, will identify unreported income, will charge retroactive rent as appropriate, and change the amount of rent or terminate assistance, as appropriate, based on the information.
If tenant fails to respond to WHA:
If the tenant claims a letter from HUD was not received:
The WHA will ask HUD to send a second letter with a verified address for the tenant.
After 40 days, the WHA will contact the tenant family.
If the tenant family still claims it has not received a letter, the WHA will ask HUD to send a third letter.
After an additional 40 days, the WHA will set up a meeting with the family to complete IRS Forms 4506 and 8821.
If the tenant family fails to meet with the WHA or will not sign the IRS forms, the WHA will send a warning letter to the head of household, notifying the family that termination proceedings will begin within one week if the tenant family fails to meet with the WHA and/or sign forms.
If tenant does receive a discrepancy letter from HUD:
The WHA will set up a meeting with the family.
If the family fails to attend the meeting, the WHA will reschedule the meeting.
If the family fails to attend the second meeting, the WHA will send a termination warning.
The family must bring the original HUD discrepancy letter to the WHA.
If tenant disagrees with the federal tax data contained in the HUD discrepancy letter:
All income not specifically excluded by the regulations.
Full-time student status including high school students who are 18 or over.
Current assets, including assets disposed of for less than fair market value in preceding two years.
Child-care expense where it allows an adult family member to be employed or to actively seek work or to further his/her education.
Total medical expenses of all family members in households whose head or spouse is elderly or disabled.
Disability assistance expenses to include only those costs associated with attendant care or auxiliary apparatus for a disabled member of the family, which allow an adult family member to be employed.
Disability for determination of preferences, allowances or deductions.
U.S. citizenship/eligible immigrant status.
Social security numbers for all family members over six years of age or older who have been issued a social security number.
"Preference" status.
Familial status when needed for head or spouse definition.
Verification of reduction in benefits for noncompliance. The WHA will obtain written verification from the welfare agency stating that the family's benefits have been reduced for fraud or noncompliance before denying the family's request for rent reduction.
This section defines the methods the WHA will use to verify various types of income.
Employment income.
Acceptable methods of verification include, in this order:
Employment verification form completed by the employer.
Check stubs or earning statements, which indicate the employee's gross pay, frequency of pay or year-to-date earnings.
W-2 forms plus income tax return forms.
Self-certifications or income tax returns signed by the family may be used for verifying self-employment income or income from tips and other gratuities.
Applicants and program participants may be requested to sign an authorization for release of information from the Internal Revenue Service for further verification of income.
Where doubt regarding income exists, a referral to IRS for confirmation will be made on a case-by-case basis.
Social security, pensions, supplementary security income (SSI), disability income. Acceptable methods of verification include, in this order:
Welfare payments or general assistance. Acceptable methods of verification include, in this order:
Alimony or child support payments.
Acceptable methods of verification include, in this order:
Copy of a separation or settlement agreement or a divorce decree stating amount and type of support and payment schedules.
A notarized letter from the person paying the support.
Copy of latest check and/or payment stubs from court trustee. WHA must record the date, amount, and number of the check.
Family's self-certification of amount received and of the likelihood of support payments being received in the future or that support payments are not being received.
Net income from a business.
In order to verify the net income from a business, the WHA will view IRS and financial documents from prior years and use this information to anticipate the income for the next 12 months.
Acceptable methods of verification include:
IRS Form 1040, including Schedule C (Small Business), Schedule E (Rental Property Income), Schedule F (Farm Income) If accelerated depreciation was used on the tax return or financial statement, an accountant's calculation of depreciation expense, computed using straight-line depreciation rules.
Audited or unaudited financial statement(s) of the business.
Documents such as manifests, appointment books, cash books, bank statements, and receipts will be used as a guide for the prior six months (or lesser period if not in business for six months) to project income for the next 12 months. The family will be advised to maintain these documents in the future if they are not available.
Family's self-certification as to net income realized from the business during previous years.
Zero-income status.
Families claiming to have no income will be required to execute verification forms to determine that forms of income such as unemployment benefits, TANF, SSI, etc., are not being received by the household.
The WHA will request information from the appropriate state departments.
The WHA will run a credit report on all adult applicants.
Savings account interest income and dividends. Acceptable methods of verification include, in this order:
Account statements, passbooks, certificates of deposit, or WHA verification forms completed by the financial institution.
Broker's statements showing value of stocks or bonds and the earnings credited the family. Earnings can be obtained from current newspaper quotations or oral broker's verification.
IRS Form 1099 from the financial institution, provided that the WHA must adjust the information to project earnings expected for the next 12 months.
Interest income from mortgages or similar arrangements. Acceptable methods of verification include, in this order:
A letter from an accountant, attorney, real estate broker, the buyer, or a financial institution stating interest due for next 12 months. (A copy of the check paid by the buyer to the family is not sufficient unless a breakdown of interest and principal is shown.)
Amortization schedule showing interest for the 12 months following the effective date of the certification or recertification.
Net rental income from property owned by family. Acceptable methods of verification include, in this order:
IRS Form 1040 with Schedule E (Rental Income).
Copies of latest rent receipts, leases, or other documentation of rent amounts.
Documentation of allowable operating expenses of the property: tax statements, insurance invoices, bills for reasonable maintenance and utilities, and bank statements or amortization schedules showing monthly interest expense.
Lessee's written statement verifying rent payments to the family and family's self-certification as to net income realized.
Family assets.
The WHA will require the information necessary to determine the current cash value of the family's assets (the net amount the family would receive if the asset were converted to cash).
Acceptable verification may include any of the following:
Verification forms, letters, or documents from a financial institution or broker.
Passbooks, checking account statements, certificates of deposit, bonds, or financial statements completed by a financial institution or broker.
Quotes from a stock broker or realty agent as to net amount family would receive if they liquidated securities or real estate.
Real estate tax statements if the approximate current market value can be deduced from assessment.
Financial statements for business assets.
Copies of closing documents showing the selling price and the distribution of the sales proceeds.
Appraisals of personal property held as an investment.
Family's self-certification describing assets or cash held at the family's home or in safe deposit boxes.
Assets disposed of for less than fair market value (FMV) during two years preceding effective date of certification or recertification.
For all certifications and recertifications, the WHA will obtain the family's certification as to whether any member has disposed of assets for less than fair market value during the two years preceding the effective date of the certification or recertification.
If the family certifies that they have disposed of assets for less than fair market value, certification is required that shows: a) all assets disposed of for less than FMV; b) the date they were disposed of; c) the amount the family received; and d) the market value of the assets at the time of disposition. Third-party verification will be obtained wherever possible.
Child-care expenses.
Written verification from the person who receives the payments is required. If the child-care provider is an individual, he/she must provide a statement of the amount he/she is charging the family for his/her services.
Verifications must specify the child-care provider's name, address, telephone number, social security number, the names of the children cared for, the number of hours the child care occurs, the rate of pay, and the typical yearly amount paid, including school and vacation periods.
Family's certification as to whether any of those payments have been or will be paid or reimbursed by outside sources.
Medical expenses. Families who claim medical expenses will be required to submit a certification as to whether or not any expense payments have been or will be reimbursed by an outside source. All expense claims will be verified by one or more of the methods listed below:
Written verification by a doctor, hospital or clinic personnel, dentist, pharmacist, of: a) the anticipated medical costs to be incurred by the family and regular payments due on medical bills; and b) extent to which those expenses will be reimbursed by insurance or a government agency.
Written confirmation by the insurance company or employer of health insurance premiums to be paid by the family.
Written confirmation from the Social Security Administration of medicare premiums to be paid by the family over the next 12 months. A computer printout will be accepted.
For attendant care:
A reliable, knowledgeable professional's certification that the assistance of an attendant is necessary as a medical expense and a projection of the number of hours the care is needed for calculation purposes.
Attendant's written confirmation of hours of care provided and amount and frequency of payments received from the family or agency (or copies of canceled checks the family used to make those payments) or stubs from the agency providing the services.
Receipts, canceled checks, or pay stubs that verify medical costs and insurance expenses likely to be incurred in the next 12 months.
Copies of payment agreements or most recent invoices that verify payments made on outstanding medical bills that will continue over all or part of the next 12 months.
Receipts or other record of medical expenses incurred during the past 12 months that can be used to anticipate future medical expenses. WHA may use this approach for "general medical expenses" such as nonprescription drugs and regular visits to doctors or dentists, but not for one-time, nonrecurring expenses from the previous year.
The WHA will use mileage at the IRS rate, or cab, bus fare, or other public transportation cost for verification of the cost of transportation directly related to medical treatment.
Assistance to persons with disabilities [24 CFR 5.611(c)].
In all cases:
Written certification from a reliable, knowledgeable professional that the person with disabilities requires the services of an attendant and/or the use of auxiliary apparatus to permit him/her to be employed or to function sufficiently independently to enable another family member to be employed.
Family's certification as to whether they receive reimbursement for any of the expenses of disability assistance and the amount of any reimbursement received.
Verification of legal identity.
In order to prevent program abuse, the WHA will require applicants to furnish verification of legal identity for all family members.
The documents listed below will be considered acceptable verification of legal identity for adults. If a document submitted by a family is illegible or otherwise questionable, more than one of these documents may be required.
Verification of permanent absence of family member. If an adult member who was formerly a member of the household is reported permanently absent by the family, the WHA will consider any of the following as verification:
Husband or wife institutes divorce action.
Husband or wife institutes legal separation.
Order of protection/restraining order obtained by one family member against another.
Proof of another home address, such as utility bills, canceled checks for rent, driver's license, or lease or rental agreement, if available.
Statements from other agencies such as social services or a written statement from the landlord or manager that the adult family member is no longer living at that location.
If the adult family member is incarcerated, a document from the court or correctional facility should be obtained stating how long he/she will be incarcerated.
If no other proof can be provided, the WHA will accept a self-certification from the head of household, or the spouse or co-head if the head is the absent member.
Verification of change in family composition. The WHA may verify changes in family composition (either reported or unreported) through utility records, landlords, and other sources.
Verification of disability. Verification of disability must be receipt of SSI or SSA disability payments under Section 223 of the Social Security Act or § 102(7) of the Developmental Disabilities Assistance and Bill of Rights Act [42 U.S.C. § 6001(7)] or verified by appropriate diagnostician such as physician, psychiatrist or psychologist, using the HUD language as the verification format.
Verification of citizenship/eligible immigrant status [24 CFR 5.508, 5.510, 5.512, 5.514]. To be eligible for assistance, individuals must be U.S. citizens or eligible immigrants. Individuals who are neither may elect not to contend their status. Eligible immigrants must fall into one of the categories specified by the regulations and must have their status verified by Immigration and Naturalization Service (INS). Each family member must declare his/her status once. Assistance cannot be delayed, denied or terminated while verification of status is pending, except that assistance to applicants may be delayed while the WHA hearing is pending.
Citizens or nationals of the United States are required to sign a declaration under penalty of perjury.
The WHA will require citizens to provide documentation of citizenship.
Eligible immigrants aged 62 or over are required to sign a declaration of eligible immigration status and provide proof of age.
Noncitizens with eligible immigration status must sign a declaration of status and verification consent form and provide their original immigration documents, which are copied front and back and returned to the family. The WHA verifies the status through the INS SAVE system. If this primary verification fails to verify status, the WHA must request within 10 days that the INS conduct a manual search.
Ineligible family members who do not claim to be citizens or eligible immigrants must be listed on a statement of ineligible family members signed by the head of household or spouse.
Noncitizen students on student visas are ineligible members even though they are in the country lawfully. They must provide their student visa, but their status will not be verified and they do not sign a declaration but are listed on the statement of ineligible members.
Failure to provide. If an applicant or participant family member fails to sign required declarations and consent forms or provide documents, as required, he/she must be listed as an ineligible member. If the entire family fails to provide and sign as required, the family may be denied or terminated for failure to provide required information.
Time of verification. For applicants, verification of U.S. citizenship/eligible immigrant status occurs at the time of initial application. In the case of port-in families, the WHA will review the initial PHA's verification documents or conduct the verification if necessary.
Extensions of time to provide documents. The WHA will grant an extension of 15 days for families to submit evidence of eligible immigrant status.
Acceptable documents of eligible immigration.
The regulations stipulate that only the following documents are acceptable unless changes are published in the Federal Register.
Resident Alien Card (I-551).
Alien Registration Receipt Card (I-151).
Arrival-Departure Record (I-94).
Temporary Resident Card (I-688).
Employment Authorization Card (I-688B).
Receipt issued by the INS for issuance of replacement of any of the above documents that shows individual's entitlement has been verified.
A birth certificate is not acceptable verification of status. All documents in connection with U.S. citizenship/eligible immigrant status must be kept five years.
The WHA will verify the eligibility of a family member at any time such eligibility is in question, without regard to the position of the family on the waiting list.
If the WHA determines that a family member has knowingly permitted another individual who is not eligible for assistance to reside permanently in the family's unit, the family's assistance will be terminated for 60 months, unless the ineligible individual has already been considered in prorating the family's assistance.
Verification of social security numbers [24 CFR 5.216].
Social security numbers must be provided as a condition of eligibility for all family members age six and over if they have been issued a number. Verification of social security numbers will be done through a social security card issued by the Social Security Administration. If a family member cannot produce a social security card, only the documents listed below showing his or her social security number may be used for verification. The family is also required to certify in writing that the document(s) submitted in lieu of the social security card information provided is/are complete and accurate:
A driver's license.
Identification card issued by a federal, state or local agency.
Identification card issued by a medical insurance company or provider (including medicare and medicaid).
An identification card issued by an employer or trade union.
An identification card issued by a medical insurance company.
Earnings statements or payroll stubs.
Bank statements.
IRS Form 1099.
Benefit award letters from government agencies.
Retirement benefit letter.
Life insurance policies.
Court records such as real estate, tax notices, marriage and divorce, judgment or bankruptcy records.
Verification of benefits or social security number from Social Security Administration.
New family members ages six and older will be required to produce their social security card or provide the substitute documentation described above, together with their certification that the substitute information provided is complete and accurate. This information is to be provided at the time the change in family composition is reported to the WHA.
If an applicant or participant is able to disclose the social security number but cannot meet the documentation requirements, the applicant or participant must sign a certification to that effect provided by the WHA. The applicant/participant or family member will have an additional 15 days to provide proof of the social security number. If he/she fails to provide this documentation, the family's assistance will be terminated.
In the case of an individual at least 62 years of age, the WHA may grant an extension for an additional 60 days to a total of 120 days. If, at the end of this time, the elderly individual has not provided documentation, the family's assistance will be terminated.
If the family member states they have not been issued a number, the family member will be required to sign a certification to this effect.
Medical need for larger unit. A written certification that a larger unit is necessary must be obtained from a reliable, knowledgeable professional.
Local preferences.
Self-sufficiency.
Current enrollment in or recent graduate (less than 12 months) of job readiness, job training, or educational program: written verification from program administrator.
Working: statement from the employer.
Elderly or disabled: proof of birth date, award letter, other proof of eligibility for social security disability or supplemental security income.
Participation in national service program: proof of acceptance from program administrator.
Displacement.
Families who claim they are being or have been displaced due to either a disaster or government action: written verification by the displacing unit or agency of government or by a service agency such as the Red Cross.
Displacement due to severe medical emergency: medical documentation from primary care physician.
Displacement by inaccessibility of unit: verification of mobility impairment and site visit by WHA to verify inaccessibility of critical elements.
Domestic violence (within the past 12 months): restraining order or evidence of shelter stay.
Homelessness: written certification by a public or private facility providing shelter, the police or a social services agency.
Displacement to avoid hate crimes or reprisals for providing information to assist police in a criminal investigation: certification of hate crime or threat assessment from law enforcement agency.
Displacement due to actions taken by the owner of the unit the family is renting: written verification from owner of the action.
