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					Updates to the MOR Process
Updates to the MOR Process
HUD Notices 10-08 & 10-10 (EIV)
Providing Social Security Numbers
Applicants currently on or applying to waiting list

 Applicants do not need to disclose or provide
  verification of a SSN for all non-exempt
  household members at the time of application
  and for placement on the waiting list.
 However, applicants must disclose and
  provide verification of a SSN for all non-
  exempt household members before they can
  be housed.
Providing Social Security Numbers
 If all non-exempt household members have
  not disclosed and/or provided verification of
  their SSNs at the time a unit becomes
  available, the next eligible applicant must be
  offered the available unit.
Providing Social Security Numbers
 The applicant who has not disclosed and/or
  provided verification of SSNs for all non-
  exempt household members has 90 days
  from the date they are first offered an
  available unit to disclose and/or verify the
  SSNs.
 After 90 days, if the applicant is unable to
  disclose and/or verify the SSNs of all non-
  exempt household members, the applicant
  should be determined ineligible and removed
  from the waiting list.
   Actions Once SSN is Verified
 Once the individual’s SSN has been verified
  through EIV, the O/A should remove and
  destroy the copy of the documentation by no
  later than the next recertification of family
  income or composition.
Penalties for Non-disclosure of SSN
 Termination of Tenancy – O/As must terminate
  the tenancy of a tenant and the tenant’s
  household if the tenant does not meet the
  SSN disclosure, documentation and
  verification requirements in the specified
  timeframe as the household is in non-
  compliance with its lease.
Notification of Regulation Changes
  Change in the SSN Disclosure and Verification
  Requirements
Applicants
 O/As must contact applicants currently on the waiting
  list notifying them of the change in SSN requirements
  and that they will have to disclose and provide
  verification of SSNs for all non-exempt household
  members before they can be admitted.
   Notification of Regulation Changes
  Change in the SSN Disclosure and Verification
  Requirements
Tenants
 Notice must be given to the head of household indicating
  SSN documentation must be brought to the recertification
  meeting for all household members. who have:
   1. Not disclosed their SSN;
   2. Previously disclosed a SSN that HUD or the SSA
      determined was invalid; or
   3. Been issued a new SSN.
   Notification of Regulation Changes
  Change in the SSN Disclosure and Verification
  Requirements
Tenants
 Notice must be given to all tenants indicating the change
  in SSN requirements when adding a new household
  member

 Ensure that these requirements are provided in a
  translated form to individuals with limited English
  proficiency.
      Penalties For Not Having Access
 Submitted Hard copy CAAF before Dec 15, 2009
    Electronic copy and property assignment prior to Jan
     15, 2010

 No Penalty if……
     OA is able to provide to Reviewers:
      o   Initial Hardcopy CAAF
      o   Online CAAF
      o   Show follow up with Multifamily help desk
      o   Begin implementing EIV immediately upon receiving access.
            Not Having Access
 Penalties for not having access will be discussed
  by Paul later in this workshop.
HUD Notices 10-08 & 10-10 (EIV)
     Updating O/A Requirements
1. Tenant Selection Plan
    O/As must use the Existing Tenant Search in EIV
     as part of their screening criteria for new tenants
     and must include written policies for using the
     search in their Tenant Selection Plan.
2. Policies and Procedures
    O/As must have written policies and procedures for
     staff to follow for using the EIV Income Report as
     third party verification of employment and income
     and for using the other EIV reports, e.g., Income
     Discrepancy Report and the EIV Verification
     Reports.
   Updating O/A Requirements
 O/A Policies and Procedures should include:
    When and How information will be used -
     reports
    Gaining/Terminating access to EIV
    Document Retention Policy
    Security of EIV information
    Access to files, computers, location of
     information
    Security Awareness Training
                  Question??
 What will CAHI do when reviewing an OA’s written
  Policies and Procedures and TSP?

     Verify information contained in Policies and
      Procedures match HUD notice 10-10
     TSP contains use of Existing Tenant Search
     Social Security Number Requirement
                 Question??
 What is the process if the reviewer determines the
  TSP or the OA’s Policies and Procedures are not
  compliant with HUD guidance?

 Recommended by T&C:
    Note on MOR report
    Certify information will be updated to meet most
     recent HUD guidance (HUD Notice 10-10) to be
     reviewed at next MOR.
    What is your actual/current practice?
Consent for the Release of Information
 Applicants
  The form HUD-9887 signed by the applicant and each
   applicant family member 18 years of age and older
   does not need to be on file in order to use the Existing
   Tenant Search in EIV at the time of application
   processing and tenant screening.
Consent for the Release of Information
 Tenants
  A current form HUD-9887 must be on file before
   accessing the employment or income data contained
   in EIV for a tenant.

  The form must be signed and dated by:
     Each adult member of a household regardless of
      whether he or she has income.
     A family member when he/she turns 18.
Consent for the Release of Information
 Tenants
  EIV data of an adult household member may not be
   shared (or a copy provided or displayed) with another
   adult household member or to a person assisting the
   tenant with the recertification process, unless the
   individual has provided written consent to disclose
   such information.
Consent for the Release of Information
 Tenants
  However, the O/A is not prohibited from discussing
   with the head of household and showing the head of
   household how the household’s income and rent were
   determined based on the total income reported and
   verified.
Consent for the Release of Information
 Tenants & Applicants
  New with HUD Notice 10-10: O/A does not need to
   have a signed 9887 when accessing ANY of the
   verification reports in EIV
     Multiple Subsidy
     EIV Pre-screening
     Failed Verification
     Existing Tenant Search
     Deceased Tenant Report
Tenant Notification of Recertification
 Having the necessary documentation available at the
  time of the recertification interview will save time in
  completing the recertification process.

 In addition, asking the right questions at the time of
  the interview will ensure that the correct information
  has been provided and will assist in reducing errors in
  income and rent determinations.
HUD Notices 10-08 & 10-10 (EIV)
EIV Reports
         USING EIV REPORTS
O/As must use the:

 EIV Income Report as a third party source to verify a
  tenant’s employment and income during mandatory
  recertifications (annual and interim) of family
  composition and income
         USING EIV REPORTS
O/As must use the:

 Other EIV income reports (Income Discrepancy
  Report, New Hires Report and No Income Report) to
  identify issues or discrepancies which may impact a
  family’s assistance
         USING EIV REPORTS
O/As must use the:

 EIV Verification Reports (Existing Tenant Search,
  Multiple Subsidy Report, Identity Verification Reports,
  and Deceased Tenants Report) that further assist in
  reducing subsidy payment errors.
               Income Reports
 When selecting the Income Report for an individual
  tenant, either from the list of tenants for a particular
  project and/or contract or by querying by the head of
  household’s SSN, the Owner/Agent has three reports
  that must be used at the time of recertification (annual
  and interim).
               Income Reports
 When selecting the Income Report for an individual
  tenant, either from the list of tenants for a particular
  project and/or contract or by querying by the head of
  household’s SSN, there are three reports that must be
  used at the time of recertification (annual and interim).
    Summary
    Income Report
    Income Discrepancy Report
              Summary Report
 This report provides a summary of information taken
  from the current, active certifications contained in the
  TRACS file at the time of the income match. It also
  provides the Identity Verification Status for each
  household member.
                 Summary Report
There are four verification statuses identified:
1. Verified – personal identifiers (last name, DOB, SSN)
   match the SSA database.
2. Failed – personal identifiers do not match the SSA
   database.
3. Not Verified – personal identifiers have not yet been
   sent by HUD to SSA for validation or the validation is in
   process by SSA.
4. Deceased – SSA’s records indicate the person is
   deceased.
Summary Report
              Summary Report
O/As must use this report:
 At the time of recertification to review and resolve the
  status of any household member(s) with a ―failed‖ or
  ―deceased‖ status.

 As verification that a tenant’s SSN has been ―Verified‖
  by SSA as being a valid SSN.
              Summary Report
O/As must retain in the tenant file:

 The Summary Report(s) as verification of the SSN for
  all household members whose Identity Verification
  Status is ―Verified‖.
 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 O/A
  is not required to continually print at recertification
             Summary Report
O/As must retain in the tenant file:

 Any correspondence or documentation received to
  resolve the ―Failed‖ or ―Deceased‖ status.

 Documentation for household members not required
  to disclose and provide verification of a SSN:

 No follow up is required at the time of
  recertification when the status is “Not Verified”
                 Summary Report
 To minimize the risk of exposing a tenant’s SSN, O/As
  may remove and destroy, at the time of recertification,
  copies of verification documentation received from the
  tenant at the time of disclosure of 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.
 O/As must not include the full nine-digit SSN for a tenant
  in emails or other electronic communications.
                   Income Report
There have been few substantial changes from HUD notice
  09-20.

 HUD has listed a clarification of the document retention
  requirements to demonstrate the O/A’s compliance with
  mandated use of EIV.

 HUD has provided new guidance on new applicants.
 Income Report—Documents Retained
 No Dispute of EIV Information: EIV Income Report,
  current acceptable tenant-provided documentation, and,
  if necessary (as determined by the O/A), third party
  verification from the source.
 Disputed EIV Information: EIV Income Report and 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.
                New Admissions
For all new admissions, the O/A must:

 Review the Income Report within 90 days after
  transmission of the move-in certification to TRACS to
  confirm/validate the income reported by the household.
                 New Admissions
For all new admissions, the O/A must:

 Resolve any income discrepancies with the household
  within 30 days of the Income Report date.

 Print and retain the Income Report in the tenant file along
  with any documentation received to resolve income
  discrepancies, if applicable.
         Income Discrepancy Report
O/As must:
 Print the Income Discrepancy Report at the same time as
  the Income Report, at annual and interim recertification
  or at other times as indicated in their policies and
  procedures.

 It is important that the Income Discrepancy Report be
  printed at the same time as the Income Report as each
  week a completely new report is generated based on the
  current information in the system for a tenant.
         Income Discrepancy Report
O/As must:
 Review and resolve any discrepancies in income
  reported on the Income Discrepancy Report with the
  household at the time of recertification or within 30 days
  of the EIV Income Report date.

 Any unreporting, underreporting or over-reporting of
  income by the tenant and reported on current or historical
  form HUD-50059s must be identified.
         Income Discrepancy Report
O/As must:
 Retain the Income Discrepancy Report along with
  detailed information on the resolution of the reported
  discrepancy in the tenant file.

 This includes information on resolution of the discrepancy
  regardless of whether the discrepancy was found to be
  valid or invalid.
       Income Discrepancy Report
O/As must:
 Make sure that the information in TRACS agrees with the
  information on the form HUD-50059 in the tenant’s file.
  Any discrepant information must be corrected in the
  TRACS database.
                 Other EIV Reports
 O/As must retain a “Master” file that contains a copy of
  the report and documentation and/or notations as
  indicated in the report discussions below.

 Any detail reports retained in a tenant’s file must contain
  information for members of that tenant’s household only.
  Many of the reports do not have page breaks between
  households, therefore, O/As will need to separate the
  reports by household by cutting the reports apart until
  page breaks are inserted in the EIV system.
                No Income Report
 No changes from HUD notice 09-20

 O/As must use this report only as identified and
  described in their policies and procedures.

 O/As are not required to retain copies of this report.

 It is recommended that O/As have a policy to re-verify the
  status of tenants reporting zero income at least quarterly.
                New Hires Report
 O/As must use this report at least quarterly to
  determine if any of their tenants have started new
  employment whereby the tenant has not reported a
  change in income to the O/A between recertifications
  and/or the new employment was not reported at the time
  of recertification.
                New Hires Report
 O/As must reach out to their tenants to report the income
  changes so that rent adjustments can be made in a
  timely manner, thus eliminating/reducing the amount of
  retroactive rent repayments.
                New Hires Report
O/As must:

 Contact the tenant regarding his/her new employment.

 Confirm with the tenant that they have a new job and that
  the employment information in EIV is correct.
                  New Hires Report
O/As must:

 If the tenant agrees that the employment information in EIV
  is correct, request the tenant provide documents, to
  determine the tenant’s income or, if necessary, request third
  party verification from the employer.

 If the tenant disputes the employment information in EIV,
  the O/A must obtain third party verification from the
  employer.
                 New Hires Report
O/As must:

 Retain the New Hires Summary Report in a master
  “New Hires Report” file along with notations as to the
  outcome of the contact with the tenant.

 A copy of the New Hires Detail Report for the tenant along
  with any correspondence with the tenant, third party
  verifications, etc. must be retained in the tenant file.
              Existing Tenant Search
O/As must:

 Use this report at the time they are processing an
  applicant for admission.

 Discuss with the applicant if the report identifies that the
  applicant or a member of the applicant’s household is
  residing at another location, giving the applicant the
  opportunity to explain any circumstances relative to his/her
  being assisted at another location.
              Existing Tenant Search
O/As must:

 Follow up with the respective PHA or O/A to confirm the
  individual’s program participation status before admission, if
  necessary.

 Retain the search results with the application along with
  any documentation obtained as a result of contacts with the
  applicant and the PHA and/or O/A at the other location.
             Multiple Subsidy Report
O/As must:

 Use the Multiple Subsidy Report at least quarterly to
  identify any tenants who are being assisted at another
  location. O/As must follow up with tenants identified on the
  report where the discrepancy was not identified and
  resolved at the time of recertification.
             Multiple Subsidy Report
O/As must:

 Perform both of the search options shown below to
  determine if possible multiple subsidies exist:
   Search within MF
   Search within PIH
             Multiple Subsidy Report
O/As must:

 Discuss with the tenant if the results of either of the
  searches shows that a tenant is being assisted at another
  location.

 The tenant must be given the opportunity to explain any
  circumstances relative to his/her being assisted at another
  location.
             Multiple Subsidy Report
O/As must:

 Follow up with the respective PHA or O/A, if necessary, to
  confirm that the tenant is being assisted at the other
  location.

 Depending on the results of this investigation, the O/A may
  need to take action to terminate the tenant’s assistance or
  tenancy.
             Multiple Subsidy Report
O/As must:

 Print out and retain a copy of the Multiple Subsidy
  Summary Report in a master “Multiple Subsidy Report”
  file along with notations as to the outcome of contacts
  with the tenant and/or PHA or owner
             Multiple Subsidy Report
O/As must:

 A copy of the Multiple Subsidy Detail Report for the tenant
  plus any documentation supporting any contacts made or
  information obtained to determine if a household and/or
  household member is receiving multiple subsidies as well
  as documentation to support any action taken if a
  household and/or a household member is receiving multiple
  subsidies must be retained in the tenant file.
      Failed EIV Pre-Screening Report
O/As must:

 Use this report monthly to identify tenants that did not pass
  the pre-screening test and the reason(s) they did not pass
  so that the errors can be corrected.

 Print and retain a copy of the report in a master “Failed
  EIV Pre-screening Report” file. The report must be
  documented with action taken to resolve invalid or
  discrepant personal identifiers.
             Failed Verification Report
O/As must:

 Use this report monthly to identify tenants that did not pass
  the pre-screening test and the reason(s) they did not pass
  so that the errors can be corrected.

 Print and retain a copy of the report in a master “Failed
  the SSA Identity Test” file. The report must be
  documented with action taken to resolve invalid or
  discrepant personal identifiers.
            Deceased Tenants Report
O/As must:

 Use this report at least quarterly to identify those tenants
  reported by SSA as being deceased.

 Confirm, in writing, with the head-of-household, next of kin
  or emergency contact person or entity provided by the
  tenant whether or not the person is deceased.
           Deceased Tenants Report
O/As must:

 Print and retain a copy of the report in a master
  “Deceased Tenants Report” file. The report must be
  documented with action taken to resolve any discrepancies.

 All correspondence or action taken for a particular tenant
  must be retained in the tenant file.
HUD Notices 10-08 & 10-10 (EIV)
             Repayment Agreement
Monthly Payment

 The tenant’s monthly payment must be what the tenant can
  afford to pay based on the family’s income.

 The monthly payment plus the amount of the tenant’s total
  tenant payment (TTP) at the time the repayment
  agreement is executed should not exceed 40 percent of the
  family’s monthly adjusted income.
             Repayment Agreement
New repayment agreements must:

 Include the total retroactive rent amount owed, the amount
  of lump sum paid at time of execution of the agreement, if
  applicable, and the monthly payment amount.

 Reference the paragraphs in the lease whereby the tenant
  is in non-compliance and may be subject to termination of
  their lease.
              Repayment Agreement
New repayment agreements must:

 Contain a clause whereby the terms of the agreement will
  be renegotiated if there is a decrease or increase in the
  family’s income of $200 or more per month.

 Include a statement that the monthly retroactive rent
  repayment amount is in addition to the family’s monthly rent
  payment and is payable to the O/A.
              Repayment Agreement
New repayment agreements must:

 Indicate that late and missed payments constitute default of
  the repayment agreement and may result in termination of
  assistance and/or tenancy.

 Be signed and dated by the tenant and the O/A.
HUD Notices 10-08 & 10-10 (EIV)
      RETENTION OF EIV REPORTS
O/As must retain:

 The Income Report, the Summary Report(s) showing
  Identity Verification Status as ―Verified‖ and the Income
  Discrepancy Report(s) and supporting documentation must
  be retained in the tenant file for the term of tenancy plus
  three years.
      RETENTION OF EIV REPORTS
O/As must retain:

 Any tenant provided documentation, or other third party
  verification of income, received to supplement the SSA or
  NDNH data must be retained in the tenant file for the term
  of tenancy plus three years.
       RETENTION OF EIV REPORTS
O/As must retain:

 Results of the Existing Tenant Search must be retained with
  the application:
     If applicant is not admitted, the application and
      search results must be retained for three years.

     If applicant is admitted, the application and search
      results must be retained in the tenant file for the
      term of tenancy plus three years.
                      Quiz
 How many Master File Folders is an owner required
  to keep and make available to reviewers at an MOR?
 True or False: If the tenant agrees with the numbers
  on the Income report, the O/A can use these numbers
  to calculate income/TTP.
 True or False: The effective date of 10-10 is August
  1, 2010.
 An owner can/cannot use the Income Report when
  processing an IC for a former market renter.
 True or False: Only use of Income reports must be
  included in the TSP.
       RETENTION OF EIV REPORTS
O/As must retain:

 The master files for the New Hires Report, Identity
  Verification Reports, Multiple Subsidy Report and
  Deceased Tenants Report must be retained for three years.

 The files must be available for review at the time of the
  MOR
HUD Notices 10-08 & 10-10 (EIV)
            SECURITY OF EIV DATA
 Disclosure to Persons Assisting Tenants with the
 Recertification Process

 With the written consent of the tenant, EIV data may be
  shared with persons assisting the tenant with the
  recertification process.
 Tenants who require assistance during the recertification
  process may have someone present to assist them in the
  recertification process; this includes review and explanation
  of the written third party income verifications.
            SECURITY OF EIV DATA
 Disclosure to Persons Assisting Tenants with the
 Recertification Process

 Disclosure of EIV information to these parties must be
  employment or income information pertaining only to the
  tenant who has provided his/her consent.
 These parties must not have access to EIV information for
  any other household members.
         SECURITY OF EIV DATA
Parties to whom the tenant can provide written consent
include:
  Service coordinators (only if they are present at and
   assisting the tenant with the recertification process)
  Translators/Interpreters
  Individuals assisting an elderly individual or a person
   with a disability
  Guardians
  Powers of Attorney
  Other Family Members
                   Security Training
 EIV users are required to have security training annually.

 EIV users authorized by owners to have access to EIV on
  their behalf must complete the applicable online Security
  Awareness Training Questionnaire for Multifamily Housing
  Programs upon initial access to the system and annually
  thereafter.
                  Security Training
 EIV users should:

 Review Section 4 on Security contained in the Multifamily
  EIV User Manual for Multifamily Housing Program Users
 Review the EIV Security Administration Manual
 View the Security training provided during the most recent
  EIV webcast
                   Security Training
 O/A staff who do not have access to EIV but who use EIV
  reports to perform their job function must have security
  training annually.

 Security training as part of HUD’s most recent EIV webcast
  will satisfy the annual security training requirements. HUD
  will not provide certificates for completing the training. O/As
  and CAs must keep a file of who took the training and when
  for auditing purposes.
                Physical Safeguards
 EIV data stored electronically must be in a restricted access
  directory or, if placed on portable media, labeled
  appropriately and encrypted using a NIST compliant
  vendor. Similarly, all emails containing EIV data must be
  encrypted using a NIST compliant vendor.

 The full nine-digit SSN for a tenant must not be included in
  emails or other electronic communications.
             Physical Safeguards
Hardcopy EIV Data:
 EIV data that is printed out must not be left unattended.
  The documents should be retrieved as soon as they
  are printed and, if possible, use a restricted printer,
  copier, or facsimile machine.
 When faxing EIV data, ensure there is someone
  waiting and ready to retrieve the fax as soon as it is
  received (printed).
              Physical Safeguards
Computer Security:
 The EIV system is set up to time out after 30 minutes of
  inactivity. This automatic safeguard should not be the only
  security measure taken.
 Individuals who use the EIV system should use a
  password protected screensaver and lock their computer
  when leaving their workspace. A user should not leave a
  computer unattended with EIV data displayed on the
  screen.
 It is also recommended that the EIV system be exited
  using the ―X‖ at the top right of the screen which will
  remove the user from the entire WASS system.
Questions or Open Issues?
       Documents in Your Folder
 First: Summary of Additions/Updates in HUD Notice
  10-10….these may be used as criteria for conditions
  identified at an MOR.
 Second: Use of EIV Reports. Let’s review. Use this
  at an MOR to determine IF the O/A is using EIV in its
  entirety. It was taken directly from 10-10.
 Proposed MOR Procedures for EIV Use and On-Site
  Monitoring. (actually, this is a final document, but I
  am not sure CAHI has officially adopted it). Let’s
  review.
                  Topics
                  • Overview of Changes
                  • MOR Process
                  • Scoring



Understanding NEW requirements for conducting and
    scoring Management and Occupancy Reviews
            Overview of Changes
 Provides consistency with the HUD-9834, Management
  Review for Multifamily Housing Projects, which was
  revised in 2005;

 Clarifies the applicability section for the various programs
  covered under the chapter;

 Adds a new section to identify the reviewing officials
  (HUD staff, Contract Administrators, and Mortgagees)
            Overview of Changes
 Removes outdated requirements (i.e., conducting a
  physical inspection as part of the on-site management
  review process.) The revised version requires the
  reviewer to only perform follow-up activities for REAC
  inspection reports;

 Adds a section that discusses the Contract
  Administrator’s role and interrelationship with HUD staff;

 Clarifies the processes prior to the on-site review for
  notifying owners/agents;
            Overview of Changes
 Requires follow up and monitoring of inspections if
  deficiencies are noted in report issued within last 12
  months and/or if information is available requiring
  corrective action

   Review a sampling of EH&S if report was released within
    six months prior to on-site review********
   Reviewing a sampling of units and common areas to verify
    that significant REAC physical inspection report
    deficiencies have been corrected
   Reviewing and obtaining copy of lead – based paint
    certification, if applicable
           Overview of Changes
 Incorporates a discussion on the Desk Review process
 currently used in the revised HUD-9834, which occurs
 prior to the on-site review, prepares the reviewer for the
 on-site review, and reduces the burden on the
 owner/agent to provide information already available in
 HUD systems and file;

 Acknowledging that the REAC physical inspection
 process and Annual Financial Submission processes
 have been automated since the last publication and
 includes procedures based on the automated processes;
            Overview of Changes
 Incorporates lead-based paint follow-up activities;


 Outlines the frequency of reviews based on set
  timeframes and/or project actions;

 Provides guidance for communicating the on-site
  management review results to the owner/agent for
  consistency with the HUD Desk Monitoring Guide. (You
  have a copy of this document in your folders.
  Recommend you read it carefully.)
            Overview of Changes
 Provides a more detailed set of standards/rating
  descriptions to apply when assigning the performance
  indicators (Superior, Above Average, Satisfactory, Below
  Average, and Unsatisfactory) for each of the seven rated
  categories;

 Adds a section outlining the considerations when
  selecting properties for review; Incorporating actions that
  should be taken for owner/agent noncompliance issues;
           Overview of Changes
 Removes the requirement that the lowest categorical
  rating assigned to high-impact review areas serve as the
  overall rating.
 Provides a consistent overall rating calculation intended
  to eliminate major inconsistencies and variances in HUD
  field office ratings, which were previously discovered
  during national portfolio reviews;
 Places emphasis on limited reviews that should be
  performed by HUD staff for the insured/subsidized
  portfolio for projects that are also assisted by HAP
  contracts and monitored by HUD’s Contract
  Administrator;
                  Topics
                  • Overview of Changes
                  • MOR Process
                  • Scoring



Understanding NEW requirements for conducting and
    scoring Management and Occupancy Reviews
         Role of Reviewers
 Identifies the responsibilities of Reviewers and
 specifically indicates that PBCAs review properties
 for HAP compliance ONLY

 Also, the chapter discusses how HUD reviews of
 properties should not overlap or duplicate what the
 PBCA does.
          Interrelationships
 The on-site management review is designed to work
 in conjunction with other HUD reviews
   (REAC) inspections,
   Annual financial statement reviews,
   Monthly accounting report monitoring,
   Fair Housing Civil Rights Front-End and Limited
    Monitoring Reviews,
   Departmental Enforcement Center (DEC).
        Troubled Properties
 For projects that have been designated as ―troubled‖
  based on REAC physical inspection issues all reviewing
  officials should attempt to schedule the on-site review
  within three months of the REAC inspection report
  release date.*****
 How does this IMPACT our processes?
         Troubled Properties
DEC Status and Troubled Properties
 Per 4350.1 Chapter 6 Effective 8/1/2010:


 “PBCA’s should verify DEC status to determine whether
 to conduct the review and contact the local HUD Office
 for scheduling guidance.”
          Owner Notification
 The reviewing official is responsible for contacting the
  owner/agent to schedule a date for the on-site review.
  Once the on-site review is scheduled, the reviewing
  official must confirm the scheduled review with the
  owner/agent in writing at least two weeks in advance.

 The reviewing official must also notify the owner/agent of
  the documents that must be available the day of the
  review, as indicated on Addendum C of form HUD-9834,
      Owner Responsibilities
 The reviewing official forwards Part A, Sections I, II, and
  III of the checklist for On-Site Limited Monitoring and
  Section 504 Reviews (Addendum B) of HUD- 9834 to the
  owner/agent for completion prior to the on-site
  management review.

 Owners are required to have these documents completed
  and available to reviewers when they arrive.
              Desk Review
 The Desk Review section of form HUD-9834 consists
 of questions used to prepare the reviewing official for
 the on-site review and must be completed prior to
 conducting the on-site review.
               Desk Review
 Although the questions in Part I, Desk Review, are not
 rated, they are used to assist the reviewing official in
 preparing for the on-site review and can impact the rating
 if ongoing non-compliance items are identified.

 It is important that the reviewer fully complete Part 1,
 Desk Review prior to going on site as this will provide the
 appropriate background needed to do a thorough review
 of the site.
                Desk Review
 To complete the Desk Review section, the reviewing
 official will need to review:
   The project files
   System reports, and other documents and data that
    pertain to the project under review
   Reviewing the last REAC physical inspection
   (iREMS) screens to verify the accuracy of the
    Ownership and Management information
   Researching the iREMS Problem Statement screens
    to obtain additional background information
                  On-Site
 The  reviewer must complete the appropriate
 sections of Part II, On-site Review, of form HUD-
 9834.

 Completing  this section requires an interview
 approach with the owner/agent; therefore, the form
 should not be provided to the owner/agent for
 completion prior to or during the on-site review.
                     On-Site
 For subsidized projects, reviewers must
  complete:
   Addendum A -Tenant File Review Worksheet;
   Addendum B - Checklist for On-Site Limited
    Monitoring and Section 504 Reviews All reviewing
    officials should notate “N/A” for questions that are not
    relevant to the program under review.
   Addendum C - Documents To Be Made Available By
    Owner/Agent.
   Follow-Up on Inspections
 The on-site review also requires follow-up and
  monitoring of inspections if deficiencies are noted on
  the physical inspection report released within the last
  twelve months and/or if information is available
  requiring corrective action.
 If inspection of record is more than 1 year old, does
  CAHI just note that last Physical Inspection was
  reviewed at previous MOR?
      Reviewers Should….
 Review a sampling of Exigent, Health, and Safety
 (EH&S) problems identified in the REAC physical
 inspection if the report was released within six months
 prior to the on-site review.
   The reviewing official should consider these items a
    priority and the sampling process should assure that
    all EH&S deficiencies have been corrected;

 Reviewing a sampling of units and common areas to
 verify that significant REAC physical inspection report
 deficiencies (other than EH&S).…have been corrected
                    On-Site
 Review and obtain a copy of the lead-based paint
  certification (if applicable) and noting deficiencies
  and/or environmental hazards if information is made
  available requiring corrective action.
 Once this is complete, only updates to plan need to
  be copied.
        Communicating Monitoring
           Results/Follow Up
 For PBCA reviews      rated ―Below Average‖ or
 ―Unsatisfactory,‖ a copy must be provided to HUD
 staff.

 Indicates that the HUD Monitoring Guide is to be
 referred to when performing monitoring activities.
 The guide was designed to incorporate HUD’s
 guidelines for consistency. However, it is directed
 primarily at HUD staff, not PBCAs.
   Owner/Agent Responses
 If report contains deficiencies, TCD may not exceed
 30 calendar days. This is new.

 GAO considers the monitoring process to be
 completed only after identified deficiencies have
 been corrected, the corrective action produces
 improvements, and it is determined that no further
 action is required.
   Owner/Agent Responses
Effective August 1 with the implementation of the
 new 4350.1 Chapter 6 –
Potential issue: Should this change the date CAHI
 uses to close out an MOR in iREMS?

 CAHI must decide WHEN to close the MOR in
 iREMS until all follow-up actions are completed.
    New Appeals Guidance
 If an owner/agent receives a ―Below Average‖ or
  ―Unsatisfactory‖ overall rating as indicated on the
  form HUD-9834, Summary Report, the owner/agent
  may appeal the rating…
 Note..this EXCLUDES appealing any one
  CATEGORY Rating. This is different than current
  policy in some states. CAHI may wish to review
  their policy on this issue.
 Appeal process/timelines have not changed.
                 References
 A listing by 9834 Category of references that may be
  cited in the on-site review report.
 Note: these include Code of Federal Regulation
  citations.
                  Topics
                  • Overview of Changes
                  • MOR Process
                  • Scoring



Understanding NEW requirements for conducting and
    scoring Management and Occupancy Reviews
Category and Overall Rating
 New performance indicators based on a numeric
 construct

 Expanded/new descriptions of category ratings


 Defining Adverse Findings/Major Adverse Findings


 Note: All of the information that follows is new
 and substantively changes our process going
 forward.
     Performance Indicators
 The performance indicators are as follows:
       Superior (90-100)
       Above Average (80-89)
       Satisfactory (70-79)
       Below Average (60-69)
       Unsatisfactory (59 and Below)


Performance indicators (or ratings) are assigned to
each category and are used to determine and monitor
owner/agent compliance with HUD requirements.
                   Superior
 Performance should be rated superior if actions
 consistently exceed statutory, regulatory, and
 Handbook requirements for an above-average
 rating.
   Consistent policies and procedures which are highly
    successful in carrying out the objectives of HUD
    housing programs
   Owner/agent strictly adheres to procedures, resulting
    in compliance with the regulatory agreement, subsidy
    and      mortgage   contracts,   and    management
    certifications;
                  Superior
 The owner/agent is in compliance with HUD’s lead-
 based paint requirements (if applicable);

 The property is in exceptional condition and there
 are no observable Exigent, Health & Safety (EH&S)
 or other deficiencies; and,

 There are few incidences of errors disclosed in the
 review and no major adverse findings.
                  Superior
 There is ample documentation that the owner/agent
 periodically updates the affirmative fair housing
 marketing plan (AFHMP) marketing strategies, to
 address changing local demographics, including
 persons with limited English proficiency (LEP), person
 with a variety of disabilities, and large families.

 The owner/agent also engages in active outreach
 efforts to community groups and other organizations
 to attract individuals to existing available housing
 opportunities.
            Above Average
 Performance should be rated above average if
 actions occasionally exceed statutory, regulatory,
 and Handbook requirements and:
   Owner/agent has established policies and procedures
    which are successful in carrying out the objectives of
    HUD housing programs
   Owner/agent adheres to procedures, with very few
    exceptions, resulting in compliance with the
    Regulatory Agreement, subsidy and mortgage
    contracts, and management certifications
            Above Average
 The owner/agent is in compliance with HUD’s lead-
 based paint requirements (if applicable);

 The property is in good condition and there are no
 observable Exigent, Health & Safety (EH&S) or
 major deficiencies, but a minimal number of minor
 deficiencies are observable; and,

 Incidences of errors disclosed in the review are
 minimal and there are no major adverse findings.
            Above Average
 The HUD approved AFHMP is available on site,
 project staff have been trained on implementing the
 plan and it serves as the primary basis for marketing
 outreach to the various demographics groups that
 are lest likely to apply.

 Records are maintained on the demographics of
 applicants and tenants along with data that analyzes
 the effectiveness of the affirmative marketing efforts.
                Satisfactory
 Performance should be rated Satisfactory if actions
 meet statutory, regulatory, and Handbook
 requirements and:
   Owner/agent is successfully carrying out the
    objectives of HUD programs;
   Policies and procedures have been established but
    are not always adequate to prevent errors from
    occurring;
   The owner/agent submitted a lead hazard control plan
    within the prescribed HUD timeframe and is awaiting
    HUD approval (if applicable);
                Satisfactory
 There are some observable Exigent, Health & Safety
 (EH&S)/major deficiencies but there is evidence that the
 owner has already corrected many of the deficiencies
 noted on the last inspection report;

 The owner/agent or their employees have deviated
 from established policies resulting in deficiencies or
 there are findings that, with minor adjustments to
 existing policies or procedures or additional training,
 the owner/agent should be able to cure the
 deficiencies.
               Satisfactory
 In such cases, a satisfactory rating should be given
 only if the owner/agent is willing to make the
 necessary adjustments and complete the necessary
 training.

 The HUD approved AFHMP is available in the rental
 office and affirmative marketing to those least likely
 to apply occurs based on the Plan, including
 outreach in other languages to individuals who are
 limited English proficient (LEP).
              Below Average
 Performance should be rated Below Average if
 actions rarely meet statutory,             regulatory,    and
 Handbook requirements and:
      Owners/agents policies and procedures are ineffective or
       inappropriate for the project;
      The policies and procedures do not meet the requirements
       of the regulatory agreement, management certification, or
       subsidy contracts;
      Weaknesses in policies and procedures result in frequent
       failures to comply with published HUD instructions;
      There are repeat major adverse findings;
             Below Average
 There are open findings from prior year’s management
  reviews;
 The owner/agent submitted a lead hazard control plan
  and has failed to comply with the HUD approved plan (if
  applicable);
 There are a substantial number of observable Exigent,
  Health & Safety (EH&S)/major deficiencies and there is
  evidence that the owner has corrected very few of the
  deficiencies noted on the last inspection report; and,
              Below Average
 The owner/agent would need significant changes to its
 existing policies and procedures or the owner/agent or
 on-site employees would need significant amounts of
 training to cure the deficiencies.

 The HUD approved AFHMP is available in the rental
 office but the AFHMP is not utilized to reach those
 individuals least likely to apply for housing in the project
 and the project’s employees are unfamiliar with the
 AFHMP provisions.
               Unsatisfactory
 Performance should be rated Unsatisfactory if actions did
  not meet statutory, regulatory, and Handbook
  requirements and:

 Owners/agents actions or failure to act have placed the
  Secretary’s interest in jeopardy or frustrated achievement
  of the Secretary’s housing objectives;

 There are major adverse findings in the financial
  management/procurement processes (HUD would
  determine this)
              Unsatisfactory
 There are repeat major adverse findings;
 There are open findings from prior year’s management
  reviews;
 The owner/agent has failed to submit a lead hazard
  control plan to HUD (if applicable);
 There are many observable Exigent, Health & Safety
  (EH&S)/major deficiencies and there is evidence that the
  owner has not corrected any of the deficiencies noted on
  the last inspection report;
               Unsatisfactory
 The owner/agents actions have failed to meet state and
  local housing code requirements (regardless of REAC
  score); and,
 The owners/agents policies and procedures are
  ineffective or lacking to the extent that the owner/agent
  frequently, and often seriously, fails to comply with HUD’s
  regulations and published instructions.
 There is no HUD approved AFHMP available in the rental
  office.
        Major Adverse Findings
 Mortgage default,
 Election to assign/assignment of the mortgage,
 Diversion of project funds,
 Unauthorized distribution of funds,
 Failure to fund the reserves for replacements account,
 Failure to submit monthly accounting reports (new
  projects),
 Failure to file an annual financial statement (if required);
          Major Adverse Findings
 Willful failure to maintain the property in an acceptable
    physical condition;
   Willful failure to remit payments to the note holder;
   Implementation of unauthorized rent increases;
   Failure to recertify tenants;
   Systematic errors in the areas of data collection, data
    verification, data recording, or rent calculation was
    discovered during the tenant file review,
   Fraudulent recertifications by the owner/agent; and
   Failure to comply with fair housing laws.
 Determining Category Ratings
 All categories are assigned a weighted percentage
 of the overall rating value based on the level of risk
 for deficiencies.

 See next slide and handout titled: Scoring Process.
Percentage of Overall Rating
A.   General Appearance and Security                   10%
B.   Follow-up and Monitoring of Project Inspections   10%
C.   Maintenance and Standard Operating Procedures      10%
D.   Financial Management/Procurement                   25%
E.   Leasing and Occupancy                              25%
F.   Tenant/Management Relations                        10%
G.   General Management Practices                       10%
                                                       100%


Note: Financial Management/Procurement NOT Rated by PBCA
          Calculating Ratings
 Once the reviewing official rates each category (as
  applicable to the reviewing official) based on the rating
  descriptions above, the reviewing official must use the
  following performance indicator values:
 Performance Indicator    Performance Indicator Value
    Superior                      90-100
  Above Average                   80-89
   Satisfactory                   70-79
   Below Average                  60-69
  Unsatisfactory                  0-59
NOTE: Performance indicator values can be manually
 entered by the reviewer.
Determining Overall Ratings
 Calculation methods included…..
    To determine the overall rating, the reviewing official
     must first multiply the performance indicator value by
     the assigned percentage of the overall rating for each
     category, rounding up to the nearest whole number.
    Once all categories have been calculated based on
     the performance indicator and performance indicator
     values, the total is divided by the total percentage
     points
  Example of Overall Rating
 For limited reviews where only certain categories are
  rated, the reviewing official would follow the same
  process illustrated above to derive the category weight.

 For example, if the reviewing official reviews all
  categories excluding Financial Management/
  Procurement, the calculation for the Financial
  Management/Procurement category will be omitted when
  dividing by the number of categories.
  Example of Overall Rating
 See Automated Scoring Sheet in your folder.
 I will demonstrate the sheet.
 CAHI should consider whether adopting the scoring
 sheet will assist you in the MOR process.
            On the Horizon
 The new ACC makes compliance with the RHIIP
  monitoring guide part of the elements of Acceptable
  Quality work for the Management and Occupancy
  Reviews we conduct under the new contract.
 What is the RHIIP Monitoring Guide?
                 Purpose?
 This   document provides guidance to contract
  administrators    (CAs)    in   conducting on-site
  management and occupancy reviews of HUD’s
  assisted multifamily (MF) housing.
 A CA may be HUD staff, a performance-based
  contract administrator (PBCA), or a traditional
  contract administrator (TCA).
        Goals of the Guide
 To detect and reduce errors in income and rent
  determinations
 To reduce rent underpayments and/or overpayments
  by residents
 To maximize HUD’s housing resources, thereby
  assuring maximum participation in HUD’s housing
  programs by as many eligible families as possible
       Purpose of the Guide
 The purpose of this Guide, is to provide technical
  assistance to the CA to ensure that quality control
  monitoring of income and rent determinations during
  management and occupancy reviews (MORs) is
  adequate and effective.
 This Guide provides technical guidance and tools
  designed to provide the reviewer with a systematic
  approach to monitoring income and rent determinations
  and ensuring that errors are corrected. This approach will
  allow HUD to assess the errors on a national basis and
  track the reduction in errors to ensure that HUD’s goal to
  significantly reduce errors is accomplished.
         What Does It Contain?
 Conducting Desk Reviews:
        How to use TRACS
        How to use EIV Reports


 Conducting the On-Site:
        Tenant File Sample Guidance
        Applicant Intake
        Wait List Management
        Tenant Selection Plan
        Verification and Calculation of Income/Rent
        Certification and Recertification Activities
        Tenant File Reviews
     What Does It Contain?
 Post-Review Activities and Follow-Up
    Preparing and Issuing the Report
    Documenting Income and Rent Determination Errors
    Identifying conditions
    Identifying criteria
    Specifying corrective actions
    Follow-Ups and Resolutions
    Tracking Errors
 NOTE: Before the new ACC term starts, T&C will
 provide detailed training on RHIIP Monitoring Guide
 Requirements during MORs.

				
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