HUD HCV Guidebook § 2.1

PHAs must4 conduct an annual reexamination for all families. When completing a reexamination, PHAs must5
obtain and document in the tenant file third-party verification of the following components, or document in the
tenant file why third-party verification was not available. Table 1 shows the components that need to be
reviewed at annual reexamination.

Table 1: Components to be Reviewed and Updated at Annual Reexamination
 Component                        Updates at Annual Reexamination

    Release and consent               Collect updated HUD-9886 signed by all adult household members6
    Changes in income, assets,           Obtain declaration of income, assets7, deductions, expenses and
    deductions, expenses, and             household characteristics.
    household characteristics            Review for changes.
                                         Follow verification hierarchy8 to verify and calculate income,
                                          assets, deductions, expenses, and household characteristics.

1
  24 CFR § 982.516(a)(1)
2
  24 CFR § 982.516(f)
3
  24 CFR § 982.551(b)(2); 24 CFR § 5.230(a); 24 CFR § 982.552(b)(3)
4 24 CFR § 982.516(a)
5
  24 CFR § 982.516(a)(2)
6
  24 CFR § 982.516(g); 24 CFR § 5.230; 24 CFR § 982.552(b)(3)
7 For a family with net assets equal to or less than $5,000, a PHA may accept a family’s declaration that it has

net assets equal to or less than $5,000 without taking additional steps to verify the accuracy of the declaration.
A PHA must obtain third-party verification of all family assets every three years (24 CFR 982.516(3)(ii)).
8 See the Income Determination and Verifications Chapter (forthcoming) for further information.

Component                         Updates at Annual Reexamination

    Changes in family composition        Review and update the voucher size on the HUD-50058
                                         If household size increases, the family may be overcrowded in
                                          their current unit.
    Utility allowance                 Verify that the utility allowance is correct based on lower of voucher
                                      size or unit size and using the PHA’s current Utility Allowance
                                      Schedule (see Calculating Rent and HAP Payments chapter and Utility
                                      Allowances chapter).
    Payment standard                  Verify that the payment standard is correct based on lower of
                                      voucher size or unit size and using the PHA’s current Payment
                                      Standard Schedule (see Payment Standards chapter).