HUD Housing Notice § 2011-25

               U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
                                        WASHINGTON, DC 20410-8000


ASSISTANT SECRETARY FOR HOUSING-
FEDERAL HOUSING COMMISSIONER




Special Attention of:                                      NOTICE:           H 2011-25

Multifamily Hub Directors                                  Issued:   September 20, 2011
Multifamily Program Center Directors
Supervisory Housing Project Managers                       Expires: September 30, 2012
Rural Housing Services (RHS) Directors
Project Managers
Contract Administrators                                    Cross References: H 2010-02
Owners and Management Agents Administering
 Multifamily Housing Rental Assistance Programs

SUBJECT:         Enterprise Income Verification (EIV) & You Brochure -
                 Requirements for Distribution and Use

    I.       PURPOSE

             The purpose of this Notice is to provide guidance to owners and management agents
             (O/As) on the distribution and use of the EIV & You brochure. Any O/A participating in
             one of Multifamily Housing’s rental assistance programs listed in Section II is subject to
             this Notice. The EIV & You brochure is to inform tenants and potential tenants about the
             EIV system, the data that is available about them in EIV, how the information will be
             used, and their responsibilities as tenants.

    II.      APPLICABILITY

             This notice applies to administrators of the following programs:

             A. Project-based Section 8
                1. New Construction
                2. State Agency Financed
                3. Substantial Rehabilitation
                4. Section 202/8
                5. Rural Housing Services Section 515/8
                6. Loan Management Set-Aside (LMSA)
                7. Property Disposition Set-Aside (PDSA)
             B. Section 101 Rent Supplement
             C. Section 236 Rental Assistance Payment (RAP)
             D. Section 202/162 Project Assistance Contract (PAC)
             E. Section 202 Project Rental Assistance Contract (PRAC)
             F. Section 811 PRAC
             G. Section 236
       H. Section 221(d)(3) Below Market Interest Rate (BMIR)

III.   BACKGROUND

       In 2004, HUD developed and began implementation of the Upfront Income Verification
       (UIV) system, now known as the EIV system. The EIV system serves as a central
       repository and source for income and benefit data, securely accessible over the internet,
       for use by Public Housing Authorities (PHAs) and O/As to improve the accuracy of rent
       and income determinations.

       HUD has computer matching agreements with the Department of Health and Human
       Services (HHS) and the Social Security Administration (SSA) enabling EIV to contain
       wage, unemployment compensation and new hire data from HHS’ National Directory of
       New Hires (NDNH) and Social Security (SS), Supplemental Security Income (SSI) and
       Dual Entitlement SS benefit data from SSA. Using this data assists in reducing errors in
       determining a tenant’s income, thereby reducing the number of improper payments in
       Multifamily Housing’s rental assistance programs.

IV.    IMPLEMENTATION

       O/As using the EIV system must provide each tenant household with the EIV & You
       brochure at the time of annual recertification along with a copy of the HUD Fact Sheet
       “How Your Rent is Determined”. O/As must also provide applicant households who
       have been selected from the waiting list for screening and final application processing
       with a copy of the EIV & You brochure. The brochure is translated into thirteen
       languages for distribution to non-English speaking households.

       O/As may order the EIV & You brochure (English version) from the online HUD Direct
       Distribution Center at http://www.hud.gov/offices/adm/dds/index.cfm, or by telephone at
       (800) 767-7468. Quantities ordered should be sufficient to cover distribution to existing
       tenant households and anticipated new tenant households over the next twelve months.
       The brochure is also available for download at the Multifamily RHIIP website at
       http://www.hud.gov/offices/hsg/mfh/rhiip/mfhrhiip.cfm.

       Translated versions of the brochure for non-English speaking households are posted to
       the Multifamily RHIIP website and on the Department’s Limited English Proficiency
       (LEP) website, located at www.hud.gov. These versions will not be available for order
       through the HUD Direct Distribution Center.

V.     BENEFITS OF IMPLEMENTATION

       Tenants and applicants selected for final screening and application processing have a
       right to know that an O/A has access to a system containing personal and financial
       information about them. In addition, there are numerous benefits to the O/A and HUD
       for distributing the brochure to tenants and applicants. If tenants accurately report their
       income then the right amount of rental assistance will be paid on their behalf, thus

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allowing more families to receive the rental assistance they need. Furthermore, the
administrative workload on O/As will be significantly reduced because they will not
have to set up repayment agreements with tenants to recover rental assistance that was
inappropriately paid on their behalf and discovered through use of the EIV system. And
finally, there will be fewer tenants moving out of their units while still owing back rent
because the right amount of rental assistance will have been paid from the beginning.
The potential for fraud, waste and abuse in HUD’s rental assistance programs will be
diminished.

If you have any questions regarding this Notice or need more information on the EIV
system, please contact your local Contract Administrator or local HUD field office.
Persons with hearing or speech impairments may access this number via TTY by calling
the Federal Information Relay Service at (800) 877-8339.


                                                         /s/
                                  ________________________________________
                                  Carol J. Galante, Acting Assistant Secretary for
                                   Housing – Federal Housing Commissioner




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