Enterprise Income Verification (EIV) System · 2011. 2. 9. · EIV, another adjustment to the...

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Enterprise Income Verification (EIV) System

Mandatory Use and Penalty of 5% Decrease in Voucher Payment for Not Having Access To and/or Using EIV

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Mandatory Use of EIV

Use of the EIV system by Owners and Management Agents (O/As) is mandatory. Effective January 31, 2010, O/As must use HUD’s EIV system in its entirety:

1. As a third party source to verify tenant employment and income information during mandatory recertifications of family composition and income; and

2. To reduce administrative and subsidy payment errors.

3. In addition to the mandatory use by O/As, EIV must also be used by Contract Administrators (Cas) (Performance Based Contract Administrators (PBCAs), Traditional Contract Administrators (TCAs) and HUD staff) for monitoring the O/A’s compliance with obtaining access to and using the EIV system.

4. Using the data in EIV will assist HUD in meeting the Rental Housing Integrity Improvement Project’s (RHIIP’s) goal of ensuring that the right benefits go to the right persons, and supports Executive Order 13520, Reducing Improper Payments, signed by President Barack Obama on November 20, 2009.

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Relevant HUD Notices

HUD Notice H 2008-03 (Issued June 25, 2008) – EIV System superseded by…HUD Notice H 2009-20 (Issued December 9, 2009) – EIV System superseded by…HUD Notice H 2010-10 (Issued July 1, 2010) – EIV System

HUD Notice H 2010-02 (January 11, 2010) – EIV & You Brochure – Requirements for Distribution & Use

HUD Notice H 2010-08 (April 13, 2010) – …Implementation of the EIV System…

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Mandatory Use of the Enterprise Income Verification (EIV) System

A. New Regulation

The new regulation requires O/As to incorporate use of EIV in its entirety:

1. As a third-party source to verify tenant employment and income information during mandatory recertifications of family composition and income, and

2. To reduce administrative and subsidy payment errors.

B. Implementing the Use of the EIV System

1. Effective January 31, 2010, it is mandatory that O/As use EIV:

(a) At the time of recertification of family composition and income.

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(b) At other times as specified: (1) By HUD in the current Housing Notice Enterprise Income Verification (EIV) System. (2) In the O/A’s Tenant Selection Plan and Policies and Procedures.

2. In order to account for the 120 days permitted to process an annual recertification, all recertifications with an effective date of June 1, 2010, and beyond must reflect use of the EIV system. This date was determined by adding 120 days to the January 31, 2010, effective date of the final rule.

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D. Penalties for Not Having Access To and/or Using EIV

Effective January 31, 2010, O/As are required to have access to and begin using the EIV system as a third party verification source and as a supplement to reducing administrative and subsidy payment errors.

1. No Penalty Imposed

Listserv and iMAX messages were posted beginning in mid-November 2009, with instructions to submit a hardcopy Coordinator Access Authorization Form (CAAF) to the Multifamily Help Desk by December 15, 2009, and complete the online request for certification by January 15, 2010, in order to be assured of EIV access by January 31, 2010. If an O/A is able to provide verification that it met these deadlines, but has not yet received access at the time of an on-site review, they will not be penalized for the inability to begin using the system on January 31, 2010.

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The O/A must:

(a) Present the initial hardcopy CAAF sent to the Multifamily Help Desk in order to verify that it was submitted by December 15, 2009.

(b) Present a copy of the online CAAF for certification to verify that it was submitted by January 15, 2010.

(c) Follow-up with the Multifamily Help Desk if access has not been granted.

(d) Begin implementing use of EIV immediately upon receiving access.

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2. Penalty Imposed

(a) If it is determined that the O/A did not receive access to the EIV system by January 31, 2010, because it did not submit its CAAF to the Multifamily Help Desk by December 15, 2009, and/or did not complete the property assignment process by January 15, 2010, as instructed in Listserv and iMAX messages posted beginning mid-November 2009, did not begin using EIV as of January 31, 2010, or is not using EIV in accordance with the current EIV HUD Housing Notice:

(1) The CA must make this a finding on its report to the O/A.

(2) The O/A will incur a penalty of a five percent decrease in the voucher payment for the month following the date the violation was found.

(3) The O/A must make an adjustment on its next scheduled voucher to adjust for the five percent decrease.

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(4) The CA must monitor the O/A to ensure the adjustment is made.

(b) The O/A will have 30 days to cure the finding as a result of the on-site review.

(1) Once the O/A cures the finding by obtaining access to and/or using EIV, another adjustment to the voucher will be made by the O/A to collect the funds previously returned to HUD.

(2) If the O/A fails to cure the finding within the time allotted, both the owner and the management agent will be flagged in HUD’s Active Partners Performance System (APPS). Once the finding is cured, the flag will be removed.

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Updating O/A’s Tenant Selection Plans and Policies and Procedures

A. The Tenant Selection Plan must be updated to include:

1. Use of the EIV Existing Tenant Search as a part of the applicant screening process.

B. Policies and Procedures must be updated to include use of the EIV reports:

1. At the time of recertification of family composition and income;

2. As required by HUD, e.g., monthly use of the Failed EIV Pre-screening Report and Failed Verification Report (see the current Housing Notice, Enterprise Income Verification (EIV) System); and

3. At other times as determined by the O/A.

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C. Applicant and Tenant Notification

Tenants must be notified of the mandatory use of EIV by O/As. The Department has developed an EIV brochure titled EIV & You to assist the O/A in notifying tenants and applicants who have been selected from the waiting list for screening and final application processing. This brochure can be found on the Multifamily EIV website at http://www.hud.gov/offices/hsg/mfh/rhiip/eiv/eivhome.cfm.

The brochure can also be ordered by calling HUD at 800-767-7468 or faxing 202-708-2313. The brochure is required by Housing Notice H 2010-02 to be distributed at each annual recertification and when an applicant household has been selected from the waiting list for screening and final application processing.

http://www.hud.gov/offices/hsg/mfh/rhiip/eiv/eivhome.cfm�

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MOR Findings for EIV Compliance (List is not all inclusive)

What is considered a Management and Occupancy Review (MOR) Finding? (Mandatory EIV Use)

1. O/A does not have access to EIV

2. O/A is not using EIV for recertifications effective June 1, 2010

3. Missing/incomplete EIV documents as listed on the Addendum C

4. Rules of Behavior for non-system users missing where applicable

5. EIV data being shared with other entities, e.g., state officials monitoring tax credit projects, rural Housing staff monitoring Section 515 projects, or Service Coordinators

6. EIV data not kept secure

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7. O/A has not updated Policies and Procedures to include EIV use

8. O/A has not updated Tenant Selection Plan to include use of Existing Tenant Search

9. EIV Income Reports are not in tenant files as third party verification

10. Tenant files do not have documentation to support EIV income discrepancy resolution

11. O/A is not using Existing Tenant Search

12. O/A is not reviewing New Hires Report

13. Unresolved Failed Verification (SSA Identity Test) and Pre-screening discrepancies

14. Deceased Tenants Report has not been reviewed and/or errors corrected

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15. Multiple Subsidy Report has not been reviewed and/or errors corrected

16. O/A is not following HUD’s record retention requirements

17. Missing/Incomplete form HUD-9887

18. O/A is not providing tenants with the EIV & You brochure when selected from waiting list to move-in and at annual recertification

19. Individual’s having access to the EIV system or data had annual security training?

20. O/A is sharing access Ids and passwords

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Penalties for Failure to have Access to and/or Use EIV


A. O/As will incur penalties if they:

1. Did not receive access to the EIV system by January 31, 2010, because they did not submit a Coordinator Access Authorization Form (CAAF) to the Multifamily Help Desk by December 15, 2009, and/or did not complete the property assignment process by January 15, 2010, as instructed in Listserv and iMAX messages posted beginning mid-November 2009;

2. Did not begin using EIV as of January 31, 2010; or

3. Are not using EIV at the time of a MOR.

B. Penalties

The O/A:

1. Will receive a finding on the MOR report.

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2. Will incur a penalty of a five percent decrease in the voucher payment for the month following the date the violation was found.

3. Must make an adjustment on the next scheduled voucher to adjust for the five percent decrease.

4. Will be monitored by the CA to ensure the adjustment is made.

C. The O/A will have 30 days to cure the finding.

1. The finding will be cured by obtaining access to and/or using EIV and the O/A will make an adjustment to the next scheduled voucher to collect the funds previously returned to HUD.

2. If the finding is not cured during the 30 day period, both the owner and the management agent, if applicable, will be flagged in HUD’s Active Partners Performance System (APPS). Once the finding is cured, the flag(s) will be removed.

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D. When there is a change in ownership or management at a property, the new owner or management agent must obtain access to and begin using EIV within 90 days from the date the owner takes possession of the property or the effective date of the management agreement with the owner. Owners and/or management agents who fail to obtain access and begin using EIV within this timeframe may be subject to the penalties described above.

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5% Penalty Procedure for EIV

As a result of HUD Notice 10-08, CAHI has developed the following procedure which was rolled out June 16, 2010.

Per the HUD notice 10-08: Penalty Imposed • If it is determined that the O/A did not receive access to the EIV system by January 31,

2010, because it did not complete one of the following three steps:• Submit its CAAF to the Multifamily Help Desk by December 15, 2009, • And/or did not complete the property assignment process by January 15, 2010, as

instructed in Listserv and iMAX messages posted beginning mid-November 2009, • Did not begin using EIV as of January 31, 2010.

• Or is not using EIV in accordance with the current EIV HUD Housing Notice. Examples of incorrect usage of EIV may include:

• Not using EIV during recertifications• Violating security requirements for EIV

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5% Penalty Procedure for EIV

Then CAHI must:• Make this a condition on its report to the O/A. • If the EIV condition is corrected prior to issuance of the MOR report, the condition

will still be included, but there will be no need for the 5% penalty on the voucher.• If the EIV condition is not corrected prior to issuance of the MOR report, the

condition will be included, and CAHI will also initiate the 5% penalty process on the next scheduled voucher.

The O/A will have 30 days to cure the condition as a result of the MOR report. • If the O/A fails to cure the condition within the time allotted, both the owner and the

management agent will be flagged in HUD’s Active Partners Performance System (APPS) by HUD after being notified by CAHI Once the condition is cured, the flag will be removed by HUD, again after notification by CAHI.

• Once the O/A cures the condition by obtaining access to and/or using EIV, another adjustment to the voucher will be made by the O/A to collect the funds previously withheld by HUD.

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Tools and Resources

• Enterprise Income Verification (EIV) System for Multifamily Housing Program Users http://www.hud.gov/offices/hsg/mfh/rhiip/eiv/eivhome.cfm

• HUD Client Information and Policy System (HUDCLIPS) http://www.hud.gov/offices/adm/hudclips/index.cfm

• Rental Housing Integrity Improvement Project (RHIIP) Listserv http://www.hud.gov/offices/hsg/mfh/rhiip/mfhrhiip.cfm

• CAHI, Inc. Website http://www.cahi-oakland.org/

• CAHI, Inc. Mailing List and Newsletter [email protected]

• Owner/Agent Portal http://www.cgihousing.com/

• Questions or Comments [email protected] or [email protected]

http://www.hud.gov/offices/hsg/mfh/rhiip/eiv/eivhome.cfm�http://www.hud.gov/offices/adm/hudclips/index.cfm�http://www.hud.gov/offices/hsg/mfh/rhiip/mfhrhiip.cfm�http://www.cahi-oakland.org/�mailto:[email protected]�http://www.cgihousing.com/�mailto:[email protected]�mailto:[email protected]�

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CGI/CAHI Owner/Agent Portal & Newsletter

Enterprise Income Verification (EIV) System�Mandatory Use of EIVMandatory Use of EIVMandatory Use of EIVMandatory Use of EIVMandatory Use of EIVMandatory Use of EIVMandatory Use of EIVMandatory Use of EIVMandatory Use of EIVMandatory Use of EIVMOR Findings for EIV Compliance (List is not all inclusive)MOR Findings for EIV Compliance (List is not all inclusive)MOR Findings for EIV Compliance (List is not all inclusive)Penalties for Failure to have Access to and/or Use EIVPenalties for Failure to have Access to and/or Use EIVPenalties for Failure to have Access to and/or Use EIV5% Penalty Procedure for EIV5% Penalty Procedure for EIVTools and ResourcesCGI/CAHI Owner/Agent Portal & Newsletter

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