Key Requirements

• A. To ensure that assisted tenants pay rents commensurate with their ability to pay, HUD requires the following:

  1. Owners must conduct a recertification of family income and composition at least annually. Owners must then recompute the tenants’ rents and assistance payments, if applicable, based on the information gathered.

  2. Tenants must supply information requested by the owner or HUD for use in a regularly scheduled recertification of family income and composition in accordance with HUD requirements.

  3. Tenants must sign consent forms and asset declaration forms

  4. Owners must use the EIV Income Report as third-party verification of employment and income unless the tenant disputes the information on the EIV report. (See Chapter 5, for more information on determining and verifying income. and Chapter 9, Enterprise Income Verification (EIV) for using EIV reports.)

  5. *Owners must obtain third-party verification directly from the third party source for the following items. (See Chapter 5, Section 3, for more information about verification of income.)

     • a. Annual income from wages, unemployment and Social Security benefits when tenant is unable to provide acceptable income documentation or disputes the employment and income information in the EIV system (see Chapter 5, Paragraph 5-5.A.3 for calculation of tenant income);

HUD Multifamily Occupancy Handbook Chapter 7: Recertification, Unit Transfers, and Gross Rent Changes

8/13

7-3

Section 1: Annual Recertification

4350.3 REV-1

• b. Reported family annual income from sources not reporting income data to the EIV system;*

• c. The value of family assets;

• d. Expenses related to deductions from annual income; and

• e. Other factors that affect the determination of adjusted income.

6. At each annual recertification, the owner must provide the tenant with a copy of the HUD Fact Sheet describing how the tenant’s rent is determined. The owner must also provide the tenant with a copy of the EIV & You brochure.

7. Owners have the authority to require a criminal background check, including a State lifetime sex offender registration check, on tenants at recertification. Owners who adopt the policy of conducting criminal background checks, including a State lifetime sex offender registration check, at recertification must conduct the checks on all tenants at recertification. If the background checks indicate that the tenant is in violation of the provisions of the lease, the owner may evict the tenant in accordance with the lease and the owner’s standards for termination of tenancy. The owner must:

   • a. Notify the household of the proposed action based on the information.

   • b. Must provide the subject of the criminal record and the tenant with a copy of the information and an opportunity to dispute the accuracy and relevance of the information obtained from any law enforcement agency.

NOTE: Persons who are subject to a lifetime sex offender registration requirement who were admitted prior to June 25, 2001, the effective date of the Screening and Eviction of Drug Abuse and Other Criminal Activity final rule, must not be evicted unless they commit criminal activity while living in federally assisted housing or have some other lease violation, in which case the owner may terminate the tenancy and pursue eviction to the extent allowed by their lease and state or local law.

8. Owners must perform annual recertifications on any resident of a Section 236 project paying less than the Section 236 market rent, and on any resident of a Section 221(d)(3) BMIR project paying the BMIR rent. Tenants of Section 236 and Section 221(d)(3) BMIR projects must be supported in the Tenant Rental Assistance Certification System (TRACS) with a submission of the required HUD-50059.

NOTE: Section 236 and Section 221(d)(3) BMIR cooperatives must enforce annual recertifications for both current and new members.

HUD Multifamily Occupancy Handbook Chapter 7: Recertification, Unit Transfers, and Gross Rent Changes

8/13

7-4

Section 1: Annual Recertification

4350.3 REV-1

• B. Owners do not have to perform annual recertifications for individual tenants who are paying market rent as described below:

  1. Tenants paying the contract rent or market rent and living in a unit covered by a Section 8, RAP, Rent Supplement, or PAC housing assistance payment contract, unless the tenants request an initial certification to determine their eligibility to receive program assistance.

  2. Tenants of a Section 236 project paying the Section 236 market rent established for the property, unless the tenants request an initial certification to determine their eligibility to pay less than the market rent.

  3. Tenants of a Section 221(d)(3) BMIR project paying 110% of the BMIR rent established for the property, unless the tenants request an initial certification to determine their eligibility to pay the BMIR rent.

• C. If a tenant in a property covered by this handbook is receiving rental assistance through the Section 8 Housing Choice Voucher Program, the Public Housing Authority (PHA) administering the voucher completes the annual recertification. Owners are not responsible for completing recertification activities but must cooperate with PHA staff in providing needed information.

• D. When a change in family composition is reported in Section 202/8 projects, adult children are eligible to move in after initial occupancy only if they are essential for the care or well-being of the elderly tenant(s). They are considered a part of the family and their income must be counted. Owners should require adult children to sign a release form relinquishing any future rights to the unit as a remaining member of the tenant family, as they qualify for occupancy only as long as the individual needing the supportive services is in occupancy.

• E. When a change in family composition is reported in Section 202 PRAC and Section 811 projects, occupancy by adult children is subject to the following restriction. Adult children are not eligible to move into a unit after initial occupancy unless they are performing the functions of a live-in aide and are classified as a live-in aide for eligibility purposes. See paragraph 3-6 E.3 for eligibility requirements for a live-in aide.

HUD Multifamily Occupancy Handbook Chapter 7: Recertification, Unit Transfers, and Gross Rent Changes

6/07

7-5

Section 1: Annual Recertification

4350.3 REV-1