A. Requirements Regarding — HUD Handbook 4350.3 REV-1

*At the time of recertification, or at other times as stated in the owner’s policies and procedures, owners must review and resolve any discrepancies reported in the EIV system that could result in errors in a tenant’s rent and/or HUD assistance payments. This includes discrepancies in income reported on the EIV Income Discrepancy Report and discrepancies reported on the EIV Deceased Tenant Report and Multiple Subsidy Report. (See Chapter 9, Enterprise Income Verification (EIV), for more information on use of these reports.)

EIV Reports.
- a. Income Discrepancy Report:

At the time of recertification, owners must review and resolve any discrepancies in income reported on the EIV Income Discrepancy Report. Using this report, the owner must identify any unreporting or underreporting of income by the tenant reported on current or historical HUD-50059s and transmitted to TRACS.

b. EIV Verification Reports.

Owners must review and resolve any discrepancies in the information reported on the following reports to identify tenants who may be receiving assistance they are not entitled to receive.

(1) Deceased Tenant Report. Tenants reported by SSA as being deceased, and where HUD is continuing to pay subsidy.
(2) Multiple Subsidy Report. Tenants who may be receiving rental assistance at more than one location.

NOTE: The reports in EIV are a tool to alert owners of possible discrepancies. Not all EIV discrepancies reported are valid discrepancies.

Owners may not suspend, terminate, reduce or make a final denial of any benefits of a tenant until they have taken appropriate steps to independently verify information relative to any discrepancy reported. For example, if there is an income discrepancy, the owner must verify:
- a. The amount of the wages, unemployment compensation, or SSA benefits involved;

HUD Occupancy Handbook Chapter 8: Termination

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Section 4: Discrepancies, Errors, and Fraud

4350.3 REV-1

b. Whether such tenant actually has (or had) access to such wages or benefits for his or her own use; and
c. The period (or periods) when, or with respect to which the tenant actually received such wages or benefits.

See Chapter 9, Enterprise Income Verification (EIV) for more information on the EIV reports.

Owners must follow the instructions in Paragraph 8-18.D for notifying and meeting with the tenant when a valid discrepancy is discovered as a result of the owner’s review.
- a. If the owner determines the tenant is in noncompliance with his/her lease because he/she knowingly provided incomplete or inaccurate information, the owner must follow the guidance in Section 3 of this Chapter for terminating the tenant’s tenancy and Paragraph 8-18 for the requirements on filing a civil action against the tenant to recover improper subsidy payments.
- b. Where fraud is suspected, the owner should report this to the HUD OIG Office of Investigation in the district that has jurisdiction in the state the project is located.