Example 2: Valid discrepancy

The EIV Income Discrepancy Report shows that the tenant had Reported Annual Wages and Benefits during the period of income used for the discrepancy analysis of $15,957.03 actual and $17,210.18 annualized. The Projected Annual Wages reported on the form HUD-50059 are $14,472.00. The annualized last quarter income exceeds the $2,400 discrepancy threshold ($17,210.18-$14,472.00 = $2,738.18). The owner must investigate this to determine if the tenant should have reported a cumulative increase of $200 per month ($2,400 annually) or more in the household’s income. If the tenant should have reported the increase in income as required by his/her lease, this would be a valid discrepancy. If valid, the owner would obtain third party verification, process an interim recertification in accordance with Chapter 7, Paragraph 7-13.D of Handbook 4350.3 REV-1, notify tenant of funds due and their obligation to reimburse the owner, collect funds due from tenant and/or enter into a repayment agreement and reimburse HUD for funds collected from the tenant less amount retained for pursuing collection. If not a valid discrepancy, the owner will document the file with the results of the investigation supporting this determination.