1. This Transmits

Change 4 to Handbook 4350.3 REV-1 "Occupancy Requirements of Subsidized Multifamily Housing Programs" is updated to include information on use of the Enterprise Income Verification (EIV) system; Violence Against Women Act (VAWA) requirements; Supplemental Information to Application for Federally Assisted Housing; and Rent Refinement of Income and Rent Determination Requirements in Public and Assisted Housing Programs; Final Rule and requirements relating to admission of individuals subject to State lifetime sex offender registration requirements.

2. Implementation:

Change 4 is effective upon issue.

3. Explanation of materials transmitted:

• A. Changes are designated by an asterisk (*) at the beginning and ending of the change and the date 8/13 is reflected at the bottom of the affected page.

• B. Chapter 1. Introduction

Additional clarification on existing text:

Paragraph 1-2.D – Added HUD-Veterans Affairs Supportive Housing and Mainstream Vouchers Paragraph 1-3.B – Removed the time reference to the Section 202 program Paragraph 1-7.B.1-14 – Added relevant links for HUD Websites Paragraph 1-7.B – Removed paragraph referencing TRACS Information Packet (Yellow Book) Paragraph 1-7.B.4 – Clarified paragraph

Paragraph 1-7.B.6 – Indicated the Resident’s Rights and Responsibilities Brochure is available in English and several other languages

Paragraph 1-7.B.11 – Clarified the EIV system is to be used to verify a tenant’s employment and income and to assist in the reduction of administrative and subsidy errors Paragraph 1-7.B.12 – Added new paragraph for EIV& You brochure and description Paragraph 1-7.B.13 – Revised paragraph Paragraph 1-7.B.14 – Revised paragraph Paragraph 1-7.C – Provided instructions for ordering publications online Figure 1-2 – Added “Authorities” to title

Figure 1-2 – Added 1) Nondiscrimination and Equal Opportunity in Housing, 2) Collection of Data, 3) Economic Opportunities for Low and Very Low Income Persons, and 4) Section 202/811 Mixed Finance

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• C. Chapter 3. Eligibility for Assistance and Occupancy

Corrected erroneous references or typos:

3-6.B.2, 3-12.H.2, 3-12.L.1.b,

Additional clarification on existing text:

Figure 3-1 – Added Enterprise Income Verification (EIV) Paragraph 3-3.F – Added 24 CFR 5.233 Mandated Use of HUD’s Enterprise Income Verification (EIV) System Paragraph 3-4 – Added example for determining eligibility at initial certification Paragraph 3-5.B – Clarified Social Security Number disclosure requirements Paragraph 3-5.C – Clarified that a consent for the release of information is to be signed Paragraph 3-6.B.2 – updated link Paragraph 3-6..E.3.a.(2)(e) – Added SSN must be disclosed and verification provided Paragraph 3-6..E.3 – Removed foster children and foster adults Paragraph 3-9 and Subparagraphs – Revised Social Security Number disclosure requirements to conform with 24 CFR 5.216 published in the Federal Register on December 29, 2010 and Housing Notice 10-08 Paragraph 3-10.B – Added new paragraph for use of the EIV Existing Tenant Search Paragraph 3-10.C – Added the prohibition extends to any PIH rental assistance programs Paragraph 3-10.C – Added new paragraph for EIV Multiple Subsidy Report Paragraph 3-11.A.1 – Added co-head must sign and all must date the form at initial certification and each recertification

Paragraph 3-11.A.2 – Clarified how form HUD-9887 correlates with EIV Paragraph 3-11.B – Added note for form HUD-9887 for individuals turning 18 between recertifications Paragraph 3-11.C.2 – Changed tenant to family Paragraph 3-12.H.2 – Added link and EIV System Paragraph 3-12.I.2 – Clarified the statement is in addition to declaring citizenship status on the Citizenship Declaration form

Figure 3-4 – Updated the Figure to represent currently accepted DHS documents Paragraph 3-12.L.1.b – Added link and EIV System Paragraph 3-13.A.2 – Changed and to or and added Note to supplement the paragraph Paragraph 3-21 – Added paragraph about use of Existing Tenant Search and Multiple Subsidy Search Paragraph 3-21.B and C – Included reference to the Housing Choice Voucher regulations Paragraph 3-24 – Added 24 CFR 5.233 Mandated Use of HUD’s Enterprise Income Verification (EIV) System Paragraph 3-26.B – Revised the order of priority for acceptable verification methods and added reference to Paragraph 5-13 Paragraph 3-26.C – Included income verification Paragraph 3-28.B.1 – revised third party verification sources for verification of disability Paragraph 3-28.B.2 – Clarified in the Note that the varying accuracy of Disability Status in EIV and how to verify

Paragraph 3-30 – Added the EIV System for up front verification of employment and income information Paragraph 3-31 – Changed name to Verification of Social Security Numbers Paragraph 3-31 A-C – Revised Social Security Number verification requirements to conform with 24 CFR

5.216 published in the Federal Register on December 29, 2010 and Housing Notice 10-08 Exhibit 3-5 – Revised exhibit to update currently accepted DHS documents

• D. Chapter 4. Waiting List and Tenant Selection Plan

Additional clarification on existing text:

Figure 4-1 – Added Enterprise Income Verification (EIV) and Violence Against Women Act (VAWA) Paragraph 4-3 – Added Social Security Number (SSN) Requirements and penalties; 24 CFR 5.216 and 24 CFR

5.218 and Mandatory Use of Enterprise Income Verification (EIV) 24 CFR 5.233

Figure 4-2 – Added State lifetime sex offender registration check, EIV Existing Tenant Search, and VAWA Paragraph 4-4.C.1.c – Removed language for when an individual has no SSN

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Paragraph 4-4.C.3.d – Added use of EIV Existing Tenant Search Paragraph 4-4.C – Added paragraph on VAWA Paragraph 4-6.C.1.b – Updated requirements for residency preference to be in accordance with 24 CFR 5.105(a) Paragraph 4-6.C.4 – Extended paragraph to include dating violence and stalking Paragraph 4-7.B – Added paragraph establishing procedures for using EIV Existing Tenant Search Paragraph 4-7.B.6 – Added State lifetime registration as a sex offender Paragraph 4-7.D – Added new paragraph on screening using the EIV Existing Tenant Search Paragraph 4-7.E – Added sex offender screening criteria Paragraph 4-9.A – Added paragraph on prohibition of denying assistance to victims protected under VAWA Paragraph 4-9.B – Revised SSN requirements to conform with 24 CFR 5.216 published in the Federal Register on December 29, 2010

Paragraph 4-10 – Updated Affirmative Fair Housing citations Paragraph 4-13 – Added Social Security Number (SSN) Requirements and penalties; 24 CFR 5.216 and 24 CFR 5.218

Paragraph 4-14 – Added paragraph for Supplement to Application for Federally Assisted Housing Paragraph 4-14.A.4 – Changed “should” to “may”

Paragraph 4-14.B – Added two paragraphs requesting information regarding sex offender registration, SSNs, and Supplement to Application for Federally Assisted Housing

Paragraph 4-14.D – Added paragraph and subparagraphs describing the Supplement to Application for Federally Assisted Housing

Paragraph 4-16.C – Added paragraph regarding SSN disclosure and verification requirements Paragraph 4-20 – Added provision for applicant failing to provide SSNs for all household members Paragraph 4-22.B and C – Added form HUD-92006 completed by the applicant Paragraph 4-22.E – Added statement indicating additional disclosure requirements are in place for EIV Income data in tenant files

Paragraph 4-23.B – Added disclosure and verification of SSN(s) Paragraph 4-24.B.2 – Added use of information contained in the EIV system Paragraph 4-24.B.7 – Added use of the Existing Tenant Search in EIV Paragraph 4-24.B.9 – Revised the SSN disclosure and verification requirements Paragraph 4-24.B.10 – Clarified employment and income information from SSA’s and HHS’ NDNH database are included

Paragraph 4-24.B.12 – Changed “tenant” to “applicant” Paragraph 2-24.13 – Added EIV & You and Resident Rights and Responsibilities brochures Paragraph 4-27.E.4.a – Added State lifetime sex offender registration Paragraph 4-27.E.5 and 4-27.E.5.a-g – Added State sex offender registration record(s) Paragraph 4-27.E.6 – Added State lifetime sex offender registration Paragraph 4-27.E.7.b – Added State lifetime sex offender registration Exhibit 4-1 – Removed Note at the beginning for Exhibit, added SSA Benefit Letter and Proof of Income Letter

• E. Chapter 5. Determining Income and Calculating Tenant Rent

Additional clarification on existing text:

Figure 5-1 – Added Enterprise Income Verification (EIV) Paragraph 5-3 – Added 24 CFR5.233 Mandated Use of HUD’s Enterprise Income Verification (EIV) System Paragraph 5-5.A – Removed “two”

Paragraph 5-5.A.2 – Removed example text

Paragraph 5-5.A.3 – Added new paragraph and subparagraphs on Using EIV Paragraph 5-6.A.3.d – Clarified the paragraph to relate to earned income and this income exceeding $480 annually

Paragraph 5-6.I – Provided reference to Sections J and O along with an Example

Paragraph 5-6.Q.3 – Added paragraph excluding deferred Department of Veterans Affairs disability payments received in a lump sum or in prospective monthly payments for Section 8 tenants

Paragraph 5-7.G.4.b – clarified IRA, Keogh, and similar retirement savings accounts are counted as assets, even though withdrawal would result in a penalty, unless benefits are being received through periodic payments.

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Paragraph 5-7.G.4.d – revised to read “Include in annual income any retirement benefits received through periodic payments. Do not count any remaining amounts in the account as an asset.

Paragraph 5-10.A.1 – Clarified the deduction does not apply to foster children and foster adults; added statement for not needing legal custody of dependent to receive deduction Paragraph 5-10.A.2 – included foster adult

Paragraph 5-11 – Added 24 CFR 5.233 Mandated use of HUD’s Enterprise Income Verification (EIV) System Paragraph 5-12.A.2 – Added paragraph for use of EIV system for third party verification of a tenant’s

employment and income at time of recertification and to assist in reducing administrative and subsidy payment errors

Paragraph 5-12.A.4 – Updated paragraph to conform with SSN requirements found in 24 CFR 5.216 Figure 5-4 – Updated figure to conform with SSN requirements found in 24 CFR 5.216 Paragraph 5-13.A – Updated the order of acceptable methods of verification Paragraph 5-13.B – Added detail for the types of third party verification in the order of their acceptability Paragraph 5-13 – Removed two paragraphs titled Review of Documents and Family Certification Paragraph 5-15.A – Removed medical professionals and the reference to the HUD Fact Sheet and the Resident Rights and Responsibilities brochure Paragraph 5-15.B.1 – Added IRS, SSA, and SWICAs abbreviations and the Department of Health and Human Services National Directory of New Hires Paragraph 5-15.B.2 – Clarified the 9887 must be signed by head of household, spouse, co-head regardless of age Paragraph 5-15.C – Added the EIV & You brochure Paragraph 5-15.C.1 – Clarified HUD-9887-A form and Fact Sheet Paragraph 5-15.C.2 – Removed reference to HUD National Multifamily Clearinghouse and provided reference to Chapter 1

Paragraph 5-15.C.3 – Added new paragraph for EIV & You brochure Paragraph 5-16 – Removed paragraph Paragraph 5-16 (new) – Removed repetitive language to clarify paragraph Paragraph 5-16.A – Added HUD-9887-A Paragraph 5-16.A.3 – Added new paragraph for NDNH Paragraph 5-16.A.3.c – Added NDNH reference Paragraph 5-16.B.1 and 2 – Clarified valid verification dates Paragraph 5-16.B.4 – Removed paragraph Paragraph 5-17 – Rearranged wording to make the paragraph read clearly Paragraph 5-18.B – Revised to include EIV and EIV documentation Paragraph 5-18.D – Added original tenant provided documents must be returned to tenant and removed the Note

Paragraph 5-20 – New paragraph Added explaining Security of EIV data Paragraph 5-21.A – Added HUD-9887-A Paragraph 5-21.B – added any member of the tenant’s family, indicated the household’s assistance is terminated Paragraph 5-21.C Example – Added HUD-9887-A Paragraph 5-23.A.3 – Added paragraph for EIV Income Report Paragraph 5-23.A.4 – Clarified third party verifications received from third-party sources Paragraph 5-23.C – Added Note on the Federal Privacy Act Paragraph 5-23.D – Added HUD-9887-A Paragraph 5-25.B.1 – Clarified operating rent by inserting “gross rent” Exhibit 5-3 – Added language to clarify transportation to/from treatment and lodging Exhibit 5-3 – Removed language allowing certain maintenance or personal care services provided for qualified long-term care as medical expenses

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• F. Chapter 6. Lease Requirements and Leasing Activities

Additional clarification on existing text:

Updated references throughout Chapter.

Paragraph 6-1.B – Section 1: added lease addendums as a required attachment to the lease, when applicable. Section 4: added the “EIV & You” brochure as a required handout that must be provided to tenants Figure 6-1 – Added Violence Against Women Act (VAWA) as a key term

Paragraph 6-3 – Added Subsection E: Violence Against Women Act (VAWA) Protection, and cites the governing authority

• Paragraph 6-4, 6-4.A, 6-4.C, 6-4.D – Added lease amendments to the heading; identifies lease addendums as a regulatory requirement, and clarified the availability of model leases in English and other languages; added subparagraph C on VAWA Lease Addendum; clarified in 6-4D that changes to model lease by owners may only be for documented state and local law, and, lease changes are made using a lease addendum

• Figure 6-2 – Clarified required leases for Section 202/8 or Section 202 PACs, and the programs that use the lease.

Figure 6-3 – New Figure for HUD Issued Lease Addendum; includes VAWA addendum

Paragraph 6-5.A, B, C, D and E – added owner’s, VAWA lease addendum and clarified the requirements of HUD issued lease addenda

Paragraph 6-5.G – Added paragraph for Requirements of HUD issued lease addendums

Paragraph 6-12. B, C and D – Clarified that lease changes must be incorporated into the lease as a lease

addendum, and no HUD/CA approval required; clarified that owner modification must be in form of lease addendum and requires HUD/CA approval

Paragraph 6-24.C – Updated definition of Assistance Animals

Paragraph 6-27. B – Updated list to include VAWA addenda and EIV & You as topics to be covered in tenant briefing

• Paragraph 6-27.C.2 – Added language to ensure owners have appropriate means to communicate with hearing and/or speech impaired individuals and HUD’s LEP website link

• Figure 6-9 – Included Police/Security Addendum, VAWA Addendum, EIV & You Brochure, and How Your Rent is Determined Fact Sheet

Exhibit 6-6 – Added EIV and VAWA

• G. Chapter 7. Recertification, Unit Transfers, and Gross Rent Changes

Additional clarification on existing text:

Figure 7-1 – added Enterprise Income Verification (EIV) as a key term. Paragraph 7-3 – added 24. CFR 5.233 Mandated Use of HUD’s EIV System

Paragraph 7-4 – clarified when owners must use EIV Income Report as third-party verification; that owners must provide tenant with copy of EIV & You brochure, and that owner’s policy on criminal background checks may include lifetime sex offender registration checks

• Paragraph 7-6 – clarified that HUD will terminate a certification if a new recertification is not submitted within 15 months from the anniversary date

• Figure 7-3 – clarified the owner’s responsibility for obtaining and reviewing EIV reports and for documenting social security numbers for all household members in the recertification steps

• Paragraph 7-8.C – clarified that owners must use EIV Income Report as third party verification unless tenant disputes the EIV information or the owner cannot provide acceptable documentation to use for rent calculation

• Paragraph 7-8.D.3 – added and clarified tenant eviction as a condition for non-recertification

• Paragraph 7-10.A and C – clarified State sex offender registration check as a required screening criteria and requires tenant to disclose and provide verification of SSN; clarified Subparagraph C that an owner must not use the EIV report for a tenant that turned 18 unless the tenant signs the consent form HUD-9887

• Paragraph 7-11.A.3 – added Note

• Paragraph 7-11.C - clarified State sex offender registration check as a required screening criteria and requires tenant to disclose and provide verification of SSN

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Paragraph 7-12.A – clarified EIV’s usage when tenant reports a change in employment or income Paragraph 7-12.B.1 added use of the EIV New Hires Report Paragraph 7-13.C.2 – added example Paragraph 7-18.C – Removed 75 day implementation of utility allowance and clarified effective dates Paragraph 7-18.D – Removed Note at the end of paragraph Exhibit 7-3 – Added “at least” to the date requirement in the notice Exhibit 7-5 – Added verifications not available in the EIV System