December 16, 2013 in Handbooks/Notices/Guides

Change 4: Revised Transmittal

Change 4: Revised Transmittal

On December 10, 2013, a Revised Transmittal for the 4350.3 REV-1, CHG-4 Handbook appeared online for the first time.  Signed by Carol Galante, Assistant Secretary for Housing, its issue date was November 27, 2013.

 Here are the changes based on the Transmittal:

 1.  The last sentence alludes to “a small clarification to verification techniques”.

—  9-10.A adds that O/As must not use tenant-provided documentation (even when generated by a third-party source) in these particular situations:

  1. Tenant can’t provide acceptable documentation to support wages and unemployment in EIV
  2. Tenant disputes EIV income information
  3. There is an EIV income discrepancy reported at the AR, IR or other time if specified in the property’s EIV Policies and Procedures
  4. EIV income data is incomplete and the O/A needs more information.  Some examples are listed, including effective date of income, information about new employment, no EIV data for a tenant.

— 5-13.B.1.b (2) has an added Note referring us to 9-10A for situations when verification must come directly from the source.  Note that the Transmittal lists the wrong citation (it shows 5-13.B.2).

 2. Implementation:

  • O/As have until December 15, 2013 to implement the changes made by Change 4
  • O/As have until March 1, 2014 to implement changes that require changes in their compliance software.  This refers to entering citizenship eligibility codes and income for foster children and fostered adults.
  • HUD may extend the March 1, 2014 date if software vendors can’t make the changes due to incompatibility with TRACS.  Our current information is that TRACS 202.C will not be updated to accommodate this change, so TRACS won’t be able to accept the new information until TRACS 202.D is released.

C, Chapter 3:  Paragraph 3-13.A.2 was changed and Paragraph 3-13.A.2.h was added.  These Transmittal notes more accurately reflect the changes made in the handbook regarding the Section 8 rules for student eligibility.

K, Appendices:  These changes have been made to the Handbook in HUD Clips.  The additions refer to:

(1)  Including new column “Provided by Applicant” under Third Party Verification
(2)  Including “Note e” referencing examples and requirements in 5-13.B.1 which refers to adding UIV, and the   order of acceptable verifications
(3)  Updating Appendix 3 to align with new verification techniques in 5-13, including self-declaration of income items
(4)  Several Appendices have been removed from the Change 4 Handbook in HUD Clips:

–  7-A & B ( 50059 Data Requirements and 50059 Signature Page)
–  8 (rounding) Note:  This is not on the list of removed appendices in the Transmittal.)
–  9 (HAP Voucher)
–  10-A through D, 11 and 12 (Special Claims)
–  13 (Excess Income Report used by Section 236 properties)
–  14 A-F will be changed to be Appendix 7 A-F (Fact Sheets)

Note that these newly changed pages show an 8/13 date at the bottom… not a 12/13 date.