Q&A: Correction or Interim?

Question:  A tenant was moved in based on calculations using the net SS income instead of the gross benefit income.  This was discovered upon retrieving EIV income data within 90 days of the move-in date.  The difference between these two amounts is the $104/month for the Medicare premium.  The amount is not over the $200/month criteria for reporting to HUD.  Should an IR be done at this time to use the correct gross income amount?  Or, can this be corrected at the Annual Recertification? ~ Don in Georgia

Answer: In this case, the Move-In cert wasn’t calculated correctly, so a Correction to the Move-In must be completed and transmitted to TRACS.    The corrected cert should show the gross Social Security as income and the $104 Medicare as a medical expense.  Since this was a management error, the tenant must receive a 30-day notice of any rent increase, and is not responsible for any additional rent retroactive to the move-in date.  That amount would be absorbed by management.