Exhibit 5-3: Acceptable Forms Of Verification( NOTE: Requests For Verification From Third Parties Must Be Accompanied By A Consent To Release Form)

Appendix 3 Acceptable Forms of Verification Appendix 3 4350.3 REV-1

Appendix 3: Acceptable Forms of Verification

ACCEPTABLE SOURCES Third Partya Documents Provided by Factor to be Verified Writtenb Oralc Applicant Self-Declaration Verification Tips

 Age.  None required.  None required.  Birth Certificate  Baptismal Certificate  Military Discharge papers  Valid passport  Census document showing age  Naturalization certificate  Social Security Administration Benefits printout

 Alimony or child support.  Copy of separation or  Telephone or in-person  Copy of most recent  Notarized statement or  Amounts awarded but not divorce agreement contact with ex-spouse or check, recording date, affidavit signed by applicant received can be excluded from provided by ex-spouse income source amount, and check indicating amount received. annual income only when or court indicating type documented in file by the number.  If applicable, notarized applicants have made of support, amount, and owner.  Recent original letters from statement or affidavit from reasonable efforts to collect payment schedule. the court. applicant indicating that amounts due, including filing with  Written statement payments are not being courts or agencies responsible provided by ex-spouse received and describing for enforcing payments. or income source efforts to collect amounts indicating all of above. due.  If applicable, written statement from court/attorney that payments are not being received and anticipated date of resumption of payments.

aNOTE: Requests for verification from third parties must be accompanied by a Consent to Release form. bNOTE: If the original document is witnessed but is a document that should not be copied, the owner should record the type of document, any control or serial numbers, and the issuer. The owner should also initial and date this notation in the file. cNOTE: For all oral verification, file documentation must include facts, time and date of contact, and name and title of third party.

HUD Occupancy Handbook 1 5/03 Appendix 3: Acceptable Forms of Verification 4350.3 REV-1 Appendix 3

 Assets disposed of for less  None required.  None required.  None required.  Certification signed by  Only count assets disposed of than fair market value. applicant that no member of within a two-year period prior to family has disposed of examination or re-examination. assets for less than fair market value during preceding two years.

 If applicable, certification signed by the owner of the asset disposed of that shows:

- Type of assets disposed of;

- Date disposed of;

- Amount received; and

- Market value of asset at the time of disposition.

5/03 2 HUD Occupancy Handbook Appendix 3: Acceptable Forms of Verification Appendix 3 4350.3 REV-1

 Auxiliary apparatus.  Written verification from  Telephone or in-person  Copies of receipts or  The owner must determine if source of costs and contact with these evidence of periodic expense is to be considered purpose of apparatus. sources documented in payments for apparatus. medical or disability assistance. file by the owner.  Written certification from doctor or rehabilitation agency that use of apparatus is necessary to employment of any family member.

 In case where the disabled person is employed, statement from employer that apparatus is necessary for employment.

 Care attendant for  Written verification from  Telephone or in-person  Copies of receipts or  Notarized statement or  The owner must determine if this disabled family members. attendant stating contact with source cancelled checks signed affidavit attesting to expense is to be considered amount received, documented in file by the indicating payment amounts paid. medical or disability assistance. frequency of payments, owner. amount and frequency. hours of care.

 Written certification from doctor or rehabilitation agency that care is necessary to employment of family member.

 Child care expenses  Written verification from  Telephone or in-person  Copies of receipts or  For verification of “looking for  Allowance provided only for care (including verification that person who provides contact with these cancelled checks work,” details of job search of children 12 and younger. a family member who has care indicating amount sources (child care indicating payments. effort as required by owner’s been relieved of child care of payment, hours of provider, employer, written policy.  When same care provider takes is working, attending care, names of children, school) documented in  For school attendance, care of children and disabled school, or looking for frequency of payment, file by the owner. school records, such as person, the owner must prorate employment). and whether or not care paid fee statements that expenses accordingly. is necessary to show that the time and employment or duration of school education.  Owners should keep in mind that attendance reasonably costs may be higher in summer corresponds to the period months and during holiday  Verification of of child care. periods. employment as required under Employment Income.  The owner must determine which family member has been enabled to work.  Verification of student status (full or part-time) as required under Full-  Care for employment and Time Student Status. education must be prorated to compare to earnings.

 Costs must be “reasonable.”

 Citizenship  Citizens must sign  Owners may require declaration certifying U.S. applicants/residents to provide Citizenship. verification of citizenship.

 Current net family assets.  Verification forms,  Telephone or in-person  Passbooks, checking, or  Notarized statement or  Use current balance in savings letters or documents contact with appropriate savings account signed affidavit stating cash accounts and average monthly received from financial source, documented in statements, certificates of value of assets or verifying balance in checking accounts for institutions, stock file by the owner. deposit, property cash held at applicant’s last 6 months. brokers, real estate appraisals, stock or bond home or in safe deposit box. agents, employers documents, or other  Use cash value of all assets (the indicating the current financial statements net amount the applicant would value of the assets and completed by financial receive if the asset were penalties or reasonable institution. converted to cash). costs to be incurred in order to convert  Copies of real estate tax  NOTE: This information can nonliquid assets into statements, if tax authority cash. usually be obtained uses approximate market simultaneously when verifying value. income from assets and employment (e.g., value of  Quotes from attorneys, pension). stockbrokers, bankers, and real estate agents that verify penalties and reasonable costs incurred to convert asset to cash.

 Copies of real estate closing documents that indicate distribution of sales proceeds and settlement costs.

 Disability status.  Verification from  Telephone or in-person  Not appropriate.  If a person receives Social medical professional contact with medical Security Disability solely due to a stating that individual professional verifying drug or alcohol problem, the qualifies under the qualification under the person is not considered definition of disability. federal disability disabled under housing law. A definition and person that does not receive documentation in the file Social Security Disability may still of the conversation. qualify under the definition of a person with disabilities.

 Owners must not seek to verify information about a person’s specific disability other than obtaining a professional’s opinion of qualification under the definition of a person with disabilities.

 Dividend income and  Verification form  Telephone or in-person  Copies of current  Not appropriate.  The owner must obtain enough savings account interest completed by bank. contact with appropriate statements, bank information to accurately project income. party, documented in file passbooks, certificates of income over next 12 months. by the owner. deposit, if they show required information (i.e.,  Verify interest rate as well as current rate of interest). asset value.

 Copies of Form 1099 from the financial institution, and verification of projected income for the next 12 months.

 Broker’s quarterly statements showing value of stocks/bonds and earnings credited to the applicant.

 Employment Income  Verification form  Telephone or in-person  W-2 Forms, if applicant  Notarized statements or  Always verify: frequency of gross including tips, gratuities, completed by employer. contact with employer, has had same employer affidavits signed by applicant pay (i.e., hourly, biweekly, overtime. specifying amount to be for at least two years and that describe amount and monthly, bimonthly); anticipated paid per pay period and increases can be source of income. increases in pay and effective length of pay period. accurately projected. dates; overtime. Document in file by the owner.  Paycheck stubs or earning  Require most recent 6-8 statements. consecutive pay stubs; do not use check without stub.

 For a fee, additional information can be obtained from The Work Number 800-996-7556; First American Registry 800-999- 0350; and Verifax 800-969-5100. Fees are valid project expenses. Information does not replace third-party verification.

ACCEPTABLE SOURCES Third Partya Documents Provided by Factor to be Verified Writtenb Oralc Applicant Self-Declaration Verification Tips  Birth certificates  Family composition.  None required.  None required.  Divorce actions  An owner may seek verification only if the owner has clear written  Drivers’ licenses policy.  Employer records  Income tax returns  Marriage certificates  School records  Social Security Administration records  Social service agency records  Support payment records  Utility bills  Veterans Administration (VA) records

 Family type.  Disability Status:  Telephone or in-person  Elderly Status (when there  Elderly Status: Applicant’s  Unless the applicant receives statement from contact with source is reasonable doubt that signature on application is income or benefits for which (Information verified only to physician or other documented in file by the applicant is at least 62): generally sufficient. elderly or disabled status is a determine eligibility for reliable source, if owner. birth certificate, baptismal requirement, such status must be project, preferences, and benefits documenting certificate, social security verified. allowances.) status are not received. records, driver’s license, See paragraph 3.25 B.1 census record, official  Status of disabled family for restrictions on this record of birth or other members must be verified for form of verification. authoritative document or entitlement to $480 dependent receipt of SSI old age deduction and disability  Displacement Status: benefits or SS benefits. assistance allowance. Written statement or certificate of  Disabled, blind: evidence  Owner may not ask the displacement by the of receipt of SSI or nature/extent of disability. appropriate Disability benefits. governmental authority.

 Full-time student status (of  Verification from the  Telephone or in-person  School records, such as family member 18 or older, Admissions or contact with these paid fee statements that excluding head, spouse, Registrar’s Office or sources documented in show a sufficient number or foster children). dean, counselor, file by the owner. of credits to be considered advisor, etc., or from VA a full-time student by the Office. educational institution attended.

 Immigration Status.  Verification of eligible  None.  Applicant/resident must  Noncitizens must sign  Owners must require noncitizens immigration status must provide appropriate declaration certifying the requesting assistance to provide be received from DHS immigration documents to following: verification of eligible immigration through the DHS SAVE initiate verification. Eligible immigration status; or status. system or through Decision not to claim eligible secondary verification status. using DHS Form G-845.

 Income maintenance  Award or benefit  Telephone or in-person  Current or recent check  Checks or automatic bank payments, benefits, notification letters contact with income stubs with date, amount, deposit slips may not provide income other than wages prepared and signed by source, documented in and check number gross amounts of benefits if (i.e., welfare, Social authorizing agency. file by the owner. recorded by the owner. applicant has deductions made Security [SS], for Medicare Insurance. Supplemental Security  TRACS or REAC may  NOTE: For all oral  Award letters or computer Income [SSI], Disability provide verification for verification, file printout from court or  Pay stubs for the most recent four Income, Pensions). social security. documentation must public agency. to six weeks should be obtained. include facts, time and date of contact, and  Copies of validated bank  Copying of U.S. Treasury checks name and title of third deposit slips, with is not permitted. party. identification by bank.  Award letters/printouts from court  Most recent quarterly or public agency may be out of pension account date; telephone verification of statement. letter/printout is recommended. aNOTE: Requests for verification from third parties must be accompanied by a Consent to Release form. bNOTE: If the original document is witnessed but is a document that should not be copied, the owner should record the type of document, any control or serial numbers, and the issuer. The owner should also initial and date this notation in the file. cNOTE: For all oral verification, file documentation must include facts, time and date of contact, and name and title of third party.

 Interest from sale of real  Verification form  Telephone or in-person  Copy of the contract.  Only the interest income is property (e.g., contract for completed by an contact with appropriate counted; the balance of the deed, installment sales accountant, attorney, party, documented in file  Copy of the amortization payment applied to the principal contract, etc.) real estate broker, the by the owner. schedule, with sufficient is merely a liquidation of the buyer, or a financial information for the owner asset. institution which has to determine the amount copies of the of interest to be earned  The owner must get enough amortization schedule during the next 12 months. information to compute the actual from which interest interest income for the next 12 income for the next 12 months. months can be  NOTE: Copy of a check obtained. paid by the buyer to the applicant is not acceptable.

 Medical expenses.  Verification by a doctor,  Telephone or in-person  Copies of cancelled  Notarized statement or  Medical expenses are not hospital or clinic, contact with these checks that verify signed affidavit of allowable as deduction unless dentist, pharmacist, sources, documented in payments on outstanding transportation expenses applicant is an elderly or disabled etc., of estimated file by the owner. medical bills that will directly related to medical family. Status must be verified. medical costs to be continue for all or part of treatment, if there is no other incurred or regular the next 12 months. source of verification. payments expected to be made on outstanding  Copies of income tax bills which are not forms (Schedule A, IRS covered by insurance. Form 1040) that itemize medical expenses, when the expenses are not expected to change over the next 12 months.

 Receipts, cancelled checks, pay stubs, which indicate health insurance premium costs, or payments to a resident attendant.

 Receipts or ticket stubs that verify transportation expenses directly related to medical expenses.

 Need for an assistive  Letter from medical  If the owner’s policy is to verify animal. provider. this need, owner must implement policy consistently.

 Net Income for a business.  Not applicable.  Not applicable.  Form 1040 with Schedule C, E, or F.

 Financial Statement(s) of the business (audited or unaudited) including an accountant’s calculation of straight-line depreciation expense if accelerated depreciation was used on the tax return or financial statement.

 Any loan application listing income derived from business during the preceding 12 months.

 For rental property, copies of recent rent checks, lease and receipts for expenses, or IRS Schedule E.

 Recurring contributions  Notarized statement or  Telephone or in-person  Not applicable.  Notarized statement or  Sporadic contributions and gifts and gifts. affidavit signed by the contact with source affidavit signed by applicant are not counted as income. person providing the documented in file by the stating purpose, dates, and assistance giving the owner. value of gifts. purpose, dates, and value of gifts.

 Self-employment, tips, None available. None available.  Form 1040/1040A showing  Notarized statement or gratuities, etc. amount earned and affidavit signed by applicant employment period. showing amount earned and pay period.

 Social security number.  None required.  None required.  Original Social Security  Certification that document is  Individuals who have applied for card complete/accurate unless legalization under the Immigration  Driver’s license with SSN original Social Security card is Reform and Control Act of 1986  Identification card issued provided. will be able to disclose their social by a federal, State, or local security numbers but unable to agency, a medical supply cards for documentation. insurance provider, or an Social security numbers are employer or trade union. assigned to these persons when  Earnings statements on they apply for amnesty. The payroll stubs cards go to DHS until the persons  Bank statement are granted temporary lawful  Form 1099 resident status. Until that time,  Benefit award letter their acceptable documentation is a letter from the DHS indicating  Retirement benefit letter that social security numbers have  Life insurance policy been assigned.  Court records

 Unborn children.  None required.  None required.  None required.  Applicant/tenant self-certifies  Owner may not verify further than to pregnancy. self-certification.

 Unemployment  Verification form  Telephone or in-person  Copies of checks or  Frequency of payments and compensation. completed by source. contact with agency records from agency expected length of benefit term documented in a file by provided by applicant must be verified. an owner. stating payment amounts and dates.  Income not expected to last full 12 months must be calculated  Benefit notification letter based on 12 months and interim signed by authorizing recertification completed when agency. benefits stop.

 Welfare payments (as-paid  Verification form  Telephone or in-person  Maximum shelter  Not appropriate.  Actual welfare benefit amount not states only). completed by welfare contact with income allowance schedule with sufficient as proof of income in department indicating source, documented in ratable reduction schedule “as-paid” states or localities since maximum amount file by the owner. provided by applicant. income is defined as maximum family may receive. shelter amount.

 Maximum shelter schedule by household size with ratable reduction schedule.

 Zero Income.  Not applicable.  Not applicable.  Not applicable.  Applicant/Tenant self-certifies  Owners may require to zero income. applicant/tenant to sign verification release of information forms for state, local, and federal benefits programs, as well as the HUD 9887 and HUD 9887-A.

 Owners may require the tenant to reverify zero income status at least every 90 days.

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