The Application Procedure Is to Be Implemented by the Manager on Site s2
Chapter 5 Section 2
RECERTIFICATIONS
Now that your resident has moved in you must maintain the resident’s information. HUD requires that we complete annual recertifications on each resident. The annual recertification date for each resident is determined by the month they move into the property. ie. If a resident moves in any day of the month of May, then the annual recertification would be May 1 of the following year and every year thereafter (Date cycles do not apply to RD 515).
The purpose of the recertification is to re-evaluate the resident’s income and expenses to determine their rent for the upcoming year.
You must annually recertify all residents that receive Subsidy. This is not an option but a requirement to receive assistance. Residents paying market rent are NOT required to recertify, but they are required to sign a new lease annually.
Remember: EIV plays a very important role in any recertification.
HUD assistance is not guaranteed so the annual recertification is the process to determine if assistance is warranted. Think of the annual recertification process as “re-applying” for HUD assistance every year. And, HUD assistance is based on the income, assets and certain expenses of the family/household.
The first step in the recertification process is to provide the resident an initial reminder notice informing them that they will be required to recertify next year by the 10th day of the 11th month.
Initial Notices (Form G-7): The Initial Recertification Notice is to be given to the resident during each annual recertification process. The Initial Notice, signed by the resident, indicates the requirements of the Lease, regarding the resident's obligation to recertify annually by a certain date, has been discussed with the resident. Notice must specify the resident's cutoff date for recertification.
Recertification effective date: Date on initial notice to come complete recert by:
January November 10
February December 10
March January 10
April February 10
May March 10
June April 10
July May 10
August June 10
September July 10
October August 10
November September 10
December October 10
Examples of above:
January 1, 2010 recertification effective date, then the initial notice date should be November 10, 2010.
May 1, 2010 recertification effective date, then the initial notice date should be March 10, 2011.
The second step is to send out reminder notices to each resident that their recertification is coming due.
Reminder Notices (Forms G-7 thru G-16): The 1st reminder notice goes out 120 days prior to the recertification effective date. The 2nd reminder notices goes out 90 days prior to the recertification effective date. The 3rd and final notice goes out 60 days prior to the recertification effective date.
It is mandatory to send the 1st notice out 120 days prior to the recertification effective date. However, if the resident does not come in to start their recertification process by the 1st of the next month after the 1st reminder was sent then a 2nd notice should go out. If the resident still does not come in to start their recertification process a third and final notice should be sent to the resident.
If the resident fails to respond to the 3rd and final notice by the 10th day of the 11th month, depending on the property type the resident will either be evicted or put at market rent.
Timelines for 1st, 2nd and 3rd notices are as follows:
Recert effective date:
January 1 than the 1st notice should go out on September 1
than the 2nd notice should go out on October 1
than the 3rd notice should go out on November 1
February 1 than the 1st notice should go out on October 1
than the 2nd notice should go out on November 1
than the 3rd notice should go out on December 1
March 1 than the 1st notice should go out on November 1
than the 2nd notice should go out on December 1
than the 3rd notice should go out on January 1
April 1 than the 1st notice should go out on December 1
than the 2nd notice should go out on January 1
than the 3rd notice should go out on February 1
May 1 than the 1st notice should go out on January 1
than the 2nd notice should go out on February 1
than the 3rd notice should go out on March 1
June 1 than the 1st notice should go out on February 1
than the 2nd notice should go out on March 1
than the 3rd notice should go out on April 1
July 1 than the 1st notice should go out on March 1
than the 2nd notice should go out on April 1
than the 3rd notice should go out on May 1
August 1 than the 1st notice should go out on April 1
than the 2nd notice should go out on May 1
than the 3rd notice should go out on June 1
September 1 than the 1st notice should go out on May 1
than the 2nd notice should go out on June 1
than the 3rd notice should go out on July 1
October 1 than the 1st notice should go out on June 1
than the 2nd notice should go out on July 1
than the 3rd notice should go out on August 1
November 1 than the 1st notice should go out on July 1
than the 2nd notice should go out on August 1
than the 3rd notice should go out on September 1
December 1 than the 1st notice should go out on August 1
than the 2nd notice should go out on September 1
than the 3rd notice should go out on October 1
The third step in the recertification process begins when the resident responds to the reminder notice.
Recertification Questionnaire (Form G-17): When the resident comes into the office to begin the recertification process you must first give them the Recertification Questionnaire to complete in detail. Once they have completed the Recertification Questionnaire, review the questionnaire with the resident and begin to get the resident to sign verification forms based on the information supplied on the questionnaire.
The Most Common Verification forms used are as follows:
· Form C-10 Verification of Medical Expense
· Form C-11 Verification of Employment
· Form C-12 Verification of Social Security Income
· Form C-13 Verification of Pension Income
· Form C-14 Verification of Real Estate
· Form C-15 Verification of Assets
Please refer to Chapter 4, Section 6 for details on verification forms.
Also, at this time you get the resident to complete the other recertification forms such as:
HUD 9887 and 9887A Consent (Form C-8): The HUD 9887 must be signed and dated by all members of the household over the age of 18. Each member of the household over the age of 18 must complete a copy of the 9887A form.
Resident Rights and Responsibilities Brochure and HUD Fact Sheet and Rules and Regulations Receipt and EIV Brochure (Form F-18): At every recertification you are to supply each new resident with a HUD Resident Rights and Responsibilities Brochure and HUD Fact Sheet and EIV Brochure. Then the new resident will sign the Resident Rights and Responsibilities Brochure and HUD Fact Sheet and Rules and Regulations Receipt and EIV Brochure Form indicating they are received copies of all the documents and that they still have the same Rules and Regulations in place or that they have been issued new Rules and Regulations.
· The Resident Rights and Responsibilities Brochures can be ordered FREE from HUD’s National Multifamily Housing Clearinghouse at 1-800-685-8740.
· The HUD Fact Sheet Form can be copied from your procedures manual or downloaded from HUDclips using the following web address link:
http://www.hud.gov/offices/hsg/mfh/hsgrent.cfm
· The EIV and You Brochure can be ordered FREE by calling (800) 767-7468, or copied from your procedures manual or downloaded from HUDclips using the following web address link:
http://www.hud.gov/offices/hsg/mfh/rhiip/mfhrhiip.cfm
Pull Cord Acknowledgement (Form F-23): This form is just to state yes or no they do not have a pull cord inside their unit and that they know the property emergency system is or is not monitored by a central station.
The fourth step in the recertification process is to send all necessary verification forms off to be verified.
The fifth step is to go to the HUD Online website and pull the following reports for each tenant that is recertifying:
o EIV Income Report (then once you are in the individual resident income report pull all four tabs):
§ Summary Report
§ Income Report
§ Income Discrepancy Report
§ Certification Page
NOTE: If have more than one resident that is due for recertification do not print the print all button, go into each residents income link separately.
If there are any income discrepancies, income information or new hire data for a tenant, it must be addressed/investigated and documented prior to moving forward with the recertification process.
The sixth step is begun once all the verification forms/reports have been received/printed. This is where you are to complete an income worksheet to calculate the residents rent.
The seventh step is to enter the information from the income worksheet into the Yardi software program. Please refer to the Yardi manual for step by step instructions on how to enter the information into Yardi.
After the information is entered into Yardi, review the HUD 50059 and confirm that the resident rent calculation you have on your income worksheet matches what is on the HUD 50059. Also review the actual information on the HUD 50059 to be sure it is correct. Sometimes you may calculate the same rent on the income worksheet and the HUD 50059 but the information may not be accurate. Once you have confirmed all the information follow the Yardi manual instructions to print the HUD 50059 full pack.
The eighth step is to take the printed HUD 50059 full pack and then complete the notification of rent change. Make sure the subsidy and rent match. Then schedule a time for the resident to come in to sign the completed documents. When the resident comes in go over information you verified and provide them with their new rent amount and the effective date (the new rent is effective on the residents annual recertification effective date). Then get the resident to sign and date all documents. If the Community Manager has a PM/PMIC license then the community manger may sign all the legal documents (HUD 50059 Full Pack). If the Community Manager does not have a PM/PMIC license these documents must be flagged for the Regional Property Manager to sign on the next visit. The following are legal documents that cannot be signed without a license:
o Lease
o Pet Lease (if applicable)
o HUD 50059
o TIC (for Tax Credit and HOME Programs)
NOTE: It is important that all documents be signed the same day they are printed so that owner and tenant sign dates match the date on the Notification of Rent Change Letter. This is important to prove that the resident received proper notice of rent change.
The ninth step is to organize resident file using checklist for your specific property type. Put a copy of the completed checklist on top of the documents using legal size colored paper.
NOTE: All Recertification’s go on the right hand side of the resident file with the most current year on the top.
The tenth and final step is to scan the completed annual recertification to the Regulatory Compliance Coordinator (RCC) within seven days of the documents being signed. REMINDER: Make sure that you have already put in the proper order and include previous 50059 prior to sending to RCC. Also make sure you name the file and subject line properly before sending email.
Chapter 5, Section 2 Recertifications May 2012
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