HUD PIH Notice § 2010-09

____________________________________________________________________________
                                     __

Special Attention of:                                    Notice PIH 2010-9
(HA)

Public Housing and Section 8 Program Administrators,
Public      Housing Hub Office Directors; Public Housing      Issued:
March 30, 2010
Field Office Directors; Program Center Coordinators;
Resident Management Corporations; Resident Councils;          Expires:
March 31, 2011
Participants of Public Housing, Housing Choice Voucher
Voucher, Project-Based Certificate,  and Project-Based
Voucher Programs; Section 8 Property Owners and
Landlords
                                             _____________________________
                                             Cross References: 24 CFR
           5.233,
                                             HUD OIG Audit Report Number
                                             2010-FW-0001

SUBJECT:     Effective Use of the Enterprise Income Verification (EIV)
           System’s Deceased                     Tenants Report to Reduce
           Subsidy Payment & Administrative Errors


1. Purpose:  This Notice explains the procedures Public Housing Agencies
   (PHAs) are required to implement to deal with families with deceased
   household members.  The implementation of the procedures outlined in this
   Notice will ensure that PHAs submit accurate data to HUD via the Public
   and Indian Housing Information Center (PIC) and that PHAs do not make
   subsidy overpayments on behalf of deceased single member households.
   Where overpayments have been made, the PHA will recoup the overpayment
   from the landlord/owner of the rental property under the programs noted
   in Section 2 of this Notice, with the exception of the Public Housing
   program.

2. Applicability:  This Notice applies to the following HUD-PIH rental
   assistance programs:  Public Housing, Section 8 Moderate Rehabilitation,
   Project-Based Voucher, Project-Based Certificate; and Housing Choice
   Voucher programs.

3. Background:   In January and September, 2008, the Department encouraged
   PHAs to utilize the Deceased Tenants Report available in the Enterprise
   Income Verification (EIV) system.  In a letter sent to all PHA Executive
   Directors, the Department urged PHAs to use the report on a monthly basis
   to assist in identifying families with deceased household members, and
   reduce the occurrence of paying housing assistance on behalf of deceased
   single member households.  The Department also urged all PHAs to take
   appropriate corrective actions to address families with deceased
   household members and update the form HUD-50058 (Family Report) to
   reflect accurate household composition and transmit the updated form HUD-
   50058 in a timely manner.

   HUD has continued to provide informal guidance and training via satellite
   and webcast, related to effective use of the EIV system, including the
   Deceased Tenants Report.


   Many PHAs have taken corrective actions to transmit more accurate data to
   HUD via PIC, and have reduced the number of deceased single member
   households continuing to receive ineligible rental assistance.  PHAs with
   zero deceased household members reported on the Deceased Tenants Report
   are to be commended for their efforts.


   However, there are some PHAs that have not followed HUD’s informal
   guidance.  According to HUD’s Office of Inspector General (OIG), audit
   report number 2010-FW-0001, PHAs have paid approximately $7 million in
   questionable payments for deceased tenants in single member households.
   The OIG also determined that PHAs did not update family composition on
   the form HUD-50058 in a timely manner, which resulted in incorrect
   information in PIC.


   In accordance with the new regulatory requirement at 24 CFR
   5.233(a)(2)(ii), which became effective on January 31, 2010, under the
   Final Rule:  Refinement of Income and Rent Determination Requirements in
   Public and Assisted Housing Programs:  Implementation of the Enterprise
   Income Verification System-Amendments, published at 74 FR 68924 on
   December 29, 2009, all PHAs are required to use the EIV system to reduce
   administrative and subsidy payment errors in accordance with HUD
   administrative guidance.  Accordingly, HUD is issuing this formal
   guidance to ensure that PHAs:


     a) Use EIV’s deceased tenant information for effective decision
        making, corrective action implementation, and reporting activities;
     b) Implement policies and procedures to minimize erroneous subsidy
        payments on behalf of deceased single member households; and
     c) Provide accurate and reliable information to HUD via PIC.

4. Effective Date:  This Notice is effective upon issuance.


5. Monitoring Deceased Tenants.  PHAs must generate the Deceased Tenants
   Report at least once a month.  PHAs who administer Section 8 programs
   should generate the report prior to disbursing the upcoming monthly
   housing assistance payments (HAP) to owners.  PHAs who administer the
   public housing program should generate the report when generating the new
   monthly rent roll to flag deceased tenants. PHAs must review the report
   and follow up with the listed families immediately and take the necessary
   corrective actions outlined in Section 7 of this Notice.

6. How to Access the Deceased Tenants Report.  The Deceased Tenants Report
   identifies deceased household members (whose identity has been confirmed
   by the Social Security Administration (SSA))* who are included in the
   family’s composition (including single member deceased households) as
   reported on Section 3 (Family Composition) of the form HUD-50058.  The
   death information is provided by the SSA.  Single member deceased
   households are denoted with a red asterisk (*) after the member’s
   deceased date (see example one below).  If the deceased date is listed as
   N/A, this means the date of death is not available (see example two
   below).



   *The individual’s social security number (SSN), date of birth, and
   surname reported on the form HUD-50058 must match SSA’s database.
   Deceased information is not displayed for any individual whose EIV
   identity verification status is failed (including individuals with a PIC-
   generated alternate identification number).

   Example 1:

   [pic]


   Example 2:

   [pic]




   Effective April 19, 2010, EIV’s Deceased Tenants Report will be modified
   to isolate deceased single member households in addition to the current
   consolidated report which contains deceased single and multiple member
   households.  This planned system modification will reduce PHA
   administrative burden in identifying deceased single member households.


   Follow the following steps to access the Deceased Tenants Report:

   1:  To access the Deceased Tenant Report, log onto the EIV system at:
         https://hudapps.hud.gov/HUD_Systems.   If you do not have access
         to the EIV system, complete and submit the EIV Access
         Authorization Form and Rules of Behavior and User Agreement to the
         EIV Coordinator in your local HUD office.  For more information,
         go to:
         http://www.hud.gov/offices/pih/programs/ph/rhiip/uivsystem.cfm.

   2:  Once logged into the system, scroll down the left side of the screen
         and double click on the Deceased Tenants Report link (located
         under the Verification Reports header). Select the program for
         which you desire to generate the report for (Public Housing,
         Section 8 or all PIH programs).  You may also select a specific
         reexamination month; however, the system automatically defaults to
         All (which HUD recommends that you use).  If you are responsible
         for more than one PHA, be sure to select the appropriate PHA code
         in the PHA drop down menu.

   3:  Double click the Get Report button.   The report will then display on
         the screen and can easily be downloaded into Excel or printed for
         your convenience.


   Note:  WARNING:  This report contains full social security numbers of
        tenants.  You must ensure that this report is adequately safeguarded
        to prevent improper disclosure of private information.








   Report Selection Criteria for Deceased Tenants Report

   Program Type:  Select either All PIH Programs, Section 8, or Public
Housing

   Reexamination Month:  The default selection is All.  However, the user
   may select a specific month.

   PHA:  The default selection is your PHA.  If you have multiple PHAs
   assigned to your user ID, be certain to select the applicable PHA you
   wish to generate the report.

   [pic]


Sample Deceased Tenants Report

[pic]


7. Corrective Actions Required by PHAs.  When the Deceased Tenants Report
   identifies an individual as being deceased, PHAs are required to take the
   following actions:


     a) Immediately contact the head of household (HOH) or emergency
        contact person (if the HOH is deceased and there is no other adult
        household member) to confirm the death of the listed household
        member.  A letter should be sent to the HOH, followed by a
        telephone call.


     b) Public Housing only - Conduct a home visit to determine if anyone
        is residing in the unit. (Optional for Section 8 program)


        If there are unauthorized persons in the unit of a deceased single
        member household you must pursue judicial intervention to have them
        lawfully removed from the unit.  You may be found liable for a
        wrongful eviction if you change the locks on the unit to prevent
        the unauthorized occupants from entering the unit.  Follow your
        local Tenant and Landlord laws to regain possession of the unit.


     c) Section 8 Programs only – Notify the owner in writing of the
        deceased HOH.

        For deceased single member households or a household where the
        remaining household member is a live-in aide, PHAs are required to
        discontinue HAP to the owner no later than the first of the
        following month after the death occurred.  See Section 13 of this
        Notice for determining amount of owner housing assistance
        overpayments.

   Note:  PHAs are required to immediately terminate program assistance for
        deceased single member households which will result in termination
        of the HAP contract and HAP to the owner in accordance with the
        aforementioned provisions.  The owner is not entitled to HAP for any
        month following the month in which the death occurred.  There are no
        exceptions to this policy and procedures.


8. When the remaining household member is a live-in aide.  When the HOH
   dies and the only remaining household member is the live-in aide, the
   live-in aide is not entitled or eligible for any rental assistance or
   continued occupancy in a subsidized unit.  By definition, the live-in
   aide would not be living in the subsidized unit except to provide the
   necessary supportive services on behalf of the elderly or disabled HOH.
   The PHA may not designate the live-in aide as the new HOH or change the
   relation code (line item 3h on the form HUD-50058) of the live-in aide to
   make him or her an eligible household member (eligible for assistance)
   nor pay HAP on behalf of the live-in aide for any month after the month
   in which the HOH died.


   The PHA must notify the live-in aide s/he is required to vacate the unit
   at the end of month.  If the live-in aide does not vacate the unit, the
   PHA (or owner/landlord) must follow local Tenant and Landlord laws to
   regain possession of the unit.






9. What to do if the HOH is deceased and the remaining household members
   are minors.  PHAs should have an established policy for dealing with
   situations when the HOH dies during tenancy and the remaining household
   members are minors.  A common practice of PHAs includes (but is not
   limited to) allowing a temporary adult guardian to reside in the unit
   until a court-appointed guardian is established.  In accordance with its
   screening policies, the PHA may add the new guardian as the new HOH.
   PHAs are encouraged to work with the local Department of Social Services
   to ensure that the best interests of the children are addressed.


10. What to do if an identified household member is reported to be deceased
   and is actually alive.  There are a very few instances when an error has
   been made in the SSA’s Death Match File (DMF), wherean individual is
   reported as deceased, but actually living.  In the event that a household
   member is misidentified as deceased on the Deceased Tenants Report, PHAs
   should immediately notify the individual in writing and advise the
   individual to contact SSA so that SSA may correct its records.  The
   individual may contact SSA at (800) 772-1213, or visit his/her local SSA
   office for assistance.

   The PHA should also provide the individual with his/her section of the
   EIV Income Report, which shows the death information.  PHAs are
   authorized to provide EIV information only to the individual the
   information pertains to.  The PHA may provide the minor’s information to
   the minor’s adult parent or guardian.


   Last, PHAs are required to make a note in the tenant file that the
   individual has been identified as deceased; however, the PHA has
   confirmed that the individual is actually alive.


   Note:  Only SSA can correct erroneous death information.

11. Time frame for removal of individual from the Deceased Tenants Report.
   The families that appear on the Deceased Tenants Report are based on
   current information reported on the form HUD-50058.  The Deceased Tenants
   Report is updated every weekend.  A deceased individual will be removed
   from the report when:

    a. The PHA transmits an updated form HUD-50058, that does not contain
       the previously identified deceased household member in Section 3 of
       the form HUD-50058 (Family Composition); or


    b. HUD obtains the updated and corrected information from SSA’s DMF.

           Example 1:  Mr. Jones was listed on the Deceased Tenants Report
           dated December 14, 2009, with a deceased date of November 20,
           2009.  On December 1, 2009, the PHA confirmed that Mr. Jones was
           actually alive and advised Mr. Jones to visit his local SSA
           office to have the error corrected.  SSA corrected the DMF on
           December 20, 2009.  When HUD conducted computer matching with
           SSA on January 6, 2010, HUD obtained new SSA data which
           indicated that Mr. Jones was not deceased.  The Deceased Tenants
           Report was updated on the weekend of January 8, 2010.  When the
           PHA accessed the Deceased Tenants Report on January 11, 2010,
           Mr. Jones was no longer on the report.




           Example 2:  Mr. Williams was listed on the Deceased Tenants
           Report dated December 14, 2009, with a deceased date of June 10,
           2009.  On January 6, 2010, the PHA confirmed that Mr. Williams
           was deceased.  The PHA then completed and submitted an EOP form
           HUD-50058 on January 7, 2010.  The Deceased Tenants Report was
           updated on the weekend of January 8, 2010.  When the PHA
           accessed the Deceased Tenants Report on January 11, 2010, Mr.
           Williams was no longer on the report.

12. Type of Action and Effective Date to Record on Form HUD-50058.  Below
   prescribes the applicable type of action and effective date the PHA is
   required to record on form HUD-50058 to report changes of family
   composition and income.


     a. Deceased Single Member Households.  Once the PHA has confirmed the
        death of the HOH of a single member household or a household where
        the surviving household member is the live-in aide, the PHA is
        required to complete and submit a form HUD-50058 with the
        following:


        Line 2a – Type of Action = 6 (End of Participation)


        Line 2b – Effective Date of Action = Date of Death from Deceased
           Tenants Report,
        or as noted below. (If date is listed as “N/A”, enter the date of
           death as confirmed by
        Obituary, Death Record, or other information obtained.)


        Section 8 programs:  PHAs may list the date of death as the last
           day of the
        month in which the death occurred.


        Public Housing program:  For deceased single member households
           (where there are
        no unauthorized unit occupants), PHAs may list the date of death as
           the last day of
        the month, in which the death occurred.  PHAs are required to then
           classify the unit as
        vacant in PIC.  The PHA may not use a later date based on the date
           that all personal
        belongings were removed from the unit by the family.  The PHA may
           coordinate the
        removal of personal belongings within a reasonable time frame (not
           to exceed 14
        days).


        In situations where the PHA seeks judicial intervention to regain
           possession of the
        Public housing unit, the PHA must list eviction date (the day in
           which the PHA has
        regained possession of the unit) as the effective date of action.


     b. Deceased Household Member of a Multiple Member Household –
        Surviving Adult Household Member.   Once the PHA has confirmed the
        death of the HOH, the PHA is required to complete and submit a form
        HUD-50058 with the following:


            Line 2a – Type of Action = 3 (Interim Reexamination)

        Line 2b – Effective Date of Action = Date of Death from Deceased
        Tenants Report (if date is listed as “N/A”, enter the date of death
        as confirmed by Obituary, Death Record, or other information
        obtained.)


        Line 3a (Member 01) - delete the deceased HOH’s information and
        enter the information of the adult household member who has been
        designated HOH.


        Line 3a – delete the information of the other adult household
        member, whose information you entered on Line 3a (Member 01).


        Line 3w – enter the Social Security Number (SSN) of the former
        (deceased) HOH.


     c. Deceased Household Member of a Multiple Member Household – No
        Surviving Adult Household Member.   Once the PHA has confirmed the
        death of the HOH, the PHA is required to complete and submit a form
        HUD-50058 with the following:


        Line 2a – Type of Action = 3 (Interim Reexamination)


        Line 2b – Effective Date of Action = Date of Death from Deceased
        Tenants Report (if date is listed as “N/A”, enter the date of death
        as confirmed by Obituary, Death Record, or other information
        obtained.)


        Line 3a (Member 01) - delete the deceased HOH’s information and
        enter the adult household member’s information of the temporary or
        permanent guardian.


        Line 3w – enter the Social Security Number (SSN) of the former
        (deceased) HOH.


     d. Other Household Changes.  If, in scenario B or C above, there is
        also a change in family income resulting in a change in the
        family’s total family share, the effective date on line 2b should
        be the effective date of the new total family share in accordance
        with PHA-established policies.


13. Retroactive Repayment of HAP by Owners.    If an owner receives HAP for
   any month in which the owner is ineligible to receive HAP because of a
   deceased tenant, the PHA must immediately notify the owner in writing of
   the ineligible HAP and require the owner to repay the overpayment to the
   PHA within 30 days.  If the owner does not comply, the PHA may deduct the
   amount due to the PHA from any amounts due to the owner under any other
   HAP contract. If there is no other HAP contract with the owner, the PHA
   may seek and obtain additional relief by judicial order or action in
   accordance with state and local laws.


   Example:  The Deceased Tenants Report dated December 14, 2009, indicates
   that Mr. Robert died on March 9, 2009.  The landlord/owner is not
   eligible for HAP in any month following March 2009.  The PHA erroneously
   paid the landlord/owner HAP of $500 each month during the period of April
   2009 through December 2009.  The landlord/owner must repay the PHA $4,500
   ($500 X 9 months).


   In instances where a deceased single member household has been deceased
   for a period greater than 6 months and the owner received HAP, the PHA
   may determine that the owner has breached the HAP contract.  As such, the
   PHA may exercise any of its rights and remedies under the HAP contract,
   or any other available rights and remedies for such breach.
   The PHA must notify the owner of such determination, including a brief
   statement of the reasons for the determination. The notice by the PHA to
   the owner may require the owner to take corrective action, as verified or
   determined by the PHA, by a deadline prescribed in the notice.

   The PHA’s rights and remedies for owner breach of the HAP contract may
   include recovery of overpayments, suspension of HAP, abatement or other
   reduction of HAP, termination of HAP, and termination of all HAP
   contracts.   The PHA may seek and obtain additional relief by judicial
   order or action, including specific performance, other injunctive relief
   or order for damages.

14. Penalties for Non-Compliance with Use of EIV’s Deceased Tenants Report


   Section 8 Programs:  If the PHA overpaid HAP on behalf of a single member
   deceased household and fails to collect the overpayment from the owner,
   the PHA is required to reimburse 100 percent of the overpayment to HAP
   Equity from the Administrative Fee Equity or other non-Federal funds.  In
   addition, if such errors impacted any funding baseline determinations,
   funding for the affected renewal periods may be adjusted.


   Note:   A PHA cannot reimburse prior year HAP costs with current year HAP
        funding because the funding carries forward but does not carry
        back.


   HUD will monitor each PHA’s Deceased Tenants Report on a quarterly basis.
    If at any time the report identifies deceased single member households
   who have been deceased for a period exceeding six months, and HUD
   determines that the PHA has not taken the necessary corrective action,
   the PHA may be subject to a withholding of its monthly administrative fee
   each month that the number of single deceased household members is
   greater than zero.


   Public Housing Program:  HUD will monitor each PHA’s Deceased Tenants
   Report on a quarterly basis.  If at any time, the report identifies
   deceased single member households who have been deceased for a period
   exceeding six months, and HUD determines that the PHA has not taken the
   necessary corrective action, the PHA may be subject to a monetary
   penalty, as determined by the Assistant Secretary, each month that the
   number of single deceased household members deceased for a period of one
   year or longer is greater than zero. HUD may offset the PHA’s monthly
   operating subsidy by the amount of the imposed penalty or require the PHA
   to pay the amount of the penalty from non-Federal funds, directly to HUD.






















   For any imposed penalty, HUD will notify the PHA in writing of such
   penalty and afford the PHA a 30-day period to appeal HUD’s decision.
   Appeals must be postmarked no later than 30 days from the date of the
   penalty Notice and sent by certified mail or carrier service (UPS, FEDEX,
   DHL, etc.) to:


            U.S. Department of Housing and Urban Development
            Office of Public and Indian Housing
            Assistant Secretary Sandra B. Henriquez
            Attention:  EIV Appeals
            451 7th Street, SW, Room 4100
            Washington, DC 20410

   Appeals by fax or email will not be processed.  HUD will provide a
   written response to your appeal request within 60 days of receiving the
   appeal request.

15. EIV System Training.  HUD offers free EIV system training via webcast
   and can be viewed by staff at any time at:
   http://www.hud.gov/webcasts/archives/iv.cfm.  Past and future training
   opportunities, including training materials are available at:
   http://www.hud.gov/offices/pih/programs/ph/rhiip/training.cfm.  As a
   condition of initial and continued EIV system access, all system users
   are required to view HUD Headquarters-provided EIV system training and
   annual Security Awareness training.


   EIV system users must self-certify within the EIV system at the log-in
   page that the training has been completed.  Staff is not required to
   possess a Certificate of Completion for EIV training in order to gain or
   continue accessing the EIV system, or be certified by the User
   Administrator on a quarterly basis (or semi-annual basis after April
   2010).


16. For inquiries about this Notice contact:  your local HUD field office
   or Nicole Faison of HUD Headquarters’ Office of Public Housing and
   Voucher Programs at (202) 402-4267, or via email at PIH.RHIIP.TA@HUD.GOV.

17. Paperwork Reduction:  The information collection requirements contained
   in this Notice have been approved by the Office of Management and Budget
   (OMB under the Paperwork Reduction Act of 1995 (44 U.S.C. 3520) and
   assigned OMB control number(s) 2577-0083.  In accordance with the
   Paperwork Reduction Act, HUD may not conduct or sponsor, and a person is
   not required to respond to, a collection of information unless the
   collection displays a currently valid OMB control number.




                                             /s/
                             Sandra B. Henriquez, Assistant Secretary for
                             Public and Indian Housing
-----------------------
[pic]

U.S. Department of Housing and Urban Development
Office of Public and Indian Housing