Common use of Key Element 4: Recovery of Improper Payments and Debts Clause in Contracts

Key Element 4: Recovery of Improper Payments and Debts. Recipient Agency - HUD also uses the Enterprise Income Verification (EIV) System in the recovery of Improper Payments and the maintenance of Debts Owed. HUD’s EIV System has a Debts Owed and Adverse Information Module that is used to record, track and maintain a national repository of debts owed to Public Housing Agencies (PHAs), Section 8 landlords, and Multifamily Housing O/A’s and adverse information of former participants who have voluntarily or involuntarily terminated participation in one of the above-listed HUD rental assistance programs. At the conclusion of a family’s rental assistance participation, HUD requires PHAs and O/A’s to collect and record any debt owed by the family (all members 18 years of age and older) and report any adverse information that may have aided in the termination of the family or member. With this, XXX’s are required to record: • Amount of any balance a family owes the PHA or Section 8 landlord (up to $500,000) and provide an explanation for balance owed (i.e. unpaid rent, retroactive rent (due to unreported income and/ or change in family composition) or other charges such as damages, utility charges, etc.); and • Whether or not the family has entered into a repayment agreement for the amount owed the PHA; and • Whether or not the family has defaulted on a repayment agreement; and • Whether or not the PHA has obtained a judgment against the family; and • Whether or not the family has filed for bankruptcy; and • The negative reason(s) for the family’s end of participation or any negative status (i.e., abandoned unit, fraud, lease violations, criminal activity, etc.) as of the end of participation date. Debts Owed and Termination information is maintained in the EIV System for a period of up to ten (10) years from the end of participation date or such other period consistent with State Law. HUD Program Administrators will have access to this information during the time of application for rental assistance and for use during mandatory reexamination of family income and composition. This information will be used to validate existing program participants household income and to screen program applicants. With use of the EIV module, PHAs will be alerted of an applicant’s prior program history, may it be a debt owed (in any state or U.S. territory) or negative information which led to the family’s termination, when the family voluntarily or involuntarily exited the program. This information may be used to determine a family’s suitability for initial or continued rental assistance and to assist with the avoidance of providing limited Federal housing assistance to families who have previously been unable to comply with HUD program requirements. If the reported information in the EIV Debts Owed Module is accurate, program administrators may terminate current rental assistance participants or deny future request for HUD rental assistance, in accordance with established policies. With this, as program administrators, and in accordance with a PHAs policies, the PHA has discretion when dealing with its rental recipients. Since applicants and tenants are required to sign an EIV Debts Owed and Terminations acknowledgement form (Form HUD 9886), use of the NDNH information via this CMA has assisted HUD with pursuing a “good citizen” program with its rental recipients. By informing applicants and participants of the EIV data, where it comes from and how it will be used, this has assisted many to abide with the rules by correctly reporting income and household composition. Recapture audits are conducted at least annually based on the payment history to the housing agencies. Depending on other risk factors, they are also conducted on an ongoing basis for selected housing agencies. Recovery of any overfunded payments to housing agencies can take place on monthly basis if necessary. In egregious situations program administrators may not have their annual contribution contract renewed or may be forced to merge with another, better organized program administrator in their service area. Clients and General Public - HUD’s EIV Staff provides monitoring efforts to confirm PHA compliance with PIC reporting requirements, the recovery of improper payments and the effective use of the EIV system and NDNH data to reduce improper payments. Although not all improper payments are fraud, and not all improper payments represent a loss to the government, recovery efforts inform American citizens that their tax dollars are being spent as efficiently and effectively as possible by the Federal government. HUD estimates that use of the NDNH data has identified programs susceptible to significant improper payments and has saved an estimated $411,000,000 to PHA administered HUD rental housing programs. By identifying and measuring improper payment issues and determining the root causes of error, HUD and its PHA partners are able to focus its resources so that corrective action plans can be thoughtfully developed and successfully carried out. The information in EIV is also used by HUD, HUD’s Office of Inspector General (OIG), and auditors to ensure program participants and administrators comply with HUD rules.

Key Element 4: Recovery of Improper Payments and Debts. Recipient Agency - HUD also uses the Enterprise Income Verification (EIV) System in the recovery of Improper Payments and the maintenance of Debts Owed. HUD’s EIV System has a Debts Owed and Adverse Information Module that is used to record, track and maintain a national repository of debts owed to Public Housing Agencies (PHAs), Section 8 landlords, and Multifamily Housing O/A’s and adverse information of former participants who have voluntarily or involuntarily terminated participation in one of the above-listed HUD rental assistance programs. At the conclusion of a family’s rental assistance participation, HUD requires PHAs and O/A’s to collect and record any debt owed by the family (all members 18 years of age and older) and report any adverse information that may have aided in the termination of the family or member. With this, XXXPHA’s are required to record: • Amount of any balance a family owes the PHA or Section 8 landlord (up to $500,000) and provide an explanation for balance owed (i.e. unpaid rent, retroactive rent (due to unreported income and/ or change in family composition) or other charges such as damages, utility charges, etc.); and • Whether or not the family has entered into a repayment agreement for the amount owed the PHA; and • Whether or not the family has defaulted on a repayment agreement; and • Whether or not the PHA has obtained a judgment against the family; and • Whether or not the family has filed for bankruptcy; and • The negative reason(s) for the family’s end of participation or any negative status (i.e., abandoned unit, fraud, lease violations, criminal activity, etc.) as of the end of participation date. Debts Owed and Termination information is maintained in the EIV System for a period of up to ten (10) years from the end of participation date or such other period consistent with State Law. HUD Program Administrators will have access to this information during the time of application for rental assistance and for use during mandatory reexamination of family income and composition. This information will be used to validate existing program participants household income and to screen program applicants. With use of the EIV module, PHAs will be alerted of an applicant’s prior program history, may it be a debt owed (in any state or U.S. territory) or negative information which led to the family’s termination, when the family voluntarily or involuntarily exited the program. This information may be used to determine a family’s suitability for initial or continued rental assistance and to assist with the avoidance of providing limited Federal housing assistance to families who have previously been unable to comply with HUD program requirements. If the reported information in the EIV Debts Owed Module is accurate, program administrators may terminate current rental assistance participants or deny future request for HUD rental assistance, in accordance with established policies. With this, as program administrators, and in accordance with a PHAs policies, the PHA has discretion when dealing with its rental recipients. Since applicants and tenants are required to sign an EIV Debts Owed and Terminations acknowledgement form (Form HUD 9886), use of the NDNH information via this CMA has assisted HUD with pursuing a “good citizen” program with its rental recipients. By informing applicants and participants of the EIV data, where it comes from and how it will be used, this has assisted many to abide with the rules by correctly reporting income and household composition. Recapture audits are conducted at least annually based on the payment history to the housing agencies. Depending on other risk factors, they are also conducted on an ongoing basis for selected housing agencies. Recovery of any overfunded payments to housing agencies can take place on monthly basis if necessary. In egregious situations program administrators may not have their annual contribution contract renewed or may be forced to merge with another, better organized program administrator in their service area. Clients and General Public - HUD’s EIV Staff provides monitoring efforts to confirm PHA compliance with PIC reporting requirements, the recovery of improper payments and the effective use of the EIV system and NDNH data to reduce improper payments. Although not all improper payments are fraud, and not all improper payments represent a loss to the government, recovery efforts inform American citizens that their tax dollars are being spent as efficiently and effectively as possible by the Federal government. HUD estimates that use of the NDNH data has identified programs susceptible to significant improper payments and has saved an estimated $411,000,000 207,801,995 to PHA administered HUD rental housing programs. By identifying and measuring improper payment issues and determining the root causes of error, HUD and its PHA partners are able to focus its resources so that corrective action plans can be thoughtfully developed and successfully carried out. The information in EIV is also used by HUD, HUD’s Office of Inspector General (OIG), and auditors to ensure program participants and administrators comply with HUD rules.

Key Element 4: Recovery of Improper Payments and Debts. Recipient Agency - HUD also uses the Enterprise Income Verification (EIV) System in the recovery of Improper Payments and the maintenance of Debts Owed. HUD’s EIV System has a Debts Owed and Adverse Information Module that is used to record, track and maintain a national repository of debts owed to Public Housing Agencies (PHAs), Section 8 landlords, and Multifamily Housing O/A’s and adverse information of former participants who have voluntarily or involuntarily terminated participation in one of the above-listed HUD rental assistance programs. At the conclusion of a family’s rental assistance participation, HUD requires PHAs and O/A’s to collect and record any debt owed by the family (all members 18 years of age and older) and report any adverse information that may have aided in the termination of the family or member. With this, XXXPHA’s are required to recordtorecord: • Amount of any balance a family owes the PHA or Section 8 landlord (up to $500,000) and provide an explanation for balance owed (i.e. unpaid rent, retroactive rent (due to unreported income and/ or change in family composition) or other charges such as damages, utility charges, etc.); and • Whether or not the family has entered into a repayment agreement for the amount owed the PHA; and • Whether or not the family has defaulted on a repayment agreement; and • Whether or not the PHA has obtained a judgment against the family; and • Whether or not the family has filed for bankruptcy; and • The negative reason(s) for the family’s end of participation or any negative status (i.e.status(i.e., abandoned unit, fraud, lease violations, criminal activity, etc.) as of the end of participation date. Debts Owed and Termination information is maintained in the EIV System for a period of up to ten (10) years from the end of participation date or such other period consistent with State Law. HUD Program Administrators will have access to this information during the time of application for rental assistance and for use during mandatory reexamination of family income and composition. This information will be used to validate existing program participants household income and to screen program applicants. With use of the EIV module, PHAs will be alerted of an applicant’s prior program history, may it be a debt owed (in any state or U.S. territory) or negative information which led to the family’s termination, when the family voluntarily or involuntarily exited the program. This information may be used to determine a family’s suitability for initial or continued rental assistance and to assist with the avoidance of providing limited Federal housing assistance to families who have previously been unable to comply with HUD program requirements. If the reported information in the EIV Debts Owed Module is accurate, program administrators may terminate current rental assistance participants or deny future request for HUD rental assistance, in accordance with established policies. With this, as program administrators, and in accordance with a PHAs policies, the PHA has discretion when dealing with its rental recipients. Since applicants and tenants are required to sign an EIV Debts Owed and Terminations acknowledgement form (Form HUD 9886), use of the NDNH information via this CMA has assisted HUD with pursuing a “good citizen” program with its rental recipients. By informing applicants and participants of the EIV data, where it comes from and how it will be used, this has assisted many to abide with the rules by correctly reporting income and household composition. Recapture audits are conducted at least annually based on the payment history to the housing agencies. Depending on other risk factors, they are also conducted on an ongoing basis for selected housing agencies. Recovery of any overfunded payments to housing agencies can take place on monthly basis if necessary. In egregious situations program administrators may not have their annual contribution contract renewed or may be forced to merge with another, better organized program administrator in their service area. Clients and General Public - HUD’s EIV Staff provides monitoring efforts to confirm PHA compliance with PIC reporting requirements, the recovery of improper payments and the effective use of the EIV system and NDNH data to reduce improper payments. Although not all improper payments are fraud, and not all improper payments represent a loss to the government, recovery efforts inform American citizens that their tax dollars are being spent as efficiently and effectively as possible by the Federal government. HUD estimates that use of the NDNH data has identified programs susceptible to significant improper payments and has saved an estimated $411,000,000 to PHA administered HUD rental housing programs. By identifying and measuring improper payment issues and determining the root causes of error, HUD and its PHA partners are able to focus its resources so that corrective action plans can be thoughtfully developed and successfully carried out. The information in EIV is also used by HUD, HUD’s Office of Inspector General (OIG), and auditors to ensure program participants and administrators comply with HUD rules.

Key Element 4: Recovery of Improper Payments and Debts. Recipient Agency - HUD also uses the Enterprise Income Verification (EIV) System in the recovery of Improper Payments and the maintenance of Debts Owed. HUD’s EIV System has a Debts Owed and Adverse Information Module that is used to record, track and maintain a national repository of debts owed to Public Housing Agencies (PHAs), Section 8 landlords, and Multifamily Housing O/A’s and adverse information of former participants who have voluntarily or involuntarily terminated participation in one of the above-listed HUD rental assistance programs. At the conclusion of a family’s rental assistance participation, HUD requires PHAs and O/A’s to collect and record any debt owed by the family (all members 18 years of age and older) and report any adverse information that may have aided in the termination of the family or member. With this, XXXPHA’s are required to record: • Amount of any balance a family owes the PHA or Section 8 landlord (up to $500,000) and provide an explanation for balance owed (i.e. unpaid rent, retroactive rent (due to unreported income and/ or change in family composition) or other charges such as damages, utility charges, etc.); and • Whether or not the family has entered into a repayment agreement for the amount owed the PHA; and • Whether or not the family has defaulted on a repayment agreement; and • Whether or not the PHA has obtained a judgment against the family; and • Whether or not the family has filed for bankruptcy; and • The negative reason(s) for the family’s end of participation or any negative status (i.e., abandoned unit, fraud, lease violations, criminal activity, etc.) as of the end of participation date. Debts Owed and Termination information is maintained in the EIV System for a period of up to ten (10) years from the end of participation date or such other period consistent with State Law. HUD Program Administrators will have access to this information during the time of application for rental assistance and for use during mandatory reexamination of family income and composition. This information will be used to validate existing program participants household income and to screen program applicants. With use of the EIV module, PHAs will be alerted of an applicant’s prior program history, may it be a debt owed (in any state or U.S. territory) or negative information which led to the family’s termination, when the family voluntarily or involuntarily exited the program. This information may be used to determine a family’s suitability for initial or continued rental assistance and to assist with the avoidance of providing limited Federal housing assistance to families who have previously been unable to comply with HUD program requirements. If the reported information in the EIV Debts Owed Module is accurate, program administrators may terminate current rental assistance participants or deny future request for HUD rental assistance, in accordance with established policies. With this, as program administrators, and in accordance with a PHAs policies, the PHA has discretion when dealing with its rental recipients. Since applicants and tenants are required to sign an EIV Debts Owed and Terminations acknowledgement form (Form HUD 9886), use of the NDNH information via this CMA has assisted HUD with pursuing a “good citizen” program with its rental recipients. By informing applicants and participants of the EIV data, where it comes from and how it will be used, this has assisted many to abide with the rules by correctly reporting income and household composition. Recapture audits are conducted at least annually based on the payment history to the housing agencies. Depending on other risk factors, they are also conducted on an ongoing basis for selected housing agencies. Recovery of any overfunded payments to housing agencies can take place on monthly basis if necessary. In egregious situations program administrators may not have their annual contribution contract renewed or may be forced to merge with another, better organized program administrator in their service area. Clients and General Public - HUD’s EIV Staff provides monitoring efforts to confirm PHA compliance with PIC reporting requirements, the recovery of improper payments and the effective use of the EIV system and NDNH data to reduce improper payments. Although not all improper payments are fraud, and not all improper payments represent a loss to the government, recovery efforts inform American citizens that their tax dollars are being spent as efficiently and effectively as possible by the Federal government. HUD estimates that use of the NDNH data has identified programs susceptible to significant improper payments and has saved an estimated $411,000,000 to PHA administered HUD rental housing programs. By identifying and measuring improper payment issues and determining the root causes of error, HUD and its PHA partners are able to focus its resources so that corrective action plans can be thoughtfully developed and successfully carried out. The information in EIV is also used by HUD, HUD’s Office of Inspector General (OIG), and auditors to ensure program participants and administrators comply with HUD rules.