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Multi-Family Housing Programs Tenant Certifications June 2017
Multi-Family Housing ProgramsTenant Certifications
June 2017
• Form 3560-8 establishing household eligibility must be completed prior to initial occupancy.
• Recertifying Form 3560-8 occurs:
• Annually, or
• When monthly income changes by $100 or more, or
• When household status changes.
• Tenants can request recertification when monthly income changes by $50 or more.
Tenant Certifications
• Must provide adequate income verification and other household information.
• Must provide written authorization to verify information.
• Must report all changes in household status.
• Must comply with all certification requirements.
• Failure to comply will result in ineligibility.
Tenant Requirements
• Must verify eligibility prior to initial occupancy, and prior to recertification effective date.
• Must review all changes in household status.
• Must submit certification within 10 days of effective date (if not, subject to overage charges).
• The effective date will always be the first of the following month.
• Must retain certification information in tenant file for 3 years, or until the next compliance review.
Borrower / Management Requirements
• Once adequate documentation is received from the tenant regarding income, assets, household size, deductions, etc., the borrower will verify the information in accordance with verification procedures.
• Once verified, the borrower and tenant will execute a new 3560-8 certification form.
• Both borrower and tenant must execute (sign/date) on or before the effective date of the certification.
Execution of an New Certification
Both borrower and tenant
must sign/date the certification
ON or BEFORE
the effective date.
• Certifications are good for one year.
• Households must recertify prior to the expiration date.
• The effective date of the new certification is the 1st day of the month following the expiration of the current certification.
• A lapse in certification is considered a failure to recertify and overage charges will be incurred.
Annual Recertification
• 90 days prior to the expiration of the current certification, the tenant receives written notice that it’s time to start the recertification process.
• This notice also includes the timeframe for recertification, and the verification information needed to recertify.
• 60 days prior to the expiration of current certification, the tenant receives a 2nd written notice (as needed).
• 30 days prior to the expiration of current certification, the tenant receives a 3rd written notice (as needed).
• This notice should also include the consequences for failure to comply.
Notifying Tenant of Recertification
• Failure to comply with the recertification process is a lease violation, prompting a termination notice (30/15).
• Also, uncertified households are considered ineligible, and are required to pay note rate rent.
• By the 10th of the month after the current certification expires, transmit “Eviction Action Pending” code in MINC and email your servicing office scanned copies of 90-, 60-, and 30-day notices and the termination notice.
Tenant Failure To Recertify
• Are effective the 1st day of the month following recertification.
• Are good for one year.
• The next recertification date is 12 months after the effective date.
• It’s IMPORTANT to distinguish from U.S. Department and Housing and Urban Development (HUD) policy, where an interim certification does not change the expiration date.
• Are an indication of change impacting the household financially and should be processed in a timely fashion.
Interim Certifications
Both borrower and tenant
must sign/date the certification
ON or BEFORE
the effective date.
• Data Review:
• Do verification dates agree with certification date?
• Has information been verified by best available source?
• Are calculations correct?
Reviewing Certifications
• Finally:
• Are there worksheets, guides, or narrative to help a reviewer understand the process?
• Have all unusual circumstances, information, or decisions been clearly explained?
Reviewing Certifications
• The accuracy of a certification depends on the quantity and quality of the information collected.
• It is your right to require additional information when needed.
• If in doubt, contact your local servicing office.
Reviewing Certifications
• All notices, communication, verifications, worksheets, explanations (everything) must be retained in the tenant file as the “Certification Packet.”
• The certification form (form 3560-8) should be stacked on top of the certification packet.
• The current certification should be placed on top, descending by date from there.
• Please stack your tenant files consistently.
Certification Documentation
QUESTIONS?
Contact Us:
Jay DeLapp, Multi-Family Housing Program Specialist(541) [email protected]
www.rd.usda.gov/or
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