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HUD/HUDSEC | RIN: 2501-AD16 | Publication ID: Fall 2008 |
Title: Refinement of Income and Rent Determinations in Public and Assisted Housing Programs (FR-4998) | |
Abstract: This final rule revises HUDs public and assisted housing program regulations to implement the upfront income verification (UIV) process and to require the use of HUDs Enterprise Income Verification (EIV) system by public housing agencies (PHAs), and multifamily housing owners and management agents (O/As), when verifying the employment and income of program participants at the time of all reexaminations or recertifications. The rule will ensure that deficiencies in public and assisted housing rental determinations are identified and cured through quality control studies and internal audits. This final rule is consistent with HUDs comprehensive strategy under the Rental Housing Integrity Improvement Project initiative to reduce by half the number and dollar amount of errors in HUDs rental assistance programs. This final rule follows publication of a June 19, 2007, proposed rule and makes certain changes at this final rule stage in response to public comment and further consideration of certain issues by HUD. | |
Agency: Department of Housing and Urban Development(HUD) | Priority: Economically Significant |
RIN Status: Previously published in the Unified Agenda | Agenda Stage of Rulemaking: Final Rule Stage |
Major: Yes | Unfunded Mandates: No |
CFR Citation: 24 CFR 5 24 CFR 92 24 CFR 908 | |
Legal Authority: 42 USC 1437f 42 USC 3535(d) 42 USC 3543 42 USC 3544 42 USC 3608 |
Legal Deadline:
None |
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Statement of Need: This rule is needed to meet HUDs goal of reducing errors, including overpayment of subsidy, caused by incorrect income determinations and rent calculations in HUDs public and assisted housing programs. To do this, this rule would implement the upfront income verification (UIP) process and require the use of HUDs Enterprise Income Verification (EIV) systems. The use of UIV will allow entities to validate the accuracy of a familys self-reported household income and reduce the incidence of fraud, waste, and abuse in public and assisted housing programs. HUD also believes that the use of UIV is less time-consuming and more accurate than third-party verification. |
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Summary of the Legal Basis: Sections 6 and 8 of the United States Housing Act of 1937 (42 U.S.C. 1437d and 1437f), section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), sections 221(d)(3), 221(d)(5), and 236 of the National Housing Act (12 U.S.C. 1715l(d) and 1715z-1), section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013), and section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s) authorize HUD to provide financial assistance in the form of rent subsidies for participants in HUDs public and assisted housing programs. These statutory provisions and HUDs general rulemaking authority under section 7(d) the Department of Housing and Urban Development Act (42 U.S.C. 3535(d)) authorize HUD to establish regulatory policies and procedures governing such rental subsidies, including the verification of employment and income necessary to determine the subsidy amounts. |
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Alternatives: The policies and procedures governing employment and income verification are codified in regulation. Accordingly, any revisions to the regulatory requirements must also be implemented through notice and comment rulemaking. Implementation of the changes necessary changes described above through other means, such as a handbook, would not be binding or enforceable. |
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Anticipated Costs and Benefits: Under the Improper Payments Information Act (IPIA) of 2002 and Office of Management and Budget (OMB) implementing guidance Circular No. A-123, agencies are to assess all programs and activities they administer and identify those that may be susceptible to significant improper payments. Consistent with these directives, HUD initiated the Rental Housing Integrity Program (RHIP) in the spring of 2001with the goal of reducing improper payments in HUDs rental housing assistance programs. The recurring study cost is about $4.3 million annually. The findings of the latest Quality Control Study, implies that the gross transfer resulting from eliminating all the under- and over-payments of rents is approximately $783 million ($523.7 million in rent subsidy overpayment and $258.7 million in rent subsidy underpayment). The single major benefit of the initiative is an improvement on the integrity of HUD programs. |
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Risks: This rule poses no risk to public health, safety or the environment. |
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Timetable:
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Regulatory Flexibility Analysis Required: No | Government Levels Affected: None |
Small Entities Affected: No | Federalism: No |
Included in the Regulatory Plan: Yes | |
RIN Data Printed in the FR: No | |
Agency Contact: Shauna Sorrells Director, Office of Public Housing Department of Housing and Urban Development Office of Public and Indian Housing 451 7th Street SW., Washington, DC 20410 Phone:202 402-2769 |