If a resident does not report or report income, it affects the amount of assistance they receive. Once the income gap has been discovered and verified, corrections are required to the resident`s previous certifications to ensure that the correct amount of assistance is paid. He can pay back a lump sum. Entering into a repayment contract or a combination of the two. If the tenant is unable to repay the difference between the assistance initially paid and the adjusted amount that contains unreported income, a repayment agreement should be reached. Repayment agreements have specific requirements described in HUD Housing Notice 2013-06. (Visit our resource centre for a copy of this message.) The total amount of these adjustments is -1500 USD, shown on the May 2014 voucher. The property submitted a refund contract signed and dated by Mr. Smith.
In order to recover the US$1500 while Mr. Smith makes payments, the home requested an OARQ of $1,500 on the May 2014 voucher to “launder” the balance. As payments are received by the tenant, the accommodation will declare the payment on section 7 using the agreement ID. Owners/agents may withhold some of the money collected to cover expenses resulting from the lack of an income/program ratio. The funds withheld must be the lowest amount of the actual cost or 20% of the amount recovered by the tenant, as described in Chapter 8, 8-21, B-2 of manual HUD 4350.3. You`ll find an Excel table in the ZIP TRACS Industry Specification file to help you determine the amount of refund due. The calculation table also contains examples that will help you report them correctly on a voucher. Characteristics are required to make the necessary corrections to all previous certifications affected by the unreported amount of income.
These corrections led to adjustments for proof of the changes made. Features are required to report all repayment agreements to Section 7 of MAT30. Detailed information can be found in the MAT User Manual, Chapters 4 and Chapter 6, as well as in the instructions published with the form on page HUD 5.