5-12 Verification Requirements
HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs · 2026 edition · updated 2026-07-29 · United States
A. Key Requirements
Owners must verify all income, assets, expenses, deductions, family characteristics, and circumstances that affect family eligibility or level of assistance.
Owners must use the EIV Income Report for third party verification of a tenant’s employment and income at the time of recertification (annual and interim) and to assist in reducing administrative and subsidy payment errors.
Applicants and adult family members must sign consent forms to authorize the owner to collect information to verify eligibility, income, assets, expenses, and deductions . Applicants and tenants who do not sign required consent forms will not receive assistance .
Household members must disclose and provide verification of their complete and accurate SSN except for those individuals who do not contend eligible immigration status, and tenants age 62 or older as of January 31, 2010, whose initial determination of eligibility was begun before January 31, 2010. See Paragraphs 3-9 and 3-31 for SSN disclosure and verification requirements.
The owner must handle any information obtained to verify eligibility or income in accordance with the Privacy Act .
HUD Occupancy Handbook Chapter 5: Determining Income & Calculating Rent
8/13
5-52
Section 3: Verification
4350.3 REV-1
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Ask AI about this code▸ Contents — HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs
- HUD Handbook 4350.3: Occupancy Requirements of Subsidized Mult…
- Exhibit 3-12: Section 8, RAP, and Rent Supplement Programs – S…
- Exhibit 3-13: Section 236 Without Additional Assistance – Spec…
-
▸ Exhibit 3-14: Section 236 With Benefit of Additional Assistanc…
Overview- Special Instructions for Determining Prorated Assistance Payme…
- A. Calculate the difference between market rent and the contra…
- C. Calculate the assistance adjustment for Rent Supplement, RA…
- D. Calculate the prorated TTP.
- E. Calculate the prorated assistance payment.
- CHAPTER 4. WAITING LIST AND TENANT SELECTION
- 4-1 Introduction
- Key Terms
- Section 1: Tenant Selection Plan
- 4-3 Key Regulations
- B. Income-Targeting
- D. Required Criminal and Drug Screening Standards
- G. Rejecting Applicants and Denial of Rental Assistance
- Denial of Assistance to Noncitizens and DHS Appeal Process
- A. Key Requirements
- B. HUD Review of the Tenant Selection Plan
- Figure 4-2: Written Tenant Selection Plan - Topics
- B. Recommended Topics
- C. Required Contents of the Tenant Selection Plan
- 1. Project eligibility requirements.
- Additional Owner Policies and Practices
- Modification of the Tenant Selection Plan
- Availability of the Tenant Selection Plan
- 4-5 Income-Targeting – Applicable Only to the Section 8 Projec…
- B. Methods to Comply with Income-Targeting Requirements
- 4-6 Preferences
- Statutory, HUD, State, and Local Preferences
- C. Owner-Adopted Preferences
- D. Determining the Relative Weight of Owner-Adopted Preferences
- Screening for Suitability
- A. Screening Versus Determining Eligibility
- D. Screening Using the EIV Existing Tenant Search
- E . Considerations In Developing Screening Criteria
- a. Screening criteria for assisted units in cooperatives.
- Permitted Screening Criteria Commonly Used by Owners
- Prohibited Screening Criteria
- Criteria That Require Medical Evaluation or Treatment
- Criteria That Require Donation or Contribution
- E. Criteria That Inquire about Disabled Status
- F. Criteria Prohibited by State and Local laws
- 4-9 Rejecting Applicants and Denial of Rental Assistance
- Example – Denial of Unit
- C. Notification of Applicant Rejection
- Owner Meetings with Applicants to Discuss Rejection Notices
- Section 2: Marketing
- 4-10 Key Regulations
- Affirmative Fair Housing Marketing and Fair Housing Poster
- 4-11 Summary of Key Requirements
- B. Fair Housing Poster
- 4-12 Affirmative Fair Housing Marketing
- A. Key Requirements
- Affirmative Fair Housing Marketing Plan
- Special Marketing Requirements
- E. Records
- Updating the Marketing Plan
- Section 3: Waiting List Management
- 4-13 Key Regulations
- Social Security Number (SSN) Requirements
- D. Record-Keeping
- 4-14 Taking Applications for Occupancy
- 1. At time of application:
- 2. After admission:
- Retention and confidentiality of contact information.
- A. Overview
- Nondiscrimination When Matching Applicants to Available Units
- Matching Family Characteristics with Available Units
- D. Section 8 Units: Extremely Low-Income Targeting Requirement…
- E. Restrictions on Applicant Selection Based on Income
- F. Matching Single Persons to Units
- A. Key Requirements
- B. Opening and Closing the Waiting List
- C. Determining an Applicant’s Preliminary Eligibility
- 4-17 Placing Families with Disabled Family Members
- 4-18 Documenting Changes to Waiting Lists
- Providing an Auditable Record of Changes to Waiting Lists
- Maintaining Documentation of the Waiting Lists
- D. Maintaining Records of Manually Recorded Waiting Lists
- Maintaining Records for Electronic Waiting Lists
- 4-19 Updating Waiting List Information
- Example - Applicant Change in Household Composition
- 4-20 Removing Names from the Waiting List
- 4-21 Reinstating Applicants to the Waiting List
- 4-22 Record-Keeping
- Section 4: Selecting Tenants from the Waiting List
- 4-23 General
- 4-24 Applicant Interviews
- 4-25 Applying Income Targeting Requirements in Section 8 Prope…
- Figure 4-6: Sample Steps Owners May Use to Implement Income-Ta…
- Example
- Example 2 – Income-Targeting Method
- Example Admissions Log to Track Income-Targeting Progress
- 4-26 Verification of Preferences
- 4-27 Implementing Screening Reviews
- C. Screening for Rental History
- Objective/Acceptable Questions
- Inappropriate Questions
- D. Screening for Housekeeping
- Screening for Drug Abuse and Other Criminal Activity
- 4-28 Ensuring That Screening Is Performed Consistently
- B. Extenuating Circumstances
- Example – Extenuating Circumstances
- 4-29 Verifying the Need for Accessible Units
- 4-30 Addressing Requests for Reasonable Accommodations
- Example – Reasonable Accommodation
- 4-31 Denial of Assistance to Noncitizens
- A. Applicability
- Offering and Continuing Assistance
- Events Triggering Denial of Assistance
- D. Required Notice
- Chapter 4 Exhibits
- Records of Earned Income
- Records of Other Income
- Asset Information
- Records of Family Circumstances/Family Composition/Allowances
- Date (mm/dd/yyyy) :
- There is no penalty for persons who do not complete the form.
- A. General Instructions:
- CHAPTER 5. DETERMINING INCOME AND CALCULATING RENT
- 5-1 Introduction
- 5-2 Key Terms
- Section 1: Determining Annual Income
- Key Regulations
- Key Requirements
- Methods for Projecting and Calculating Annual Income
- Example – Anticipated Increase in Hourly Rate
- Examples – Irregular Employment Income
- Examples – Irregular Employment Income
- A. Income of Adults and Dependents
- Examples – Income of Temporarily Absent Family Members
- C. Deployment of Military Personnel to Active Duty
- D. Income of Permanently Confined Family Members
- Educational Scholarships or Grants
- F. Alimony or Child Support
- Regular Cash Contributions and Gifts
- Examples – Regular Cash Contributions
- H. Income from a Business
- Periodic Social Security Payments
- Example – Adjustment for Prior Overpayment of Benefits
- Example – Welfare Income in “As Paid” Localities
- L. Periodic Payments from Long-Term Care Insurance, Pensions, …
- Example – Withdrawals from IRAs or 401K Accounts
- M.
- Income from Training Programs
- O. Income Received by a Resident of an Intermediate Care Facil…
- Withdrawal of Cash or Assets from an Investment
- Q. Lump Sum Payments Counted as Income
- Figure 5-3: Treatment of Delayed Benefit Payments Received in …
- Examples – Income Exclusions
- Examples – Income Exclusions
- 5-7 Calculating Income from Assets
- Determining Income from Assets
- Example – Calculating the Cash Value of an Asset
- D. Assets Owned Jointly
- Example – Determining the Cash Value of an Asset
- Examples – Jointly Owned Assets
- Calculating Income from Assets When Assets Exceed $5,000
- Example – Imputed Income from Assets
- G. Calculating Income from Assets - Specific Types of Assets
- Example – A Trust Accessible to Family Members
- Example – Nonrevocable Trust As an Asset Disposed of for Less …
- Example – Nonrevocable Trust Distributing Income to the Creato…
- c. Special needs trusts.
- Example – Special Needs Trust
- 2. Annuities.
- c. Calculations when an annuity is considered an asset.
- Example – Calculating the Cash Value of an Annuity
- Examples – Lump Sum Additions to Family Assets (One-Time Payme…
- 4. Balances held in retirement accounts.
- Examples – Balances Held in an IRA or 401K Retirement Account
- 5. Federal Government/Uniformed Services Pensions
- 7. Mortgage or deed of trust.
- Examples – Assets of More or Less Than $1,000 Disposed of for …
- Example – Asset Disposed of for Less Than Fair Market Value
- Section 2: Determining Adjusted Income
- 5-8 Key Regulations
- 5-9 Key Requirements for Determining Adjusted Income
- 5-10 Calculating Adjusted Income
- Example – Child Care Deduction Separate Expenses for Time at W…
- Examples – Eligible Disability Assistance Expenses
- Example – Calculating a Deduction When Disability Assistance E…
- D. Medical Expense Deduction
- The following example illustrates the two options. Tenants may…
- Example – Medical Expense Paid over a Period of Time
- Example – Special Calculation for Families Who Are Eligible fo…
- F. No Deduction for Alimony or Child Support Paid to a Person …
- Example – Child Support Garnished from Wages
- Section 3: Verification
- 5-11 Key Regulations
- 5-12 Verification Requirements
- Figure 5-4: Privacy Act Notice
- B. Timeframe for Conducting Verifications
- 5-13 Acceptable Verification Methods
- Third-Party Verification
- Example – Verification by Internet Printout
- 5-14 Identifying Appropriate Verification Sources
- A. Consent and Verification Forms
- HUD-Required Consent and Release Forms
- Owner-Created Verification Forms
- 5-16 Effective Term of Verifications
- A. Duration of Verification Authorization
- 5-17 Inconsistent Information Obtained Through Verifications
- A. Key Requirement
- B. Documenting Third-Party Verification
- C. Documenting Telephone Verification
- D. Recording Inspection of Original Documents
- E. Documenting Why Third-Party Verification Is Not Available
- Reasonable Accommodation
- Examples – Reasonable Accommodation
- 5-19 Confidentiality of Applicant and Tenant Information
- 5-20 Security of EIV Data
- 5-21 Refusal to Sign Consent Forms
- 5-22 Interim Recertifications
- 5-23 Record-Keeping Procedures
- Section 4: Calculating Tenant Rent
- 5-24 Key Regulations
- 5-25 Calculating the Tenant Contribution for Section 8, PAC, P…
- B. Unit Rent
- Timeframe for Calculating Rent
- Section 8, PAC, PRAC, and RAP
- Rent Supplement
- A. Tenant Rent
- B. Assistance Payments
- Example – Calculating HAP
- Utility Reimbursement
- Section 8 Minimum Rent
- Example – Utility Reimbursement for a Tenant Paying Minimum Rent
- 3. Financial hardship exemptions.
- Example – Temporary Hardship Schedule
- 5-27 Calculating Assistance Payments for Authorized Police/Sec…
- 5-28 Calculating Tenant Contribution for “Double Occupancy” in…
- B. Total Tenant Payment
- Example – TTP Calculation for Double Occupancy
- C. Contract Rent and Assistance Payment in Section 202/8 Group…
- Example – Assistance Payment, Section 202/8 Double Occupancy
- Example – Section 202/8 Double Occupancy
- Example – Calculating the Assistance Payment for a Double Occu…
- Example – Section 811 Total Tenant Payments
- Example – Section 202/8 Calculation at a Change in Occupancy
- Example – Section 811 Calculation at a Change in Occupancy
- 5-29 Calculating Tenant Contribution for Section 236 and Secti…
- A. Tenant’s Rent Contribution
- B. Timeframe for Calculating Rent
- Figure 5-7: Tenant Contributions for the Section 236 and Secti…
- Section 221(d)(3) BMIR
- 5-30 Determining Tenant Contribution at Properties with Multip…
- 5-31 Procedures for Calculating Rent
- Chapter 5 Exhibits
- 24 CFR 5.609(b) and (c)
- INCOME INCLUSIONS
- INCOME EXLCUSIONS:
- Exhibit 5-2: Assets
- Example – Withdrawals from a Keogh Account
- 6. Retirement and pension funds.
- Example – Retirement Benefits as Lump-Sum and Periodic Payments
- Computation of imputed income:
- Regulatory References
- Example – Assets that are Part of an Active Business
- Example – Assets not Effectively Owned by the Applicant
- Example
- Medical Expenses That Are Deductible and Nondeductible
- Exhibit 5-4: Certification for Qualified Long-Term Care Insura…
- Unit Number
- Document Package for Applicant's/Tenant's Consent to the Relea…
- Exhibit 7-2: Sample Annual Recertification First Reminder Notice
- Exhibit 7-4: Sample Annual Recertification Third Reminder Noti…
- SAMPLE TENANT CONSENT TO DISCLOSE EIV INCOME INFORMATION
- Applying the Model Lease for Subsidized Programs to Individual…
- Applying the Model Leases for Section 202 PRAC and Section 811…
- Sample Move-In/Move-Out Inspection Form
- Memorandum February 5, 2002: Fact Sheets for Project-Based Ass…