9-19 Penalties for Failure to Have Access To and/or Failure to Use EIV — HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs

A. Owners who do not have access to or are not using the EIV system in its entirety:

HUD Multifamily Occupancy Handbook Chapter 9: Enterprise Income Verification (EIV)

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Section 5:

4350.3 REV-1

Penalties for Failure to Have Access to or Failure to Use EIV

Will receive a finding on the Management and Occupancy Review (MOR) report, if the violation was identified during the MOR. The violation can be identified at times other than at the time of the MOR.
Will incur a penalty of a five percent decrease in the voucher payment for the month following the date the violation was found and each subsequent voucher payment until the violation is cured.
Must make an adjustment on the next scheduled voucher to adjust for the five percent decrease.
Will be monitored by the CA to ensure the adjustment is made.

B. The owner will have 30 days to cure the violation.
1. The violation will be cured by obtaining access to and/or using the EIV system and the owner will then make an adjustment to the next scheduled voucher to collect the funds previously returned to HUD even if the owner takes longer than 30 days to cure the finding.
2. If the violation is not cured during the 30 day period, both the owner and the management agent, if applicable, will be flagged in HUD’s Active Partners Performance System (APPS). Once the violation is cured, the flag will be removed.
C. When there is a change in ownership or management at a property, the new owner or management agent must obtain access to and begin using the EIV system within 90 days from the date the owner takes possession of the property or the effective date of the management agreement with the owner. Owners and/or management agents who fail to obtain access and begin using the EIV system within this timeframe may be subject to the penalties described above.