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DMMHA ACO Final 2017 Page 7-1

Chapter 7

VERIFICATION

[24 CFR 960.259, 24 CFR 5.230, Notice PIH 2010-19]

INTRODUCTION

The DMMHA will verify all information that is used to establish the family’s eligibility and

level of assistance and is required to obtain written authorization from the family in order to

collect the information. Applicants and program participants must cooperate with the verification

process as a condition of receiving assistance. The DMMHA must not pass on the cost of

verification to the family.

Part I describes the general verification process.

Part II provides more detailed requirements related family information.

Part III provides information on income and assets.

Part IV covers mandatory deductions.

All information obtained through the verification process will be handled in accordance with the

records management policies established by the DMMHA (See Chapter 16).


PART I: GENERAL VERIFICATION REQUIREMENTS

7-I.A. FAMILY CONSENT TO RELEASE OF INFORMATION

[24 CFR 960.259, 24 CFR 5.230]

The family must supply any information that the DMMHA or HUD determines is necessary to

the administration of the program and must consent to DMMHA verification of that information

[24 CFR 960.259(a) (1)].

Consent Forms

The DMMHA is required to have all adult applicants and tenants sign form HUD-9886,

Authorization for Release of Information. Adult family members will also sign other consent

forms as needed to collect information relevant to the family’s eligibility and level of assistance.

Penalties for Failing to Consent [24 CFR 5.232]

If any family member who is required to sign a consent form fails to do so, the DMMHA will

deny admission to applicants and terminate the lease of tenants. The family may request an

informal review (applicants) or informal hearing (participants) in accordance with the

DMMHA's grievance procedures (See Chapter 14).

7-I.B. OVERVIEW OF VERIFICATION REQUIREMENTS

HUD’s Verification Hierarchy [Notice PIH 2010-19]

HUD mandates the use of the Enterprise Income Verification (EIV) system to verify family

information and specifies the circumstances in which each method will be used. In general, HUD

requires the DMMHA to use the most reliable form of verification that is available and to

document the reasons when the DMMHA uses a lesser form of verification.

In order of priority, the forms of verification that the DMMHA will use are:

Up-front Income Verification (UIV) using HUD’s Enterprise Income Verification

(EIV) system

Up-front Income Verification (UIV) using a non-HUD system

Written Third Party Verification (may be provided by applicant or resident)

Written Third-party Verification Form

Oral Third-party Verification

Self-Certification

Each of the verification methods is discussed in subsequent sections below.

File Documentation

The DMMHA will document in the file how the figures used in income and rent calculations

were determined. All verification attempts, information obtained, and decisions reached during

the verification process will be recorded in the family’s file in sufficient detail to demonstrate

that the DMMHA has followed all of the verification policies set forth in this plan.


The DMMHA will document, in the family file, the following:

Reported family annual income

Value of assets

Expenses related to deductions from annual income

Other factors influencing the adjusted income or income-based rent determination

When the DMMHA is unable to obtain 3rd party verification, the DMMHA will document in the

family file the reason that third-party verification was not available and will place a photocopy of

any original document(s) in the family file (excluding government checks).

7-I.C. UP-FRONT INCOME VERIFICATION (UIV)

The DMMHA will use the following UIV resources, and any other UIV resource that may

become available, during the admission and reexamination process:

HUD’s EIV system

Child Support Recovery web-site

The Work Number web-site

Any additional UIV resources available to the DMMHA

There may be legitimate differences between the information provided by the family and UIV-

generated information. No adverse action will be taken against a family until the DMMHA has

independently verified the UIV information and the family has been granted an opportunity to

contest any adverse findings through the informal review/hearing process of the DMMHA.

See Chapter 6 for the DMMHA’s policy on the use of UIV/EIV to project annual income.

Use of HUD’s Enterprise Income Verification (EIV) System

DMMHA must use HUD’s EIV system in its entirety as a third-party source to verify tenant

employment and income information during mandatory reexaminations or recertifications of

family composition and income in accordance with 24 CFR 5.236. HUD’s EIV system contains

data showing earned income, unemployment benefits, Social Security and SSI benefits for

participant families.

The DMMHA will obtain income reports for annual reexaminations on a monthly basis.

Reports will be generated as part of the regular reexamination process.

Income reports will be compared to family-provided information as part of the annual

reexamination process. Income reports may be used in the calculation of annual income,

as described in Chapter 6-I.C. Income reports may also be used to meet the regulatory

requirement for third party verification, as described above. Policies for resolving

discrepancies between income reports and family-provided information will be resolved

as described in Chapter 6-I.C. and in this chapter.


Income reports will be used in interim reexaminations to identify any discrepancies

between reported income and income shown in the EIV system, and as necessary to

verify and calculate earned income, unemployment benefits, Social Security and/or SSI

benefits. EIV will also be used to verify that families claiming zero income are not

receiving income from any of these sources.

Income reports will be retained in participant files with the applicable annual or interim

reexamination documents.

When DMMHA determines through income reports and third-party verification that a

family has concealed or under-reported income, corrective action will be taken pursuant

to the policies in Chapter 14, Program Integrity.

EIV Identity Verification

The EIV system verifies tenant identities against SSA records. These records are compared to

Public and Indian Housing Information Center (PIC) data for a match on Social Security number,

name, and date of birth.

The DMMHA will identify participants whose identity verification has failed by

reviewing EIV’s Identity Verification Report on a monthly basis.

The DMMHA will attempt to resolve PIC/SSA discrepancies by reviewing file

documents. When the DMMHA determines that discrepancies exist due to DMMHA

errors such as spelling errors or incorrect birth dates, the errors will be corrected

promptly.

7-I.D. THIRD-PARTY WRITTEN AND ORAL VERIFICATION

HUD’s current verification hierarchy defines two types of written third-party verification. The

more preferable form, “written third-party verification,” consists of an original document

generated by a third-party source, which may be received directly from a third-party source or

provided to the DMMHA by the family. If written third-party verification is not available, the

DMMHA will attempt to obtain a “written third-party verification form.” This is a standardized

form used to collect information from a third party.

The DMMHA will generally allow up to two (2) weeks (or a shorter timeframe as determined by

DMMHA in time sensitive situations) for return of third-party verifications and up to one (1)

additional week to obtain other types of verifications before going to the next method. The

DMMHA will document the file as to how the information was verified including an explanation

for the method utilized if other than a written third party verification.

Written Third-Party Verification [Notice PIH 2010-19]

Written third-party verification documents must be original and authentic and may be supplied

by the family or received from a third-party source.

Examples of acceptable tenant-provided documents include, but are not limited to: pay stubs,

payroll summary reports, employer notice or letters of hire and termination, SSA benefit

verification letters, bank statements, child support payment stubs, welfare benefit letters and/or


printouts, and unemployment monetary benefit notices.

The DMMHA will require four current and consecutive pay stubs (where possible) for

determining annual income from wages.

The DMMHA may reject documentation provided by the family if the document is not an

original, if the document appears to be forged, or if the document is altered, mutilated, or

illegible.

Third-party documents provided by the family must be dated within 60 days of the DMMHA

request date and no more than 60 days prior to offer of a unit.

If the DMMHA determines that third-party documents provided by the family are not acceptable,

the DMMHA will explain the reason to the family and request additional documentation.

Written Third-Party Verification Form

When upfront verification is not available and the family is unable to provide written third-party

documents, or when third-party verification documents are unavailable or are rejected by the

DMMHA, the DMMHA will request a written third-party verification form.

The DMMHA will send third-party verification forms directly to the third party.

For applicants, verifications must be dated 60 days prior to the offer of a unit. For annual

recertifications for participants, verifications will be valid for 120 consecutive days from date of

receipt.

Oral Third-Party Verification [Notice PIH 2010-19]

Oral third-party verification will be used when written third-party verification is delayed or not

possible. When oral third-party verification is used, staff will be required to document the file by

noting the phone number called, with whom they spoke, the date of the conversation, and the

facts provided. If oral verification is utilized the DMMHA must originate the call.

When Third-Party Verification is Not Required [Notice PIH 2010-19]

Certain Income, Asset and Expense Sources

The DMMHA will determine that third-party verification is not required when it is known that

an income source does not have the ability to provide written or oral third-party verification.

The DMMHA also will determine that third-party verification is not required when there is a

service charge for verifying an asset or expense and the family is unable to provide original

documents that provide the necessary information. A self-certification will be acceptable as the

only means of verification.

The DMMHA will document in the family file the reason that the third-party verification was not

available.

The DMMHA will accept a self-certification from a family as verification of assets disposed of

for less than fair market value.

For families with net assets totaling $5,000 or less, the DMMHA will accept the family’s

self-certification of the value of family assets and anticipated asset income when


applicable. The family’s declaration must show each asset and the amount of income

expected from that asset. All family members 18 years of age and older must sign the

family’s declaration.

The DMMHA will use third-party documentation for assets as part of the intake process,

and whenever a family member is added to verify the individual’s assets, and annually

thereafter.

7-I.E. SELF-CERTIFICATION

When verification cannot be made by third-party verification or review of documents, families

will be required to submit a self-certification. Self-certification requires a notarized and

witnessed statement/affidavit/certification/statement under penalty of perjury.

The DMMHA may require a family to certify that a family member does not receive a particular

type of income or benefit.

DMMHA ACO Final 2017 -7

PART II: VERIFYING FAMILY INFORMATION

7-II.A. VERIFICATION OF LEGAL IDENTITY

The DMMHA will require families to furnish verification of legal identity for each

household member.

Verification of Legal Identity for Adults Verification of Legal Identity for

Children

Certificate of birth, naturalization papers

Church issued baptismal certificate

U.S. military discharge (DD 214)

Current U.S. passport

Voter’s Registration

State Issued Driver’s License or

Identification card

Certificate of birth

Adoption papers

Court ordered Custody agreement

Verification of Guardianship (court

ordered assignment or affidavit of a

biological parent)

If a document submitted by a family is illegible for any reason or otherwise questionable,

more than one of these documents may be required.

If none of these documents can be provided and at the DMMHA’s discretion, a third

party who knows the person may attest to the person’s identity. The certification must be

provided in a format acceptable to the DMMHA and be signed in the presence of a

DMMHA representative or DMMHA notary public.

Legal identity will be verified for all applicants at the time of eligibility determination

and in cases where the DMMHA has reason to doubt the identity of a person representing

him or herself to be a tenant or a member of a tenant family.

7-II.B. SOCIAL SECURITY NUMBERS [24 CFR 5.216 and Notice PIH 2012-10]

Required Documentation

The family must provide documentation of a valid social security number (SSN) for each

member of the household, with the exception of 1) individuals who do not contend eligible

immigration status and 2) existing residents who were at least 62 years of age as of January 31,

2010, and had not previously disclosed an SSN.

Note that an individual who previously declared him or herself to have eligible immigration

status may not change his or her declaration for the purpose of avoiding compliance with the

SSN disclosure and documentation requirements or penalties associated with noncompliance

with these requirements. Nor may the head of household opt to remove a household member

from the family composition for this purpose.

The DMMHA must accept the following documentation as acceptable evidence of the social

security number:

1. An original SSN card issued by the Social Security Administration (SSA)


2. An original SSA-issued document, which contains the name and SSN of the

individual

3. An original document issued by a federal, state, or local government agency, which

contains the name and SSN of the individual.

The DMMHA will only reject documentation of an SSN provided by an applicant or resident if

the document is not an original document, if the original document has been altered, mutilated,

or is not legible, or if the document appears to be forged.

The DMMHA will explain to the applicant or resident the reasons the document is not acceptable

and request that the individual obtain and submit acceptable documentation of the SSN to the

DMMHA within 90 days.

If an applicant family includes a child under 6 years of age who joined the household within the

6 months prior to the date of program admission, an otherwise eligible family may be admitted

and must provide documentation of the child’s SSN within 90 days. A 90-day extension will be

granted if the DMMHA determines that the resident’s failure to comply was due to unforeseen

circumstances and was outside of the resident’s control.

The DMMHA will grant one additional 90-day extension if needed for reasons beyond

the applicant’s control, such as delayed processing of the SSN application by the SSA,

natural disaster, fire, death in the family, or other emergency.

New Household Members

When a resident requests to add a new household member who is at least 6 years of age, or who

is under the age of 6 and has an SSN, the resident must provide the complete and accurate SSN

assigned to each new member at the time of reexamination or recertification, in addition to the

documentation required to verify it. The DMMHA will not add the new household member until

such documentation is provided.

When a resident requests to add a new household member who is under the age of 6 and has not

been assigned an SSN, the resident must provide the SSN assigned to each new child and the

required documentation within 90 calendar days of the child being added to the household. A 90-

day extension will be granted if the DMMHA determines that the resident’s failure to comply

was due to unforeseen circumstances and was outside of the resident’s control. During the period

the DMMHA is awaiting documentation of the SSN, the child will be counted as part of the

assisted household.

Verification

Social security numbers must be verified only once during continuously-assisted occupancy.

The DMMHA will verify each disclosed SSN by:

Obtaining documentation from applicants and residents that is acceptable as evidence

of social security numbers

Making a copy of the original documentation submitted, returning the original

document to the individual, and retaining the copy in the file folder


The social security numbers of household members, such as live-in aids, must be verified for the

purpose of conducting criminal background checks.

7-II.C. DOCUMENTATION OF AGE

A birth certificate or other official record of birth is required for all family members.

If an official record of birth cannot be provided, the DMMHA will require the family to submit

other documents that support the reported age of the family member (e.g.,, state issued driver’s

license or identification card, DD214 form, voter registration card, SS, SSI, SSDI benefit letter

that states the date of birth and name of the family member, or current passport).

7-II.D. FAMILY RELATIONSHIPS

DMMHA’s definition of a family is located in Chapter 3 of this Policy.

Applicants and program participants are required to identify the relationship of each household

member to the head of household.

Family relationships are verified only to the extent necessary to determine a family’s

eligibility and level of assistance.

Marriage

A marriage certificate is not required to verify that a couple is married. The DMMHA

will accept a self-certification as proof of marriage.

Separation or Divorce

The DMMHA will require the family to provide documentation of the divorce or

separation if the document has an effect on household income or custody of children.

Stable Family Relationship The DMMHA defines a Stable Family Relationship as two adults who share residency with their income and resources available to meet the family’s needs and who provide evidence of a stable family relationship.

Evidence may include, but is not limited to, the following: a) Evidence of continuous cohabitation for a period of not less than 6 months within the last

24 months. Evidence of continuous cohabitation includes, but is not limited to:

1. Real estate title in both parties names 2. Lease agreement in both parties names. In the event that a lease agreement is not

available, the DMMHA will accept a notarized statement from the lessor. 3. Property tax statement in both parties names 4. Mortgage documents in both parties names.


Evidence submitted must be current (within 12 months, unless otherwise specified above), and not obtained solely for purpose of securing housing assistance.

SUFFICIENCY OF THE EVIDENCE IS AT THE SOLE DISCRETION OF THE DMMHA.

Absence of Adult Member

If an adult member who was formerly a member of the household is reported permanently absent

by the family, the DMMHA will consider any of the following as verification:

Divorce Decree

Legal separation agreement

Order of protection/restraining order obtained by one family member against another

Proof of another home address, such as utility bills, canceled checks for rent, driver’s

license, or lease or rental agreement, if available.

Written statements from the landlord or manager that the adult family member is no

longer living at that location.

If the adult family member is incarcerated, a document from the Court or correctional

facility should be obtained stating how long they will be incarcerated.

If no other proof can be provided, the DMMHA will accept a self-certification from

the head of household, the spouse or other adult household member if the head is the

absent member.

Verification of Change in Family Composition

The DMMHA may verify changes in family composition (either reported or unreported)

through letters, telephone calls, utility records, inspections, landlords, neighbors, credit

data, school or DMV records, and other sources.

Foster Children and Foster Adults

Third-party verification from the state or local government agency responsible for the

placement of the individual with the family is required.

7-II.E. VERIFICATION OF STUDENT STATUS

The DMMHA requires families to provide information about the student status of all

students who are 18 years of age or older. This information will be verified only if:

The family claims full-time student status for an adult other than the head or

spouse, or


The family claims a child care deduction to enable a family member to further his

or her education.

7-II.F. DOCUMENTATION OF DISABILITY

The DMMHA will verify the existence of a disability in order to allow certain income

disallowances and deductions from income.

Family Members Receiving SSA Disability Benefits or VA Non-Service Connected Pensions

Verification of the receipt of disability benefits from the Social Security Administration (SSA) is

sufficient verification of disability for the purpose of qualifying for certain income disallowances

and deductions.

For family members claiming disability who receive disability benefits from the SSA, the

DMMHA will attempt to obtain information about disability benefits through the HUD

Enterprise Income Verification (EIV) system. If documentation from HUD’s EIV System

is not available, the DMMHA will request a current (dated within the last 60 days) SSA

benefit verification letter from each family member claiming disability status. If the

family is unable to provide the document(s), the DMMHA will ask the family to request a

benefit verification letter by either calling SSA at 1-800-772-1213, or by requesting it

from www.ssa.gov. Once the applicant or participant receives the benefit verification

letter they will be required to provide it to the DMMHA.

Family Members Not Receiving SSA Disability Benefits

For family members claiming disability who do not receive disability benefits from the

SSA, the DMMHA will require third-party verification, using DMMHA’s Disability

Certification form, that the family member meets the HUD definition of disability. See

the Eligibility Chapter (Chapter 3) for the HUD definition of disability.

Family Members Receiving VA Non-Service Connected Pensions.

Verification of the receipt of disability benefits from a VA Non-service connected

pension is sufficient verification of disability for the purpose of qualifying for certain

income disallowances and deductions.

7-II.G. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5.508]

Overview

Housing assistance is not available to persons who are not citizens, nationals, or eligible

immigrants. Prorated assistance is provided for "mixed families" containing both eligible and

ineligible persons. A detailed discussion of eligibility requirements is in the Eligibility chapter

(Chapter 3). This verification chapter discusses HUD and DMMHA verification requirements

related to citizenship status.

The family will provide a certification that identifies each family member as a U.S. citizen, a

U.S. national, an eligible noncitizen or an ineligible noncitizen and submit the documents

discussed below for each family member.

http://www.ssa.gov/


U.S. Citizens and Nationals

HUD requires a declaration for each family member who claims to be a U.S. citizen or national.

The declaration must be signed personally by any family member 18 or older and by a guardian

for minors.

The DMMHA will request verification of the declaration by requiring presentation of a birth

certificate, United States passport or naturalization paperwork.

Eligible Immigrants

Documents Required

All family members claiming eligible immigration status will declare their status in the same

manner as U.S. citizens and nationals.

The documentation required for eligible noncitizens varies depending upon factors such as the

date the person entered the U.S., the conditions under which eligible immigration status has been

granted, age, and the date on which the family began receiving HUD-funded assistance.

DMMHA Verification

For family members age 62 or older who claim to be eligible immigrants, proof of age is

required in the manner described in 7-II.C. of this plan. No further verification of eligible

immigration status is required.

For family members under the age of 62 who claim to be eligible immigrants, the DMMHA will

verify immigration status with the United States Citizenship and Immigration Services (USCIS).

The DMMHA will follow all USCIS protocols for verification of eligible immigration status.

Acceptable Documents of Eligible Immigration

The regulations stipulate that only the following documents are acceptable to demonstrate

eligible immigration status unless changes are published in the Federal Register.

Resident Alien Card (I-551)

Alien Registration Receipt Card (I-151)

Arrival-Departure Record (I-94)

Temporary Resident Card (I-688)

Employment Authorization Card (I-688B)

Receipt issued by the INS for issuance of replacement of any of the above documents

that shows individual's entitlement has been verified


A birth certificate is not acceptable verification of eligible immigration status. All documents

in connection with U.S. citizenship/eligible immigrant status must be kept for a minimum of

five years.

7-II.H. VERIFICATION OF PREFERENCE STATUS

The DMMHA will verify any preferences claimed by an applicant that determined his or her

placement on the waiting list. See Chapter 4 Section 4-III.B. SELECTION METHOD for

verification requirements for preferences.


PART III: VERIFYING INCOME AND ASSETS

Chapter 6, Part I of this plan describes in detail the types of income that are included and

excluded and how assets and income from assets are handled. Any assets and income reported by

the family will be verified. This part provides DMMHA policies that supplement the general

verification procedures specified in Part I of this chapter.

7-III.A. EARNED INCOME

Employment Income

Acceptable methods of verification of employment income in addition to EIV include:

1. Check stubs or earning statements, which indicate the employee's gross pay,

frequency of pay or year to date earnings.

2. W-2 forms plus income tax return forms.

3. Income tax returns signed by the family may be used for verifying self-

employment income, or income from tips and other gratuities.

4. Employment verification form completed by the employer.

Verification forms request the employer to specify the:

Dates of employment

Amount and frequency of pay

Annual earnings

Year to date earnings

Year to date income from overtime, tips, and bonus pay.

Applicants and program participants may be requested to sign an authorization for release of

information from the Internal Revenue Service for further verification of income, IRS Form

8121. In cases where there are questions about the validity of information provided by the

family, the DMMHA will require the most recent federal income tax statements.

Confirmation may be made on a case-by-case basis.

Tips

DMMHA will use tip information on the applicant/participant pay stubs. If tip

information is not included on the applicant/participant paystubs, the DMMHA will send

a third party verification form to the employer which asks employers to record tips

received.


7-III.B. BUSINESS AND SELF EMPLOYMENT INCOME

In order to verify the net income from a business, the DMMHA will review IRS and

financial documents from prior years and use this information to anticipate the income

for the next 12 months.

Acceptable methods of verification include:

1. IRS Form 1040, including Schedule C (Small Business), Schedule E (Rental

Property Income), Schedule F (Farm Income). Note: If accelerated

depreciation was used on the tax return or financial statement, an accountant's

calculation of depreciation expense computed using straight-line depreciation

will be used.

2. Audited or un-audited financial statement(s) of the business.

3. Documents such as manifests, appointment books, bank statements, and

receipts will be used as a guide for the prior six months (or lesser period if not in

business for six months) to project income for the next 12 months. The family

will be advised to maintain these documents in the future if they are not available.

4. DMMHA’s self-employment certification form, to include both current self-

employment income and the discontinuance of previously reported self-

employment income.

Child Care Business

If an applicant/participant is operating a licensed/non-licensed day care business, income will

be verified in the same manner as with any other business.

If the applicant/participant is operating a day care business which may or may not be

licensed, the DMMHA will require that the applicant/participant complete a written wage

verification from each customer which indicates: name of person(s) whose child (children)

is/are being cared for, phone number, number of hours child is being cared for, method of

payment (check/cash), amount paid, and signature of person. Public Housing residents must

provide evidence that they are in compliance with all state and local licensing, permits and

applicable building code requirements upon request of the DMMHA.

If the family has filed a tax return, the family will be required to provide it.

The DMMHA may conduct interim reevaluations every 120 days and require the participant

to provide a log with the information about customers and income.

If childcare services were terminated, the applicant/participant will be asked to provide a

written verification that the services have been terminated from the parent whose child was

cared for. If the applicant/participant is unable to provide such verification, the DMMHA

will send a third-party verification to the parent whose child was cared for.

If the child care business receives income from the State of Iowa, the applicant/participant

will be asked to provide a written verification from the State of Iowa. If the

applicant/participant is unable to provide such verification, the DMMHA will send a third

party income verification to the State of Iowa Daycare Service Department.


The DMMHA requires advance approval from the Public Housing Administrator for all child

care businesses that are conducted out of the subsidized unit.

The DMMHA shall, in its sole discretion, evaluate the sufficiency of the information

provided and may require additional documentation on a case-by-case basis.

7-III.C. PERIODIC PAYMENTS AND PAYMENTS IN LIEU OF EARNINGS

For policies governing streamlined income determinations for fixed sources of income, please

see Chapter 9.

Social Security/SSI Benefits

To verify the SS/SSI benefits of applicants, the DMMHA will request a current (dated

within the last 60 days) SSA benefit verification letter from each family member that

receives social security benefits. If the family is unable to provide the document(s), the

DMMHA will ask the family to request a benefit verification letter by either calling SSA

at 1-800-772-1213, or by requesting it from www.ssa.gov. Once the applicant has

received the benefit verification letter they will be required to provide it to the DMMHA.

To verify the SS/SSI benefits of participants, the DMMHA will obtain information about

social security/SSI benefits through the HUD EIV System. If current benefit information

is not available in HUD systems, the DMMHA will request a current SSA benefit

verification letter from each family member that receives social security benefits. If the

family is unable to provide the document(s) the DMMHA will ask the family to request a

benefit verification letter by either calling SSA at 1-800-772-1213, or by requesting it

from www.ssa.gov. Once the participant has received the benefit verification letter they

will be required to provide it to the DMMHA.

Unemployment Compensation

Acceptable methods of verification in addition to EIV include:

1. Verification form completed by the unemployment compensation agency.

2. Computer report electronically obtained or in hard copy, from unemployment office

stating payment dates and amounts.

3. Payment stubs.

Welfare Payments or General Assistance

Acceptable methods of verification in addition to EIV include:

1. Computer-generated Notice of Decision provided by the applicant/participant.

http://www.ssa.gov/

http://www.ssa.gov/


2. The DMMHA verification form completed by payment provider.

3. Written statement from payment provider indicating the amount of grant/payment,

start date of payments, and anticipated changes in payment in the next 12 months.

4. E-mail verifications from an established contact person at the Iowa Department of Human

Services.

Recurring Gifts

Acceptable method of verification is a written notarized statement from the gift provider.

DMMHA will send the Agency’s third party gift verification form to the provider of the gift

income. This gift verification form contains the following information:

1. The person who provides the gifts

2. The value of the gifts

3. The regularity (dates) of the gifts

4. The purpose of the gifts

7-III.D. ALIMONY OR CHILD SUPPORT

Acceptable methods of verification, in the following order:

1. If payments are made through a state or local entity, the DMMHA will request that the

applicant/participant provide a record from the state or local entity of payments for the past 12

months and any known information about the likelihood of future payments.

2. A notarized letter of verification from the person paying the support

3. Copy of a separation or settlement agreement or a divorce decree stating amount and type of

support and payment schedules

If no alimony or child support payment is received for thirty (30) consecutive calendar days,

DMMHA will not use child support in the family’s income.

7-III.E. ASSETS AND INCOME FROM ASSETS

The DMMHA will require the information necessary to determine the current cash value of the

family’s assets, (the net amount the family would receive if the asset were converted to cash).

Acceptable methods of verification may include any of the following:

1. Verification forms, letters, or documents from a financial institution or broker.


2, Passbooks, checking account statements, certificates of deposit, bonds, or financial

statements completed by a financial institution or broker.

3. Quotes from a stockbroker or realty agent as to net amount family would receive if

they liquidated securities or real estate.

4. Real estate taxes statements if the approximate current market value can be

deduced from assessment.

5. Financial statements for business assets.

6. Copies of closing documents showing the selling price and the distribution of the

sales proceeds.

7. Appraisals of personal property held as an investment.

8. Family's self-certification describing assets or cash held at the family's home or in

safe deposit boxes.

For families with net assets totaling $5,000 or less, the DMMHA will accept the

family’s self-certification of the value of family assets and anticipated asset income when

applicable. The family’s declaration must show each asset and the amount of income

expected from that asset. All family members 18 years of age and older must sign the

family’s declaration.

The DMMHA will use third-party documentation for assets as part of the intake process,

whenever a family member is added to verify the individual’s assets, and annually

thereafter.

Assets Disposed of for Less than Fair Market Value

For all Certifications and Re-certifications, the DMMHA will obtain the Family's

certification as to whether any member has disposed of assets (cumulatively valued at

$5,000 or more) for less than fair market value during the two years preceding the

effective date of the certification or re-certification.

If the family certifies that they have disposed of assets for less than fair market value,

verification or certification is required that shows: (a) all assets disposed of for less than

fair market value, (b) the date they were disposed of, (c) the amount the family received,

and (d) the market value of the assets at the time of disposition. Third party verification

will be obtained whenever possible.


Savings Account Interest Income and Dividends


1. Account statements, passbooks, certificates of deposit, or the DMMHA verification

forms completed by the financial institution.

2. Broker's statements showing value of stocks or bonds and the earnings credited the

family. Earnings can be obtained from current newspaper quotations or oral broker's

verification.

3. IRS Form 1099 from the financial institution provided that the DMMHA must adjust

the information to project earnings expected for the next 12 months.

Interest Income from Mortgages or Similar Arrangements


1. A letter from an accountant, attorney, real estate broker, the buyer, or a financial

institution stating interest due for next 12 months. (A copy of the check paid by the

buyer to the family is not sufficient unless a breakdown of interest and principal is

shown.)

2. Amortization schedule showing interest for the 12 months following the effective

date of the certification or re-certification.

7-III.F. NET INCOME FROM RENTAL PROPERTY


1. IRS Form 1040 with Schedule E (Rental Income).

2. Copies of latest rent receipts, leases, or other documentation of rent amounts.

3. Documentation of allowable operating expenses of the property: tax statements,

insurance invoices, and bills for reasonable maintenance and utilities, and bank

statements or amortization schedules showing monthly interest expense.

4. Lessee's written statement verifying rent payments to the family and family's self-

certification as to net income realized.

7-III.G. RETIREMENT ACCOUNTS

DMMHA will accept the most recent statement provided by the applicant or

participant.


If the applicant/participant is unable to provide the most recent statement, the

DMMHA will send a third party verification form to the provider.

7-III.H. INCOME FROM EXCLUDED SOURCES

A detailed discussion of excluded income is provided in Chapter 6, Part I.

HUD guidance on verification of excluded income draws a distinction between income which is

fully excluded and income which is only partially excluded.

Fully Excluded Income

For fully excluded income, the DMMA is not required to follow the verification hierarchy,

document why third-party verification is not available, or report the income on the 50058. Fully

excluded income is defined as income that is entirely excluded from the annual income

determination (for example, food stamps, earned income of a minor, or foster care funds) [Notice

PIH 2013-04].

The DMMHA will accept a family’s signed application or reexamination form as self-

certification of fully excluded income. The DMMHA will not require additional documentation.

However, if there is any doubt that a source of income qualifies for full exclusion, the DMMHA

may require additional verification.

Partially Excluded Income

For partially excluded income, the DMMHA is required to follow the verification

hierarchy and all applicable regulations, and to report the income on the HUD form

50058. Partially excluded income is defined as income where only a certain portion of

what is reported by the family qualifies to be excluded and the remainder is included in

annual income (for example, the income of an adult full-time student, or income excluded

under the earned income disallowance). The DMMHA will verify the source and amount

of partially excluded income as described in Part 1 of this chapter.

7-III.I. ZERO ANNUAL INCOME STATUS

Families claiming to have no income will be required to execute verification forms to

determine that forms of income such as unemployment benefits, TANF, SSI, Child Support,

etc. are not being received by the household. Families claiming to have no income will have

to certify to this status at least every six months when notified by the DMMHA.


PART IV: VERIFYING MANDATORY DEDUCTIONS

7-IV.A. DEPENDENT AND ELDERLY/DISABLED HOUSEHOLD DEDUCTIONS

The dependent and elderly/disabled family deductions require only that the DMMHA verify that

the family members identified as dependents or elderly/disabled persons meet the statutory

definitions. No further verifications are required.

Dependent Deduction

See Chapter 6 (6-II.B.) for a full discussion of this deduction. The DMMHA will verify that:

Any person under the age of 18 for whom the dependent deduction is claimed is not the head

or spouse of the family and is not a foster child

Any person age 18 or older for whom the dependent deduction is claimed is not a foster adult

or live-in aide, and is a person with a disability or a full time student

Elderly/Disabled Family Deduction

See Chapter 3 on Eligibility of this Plan for a definition of elderly and disabled families and

Chapter 6 (6-II.C.) for a discussion of the deduction. The DMMHA will verify that the head of

household or spouse is 62 years of age or older or a person with disabilities.

7-IV.B. MEDICAL EXPENSE DEDUCTION

Policies related to medical expenses are found in 6-II.D. The amount of the deduction will be

verified following the standard verification procedures described in Part I of this Chapter.

Families, who claim medical expenses will be required to submit a certification as to whether

or not any expense payments have been, or will be, reimbursed by an outside source. One or

more of the methods listed below will verify all expense claims:

1. Written verification by a doctor, hospital or clinic personnel, dentist, or Pharmacist,

stating (a) the anticipated medical costs to be incurred by the family and regular

payments due on medical bills; and (b) extent to which those expenses will be

reimbursed by insurance or a government agency.

2. Written confirmation by the insurance company or employer of health insurance

premiums to be paid by the family.

3. Written confirmation from the Social Security Administration of Medicare premiums

to be paid by the family over the next 12 months. A computer printout will be

accepted.

4. For attendant care:

The DMMHA will require (a) a certification from a qualified professional having

knowledge of the person’s need for an attendant and who can verify the attendant

is necessary as a medical expense; and (b) the attendant's written confirmation of


hours of care provided and amount and frequency of payments received from the

family or agency or stubs from the agency providing the services.

5. Receipts, or pay stubs that verify medical costs and insurance expenses likely to be

incurred in the next 12 months.

6. Copies of payment agreements or most recent invoice that verify payments made on

outstanding medical bills that will continue over all or part of the next 12 months.

The DMMHA will use mileage at the IRS rate, or cab, bus fare, or other public transportation

cost for verification of the cost of transportation directly related to medical treatment.

Qualified Expenses

To be eligible for the medical expenses deduction, the costs will qualify as medical expenses in

accordance with Chapter 6 (6-II.D.) of this Policy.

Unreimbursed Expenses

To be eligible for the medical expenses deduction, the costs must not be reimbursed by another

source.

The family will be required to certify that the medical expenses are not paid or reimbursed to

the family from any source. If expenses are verified through a third party, the third party

must certify that the expenses are not paid or reimbursed from any other source.

Expenses Incurred in Past Years

Receipts or other record of medical expenses incurred during the past 12 months that can be

used to anticipate future medical expenses may be used for "general medical expenses" such

as non-prescription drugs and regular visits to doctors or dentists, but not for one time,

nonrecurring expenses from the previous year.

7-IV.C. DISABILITY ASSISTANCE EXPENSES

Policies related to disability assistance expenses are found in 6-II.E. The amount of the deduction

will be verified following the standard verification procedures described in Part I.


Attendant Care

1. Attendant's written certification of amount received from the family, frequency of

receipt, and hours of care provided.

2. Written certification from family and attendant.


Auxiliary Apparatus

1. Receipts for purchases or proof of monthly payments and maintenance expenses for

auxiliary apparatus.

2. In the case where the person with disabilities is employed, a statement from the

employer that the auxiliary apparatus is necessary for employment.

In addition, the DMMHA will verify that:

The family member for whom the expense is incurred is a person with disabilities (as

described in 7-II.F above).

The expense permits a family member, or members, to work (as described in 6-II.E.). The

DMMHA will seek third-party verification from a Rehabilitation Agency or knowledgeable

medical professional indicating that the person with disabilities requires attendant care or an

auxiliary apparatus to be employed, or that the attendant care or auxiliary apparatus enables

another family member, or members, to work (See 6-II.E.).

The expense is not reimbursed from another source (as described in 6-II.E.). An attendant

care provider will be asked to certify that, to the best of the provider’s knowledge, the

expenses are not paid by or reimbursed to the family from any source.

7-IV.D. CHILD CARE EXPENSES

Policies related to child care expenses are found in Chapter 6 (6-II.F). The amount of the

deduction will be verified following the standard verification procedures described in Part I. In

addition, In addition, the DMMHA will verify that:

The costs incurred are for a child is eligible for care (age 12 or under). The DMMHA will

verify that the child being cared for (including foster children) is under the age of 13 (See 7-

II.C.).

The costs claimed are not reimbursed by another source. The child care provider will be

asked to certify that, to the best of the provider’s knowledge, the child care expenses are not

paid by or reimbursed to the family from any source.

The costs enable a family member to pursue an eligible work activity: work, actively seek

work, or further their education.

The costs are for an allowable type of child care.

The costs are reasonable in accordance with Chapter 6 (6-II.F).

Pursuing an Eligible Activity

The DMMHA will verify that the family member(s) that the family has identified as being

enabled to seek work, pursue education, or be gainfully employed, are actually pursuing those

activities.


Written verification from the person who receives the payments is required. If the childcare

provider is an individual, s/he must provide a statement of the amount they charge and receive

from the family for their services. Verifications must specify the child care provider's name,

address, telephone number, Social Security Number, the names of the children cared for, the

number of hours the child care occurs, the rate of pay, and the typical yearly amount paid,

including school and vacation periods. Family's certification as to whether any of those payments

have been or will be paid or reimbursed by outside sources is also required.

Definition of Reasonable Child Care Expenses

DMMHA defines reasonable child care expenses as child care expenses that do not exceed the

client’s current gross earned income. In the case of clients currently under Earned Income

Disregard (EID), the amount of child care expenses may not exceed the earned income that is

applied towards the rent calculation. DMMHA will allow a family to receive reasonable child

care expense allowance if not working or going to school only if actively seeking employment.

DMMHA utilizes a 9 month time frame for calculation of child care expenses during the school

year and a 3 month time frame for child care during the summer months.

Allowable Type of Child Care

The type of care to be provided is determined by the family, but will fall within certain

guidelines, as discussed in Chapter 6.

The DMMHA will verify that the type of child care selected by the family is allowable,

as described in Chapter 6 (6-II.F).

The DMMHA will verify that the fees paid to the child care provider cover only child

care costs (e.g., no housekeeping services or personal services) and are paid only for the

care of an eligible child (e.g., prorate costs if some of the care is provided for ineligible

family members).

The DMMHA will verify that the child care provider is not an assisted family member.