[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR5.236]



[Page 51-52]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 5_GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS--Table of Contents

 

  Subpart B_Disclosure and Verification of Social Security Numbers and 

    Employer Identification Numbers; Procedures for Obtaining Income 

                               Information

 

Sec.  5.236  Procedures for termination, denial, suspension, or reduction 

of assistance based on information obtained from a SWICA or Federal agency.



    (a) Termination, denial, suspension, or reduction of assistance. The 

provisions of 42 U.S.C. 3544(c)(2)(B) and (C) shall govern the 

termination, denial, suspension, or reduction of benefits for an 

assistance applicant or participant based on income information obtained 

from a SWICA or a Federal agency. Procedures necessary to comply with 

these provisions are provided in paragraph (b) of this section.

    (b) Procedures for independent verification. (1) Any determination 

or redetermination of family income verified in accordance with this 

paragraph must be carried out in accordance with the requirements and 

procedures applicable to the individual covered program. Independent 

verification of information obtained from a SWICA or a Federal agency 

may be:

    (i) By HUD;



[[Page 52]]



    (ii) In the case of the public housing program, by a PHA; or

    (iii) In the case of any Section 8 program, by a PHA acting as 

contract administrator under an ACC.

    (2) Upon receiving income information from a SWICA or a Federal 

agency, HUD or, when applicable, the PHA shall compare the information 

with the information about a family's income that was:

    (i) Provided by the assistance applicant or participant to the PHA; 

or

    (ii) Obtained by the owner (or mortgagee, as applicable) from the 

assistance applicant or participant or from his or her employer.

    (3) When the income information reveals an employer or other income 

source that was not disclosed by the assistance applicant or 

participant, or when the income information differs substantially from 

the information received from the assistance applicant or participant or 

from his or her employer:

    (i) HUD or, as applicable or directed by HUD, the PHA shall request 

the undisclosed employer or other income source to furnish any 

information necessary to establish an assistance applicant's or 

participant's eligibility for or level of assistance in a covered 

program. This information shall be furnished in writing, as directed to:

    (A) HUD, with respect to programs under parts 215, 221, 235, 236, or 

290 of this title;

    (B) The responsible entity (as defined in Sec.  5.100) in the case 

of the public housing program or any Section 8 program.

    (C) The owner or mortgagee, as applicable, with respect to the rent 

supplement, Section 221(d)(3) BMIR, Section 235 homeownership 

assistance, or Section 236 programs.

    (ii) HUD or the PHA may verify the income information directly with 

an assistance applicant or participant. Such verification procedures 

shall not include any disclosure of income information prohibited under 

paragraph (b)(6) of this section.

    (4) HUD and the PHA shall not be required to pursue these 

verification procedures when the sums of money at issue are too small to 

raise an inference of fraud or justify the expense of independent 

verification and the procedures related to termination, denial, 

suspension, or reduction of assistance.

    (5) Based on the income information received from a SWICA or Federal 

agency, HUD or the PHA, as appropriate, may inform an owner (or 

mortgagee) that an assistance applicant's or participant's eligibility 

for or level of assistance is uncertain and needs to be verified. The 

owner (or mortgagee) shall then confirm the assistance applicant's or 

participant's income information by checking the accuracy of the 

information with the employer or other income source, or directly with 

the family.

    (6) Nondisclosure of Income information. Neither HUD nor the PHA may 

disclose income information obtained from a SWICA directly to an owner 

(unless a PHA is the owner). Disclosure of income information obtained 

from the SSA or IRS is restricted under 26 U.S.C. Sec.  6103(l)(7) and 

42 U.S.C. 3544.

    (c) Opportunity to contest. HUD, the PHA, or the owner (or 

mortgagee, as applicable) shall promptly notify any assistance applicant 

or participant in writing of any adverse findings made on the basis of 

the information verified in accordance with paragraph (b) of this 

section. The assistance applicant or participant may contest the 

findings in the same manner as applies to other information and findings 

relating to eligibility factors under the applicable program. 

Termination, denial, suspension, or reduction of assistance shall be 

carried out in accordance with requirements and procedures applicable to 

the individual covered program, and shall not occur until the expiration 

of any notice period provided by the statute or regulations governing 

the program.



[61 FR 11113, Mar. 18, 1996, as amended at 65 FR 16715, Mar. 29, 2000]