Set Repayment Plans for Unreported Income

July 26, 2009

If you receive new income information obtained through EIV, you may execute a repayment agreement with the resident for him to reimburse you over time. But even though Handbook 4350.3 says you must reimburse HUD for overpayment of assistance, you don't have to reimburse HUD immediately.

If you receive new income information obtained through EIV, you may execute a repayment agreement with the resident for him to reimburse you over time. But even though Handbook 4350.3 says you must reimburse HUD for overpayment of assistance, you don't have to reimburse HUD immediately.

According to Chapter 8-20, you must repay HUD only as residents repay you under their repayment plan. This applies only to instances of omissions in resident information, not for overpayments stemming from your staff's calculation errors or mistakes applying program rules. This isn't a new feature in Change 3, so it applies already. Each contract administrator (CA) must report overpayment data to HUD, so be sure to follow your CA's reporting requirements.

The Idaho CA recommends that your site's anti-fraud and EIV policies state how you'll address cases of unreported income. They should also specify when you will and will not enter into repayment agreements with residents.

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