Questions from the Repayment Agreement presented on May 29, 2014    Q: Will this webinar be available for later viewing?  A: The webinar and supporting documents will be made available on the training page of the DOH  website. Until it is posted, you can access the webinar at:  https://codola.adobeconnect.com/p3x4cmdmt0o/ 

Q: When figuring the medical deduction [the difference between the gross and net benefits], don't we  have to make sure that an "N" is placed under the Premium Buy‐in area, and not a "Y"?  A: “Yes means No and No means Yes” – An “N” in the Buy‐In column means that the participant is paying  for their Medicare premium and the amount should be counted as a medical deduction. A “Y” in the  Buy‐In column means that the state or another entity is paying the Medicare premium and the amount  should not be counted as a medical expense. In either case, always use the gross amount when  calculating income.  Q: Will DOH send monthly coupons?  A: DOH will not be sending payment coupons to the participants who have repayment agreements.   Instead, the participants will receive a monthly statement showing how much they currently owe. The  payment address will be included on the statement.  Q: I have some re‐payments that I have been collecting on here in the office. Should I forward these to  my contract manager?  A: Any repayment agreements you have had participants sign need to be sent to your DOH Contract  Manager as soon as possible (if you haven’t done so already). In addition, if you are collecting money on  the repayment agreements in your office please stop this practice immediately and contact your DOH  Contract Manager to coordinate a transfer of funds.  Q: Can you go into more detail about not using EIV when calculating employment?  A: Regulations do not allow us to use the earnings reported on the EIV report to calculate a repayment  agreement. Instead, use it as a jumping‐off point. The EIV will provide you with contact information of  the employer. Requesting a complete payroll history from the employer would be ideal. In addition, the  participant is required to provide requested documentation, such as paystubs.   Q: On renegotiated repayment agreements, the admin. plan says amount of rent share and  repayment amount cannot exceed 40% of adjusted monthly income. Is this correct?  A: Page 377 of the 2014 Administrative Plan states that the family’s monthly share of rent plus the  monthly debt repayment amount should not exceed 40 percent of the family’s monthly adjusted  income…However, Notice PIH 2010‐19 acknowledges that PHAs have the discretion to establish 

“thresholds and policies” for repayment agreements with families. DOH has established the following  thresholds for repayment of debts. Except in the cases of reasonable accommodation, the following will  apply:     

Amounts between $3,000 and the Federal or State threshold for criminal prosecution must be  repaid within 36 months  Amounts between $2,000 and $2,999 must be repaid within 30 months  Amounts between $1,000 and $1,999 must be repaid within 24 months  Amounts under $1,000 must be repaid within 12 months 

If a family can provide evidence satisfactory to DOH that the threshold applicable to the family’s debt  would impose an undue hardship, DOH may, in its sole discretion, determine that a lower monthly  payment amount is reasonable. In making its determination, DOH will consider all relevant information,  including the following:  o The amount owed by the family to DOH  o The reason for the debt, including whether the debt was the result of family action/inaction or  circumstances beyond the family’s control  o The family’s current and potential income and expenses  o The family’s current family share, as calculated less than 24 CFR 982.515  o The family’s history of meeting its financial responsibilities  Q: If I discover unreported income, but now the tenant is at zero‐income, should I still go ahead with  the repayment agreement?  A: Regardless of their income status, if we overpaid HAP on behalf of a participant, they are required to  enter into a repayment agreement with us. Please refer to the question above regarding payback  options.  Q: Has DOH ever forgiven a repayment due to special circumstances?  A: According to PIH 2010‐19, “HUD does not authorize any PHA‐sponsored amnesty or debt forgiveness  programs”.  Q: If I find unreported employment income, is it ok to contact the employer directly to verify the  information or does this information need to come from the participant?  A: You may contact the employer directly provided that you have a signed release of information to  speak to the employer. The Authorization for the Release of Information/Privacy Act Notice (form HUD‐ 9886) acts as this release and is valid for 15 months following the date is was signed.  Q: As far as CBMS requests for interims, should we be asking DOH for these for every interim income  change?  Should we just ask for these for tenants who receive TANF or everyone ‐ since we do not  count food stamps, do we need these? 

A: A CBMS report is not required for each interim, only the EIV form is required. However, if your  participant currently receives CBMS benefits (TANF, AND, OAP, or HCA), or reports that they have  started to receive these benefits, requesting the report at the time you conduct an interim is a good  idea.  Q: We seem to receive CBMS/FSR reports, etc. rather irregularly.  Do I need to be requesting the  reports for everyone with annuals coming up due directly from someone at DOH or do you always  send things to us if they apply?  Is the reason I only receive CBMS for some people because those  other people don't have any results when you run the report for them?    A: CBMS and Family Support Registry (FSR) reports are not required at each annual reexamination, but  DOH runs them as a courtesy for agencies. If there are no benefits, or if only Food Stamps are listed, a  CBMS report is not mailed out for your participant. The same is true about FSR reports.  Q: If someone reports that they are no longer receiving TANF, is CBMS enough to confirm this, or  should they be providing me with third party documentation showing this themselves?   A: A CBMS printout showing benefits have ended is substantial verification.  Q: What if I am processing an interim that should be for July and I discover that there is unreported  income for the past year, can I go ahead and do the interim and then address the remaining  unreported income at a later date? Or should I hold off until the repayment agreement has been  completed?  A: Complete the July interim with the newfound income first, and then work on the repayment  agreement.  Q: Is this process any different for the home buyers program?  A: The repayment agreement process and policy is the same for the homeownership program.  Q: When collecting information regarding wage income, will current paystubs work to determine  when the job started?  A: It all depends on the paystub. Some are better than others at capturing when someone starts  working, but very rarely do paystubs include the actual hire date. The best course of action would be to  obtain the information from the employer via third‐party written or oral verification.  Q: What is the next step when a participant is a no‐call/no‐show to the tenant conference?  A: Depending on where they are in the tenant conference process, you would schedule them for a  second and final conference. If they fail to attend that conference without a valid reason, please refer to  DOH’s termination policy and process that was presented in March 2014.  Q: Is the new repayment agreement form on the website or are you sending it to us? 

A: The repayment agreement worksheets and documents will be available on the website shortly. In  addition, they are attached to the e‐mail.  Q: Will we be able to start doing our own repayment agreements after this training?  A: Yes, you should be completing your own repayment agreements as of May 30, 2014. As always,  please contact your DOH Contract Manager if you have any questions about the process.  Q: If the participant has a representative payee, or an agency is acting as payee, and they do not  report new income or income increases on behalf of the participant, are they still responsible for the  unreported income?   A: Yes, the participant is still responsible to reimburse the PHA for overpaid HAP in this situation.   Q: In the forms we were sent, there is a Housing Assistance Payment Register. Do we need that for  anything?  A: The Housing Assistance Payment Register is the first page of the fillable 50058 Excel spreadsheet that  some agencies use when calculating the repayment agreement. The front page must be filled in order to  auto‐populate other fields on the 50058.    For more information regarding repayment agreements, please refer to Chapter 16, Part IV (beginning  on page 376) of the 2014 DOH Administrative Plan. 

5/28/2014

Division of Housing Training

Repayment  Agreements May 29, 2014

OVERVIEW ƒ Repayment Agreement Policy ƒ Repayment Agreement Process ƒ ƒ ƒ ƒ ƒ ƒ

Identifying unreported income Calculating the repayment amount Tenant conference New Repayment Agreement Form Late payments 2nd repayment agreements

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Policy ƒ The term repayment agreement refers to a formal

written document signed by a tenant and provided to DOH in which a tenant acknowledges a debt in a specific amount and agrees to repay the amount due at specific time periods.

ƒ Any amount owed to DOH by a housing program family must be repaid by the family. DOH will offer to enter into a repayment agreement in accordance with the policies below.

Policy Continued ƒ DOH has established the following thresholds for repayment of debts: Except in the case of reasonable accommodation, the following will apply: ƒ Amounts between $2,000 and $2,999 must be repaid within 30 months. ƒ Amounts between $1,000 and $1,999 must be repaid within 24 months. ƒ Amounts under $100 must be repaid within 12 months. ƒ Amounts between $3,000 and $4,999 must be repaid within 36 months.

ƒ The minimum monthly repayment amount is $25 a month.

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Policy Continued ƒ If a family can provide evidence satisfactory to DOH that the threshold applicable to the family’s debt would impose an undue hardship, DOH may, in its sole discretion, determine that a lower monthly payment amount is reasonable. ƒ If the amount of overpaid subsidy is over $5,000 please contact your Contract Manager. ƒ Families will not be required to make a down payment on the amount owed prior to entering into a repayment agreement with DOH.

Policy Continued ƒ All Repayment Agreements must be signed by all adult members of the household. ƒ All payments are due by the close of business of the 5th day of the month and considered late after the 10th of the month. ƒ If the family refuses to enter into a repayment agreement, DOH will terminate assistance in accordance with our termination policy.

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Policy Continued ƒ Late or missed payments ƒ If a family misses two payments, DOH will contact the Residential Coordinator to set up a tenant conference. ƒ Please submit the tenant conference paperwork to your Contract Manager. ƒ If the family continues to miss payments, DOH will move towards immediate termination.

Policy Continued ƒ 2ND Repayment Agreements? ƒ DOH generally will not enter into a repayment agreement with a family if there is already a repayment agreement in place or if the amount owed by the family exceeds the federal or state threshold for criminal prosecution.

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Process ƒ Residential Coordinator identifies unreported income. ƒ Residential Coordinator needs to send a letter to the family regarding the unreported income and request 3rd party verification of unreported income and/or documentation disputing the unreported income. ƒ Give them 10 days to submit requested documentation. ƒ Calculate the repayment agreement using the fillable 50058 and new Repayment Agreement Worksheet. ƒ Submit the Repayment Agreement, 50058, Repayment Agreement Worksheet and the income documentation used to calculate the repayment amount to your Contract Manager.

Process Continued ƒ Your Contract Manager will review and either sign off or request additional documentation within 5 business days. ƒ Once the repayment agreement is approved, send a tenant conference letter to the family. ƒ Conduct a tenant conference with the family. The family must sign the following forms: the Repayment Agreement, Acknowledgement of Tenant Conference, What You Should Know About EIV and Debts Owed. ƒ Once signed, submit the Repayment Agreement, Acknowledgement of Tenant Conference, What You Should Know About EIV and Debts Owed forms to your Contract Manager.

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Process Continued ƒ How to identify and calculate unreported income and an overpayment of subsidy?

ƒ

The first step is to determine when the unreported income started.

ƒ

Reviewing EIV’S, CBMS And Child Support Registry Reports.

ƒ HUD requires additional 3rd party verification for repayment agreements resulting from unreported employment and unemployment income.

Process Continued ƒ Please remember to follow DOH policy regarding the minimum threshold, reporting time and effective dates.

ƒ

ƒ ƒ

An interim reexamination does not need to be completed when the increase in income is below $250/mth. If the family is at zero income any increase would result in an interim reexamination being conducted. Families are required to report all increases in income with 10 business days. The increase will be effective on the first of the month following a 30 days’ notice to the family.

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Process Continued ƒ Calculating the overpaid subsidy: ƒ Complete a 50058 using the new income information. ƒ If there has been more than one income change during the unreported income period, please contact your Contract Manager for guidance. ƒ Once you have completed a corrected 50058 take the HAP and UAP numbers from the original and corrected 50058’s and enter them into the Repayment Agreement Worksheet.

Process Continued ƒ Once you have determined the amount of the overpaid subsidy fill out the Repayment Agreement. ƒ Please round to the nearest dollar when calculating the monthly repayment amount. ƒ All adult family members must sign the Repayment Agreement, Acknowledgement of Tenant Conference, What You Should Know About EIV and Debts Owed forms.

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Q&A

8

Date

Sally Tenant Address Westminster, CO 80XX

Repayment Agreement Reason Unreported TANF Income

For the period of March 2014 to June 2014

Total amount Due $336

Failure to report changes in your family’s monthly TANF amount has resulted in the Division of Housing (DOH) overpaying your landlord. This is a violation of the participant obligations as outlined in the Statement of Understanding. The Statement of Understanding form that was included in your briefing packet and that you are required to sign at every annual recertification states: ƒ

The Division of Housing may terminate assistance to program participants for violations of one or more of the following obligations: #1 Participants must supply all information requested by DOH and/or their housing coordinator. This information includes, but is not limited to, household income, household members, social security numbers and evidence of citizenship or legal status. #3 Participants must notify their housing coordinator in writing of any changes in income or number of people in the household within 10 days of the change. #7 Participants must supply information that is true and complete. #21 Participants must not commit fraud, bribery or any other criminal act.

ƒ

The Statement of Understanding form also states that other causes for termination of assistance are: #1 Participants who currently owe money to DOH or another public housing authority. #2 Participants who fail to make payments toward their repayment agreement with DOH.

By signing below, I understand and agree to the following: 1. I agree (choose one): ______ To make monthly payments in the amount of $28 until the balance is paid in full. My first payment is due on July 5, 2014. _____ To pay the entire amount of $336 by July 5, 2014. 2. I understand that (initial all): ______If I miss two payments, this agreement will be considered in default and the Division of Housing may terminate assistance upon written notification. ______I must not only pay the monthly payment amount specified in this agreement, but must also pay any share of monthly rent portion to my landlord. ______The terms of this repayment agreement may be renegotiated if my household income decreases or increases. ______If I refuse to enter into a repayment agreement, the balance will be due immediately, and my account will be sent to collections. ______I understand that failure to meet the terms of this agreement could result in the loss of my housing assistance. ______I understand that if I am exited from housing, I am still responsible for this debt. Failure to continue making payments will result in any remaining debts being sent to collections. ______I understand that if I am exited from housing, any remaining debts owed will be submitted to HUD’s debts owed repository.

Please send payments to: Division of Housing 1313 Sherman St Room 319 Denver, CO 80203

I have read the above information and understand my responsibilities under this agreement.

_____________________________________________ Signature of Head of Household

_________________________ Date

_____________________________________________ Signature of Other Adult _____________________________________________ Signature of Other Adult

_________________________ Date _________________________ Date

Date: Name: Address:

Repayment Agreement Reason

For the period of

Total amount Due

Failure to report changes in your family’s has resulted in the Division of Housing (DOH) overpaying your landlord. This is a violation of the participant obligations as outlined in the Statement of Understanding. The Statement of Understanding form that was included in your briefing packet and that you are required to sign at every annual recertification states: 

The Division of Housing may terminate assistance to program participants for violations of one or more of the following obligations: #1 Participants must supply all information requested by DOH and/or their housing coordinator. This information includes, but is not limited to, household income, household members, social security numbers and evidence of citizenship or legal status. #3 Participants must notify their housing coordinator in writing of any changes in income or number of people in the household within 10 days of the change. #7 Participants must supply information that is true and complete. #21 Participants must not commit fraud, bribery or any other criminal act.



The Statement of Understanding form also states that other causes for termination of assistance are: #1 Participants who currently owe money to DOH or another public housing authority. #2 Participants who fail to make payments toward their repayment agreement with DOH.

By signing below, I understand and agree to the following: 1. I agree (choose one): ______ To make monthly payments in the amount of $

until the

balance is paid in full. My first payment is due on _____ To pay the entire amount of $

. by

.

2. I understand that (initial all): ______If I miss two payments, this agreement will be considered in default and the Division of Housing may terminate assistance upon written notification. ______I must not only pay the monthly payment amount specified in this agreement, but must also pay any share of monthly rent portion to my landlord. ______The terms of this repayment agreement may be renegotiated if my household income decreases or increases. ______If I refuse to enter into a repayment agreement, the balance will be due immediately, and my account will be sent to collections. ______I understand that failure to meet the terms of this agreement could result in the loss of my housing assistance. ______I understand that if I am exited from housing, I am still responsible for this debt. Failure to continue making payments will result in any remaining debts being sent to collections. ______I understand that if I am exited from housing, any remaining debts owed will be submitted to HUD’s debts owed repository.

Please send payments to: Division of Housing 1313 Sherman St Room 319 Denver, CO 80203

I have read the above information and understand my responsibilities under this agreement.

_____________________________________________ Signature of Head of Household

_________________________ Date

_____________________________________________ Signature of Other Adult

_________________________ Date

_____________________________________________ Signature of Other Adult

_________________________ Date

Division of Housing Repayment Agreement Worksheet Instructions The workbook used for calculating repayment agreements contains 2 worksheets:  Repayment Calculation Worksheet  Repayment Schedule The Repayment Calculation Worksheet will allow you to add narrative regarding the nature of the repayment and the corresponding issues which led to the overpayments. 1. Enter the head of households name and the household members name associated with the debt, if different. 2. Enter narrative and explanation for repayment. 3. Select from the drop down list the year or years of the repayment. 4. Under the “Month” category, enter the first month of overpayment and any corresponding months. 5. Manual fill in the “Original” and “Corrected” HAP or UAP amounts for each respective months  Difference in amounts will self total in right column and give you an overall total in the white cell at bottom right of worksheet.  This amount will automatically transfer over to Repayment Schedule

The Repayment Schedule will calculate the amount of time it will take to pay off the overpayment based on what the agreed upon monthly payment amount. 6. Total amount due will transfer over from the Repayment Calculation Worksheet to the Repayment Schedule Worksheet. 7. Enter base/beginning year of repayment from the drop down list. 8. Enter first month of repayment from drop down list. 9. Enter monthly payment amount. 10. Payment schedule will automatically populate according to total due and monthly payment. If there is a remaining balance it will populate in “remaining balance”

This schedule is developed with the maximum payoff timeframe (36 months) outlined in our Admin Plan.