Archive for May, 2011

The Horror of Using Checkstubs…

Thursday, May 26th, 2011

I remember when it was considered poor management to use checkstubs as verification of income at an affordable community.  It just wasn’t done. 

The times they are a’ changing…

With the advent of EIV, one of the good things that has evolved is we are now to use checkstubs provided by the resident (if they agree with what’s been reported on EIV, yada yada yada)…BUT, with the use of checkstubs comes many pitfalls.  WATCH OUT for these dangers:

  • Get current and consecutive checkstubs always starting with the last one they received.  Make sure there are no gaps in the time periods.  I always write the ending period down on a separate sheet of paper to make sure that I haven’t missed anything.
  • Always use 4 – 8.  The handbook mentions 4 -6 in one place and 6 – 8 in another, so I always use 6 to be consistent.  No matter what you choose, make sure you do it for everyone.  (Remember that’s PAY PERIODS, not weeks!)
  • Calculate from your copies.  Make your copies of the checkstubs and then try to calculate the income from what you see.  This will immediately alert you if there is a problem with your copy (too light or portions cut off).
  • Look for unexpected items.  401k…life insurance…direct deposited into a checking account (and the resident has NO assets).  Do your due diligence and actually review this information and verify when necessary.

Checkstubs are a great thing if you use them correctly!

 Happy calculating.

EIV Update

Monday, May 23rd, 2011

I was recently reminded that even if I don’t think people are reading this post, some actually are.  I should consistently post here…sometimes it is hard to do.  I will work harder at not using excuses!

 If you haven’t heard, EIV has been updated in the last couple of weeks.  A lot of it included changes that will not affect the things that you do on a daily basis…but there were two big changes.

First of all, they added an additional tab called “Certification Page” to the Income Information report pulled by each resident.  Right now this page is not required by HUD for anything, but can be used at an Owner/Agent discretions to have the resident document their agreement with the Income Report.  I foresee that this page may be required in the not to distant future.

The other big change is to the Multiple Subsidy Report.  We are very excited that we will no longer have to run this report twice (once for Multi-Family and again for PIH)…this information has been combined and the report is now only required to be run one time!  This is a great relief as a lot of O/As were forgetting to run both checks.

I will continue to work to provide you up to date information on EIV, general property management, and all things HUD  In the meantime…work hard!!