PIH has implemented incentives for pursuing tenant fraud and sanctions,
as authorized under the U.S. Housing Act of 1937 for PHAs that fail
to comply with Rental Integrity Monitoring (RIM)
review requirements. Actions can be taken for:
- Failure to identify root causes of income and rent errors
- Failure to respond in a timely manner to a RIM review report
- Failure to implement a corrective action plan (CAP) when required
- Failure to improve PHA internal controls
Notice
PIH 2005-7 Rental Integrity Monitoring (RIM), Disallowed Costs and
Sanctions under the Rental Housing Integrity Improvement Project,
issued February 22, 2005, the notice outlines the sanctions that
Field Offices must impose on PHAs that fail to comply with RIM review
requirements and details HUD's policy for collecting disallowed
costs.
The
Notice specifically addresses:
- Incentives, disallowed costs, and collection of excess subsidies
paid
- Sanctions (i.e., public housing operating subsidy and/or Section
8 administrative feewith-holdings) for failure to respond in a
timely manner to the RIM review report and implement a CAP when
required
- Adjustment of Section 8 Management Assessment Program (SEMAP)
scors
- Self-assessment reviews
Appeal Requests for Proposed Sanctions/Disallowed Costs
PHAs have the right to appeal proposed sanctions and disallowed
costs to the Field Office (Hub or program center), but they must
do so in writing within 30 calendar days of when the sanction was
imposed. The written appeal must provide material evidence or justification
of any arguments or additional facts and data concerning the proposed
action. All appeals must be sent via certified mail.
The Field Office will have 30 calendar days from receipt of an
appeal to approve or deny it. If the Field Office fails to make
a decision during this time, the appeal will automatically be granted
to the PHA.
If the Field Office denies the appeal, the PHA can appeal that
decision to the Assistant Secretary for Public and Indian Housing
within 15 calendar days from the date of the denial. The PHA must
submit the appeal via certified mail.
Important Advisory: The PHA
may not request more than one appeal to the Field Office per action
(i.e., only one request for an appeal is allowed for the imposition
of disallowed costs.). Appeals submitted to HUD Headquarters that
include material evidence not submitted with the initial appeal
to the Field Office, or appeals made to Headquarters directly without
first being submitted to the Field Office, will not be considered.
HUD and PHAs
Over the past year, PIH has worked closely with PHAs, providing
training and technical assistance, training
materials, and program guidance,
emphasizing:
- The importance of timely and accurate income and rent determinations
- The need to identify the root causes of program errors
- Their responsibility to develop a corrective action plan to
correct program deficiencies
Through the Sanctions Notice and other RHIIP accomplishments,
HUD has demonstrated its commitment to meeting its error reduction
goals. The Department needs PHAs' cooperation and support to succeed
in all RHIIP initiatives. Headquarters and local Field Offices are
providing training and technical assistance to those PHAs that need
it most. If you are a PHA in need of training, technical assistance,
program guidance, or other resources, please visit our training
and technical assistance and program
guidance web pages for more information or contact your local
Field Office.
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