Question 1

I am preparing to take over ownership or management of an FDIC property. What should I do first?

Accepted Answer

Report this change to AHC
Review the LURA (contractual agreement) to become familiar with your required number of Set-Aside or Qualified Units
Prepare a management plan that incorporates FDIC compliance procedures and required documents and forms
Train all persons who will be involved in applicant intake, property management and reporting.

Question 2

If I have questions about the proper way to calculate a tenant’s annual income, where can I go to find answers?

Accepted Answer

Under FDIC, a tenant’s annual income is calculated according to the method used to determine gross annual income for HUD’s Section 8 Program. This method differs from the way a household’s income is calculated for tax purposes. Owners/managers should refer to the Chapter 4 of the FDIC Owners Manual. For additional information, contact AHC.

Also, the local Section 8 Administrator or Public Housing Authority may be able to provide some guidance.

Question 3

When does a unit actually become a “qualifying unit”?

Accepted Answer

When that unit is occupied by an income eligible tenant (who has completed a certification form and whose information has been verified) who has executed a lease within the rent limit.

Question 4

What does anticipated annual income mean?

Accepted Answer

Owners/managers are required to anticipate the amount of income a household will receive during the coming 12-month period. Generally, this amount is calculated by estimating the family’s annual income using current income and assets. However, if changes from current circumstances can be verified (e.g., an approved raise, an expected bonus, a change in the number of overtime hours to be worked) these should also be considered in anticipating annual income.

Question 5

AHP also requires including income from assets in annual income. Can you give some examples of what is considered an asset and what is not?

Accepted Answer

Under AHP, there is no limitation on the amount of assets an eligible household can own. But, anticipated income from assets must be included in the calculation of annual income. Section 8 program rules specify the types of assets to be considered. If the household has less than $5000 in assets, use the short-cut to verify assets. This is the Under $5000 Asset Certification form.

Question 6

Is a telephone verification valid for purposes of verifying employment income?

Accepted Answer

Third-party written verifications or first-hand documentation (e.g., paycheck stubs) are preferred. However, in cases where these methods are not feasible, telephone verifications may be used as long as management staff complete, sign, and date a form which identifies the third party oral source.

Question 7

When verifying the income of tenants with a Section 8 Certificate or Voucher, is the income verification of the housing authority acceptable?

Accepted Answer

Yes. Owners/managers can satisfy AHP verification requirements by obtaining copies of the housing authority’s verification documents. Another option is to have the authority provide a letter stating that the household’s verified annual gross income does not exceed an amount equal to the applicable AHP income limit. These tenants still must execute a proper AHP Tenant Income Certification (TIC) Form.

Question 8

When do the income limits used to determine tenant eligibility change, and how do I obtain the new limits?

Accepted Answer

AHP income and rent limits are updated each year when HUD publishes its revised figures for area median incomes. Generally, these are released in the Spring each year. Monitoring agencies (AHC) will provide owners/managers with updated limits as they become available year to year from FDIC.

Question 9

If a change in household status or household income occurs between annual recertification, is the tenant required to advise the manager? Is the manager required to monitor these changes?

Accepted Answer

No, unlike some HUD programs, tenants are only required to report changes in household income or composition at the time their eligibility is re-certified. Likewise, managers are not required to monitor household changes that occur between re-certifications.

Question 10

Does AHP have occupancy standards specifying the unit size (i.e., number of bedrooms) appropriate for a given household size?

Accepted Answer

No. Owners/managers are expected to establish their own occupancy standards and apply them consistently throughout the property, and to comply with state or local law regarding occupancy standards, if applicable

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Naomi Hrncir

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