Certification/Recertification

The documentation and verification process required of HUD managers in order to determine initial income and eligibility during the application process. The “initial certification” is used for applicants/new tenants to establish the amount of rental assistance subsidy which the applicant or tenant is eligible to receive.

Recertification is required at least once each year. The “annual recertification” begins approximately 90 -120 days prior to the anniversary of each resident’s move-in date. During the certification process, verification forms are sent out and data is collected to establish the gross annual income (considering all sources including earned income, income from assets, etc.) for all adult participants. Meanwhile, the total amount of allowable expenses (which for elderly households is a $400 elderly household reduction plus any allowable medical expenses) is determined using receipts and/or verification forms. The adjusted annual income is the total of gross annual income minus allowable expenses. Residents receiving federal rental assistance usually pay 30 percent of their annual adjusted income, and the rental assistance payment (i.e. Section 8 or PRAC) makes up the difference between the resident payment and the unit rent level.

“Interim recertifications” take place when a resident informs management of a significant change in income during the course of the rental contract year.