The “Perfect
Application”
A Top Ten List
Presented by: Michelle Daniels
October 2014
Meet Your Compliance Specialist
▪ Jennifer Ribeiro, HCCP- over 5 years of LIHTC experience. Currently
handles a portfolio of 10 Florida Properties
▪ Hope Herron- over 2 years of LIHTC experience. Currently handles a
portfolio of 12 Florida Properties
▪ Dawn Rood, HCCP- over 10 years of LIHTC/PH experience. Currently
handles a portfolio of 20 North Carolina and Texas Properties.
#10- Errors on the Employment
Verification (EMC/NC/TX 01)
▪ Are there any scratch outs, blanks, or discrepancies on the
verification??
Get a new form or eight consecutive weeks of paystubs
▪ Is there a company fax strip, envelope, or company email
transmission attached?
Make sure these are completed and attached with the form
▪ I am unable to do at least two different income calculations?
Get a new form or a current paystub (as long as the rest of
the form is complete)
#9- The Paystub
▪ Pay period end date or paycheck date? Net or Gross?
Always the pay period end date and the Gross amount
▪ Is there other pay listed, like overtime, bonuses, or shift differential?
Verify max amounts when doing clarification, or annualize amounts on tape
sheet
▪ How many checks are required if only proof of income?
It would depend. A total of Eight weeks of pay- current and consecutive.
▪ Is the check direct deposited?
Make sure the account(s) are listed on application and other asset documents
▪ Is there a 401k or child support being deducted?
Make sure the 401k is listed on application and other asset docs, and that
the child support is not for a child listed on the application
#8- Year to Date calculations and the
Date of Hire.
▪ Is the exact date of hire listed on the employment verification (EMC/NC/TX
01)?
Obtain new verification or printout from employer
▪ What if the pay period end falls on a Thursday, Friday, or Saturday?
Use the current week count number on the calendar
▪ What if the pay period end falls on a Sunday, Monday, Tuesday, or
Wednesday?
Use the week count number from the week prior on the calendar
▪ What if the date of hire is in the current calendar year?
Complete and print the following web-site:
http://www.timeanddate.com/date/duration.html
#7- Clarification Record. (EMC/NC/TX 14)
▪ Is a Clarification Record (EMC/ NC/ TX 14) required for every file with employment income?
Yes, a clarification record must be completed even if the employment
verification form is completely filled out.
▪ What information has to be clarified?
Every clarification needs to clarify bonuses, tips, commissions, overtime, raises,
max hours and date of hire.
▪ Do I call the employer and verify information?
Yes, call or email the employer and verify the information from
the employment verification.
▪ What if the employer won’t talk to me?
Simply state that on the clarification record. “Employer will not verify….”
#6- Self-Employed Applicants.
▪ No taxes are being taken out of paystubs and the applicant gets a 1099 at the
end of the year?
This person is considered self-employed
▪ Do we count the gross or net income for self employed applicants?
Net income is counted for self-employed applicants
▪ What documentation do we need for income verification?
An EMC/NC/TX 02 will always be required with the previous years
1040 with Schedule C, E, or F. PLUS….
1. Letter from bookkeeper or accountant anticipating the
the net income for the next 12 months. Or
2. Current year financial statements showing income and
expenses.
#5- Calculation Sheet and YARDI Workflow
Are there at least
two different
income
calculations?
Am I using
the highest
calculation
for my
totals?
Is the highest
calculation in
YARDI?
#4- Credit and Criminal Review
• Criminal Report shows Records Found- automatically deny?
No, not necessarily. Refer to criminal section of Rental Criteria
• Credit has a Management/Owner Denial listed- what is that?
The applicant owes rental debt to a sister community and must be paid
prior to application. Once paid, submit proof of payment and applicants
information to [email protected] and await further
instructions.
• There is a credit alert for rental debt listed- review further?
Yes- review if the debt is over three years old or if there is proof of payment
• Where would an eviction show on the credit report?
Near the end of the report under Court Records- 3 years- final eviction
#3- Applicant owns a House
• Credit report shows a Real Estate Balance- does the applicant own?
Most likely yes, review trade lines for dates and verify status
• Applicant marked own for current- what is needed?
1.Tax assessment for the property
2.Current Principle balance of mortgage
3. EMC/ NC/TX 13- what is going on with the home?
4. Asset worksheet completed
• What if the house is showing “foreclosure process started” on credit?
Proof of final foreclosure is needed or the asset must be verified with items
listed above.
#2- No Records Found on Credit
• The credit report comes back saying “No Records Found”?
You should only receive this message if the applicant is very young (1819 year old) or new to the country.
• What is needed if I get this message?
Send your Specialist a copy of the applicants Social Security Card for
verification purposes. Your Specialist will advise further for specific
issues.
• Should I also send a photo ID with the Social Security Card?
No, NEVER send a photo ID to your Specialist. This could be considered a Fair
Housing Violation.
#1- Pages of Application (FL/NC only)
• Are separate applications required for all adults?
If they are not related (marriage or birth) separate pages 1 and 2 of the
application are required. Pages 3-7 can be the same and signed by all.
• Should all household members be listed on page 1 of application, even
if they complete their own application?
Yes, ALL household members should be listed on page 1 of each
application.
• Head of Household?
The head of household should be listed first on all applications and should
match the head of household listed in YARDI
BONUS!!
Are all the
questions on the
application
completed?
Is the
attachment
scanned
into YARDI?
Are all
documents
signed and
dated by
applicant and
management?
Thank you and I look forward
to sending out lots and lots
of Perfect Application
Emails!!
Any questions or concerns- call or email me
[email protected]
904-562-7903