The “Perfect Application” A Top Ten List October 2014 Presented by: Michelle Daniels

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?? Is there a company fax strip, envelope, or company email transmission attached? I am unable to do at least two different income calculations? Get a new form or eight consecutive weeks of paystubs Make sure these are completed and attached with the form Get a new form or a current paystub (as long as the rest of the form is complete)

#9- The Paystub Always the pay period end date and the Gross amount Pay period end date or paycheck date? Net or Gross? Is there other pay listed, like overtime, bonuses, or shift differential? How many checks are required if only proof of income? Is the check direct deposited? Is there a 401k or child support being deducted? Always the pay period end date and the Gross amount Verify max amounts when doing clarification, or annualize amounts on tape sheet It would depend. A total of Eight weeks of pay- current and consecutive. Make sure the account(s) are listed on application and other asset documents 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)? What if the pay period end falls on a Thursday, Friday, or Saturday? What if the pay period end falls on a Sunday, Monday, Tuesday, or Wednesday? What if the date of hire is in the current calendar year? Obtain new verification or printout from employer Use the current week count number on the calendar Use the week count number from the week prior on the calendar 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? What information has to be clarified? Do I call the employer and verify information? What if the employer won’t talk to me? Yes, a clarification record must be completed even if the employment verification form is completely filled out. Every clarification needs to clarify bonuses, tips, commissions, overtime, raises, max hours and date of hire. Yes, call or email the employer and verify the information from the employment verification. 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? Do we count the gross or net income for self employed applicants? What documentation do we need for income verification? This person is considered self-employed Net income is counted for self-employed applicants 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? Credit has a Management/Owner Denial listed- what is that? There is a credit alert for rental debt listed- review further? Where would an eviction show on the credit report? No, not necessarily. Refer to criminal section of Rental Criteria 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 Mdaniels@wrhrealty.com and await further instructions. Yes- review if the debt is over three years old or if there is proof of payment 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? Applicant marked own for current- what is needed? What if the house is showing “foreclosure process started” on credit? Most likely yes, review trade lines for dates and verify status 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 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”? What is needed if I get this message? Should I also send a photo ID with the Social Security Card? You should only receive this message if the applicant is very young (18-19 year old) or new to the country. Send your Specialist a copy of the applicants Social Security Card for verification purposes. Your Specialist will advise further for specific issues. 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? Should all household members be listed on page 1 of application, even if they complete their own application? Head of Household? 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. Yes, ALL household members should be listed on page 1 of each application. 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 mdaniels@wrhrealty.com 904-562-7903