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.