Penalties for Committing Fraud
You must provide information about your household status and income when you apply for assisted housing in apartments financed by the U.S. Department of Agriculture (USDA). USDA places a high priority on preventing fraud. If you deliberately omit information or give false information to the management company on your application or recertification forms, you may be:
- Evicted from your apartment;
- Required to repay all the extra rental assistance you received based on faulty information;
- Fined;
- Put in prison and/or barred from receiving future assistance.
Your State and local governments also may have laws that allow them to impose other penalties for fraud in addition to the ones listed here.
How To Complete Your Application
When you meet with the landlord to complete your application, you must provide information about:
- All Household Income. List all sources of money that you receive. If any other adults will be living with you in the apartment, you must also list all of their income. Sources of money include:
- Wages, unemployment and disability compensation,
welfare payments, alimony, Social Security benefits,
pensions, etc.;
- Any money you receive on behalf of your children, such as child support, children's Social Security, etc.;
- Income from assets such as interest from a savings account, credit union, certificate of deposit, stock dividends, etc.;
- Any income you expect to receive, such as a pay raise or bonus.
- All Household Assets. List all assets that you have. If any other adults will be living with you, you must also list all of their assets. Assets include:
- Bank accounts, savings bonds, certificates of deposit, stocks, real estate, etc.;
- Any business or asset you sold in the last 2 years for less than its full value, such as selling your home to your children.
- All Household Members. List the names of all the people, including adults and children, who will actually live with you in the apartment, whether or not they are related to you.
Ask for Help if You Need It
If you are having problems understanding any part of the application, let the landlord know and ask for help with any questions you may have. The landlord is trained to help you with the application process.
Before You Sign the Application
- Make sure that you read the entire application and understand everything it says;
- Check it carefully to ensure that all the questions have been answered completely and accurately;
- Don't sign it unless you are sure that there aren't any errors or missing information.
By signing the application and certification forms, you are stating that they are complete to the best of your knowledge and belief. Signing a form when you know it contains misinformation is considered fraud.
- The management company will verify your information. USDA may conduct computer matches with other Federal, State or private agencies to verify that
the income you reported is correct;
- Ask for a copy of your signed application and keep a copy of it for your records.
Tenant Recertification
Residents in USDA-financed assisted housing must provide updated information to the management company at least once a year. Ask your landlord when you must recertify your income.
You must immediately report:
- Any changes in income of $100 or more per month;
- Any changes in the number of household members.
For your annual recertification, you must report:
- All income changes, such as increases in pay or benefits, job change or job loss, loss of benefits, etc.,for any adult household member;
- Any household member who has moved in or out;
- All assets that you or your adult housemates own, or any assets that were sold in the last 2 years for less than their full value.
Avoid Fraud, Report Abuse Prevent fraudulent schemes through these steps:
- Don't pay any money to file your application;
- Don't pay any money to move up on the waiting list;
- Don't pay for anything not covered by your lease;
- Get receipts for any money you do pay;
- Get a written explanation for any money you are required to pay besides rent, such as maintenance charges.
Report Abuse: If you know anyone who has falsified an application, or who tries to persuade you to make false statements, report him or her to the manager. If you cannot report to your manager, call your local or state USDA office at 1 (800) 670-6553, or write: USDA, STOP 0782, 1400 Independence Ave., SW, Washington, DC 20250.
If You Disagree With a Decision
Tenants may file a grievance in writing with the complex owner in response to the owner's actions, or failure to act, that result in a denial, significant reduction, or termination of benefits. Grievances may also be filed when a tenant disputes the owner's notice of proposed adverse action.
Notice of Adverse Action
The complex owner must notify tenants in writing about any proposed actions that may have adverse consequences, such as denial of occupancy and changes in
the occupancy rules or lease. The written notice must give specific reasons for the proposed action, and must also advise tenants of the "right to respond to the notice
within 10 calendar days after the date of the notice" and of "the right to a hearing." Housing complexes in areas with a concentration of non-English-speaking people
must send notices in English and in the majority nonEnglish language.
Grievance Process Overview
USDA believes that the best way to resolve grievances is through an informal meeting between tenants and the landlord or owner. Once the owner learns about a
tenant grievance, the process should begin with an informal meeting between the two parties. Owners must offer to meet with tenants to discuss the grievance within 10 calendar days of receipt of the complaint. USDA encourages owners and tenants to try to reach a mutually satisfactory resolution to the problem at the meeting.
If the grievance is not resolved, the tenant must request a hearing within 10 days of receipt of the meeting findings. The parties will then select a hearing panel or hearing officer to govern the hearing. All parties are notified of the decision 10 days after the hearing.
When a Grievance Is Legitimate
The landlord must determine if a grievance is within the established rules for the program. For example, "I want to file a complaint because the manager doesn't speak to me" is not a legitimate complaint. However, "I want to file a complaint because the manager isn't maintaining the property according to USDA guidelines" is a legitimate complaint. Below are examples of cases in which tenants may and may not file a complaint.
A complaint may not be filed with the owner/management if:
- USDA has authorized a proposed rent change. There is a modification of the lease, or changes in the rules or rent that are not authorized by USDA.
- A tenant believes that he/she has been discriminated against because of race, color, religion,national origin, sex, age, familial status, or disability. Discrimination complaints should be filed with USDA and/or the Department of U.S. Housing and Urban Development (HUD), not with the owner/management.
- The complex has formed a tenant's association and all parties have agreed to use the association to settle grievances.
- USDA has required a change in the rules and proper notices have been given.
- The tenant is in violation of the lease and the result is termination of tenancy.
- There are disputes between tenants that do not involve the owner/management.
- Tenants are displaced or other adverse effects occur as a result of loan prepayment.
A complaint may be filed with the owner/management if:
- There is a modification of the lease, or changes in the rules or rent that are not authorized by USDA.
- The owner or management fails to maintain the property in a decent, safe, and sanitary manner.
- The owner violates a lease provision or occupancy rule.
- A tenant is denied admission to the complex.
PA 1998
December 2008
The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age,disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or a part of an individual's income is derived from any public assistance program (Not all prohibited bases apply to all programs ) Persons with disabilities who require alternative means for communication of program information (braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD).
To file a complaint of discrimination write to USDA, Director, Office of Civil
Rights, 1400 Independence Avenue, S.W., Washington, D C 20250-9410
or call (800) 795-3272 (voice) or (202) 720-6382 (TDD).
USDA is an equalopportunity provider and employer.
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