Housing Voucher Programs - Policy and Procedures Manual

Chapter XXVI Sections

1. Informal Reviews Required
2. Informal Reviews Not Required
3. Informal Reviews – Requests and Procedures
4. Mediations
5. Informal Hearings Required
6. Informal Hearings Not Required
7. Written Notice of Proposed MSHDA Denial or Termination Action
8. Procedures if Informal Hearing is Not Requested
9. Procedures if Informal Hearing is Requested
10. Notice of Informal Hearing
11. Withdrawal of Informal Hearing Request
12. Preparation for Hearing by Resource Specialist and HA
13. General Requirements/Information Relative to Informal Hearings
14. Requests for Rescheduling Informal Hearings
15. Informal Hearing Decision Notification
16. Applicable Forms List

Chapter XXVI: Informal Reviews, Mediations, Informal Hearings

Section D: Mediations

Mediation will be offered to HCV participants when it is discovered that they have not reported or underreported their income, via a Notice of Income Discrepancy (MSHDA 523) or Notice of Intent to Terminate (MSHDA 522). The mediation session allows the participant an opportunity to dispute income discrepancy findings, and negotiate their Repayment Agreement.

If the participant enters into a Repayment Agreement following receipt of a Notice of Income Discrepancy, no further action is required.

If the participant does not return the offered Repayment Agreement or does not request mediation within ten days of the date of the Notice of Intent to Terminate and/or does not sign the Repayment Agreement offered at Mediation, terminate the HCV assistance following standard procedures. The Delinquency Accounts Coordinator (DAC) willl pursue collection of the debt. See Chapter XIV, Terminations.

If the participant requests mediation, the HA will:

• Arrange to meet with the tenant at a mutually-agreeable location and confirm the meeting via a Notice of Mediation (MSHDA 521). At the HA's discretion, and when circumstances warrant assistance, you may ask for the support of your Resource Specialist or the Compliance Enforcement Coordinator to be present at the mediation session. It is expected this would be a rare occurrence.
• Follow these procedures to conduct a mediation session:
  1. HA begins the mediation session with an opening statement that states the income discrepancy, explains how the program rules were violated, and consequences that result from failure to report income correctly.
  2. Show the participant the EIV printout, the TPV, and the tenant-supplied income information.
  3. Allow the participant an opportunity to dispute the findings.
  4. Continue to dialog with the participant and negotiate the repayment.
  5. Encourage the participant to sign the Repayment Agreement. Advise the participant that should they not agree to repay the debt by executing the Repayment Agreement, the case will be turned over to the Michigan Department of Treasury for collection and penalties will be assessed.
  6. If the participant refuses to sign the Repayment Agreement, inform them that the Mediation session is concluded, and HCV termination procedures will be followed.
  7. Provided the annual discrepancy is less than $10,000, the household is not at zero HAP, the tenant signs the Repayment Agreement and there are no additional program violations, the participant will be allowed to remain on the program.
  8. If the annual discrepancy is $10,000 or greater, the HA must contact the Compliance Enforcement Coordinator to determine the appropriate course of action.
• Follow up the mediation session with a letter to the participant confirming the results of the mediation.
• Proceed with cancellation or continuation in the Program as appropriate.