§ 950.755 - Payments of operating subsidy conditioned upon reexamination of income of families in occupancy.

(a) Policy. The income and composition of each family shall be reexamined at least annually (see § 950.315). IHAs shall be in compliance with this reexamination requirement to be eligible to receive full operating subsidy payments.

(b) IHAs in compliance with requirements. Each submission of the original operating budget for a fiscal year shall be accompanied by a certification by the IHA that it is in compliance with the annual income reexamination requirements and that rents have been or will be adjusted in accordance with subpart D of this part.

(c) IHAs not in compliance with requirements. Any IHA not in compliance with the annual income reexamination requirement at the time of operating budget submission shall furnish to the HUD Area ONAP a copy of the procedure it is using to attain compliance and a statement of the number of families that have undergone reexamination during the twelve months preceding the date of the operating budget submission, or the revision thereof. If, on the basis of such submission, or any other information, the Area ONAP Director determines that the IHA is not substantially in compliance with the annual income reexamination requirement, HUD shall withhold payments to which the IHA might otherwise be entitled under this part, equal to his or her estimate of the loss of rental income to the IHA resulting from its failure to comply with those requirements.