For Administrative Use Only Missouri RD AN No. 1393 (3550 & 1930-C)

April 18, 2002

TO: All Rural Development Managers and

Community Development Managers

FROM: Gregory C. Branum

State Director, Rural Development

SUBJECT: Wage and Benefit Matching for Single and Multi-Family Housing
Programs

[PURPOSE/INTENDED OUTCOME]{.underline}:

The purpose of this Administrative Notice (AN) is to notify Rural
Development Managers and Community Development Managers of the
availability of requesting income information from Missouri Employment
Security. The requests will be made via the internet by users assigned
by the Rural Development Managers. [(See Attachment
A)](http://www.rurdev.usda.gov/mo/an1393atta.doc)

[COMPARISON WITH PREVIOUS AN]{.underline}:

This AN supplements National AN 3647(1930-C) dated April 17, 2001 and
replaces MO AN 1186 (1944) dated November 18, 1994.

[IMPLEMENTATION RESPONSIBILITIES]{.underline}:

We have signed an Agreement with Missouri Employment Security to obtain
Unemployment Insurance Benefit History and Wage Information via the
internet on single family housing applicants and borrowers and Rural
Rental Housing tenants.

In regard to when and how often requests should be ordered, refer to RD
AN 3647(1930-C) dated 4-17-01 **(**[Attachment
G](http://www.rurdev.usda.gov/mo/an1393attg.doc) **to this AN).** This
AN gives the guidelines as to the percentage of SFH loan applications,
supervisory visits, and MFH tenants which should be ordered. Local
Offices will submit their requests to the Area Office. See [Attachment
H](http://www.rurdev.usda.gov/mo/an1393atth.doc) **to this AN** as your
Guide for ordering requests. Each office should establish an operational
file for tracking SFH & MFH wage matching information. Unemployment
Insurance Benefit History and Wage Information should not be filed in
the individual borrower/applicant's file. They should be filed in a
locking file cabinet.

Our agreement with Employment Security provides for the report to be
destroyed within one year. After verification of the information, the
report does not need to be retained unless there are discrepancies.

The reports provided will contain the following information:

> [Wage Information]{.underline} -- This will show the employer's name
> and wages reported during the base period (first 4 of the last 5
> completed calendar quarters.)
>
> [Unemployment Insurance Benefit History]{.underline} -- This will show
> the eligibility for benefits, amount of weekly benefits, maximum
> benefit amount, benefit amount balance, and benefit year beginning and
> ending dates.

The turn around time should be immediately after ordering via the
internet. The use of this type of information does not replace
Verification of Employment, form RD 1910-5, but should supplement it. In
SFH, in addition to wage matching 10 percent of all loan and grant
applications, you may also use the information on an as-needed basis if
there are questions in regards to income. The local office is
responsible for making sure AN 3647 guidelines are met.

For RRH projects, in addition to ordering wage matching for supervisory
visits, wage matching should also be requested for 10% of all tenants.
The Area Office is responsible for making sure AN 3647 guidelines are
met.

**The information furnished is strictly confidential and can be released
to a third party only upon written approval of the Director of the
Missouri Division of Employment Security**.

For Single Family Housing -- Use [Attachment
B](http://www.rurdev.usda.gov/mo/an1393attb.doc) to notify all
applicants of the wage and benefit matching system.

For Multi-Family Housing -- Use [Attachment
C](http://www.rurdev.usda.gov/mo/an1393attc.doc) to give Notice to
Borrowers or Management Agents. [Attachment
D](http://www.rurdev.usda.gov/mo/an1393attd.doc) is the Guide Notice to
Residents. [Attachment E](http://www.rurdev.usda.gov/mo/an1393atte.doc)
is the Guide Record of Inaccurate Information Reported by Tenants Being
Resolved with Reimbursement Arrangements. [Attachment
F](http://www.rurdev.usda.gov/mo/an1393attf.doc) is the Guide to Notify
Borrower or Management Agent of a Potential Wage or Benefit Discrepancy
Which Requires Review.