Compliance Inbox: Preapproval Timing

Question:

Can we rely on a preapproval that's more than 30 days old?

Answer:

Maybe—but don't assume it's still valid or accurate.

A preapproval reflects a household's eligibility at a specific point in time. Everyday that passes from the time you receive approval, is a greater chance those eligibility circumstances could change.  I have seen initial eligibility questioned for many files at recertification because the recertification paperwork reflected a change in household circumstances that was not reported before the household moved in. 

Before relying on an older preapproval, consider:

• Has the household reported any changes since the original review?

• Have any required verifications expired under your program's requirements? 

• Does your company's policy require the file to be updated?

• Does the state housing agency or other funding source have additional guidance?

Compliance Tip

• Confirm with all applicants that there have been no changes to their paperwork as of the day of move in.  To avoid potential delays with the move in, reach out to the household a few days in advance to confirm there have been no changes.  

• Have a written policy and procedure detailing how long preapprovals are good for before they have to be updated.