Although EIV continues to be a source of frustration 18 months after it became mandatory, resident files produce similar feelings among housing professionals. Unlike EIV, where the discord has been expressed loudly, tensions related to tenant files have been kept pretty much underground. Yet we know the concerns are there because our training staff hears about it in virtually every compliance program.
In this article, I’ll focus on two of the primary issues: the security of resident files, and resident rights to review their resident file.
The first question is one that is addressed in Management and Occupancy Reviews (MORs), while the second is a relatively recent change to HUD Handbook 4350.3, Rev. 1 (I use the term “relatively recent” because the most recent change to the handbook, as of this writing, took place back in 2009).
HUD’s emphasis on the security of tenant files is entirely appropriate and pre-dates EIV (although EIV created another reason to keep the files secure). There is a tremendous amount of personal and confidential information in the file, the disclosure of which could cause damage to the resident household and potential liability for the owner/agent. If your files are unlocked during an MOR (and keeping the files behind a locked door is no longer acceptable, although it was in the past), that is a finding. If you do not have a list of staff authorized for access to the files, that is a finding. The rather muted brouhaha over this is surprising, given that most of us would be livid if we thought those who maintain files about us (doctors, lawyers, government agencies, etc.) played fast and loose with information given them in confidence.
Related to this is HUD’s position, expressed in HUD Handbook 4350.3, Rev. 1 that a resident has the right to inspect and review what is in their resident file. There is a restriction on EIV information in this regard, since resident “John Smith” can see his EIV reports, but cannot view them for any other member of his household. The Violence Against Women Act (VAWA) provides another caution. For example, if the wife of “John Smith” has filed for her rights under VAWA, and you have that in the resident file, and “John Smith” asks to review the file, you’ve potentially put his wife at risk. He now knows that she is seeking the protection of VAWA, bi-furcation of the lease, and so forth. Discretion being the better part of valor, you probably want to consider the maintaining of VAWA documents (other than the original lease addendum) in a separate file that must also be secured.
And you should never, ever, leave a resident alone with their resident file. Resident files are one of the primary indicators of compliance. They can make you or break you. If they’re unsecured, or the resident walks off with all or part of the file because you’ve left them alone with it, you’re probably looking at the latter.