Are owners required to investigate all discrepancies reported by the Income Discrepancy Report?

The requirement for owners to investigate discrepancies reported by the Income Discrepancy Report is not absolute. While it is essential for owners to maintain accurate records and ensure compliance with HUD regulations, they are not mandated to investigate every discrepancy. Instead, they are encouraged to have a reasonable approach to addressing discrepancies based on the nature and materiality of the information provided.

In practice, owners typically prioritize significant discrepancies that could affect a tenant's eligibility or the calculation of their rental assistance. They might focus on those discrepancies that stem from clear errors, substantial income differences, or patterns indicative of potential fraud. Thus, the demand for an investigation is balanced with practical considerations and potential impacts on tenant privacy and program integrity.

This understanding explains why the assertion that owners are required to investigate all discrepancies is not necessarily true. They exercise discretion to determine the appropriate course of action based on the specifics of each situation.