What is the maximum decrease in voucher payment for a violation for not using EIV properly?

The correct answer is that the maximum decrease in voucher payment for a violation due to improper use of the Enterprise Income Verification (EIV) system is five percent. This regulation is in place to encourage compliance with EIV usage, which is crucial for maintaining the integrity of income verification for tenants in subsidized housing programs.

The EIV system is designed to help housing authorities and landlords verify the income of households receiving housing assistance, ensuring that benefits are allocated accurately based on verified income information. A five percent reduction serves as a deterrent for non-compliance while also considering that some incidents of improper use may not be egregious enough to warrant a more severe penalty. This approach balances accountability with the understanding that there are varying degrees of compliance and potential issues that can arise around the use of such systems.

The other potential percentages do not apply as they represent higher penalties than those stipulated by HUD regulations in this context, which ensures that the consequences remain manageable for housing authorities while still promoting adherence to EIV procedures.