Which of the following statements is true about the verification of unearned income?

The verification of unearned income is a critical process in multifamily housing, especially for determining eligibility for certain programs and calculating rent subsidies. B is the correct answer because formal documentation is essential to accurately verify unearned income. This type of income, which can include sources such as social security, unemployment benefits, retirement income, or investment income, requires sufficient documentation to ensure that the reported amounts are correct and to comply with housing regulations.

Formal documentation can take various forms, including bank statements, benefit award letters, or tax returns, which provide reliable proof of the income received. This process helps to prevent fraud and ensures that the income levels used in calculations are accurate, supporting fair and equitable housing assistance.

The other options suggest lesser verification standards or incorrect practices. For instance, self-reporting without any formal confirmation (as mentioned in the first option) is not acceptable because this could lead to inaccuracies in income reporting. The idea that only the highest earner’s income needs to be verified (as indicated in the third option) overlooks the necessity to consider all household incomes, which are vital for a comprehensive assessment. Lastly, saying that unearned income does not need to be reported undermines the importance of transparency and regulation compliance in housing programs. Therefore, formal documentation