Tuesday Tip
This Tuesday Tip explains how property teams should handle a Direct Express Card during certifications, etc.
Property teams regularly verify Social Security, SSI, Veterans benefits, and other federal payments during certifications and recertifications. Most staff know how to calculate the income from these benefits. However, questions often arise when residents receive those funds through a Direct Express Card instead of a traditional bank account.
This week’s Tuesday Tip revisits a topic that continues to create confusion for owners and agents. How should property teams handle a Direct Express Card during the certification process?
What is a Direct Express Card?
The U.S. Department of the Treasury allows benefit recipients to receive federal payments electronically. Residents can choose direct deposit into a bank account or a Direct Express Card. The card works like a debit card. Each month, the Treasury loads the resident’s benefits directly onto the card. The card balance may also affect certifications.
Is the Balance an Asset?
Yes.
HUD guidance states that funds held on a Direct Express Card qualify as an asset. Property teams should verify the balance the same way they verify a savings account. After counting the federal benefit as income, staff should also review the current balance on the card as part of the household’s asset calculation.
Many teams miss this step. They verify the income correctly but overlook the asset.
How to Verify Direct Express Card Balances
Residents can provide several forms of documentation, including:
- A dated account statement
- Documentation from the Direct Express website or mobile app
- A dated ATM receipt showing the current balance
Each document should clearly support the information being verified.
What Should the Documentation Include?
The verification should show:
- The Direct Express account
- The account holder
- The statement or receipt date
- The current balance
Some documents may not display the resident’s name. ATM receipts often fall into this category. When that happens, property teams should document the connection between the resident and the card. The file should clearly support ownership of the asset and the accuracy of the balance being used.
Avoid this Common Mistake
Many compliance issues occur because staff focus only on the income. They count the federal benefit but forget to verify the remaining balance on the card. Fortunately, the fix is simple. Verify the balance. Document the asset. Include it in the calculation when required.
Remember, Direct Express Cards have been around for years, but they still create questions during certifications. A clear understanding of HUD’s requirements can help property teams complete accurate calculations, maintain strong documentation, and avoid preventable compliance issues.
