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Old 11-30-2016, 07:26 AM
 
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I've read hundreds of threads here about affordable housing lotteries, and read the entire HPD Marketing Guidelines back to front, and one thing I'm still curious about is how deeply the agents of these buildings look into people's banking statements and scrutinize every deposit made. I'm wondering if I could get a sense of people's experiences here? What level of explanation or detail are you required to make about the deposits you've made in the past 6 months of bank statements that you provide?

I have a lot of random deposits, from friends paying me back for dinner or a movie (they pay me in cash, or with PayPal/Venmo, and I put the meal on my credit card), or I get reimbursements from my employer for work-related purchases. Or maybe I traveled overseas and deposit leftover cash that I had converted to a foreign currency. None of these are 'income', but the thing is, the idea of explaining every deposit I've made in the past 6 months seems like a headache- I don't even remember every deposit I've made. How thoroughly do you have to explain every deposit? What are they expecting?

I know they're looking to weed out people who make money on the side (potentially doing illegal things like selling drugs), but wouldn't these people just lie about where the money came from?
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Old 11-30-2016, 07:55 AM
 
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Based on my experience I can tell you that you will be asked to provide documentation for all deposits. So, for example, for your paycheck deposits, you will be asked to provide paycheck stubs. You will also be asked to provide backup documentation for any other deposits you may have made. In my case, I had only made a few deposits in addition to paychecks so it was fairly simple to provide documentation; you will be asked where the deposited funds came from and the reason why these funds where given to you.

I suggest that you start making a list now of your misc. deposits and try to identity sources/reasons.
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Old 11-30-2016, 08:24 AM
 
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They don't question every deposit. They're not looking for illegal activity per se, they're looking for assets and income you might not have told them about in order to qualify for the program. If you're self-employed, the scrutiny is greater. They'll list the deposits they're questioning on a form, and in the adjacent space, which isn't very large, you include where the funds came from and what they were for. If some are transfers from other accounts, that's fine, as long as they're accounts (say a savings account or a brokerage account or IRA) that you told them about and have been included on your list of assets. That's it. It's not that big a deal. Honestly, this is the least of it. If you're getting a lot of cash from friends, they might suspect that that is income, and that could be a problem. Just be honest and in explaining where it came from. And in the meantime, stop depositing cash in your account, because it will raise questions. I was never asked to supply documentation for any deposits -- all I had to do was fill in a form. They may have already had the documentation from pay stubs and account statements, though -- at that point they knew more about my life than I did. They probably could have given me investment advice (ha, ha).

Last edited by Moving415; 11-30-2016 at 08:37 AM..
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Old 11-30-2016, 08:27 AM
 
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Quote:
Originally Posted by incaita View Post
Based on my experience I can tell you that you will be asked to provide documentation for all deposits. So, for example, for your paycheck deposits, you will be asked to provide paycheck stubs. You will also be asked to provide backup documentation for any other deposits you may have made. In my case, I had only made a few deposits in addition to paychecks so it was fairly simple to provide documentation; you will be asked where the deposited funds came from and the reason why these funds where given to you.

I suggest that you start making a list now of your misc. deposits and try to identity sources/reasons.
Paycheck deposits are easy. I save all my paystubs because I know they will want those. The paystubs match the deposits.

But I have lots of miscellaneous deposits that are not income and are just 'reimbursements'... for example, last month I charged a $200 meal with a few friends to my credit card and they gave me cash and I deposited it. What are they going to want to know about that deposit? Also, I also pay our family's cell phone plan some months and my parents pay their share by sending me money via PayPal. What kind of "documentation" would be required in cases like these? Point is, none of these things are income, but I'm not sure how to prove that it's not.
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Old 11-30-2016, 08:39 AM
 
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Quote:
Originally Posted by Moving415 View Post
They don't question every deposit. They're not looking for illegal activity per se, they're looking for assets and income you might have not told them about in order to qualify for the program. If you're self-employed, the scrutiny is greater. They'll list the deposits they're questioning on a form, and in the adjacent space, which isn't very large, you include where the funds came from and what they were for. If some are transfers from other accounts, that's fine, as long as they're accounts (say a savings account or a brokerage account or IRA) that you told them about and have been included on your list of assets. That's it. It's not that big a deal. Honestly, this is the least of it. If you're getting a lot of cash from friends, they might suspect that that is income, and that could be a problem. Just be honest and see what happens. And in the meantime, stop depositing cash in your account, because it will raise questions. I was never asked to supply documentation for any deposits -- all I had to do was fill in a form. They may have already had the documentation from pay stubs and account statements, though -- at that point they knew more about my life than I did.
I guess every case, and every building, is different. I've heard of people having to provide printed out details of every check they deposited in the past 6 months. Others just have to provide an explanation on a form, like in your case.

It's silly because this is the part of the process I'm most worried about, even though it's not supposed to be a big deal- I know my assets and income fit squarely within the ranges (I've calculated my paystubs and assets using all of the methods they use to calculate income), but if they start scrutinizing my deposits, it's going to be a big headache. Yes, I'll take your advice and stop accepting cash from friends for now, but it may be too late as they look 6 months in the past. But really, it is extremely common for friends and family to send each other cash/Paypal when splitting a bill/meal/etc - they must understand this.
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Old 11-30-2016, 09:11 AM
 
Location: Manhattan
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Originally Posted by wiivile View Post
Paycheck deposits are easy. I save all my paystubs because I know they will want those. The paystubs match the deposits.
for example, last month I charged a $200 meal with a few friends to my credit card and they gave me cash and I deposited it. What are they going to want to know about that deposit? .

Wouldn't it be more prudent to put that cash in a box under your bed? God knows, with interest rates where they are, it will only cost you a few pennies. Why give annoying bureaucrats too much ammunition?
Quote:
KISS is an acronym for "Keep it simple, stupid" as a design principle noted by the U.S. Navy in 1960. The KISS principle states that most systems work best if they are kept simple rather than made complicated; therefore simplicity should be a key goal in design and unnecessary complexity should be avoided.
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Old 11-30-2016, 09:13 AM
 
1,210 posts, read 1,261,393 times
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Originally Posted by Kefir King View Post
Wouldn't it be more prudent to put that cash in a box under your bed? God knows, with interest rates where they are, it will only cost you a few pennies.
Certainly, now that I feel like every deposit is being scrutinized, I won't deposit any more cash. But in general, I always prefer to deposit cash so I can have the peace of mind that it is somewhere safe.
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Old 11-30-2016, 09:16 AM
 
Location: Manhattan
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Originally Posted by wiivile View Post
Certainly, now that I feel like every deposit is being scrutinized, I won't deposit any more cash. But in general, I always prefer to deposit cash so I can have the peace of mind that it is somewhere safe.
\
Perhaps you shouldn't be making the assumption that cash in a bank is safer than cash under your bed?
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Old 11-30-2016, 09:23 AM
 
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They might understand it, but they'll look at cash as suspect, so stop taking it. This is a very long process, so if you're not interviewing for a building right now, you can start clean by ceasing to accept cash, as it's going to become a headache in your application. You might not be called for any property for another six months, in which case all your past cash acceptances won't show. Relax. You're in for a long, long game. And the bank scrutiny is really the least of it.

Last edited by Moving415; 11-30-2016 at 10:01 AM..
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Old 11-30-2016, 09:28 AM
 
377 posts, read 356,097 times
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Quote:
Originally Posted by wiivile View Post
I guess every case, and every building, is different. I've heard of people having to provide printed out details of every check they deposited in the past 6 months. Others just have to provide an explanation on a form, like in your case.

It's silly because this is the part of the process I'm most worried about, even though it's not supposed to be a big deal- I know my assets and income fit squarely within the ranges (I've calculated my paystubs and assets using all of the methods they use to calculate income), but if they start scrutinizing my deposits, it's going to be a big headache. Yes, I'll take your advice and stop accepting cash from friends for now, but it may be too late as they look 6 months in the past. But really, it is extremely common for friends and family to send each other cash/Paypal when splitting a bill/meal/etc - they must understand this.
I agree that there are differences in how each developer handles this. But I know from experience that you will be asked for an explanation for each cash deposit. Keeping this in mind, in the future, it would be wise to ask for payments to be made by check.
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