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When the Contract Administrator’s Software Can’t Handle a Certification That TRACS Will Accept

What do you do when the Contract Administrator’s (CA’s) software has limitations in processing a particular certification but the site software has complete functionality?   This has been an ongoing issue for many years.  The CA imposes their limitations and expects the site to work around it.  It’s always good to try and work things out, but the site is not obligated (in some cases such as this).  Here is the scenario:  Continue reading When the Contract Administrator’s Software Can’t Handle a Certification That TRACS Will Accept

Processing Residual Receipts for Contract Administrators and Owner Agents

Per HUD Notice H-2012-14  – Issued: August 3, 2012

HUD has received several incorrect miscellaneous payment requests for Residual Receipts offsets.  To correctly submit these requests, please follow the instructions below.

Owner Requirements

1.  In order to accomplish the Offset Process, project Owners must submit a miscellaneous payment request through the Contract Administrator along with their electronic monthly HAP voucher. The request must include: (a) the amount of the offset, expressed as a negative amount and (b) the text phrase “RR OFFSET” in the comment field, along with the actual offset amount inserted.  For example, if the project is using $1,000.00 of Residual Receipts each month, the entry would be: “RR OFFSET -$1,000.00”

2. The miscellaneous payment request must be sent to “Field Office Initiated Accounting Adjustment,” with a code of “FORQ.” TRACS will automatically deduct the offset amount from the total voucher amount approved, thus assuring that the proper amount will be paid via TRACS.

2013 Operating Cost Adjustment Factors (OCAFs) Published

The Operating Cost Adjustment Factors (OCAF) for 2013 were published in the October 16, 2012 Federal Register.  These factors are used for adjusting or establishing Section 8 rents under the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA), as amended, for projects assisted with Section 8 Housing Assistance Payments.  The factors are effective February 11, 2013 and can be found at http://www.gpo.gov/fdsys/pkg/FR-2012-10-16/pdf/2012-25289.pdf.

Reminder for HUD and PBCA offices processing rent increases using Auto OCAF:

Once the 2013 Factors are updated in iREMS, please delete any Amend Rents record effective 02/11/2013 and beyond that was created either automatically or manually with the old 2012 Factor.  A new record will automatically generate with the new 2013 Factor.

Social Security Announces 1.7 Percent Benefit Increase for 2013

Monthly Social Security and Supplemental Security Income (SSI) benefits for nearly 62 million Americans will increase 1.7 percent in 2013, the Social Security Administration announced today.

The 1.7 percent cost-of-living adjustment (COLA) will begin with benefits that more than 56 million Social Security beneficiaries receive in January 2013.  Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2012.

Some other changes that take effect in January of each year are based on the increase in average wages.  Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $113,700 from $110,100.  Of the estimated 163 million workers who will pay Social Security taxes in 2013, nearly 10 million will pay higher taxes as a result of the increase in the taxable maximum.

Information about Medicare changes for 2013, are shown below for Medical Insurance (Part B), and are also available at www.Medicare.gov.  For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums.

File individual tax return

File joint tax return

You pay (in 2012)

$85,000 or less

$170,000 or less

$99.90

File individual tax return

File joint tax return

You pay (in 2013)

$85,000 or less

$170,000 or less

$104.90

The Social Security Act provides for how the COLA is calculated.  To read more, please visit www.socialsecurity.gov/cola.

# # #

NOTE TO CORRESPONDENTS: A fact sheet showing the effect of the various automatic adjustments is attached.

SSA Press Office  440 Altmeyer Building  6401 Security Blvd.  Baltimore, MD 21235
410-965-8904  FAX 410-966-9973

Exercising a Reasonable Accommodation in HUD Multifamily

What do we do as affordable housing Owners/Property managers of a Section 8 property when an Applicant requests a “Reasonable Accommodation” and it turns out the applicant fabricated the need just so they could have a larger unit?  Here is a story of how Continue reading Exercising a Reasonable Accommodation in HUD Multifamily

Revised Protocol for Placing a Flag in the Active Partners Performance System (APPS)

Today, HUD published Notice H 2012-16 “Extension of Housing Notice H 2011-24: Re-issuance of Revised Protocol for Placing a Flag in the Active Partners Performance System (APPS) when a Property Receives  a Physical Inspection Score below 60 but Above 30.”

Notice H 2011-24 clarified the protocol for placing flags in the APPS when a property receives a REAC score below 60 but above 30. It allows the property owner to correct the deficiencies within a reasonable time frame without being penalized by a flag in APPS.

Notice H 2011-24 was set to expire on September 30, 2011. Notice H 2012-16 extends the previous notice until amended, superseded, or rescinded.

A copy of the Notice may be found here: http://portal.hud.gov/huddoc/12-16hsgn.pdf

Sole Place of Residence for a Section 8 Applicant or Tenant?

There have been plenty of questions/concerns in affordable housing in regard to a Section 8 resident’s sole place of residence.  I mean how many places can a tenant live?  If they own the apartment or house, and they rent it out…no problem, you have to count it as an asset and count the rental income.  But what if they rent an apartment for their own residence somewhere else? Continue reading Sole Place of Residence for a Section 8 Applicant or Tenant?

HUD Subsidized Properties Affected by Hurricane Isaac

Hurricane Isaac is projected to affect all of the Gulf states.  Therefore, HUD is requesting that you do the following:

  • Assure that there is an evacuation plan for elderly and disabled residents who live in your properties, and be prepared to provide HUD with your plan if requested.  If residents are evacuated, please advise us via email of their locations.
  • Respond to HUD staff who will call for disaster assessments after the storm as soon as you are able.   Or, complete the attached Preliminary Disaster Assessment for each of your properties in the affected areas of the state.
  • Please advise your residents that if they are displaced in an emergency, they are responsible for advising you of their temporary housing location and their intentions during and after the storm.  They should also be advised that due to potentially dangerous conditions, they may not have ready access to their personal possessions.  Owners are responsible for securing the property to the best of their ability immediately after the storm to protect the personal property of the residents.
  •  Using the attached link  Vacancy Utilization/Displaced Resident Report, report any vacancies that could be used to house displaced residents to your Asset Management Project Manager.
  •  Please refer to Chapter 38 of  HUD Handbook, 4350.1 ,  entitled Multifamily Disaster Guidance for more detailed instructions.  A copy of this chapter is attached for your convenience.

If you have any questions, you should contact  your Asset Manager.

Another Completed Affordable Housing File Audit

Undergoing a file audit on your Section 8 property is a major undertaking.  I think some folks are a bit nervous about somebody coming to “check their work.”  Nobody likes to have their work criticized.  But honestly the focus or the thoughts should be…”I’m finally having somebody check my files to make sure I didn’t miss anything.”  When I do a file audit I want people to know that I am not there to belittle them or their company and I am not there to throw anyone under the bus.  I am there to help them make sure that they have all of the documentation, verifications and everything signed and dated.

On the most recent file audit, the property manager was attempting to take on a distressed property and in doing so was being pulled in all directions.  When this happens there is always some aspect of the property that suffers.  In this case it was the compliance.  Tenant files were missing recertifications; important forms were not signed or dated; EIV reports were few and far between and the verifications were incomplete and or not sent out to be verified by the employer.  The tenant compliance issues were indicative of the compliance issues in the office.  Tenants had people living in the units that were not on the lease.  They also had tenants who were just not motivated to help themselves.  I believe that the compliance issues in the office would help the compliance issues with the tenants on the property.  The most important aspect of a HUD property is to have all of your paperwork in order and that is where the file audit comes in.  The tenant compliance issues will work themselves out once you have your house in order.

Now that the paper work is in order, READ THE LEASE and learn the city/town ordinances!  You also need to make sure that your Tenant Selection Plan and your House Rules spell everything out.  This is how you will remedy the tenant compliance issues.  Work with the local police department to establish a good rapport and understand what constitutes “trespassing” so you can clean up the property of those who are just “visiting”.  The property we were auditing demonstrated that knowing the laws helps in clearing out the property of persons who have no business on your property.

A file audit for your property, which  prevents your property from losing your contract,  should cost between $50-$75 per folder plus travel expenses.  Depending on your situation and in what shape your files are in, a file audit will pay off in spades.  This process will give you the peace of mind to know that your files are in order and assure you that you are following correct procedure or learning how to follow correct procedure.

Give us a call or send us an email.  We also offer classes on MOR Preparation and Tenant File Management.  Click on this link:  http://www.ahtcsonline.com

 

 

The Timing of the EIV and You Brochure

JUST A REMINDER:  HUD stipulated in the HUD Notice, H 2011-25 (dated Sept 20) which clarifies obligations for provision of the brochure to current residents and applicants of affordable housing who are selected from the waiting list.  Owner/Agents (O/A) using the EIV system must provide each tenant household with the EIV & You brochure at the time of annual recertification along with a copy of the HUD Fact Sheet “How Your Rent is Determined”.
O/A’s must also provide applicant households who have been selected from the waiting list for screening and final application processing with a copy of the EIV & You brochure.

Sample Affordable Housing Smoke-Free Housing Policy

ABC Apartments, is a designated Smoke-Free Housing Complex in accordance with all local, state and federal laws.  We have amended our Section 8 House Rules to include a new smoke free housing policy for our community.

NO SMOKING POLICY – No Smoking:  Due to the increased risk of fire, increased maintenance costs and the known health effects of secondhand smoke, smoking is prohibited in all areas of the property, including all buildings, all common areas, inside apartment dwelling units, garages, parking areas and within 25 feet of the building(s) including entryways, porches, balconies and patios.  Residents are responsible for ensuring that family members, roommates and guests comply with this rule. Continue reading Sample Affordable Housing Smoke-Free Housing Policy

Sample Affordable Housing Smoke-Free Housing Policy

ABC Apartments, is a designated Smoke-Free Housing Complex in accordance with all local, state and federal laws.  We have amended our Section 8 House Rules to include a new smoke free housing policy for our community.

NO SMOKING POLICY – No Smoking:  Due to the increased risk of fire, increased maintenance costs and the known health effects of secondhand smoke, smoking is prohibited in all areas of the property, including all buildings, all common areas, inside apartment dwelling units, garages, parking areas and within 25 feet of the building(s) including entryways, porches, balconies and patios.  Residents are responsible for ensuring that family members, roommates and guests comply with this rule. Continue reading Sample Affordable Housing Smoke-Free Housing Policy

Sample Affordable Housing Smoke-Free Housing Policy

ABC Apartments, is a designated Smoke-Free Housing Complex in accordance with all local, state and federal laws.  We have amended our Section 8 House Rules to include a new smoke free housing policy for our community.

NO SMOKING POLICY – No Smoking:  Due to the increased risk of fire, increased maintenance costs and the known health effects of secondhand smoke, smoking is prohibited in all areas of the property, including all buildings, all common areas, inside apartment dwelling units, garages, parking areas and within 25 feet of the building(s) including entryways, porches, balconies and patios.  Residents are responsible for ensuring that family members, roommates and guests comply with this rule. Continue reading Sample Affordable Housing Smoke-Free Housing Policy

Sample Affordable Housing Smoke-Free Housing Policy

ABC Apartments, is a designated Smoke-Free Housing Complex in accordance with all local, state and federal laws.  We have amended our Section 8 House Rules to include a new smoke free housing policy for our community.

NO SMOKING POLICY – No Smoking:  Due to the increased risk of fire, increased maintenance costs and the known health effects of secondhand smoke, smoking is prohibited in all areas of the property, including all buildings, all common areas, inside apartment dwelling units, garages, parking areas and within 25 feet of the building(s) including entryways, porches, balconies and patios.  Residents are responsible for ensuring that family members, roommates and guests comply with this rule. Continue reading Sample Affordable Housing Smoke-Free Housing Policy

Performing the HUD Required Annual Recertification Interviews

Since section 8 Owner/Agents are required to complete an annual recertification for each tenant family, it is important to realize that there are key differences between the annual recertification interview and the one performed when they first apply for affordable housing. At the Application interview Owners/Agents gather more data than at annuals (for example, all of the questions pertaining to screening and suitability would not be relevant at the annual). Continue reading Performing the HUD Required Annual Recertification Interviews

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EIV Policy for Tracking Repayment Agreements to HUD

What a burden these EIV reports are…now I got to track these repayment agreements???  How long does the tenant have to repay the amount they owe back to HUD?  What if the tenant owes a ton of money, can I just have a EIV policy which states a maximum amount in which an owner will enter into a repayment agreement?  All of these questions…it’s so overwhelming!!!!!  Continue reading EIV Policy for Tracking Repayment Agreements to HUD

When is a Section 8 tenant considered “Moved out”?

You may have thought that in affordable housing when you received the keys that the tenant was considered to be moved out, but that is simply not the case.   A property cannot wait on moving out a tenant because they didn’t receive their keys, especially when they know that the unit has been vacated.    According to the HUD Handbook… Continue reading When is a Section 8 tenant considered “Moved out”?

Clarification of HUD Approved Training Expenses

I understand why Owners of HUD subsidized properties and Management companies are sometimes afraid to spend money on training their staff.  Some folks had some questions about whether or not the classes would be considered HUD approved training expenses and  others had concerns they are afraid to spend too much on training for fear their staff will take the skills they just learned and take them to “greener pastures”.  In some cases this a cyclical process.  Sometimes you lose an employee whom you just trained and then you pick one up.  Continue reading Clarification of HUD Approved Training Expenses

New TRACS 202D Release & Implementation Schedule

Based on the most recent TRACS industry meeting, we were told about the new schedule for the release of TRACS 202D.  As always this schedule is subject to change but for now the scheduled stands:

Vendor Testing is to commence on: December 1 – This means that the affordable housing software vendors, Contract Administrators and the like will be testing and sending TRACS files to help sort out the bugs.

The plan then is to correct any problems with TRACS 202D and Go live with the Contract Administrators  by March.

The next step is to implement and go live with the Owner/Agents between March 1st – September 1st.

As always there is a transitional period and the drop dead date.  You will have basically 3 months where TRACS will accept both TRACS 202C and TRACS 202D versions.  The total conversion should take place between September 1 for October voucher.  This is where the only files accepted will be for TRACS 202D.

Visit us to find out more, take our TRACS 202D class:  http://www.ahtcsonline.com/class_schedule.html

Just Some of the New TRACS 202D Changes

The most recent TRACS 202d Industry meeting held on March 13th & 14th was two days of great information. HDS Software was nice enough to sponsor the first unsanctioned HUD meeting where we covered the TRACS 202d Final Specifications.  Mary and Jed did a great job of going over the changes of the TRACS 202D specifications.  Some of the changes involved: Continue reading Just Some of the New TRACS 202D Changes

New HUD Protected Class Rule

On January 30, 2012 HUD Secretary Shaun Donovan announced new regulations to ensure equal access to housing for all Americans regardless of sexual orientation, gender identity or marital status.

These new regulations were published in the Federal Register on February 3, 2012 with an effective date of March 3, 2012. These regulations apply to all of HUD’s programs. The Final Rule, published as Equal Access to Housing in HUD programs makes the following provisions: Continue reading New HUD Protected Class Rule

The ADA Guidelines Requiring Pool Lifts in HUD Subsidized Property

I had a client email me to ask if he was required by the ADA compliance to install a pool lift;

“One of our properties is in the process of building a pool which will open in May.  It is a Tax Credit property.  Do we have to install a lift chair due to the new ADA rule?  It would be a private pool.  I get a lot of folks saying we probably do, the pool company saying definitely, and our CA saying maybe.  It will cost $15,000 roughly.  Thanks” Continue reading The ADA Guidelines Requiring Pool Lifts in HUD Subsidized Property

Does Your Tenant Selection Plan Go Far Enough

When a tenant requires services that you don’t offer, does the tenant then need to consider assisted living rather than independent living?  Does your Tenant Selection Plan (TSP) address whether your community is an independent living facility versus an assisted living community? Continue reading Does Your Tenant Selection Plan Go Far Enough

Unit Inspections for Section 8 Housing

I hate cleaning…well, I hate some aspects of it.  I don’t mind vacuuming or mopping the floors…but I know I dislike dusting which makes me sneeze.  No Matter how much I dislike cleaning, it is imperative to have well maintained affordable housing units.  Having a clean and well maintained property contributes to a healthy environment and can have a positive affect on your next Management Occupancy Review (MOR).  This is why it is vital to inform tenants as to your expectations on keeping their units in tip top shape. Continue reading Unit Inspections for Section 8 Housing