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Welcome Illinois Owners and Agents Orientation Program May 2007

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Title: Welcome Illinois Owners and Agents Orientation Program May 2007


1
Welcome! Illinois Owners and AgentsOrientation
ProgramMay 2007
2
VOUCHER BASICS, BASELINING, AND WORKING WITH
EPSPresented by Fred Hutchins, President of
EPS
3
Welcome!
This is an important moment for you and your site
or sites.
HUDs Performance Based Contract Administration
has been a great success in preserving funding
for Section 8 properties.
4
At EPS, we perform the monthly review of your
vouchers.
One of our goals is to ensure that each contract
receives the correct amount of assistance each
month, whether that amount is the same, more or
less than the amount you requested.
5
At EPS, we perform the monthly review of your
vouchers.
Another goal is to provide excellent service to
you during the monthly voucher review.
6
At EPS, we perform the monthly review of your
vouchers.
A third goal is to assist in resolving reporting
problems you may be having.
7
We know you are very busy. Our Data Analysts at
EPS are very busy too. That is why we always
try to avoid being unnecessarily burdensome when
asking for your attention and additional
information.
8
As the new Contract Administrator, we need to
know what you know about your tenant population.
This is accomplished by you creating a TRACS
Baseline file, then transmitting that file to
us via TRACSMail.
We will discuss those steps in a few minutes, and
the steps are outlined in the TRACS Information
Packet.
9
  • To successfully start and complete the baseline
    process, please make sure you have the following
    document
  • The TRACS Information Packet
  • All documents you need, including the TRACS
    Information Packet, are available at
  • www.ghaca.org
  • under the Illinois Owner/Agent Packet link.

10
All properties need to prepare and send all
baseline information to us as soon as June 15th,
2007, but under no circumstances later than June
27, 2007.
Please read and follow the instructions in the
TRACS Information Packet carefully no shortcuts!
11
  • Our goals for the first three months will be to
  • Pass your vouchers on to HUD, so that you can get
    paid.
  • Reconcile the baseline TRACS data you send us to
    your HAP voucher, so we can ensure accurate,
    timely payment.

12
Beginning with your October voucher, we will
approve (or not) the HAP amounts you request.
Therefore, it is very important to work with us
over the next three months to complete the
baseline process.
Although the approval process begins in October,
you are still responsible for billing accurate
amounts on the July, August and September
vouchers.
13
The following graphics visually describe the
changes which will be taking place.
14
Your Site
TRACS
Former Contract Admin
Tenant Files
Tenant Files
Voucher File
Voucher File
Voucher review
Responses
Responses
HUDCAPS
Former Contract Admin
Your Bank


15
Your contract is moving from your former Contract
Administrator to GHA.
16
Your Site
TRACS
Former Contract Admin
GHA
HUDCAPS
Your Bank
17
Your Site
TRACS
GHA
Hires EPS to review vouchers and do TRACS
HUDCAPS
Your Bank
18
The HUD accounting system which stages your
payments, is also changing from HUDCAPS to LOCCS.
Those systems are linked, in ways that TRACS and
HUDCAPS were not.
19
Your Site
TRACS
GHA
Hires EPS to review vouchers and do TRACS
HUDCAPS
Your Bank
20
Your Site
TRACS
GHA
Hires EPS to review vouchers and do TRACS
HUDCAPS
Your Bank
LOCCS
21
The following slide shows how the new system will
work.
22
Your Site
TRACS
EPS
Tenant Files
Tenant Files
Voucher File
Voucher File
Responses
Responses
Voucher review
Voucher File
LOCCS
GHA
Voucher approval
Your Bank


23
Before now, there was never a systematic
relationship between information in TRACS and
payments to your Contract Administrator from
HUDCAPS.
Now there is. This is perhaps the most important
change!
Previously, even if TRACS disappeared, you would
receive your monthly assistance.
24
Your Site
TRACS
Former Contract Admin
Tenant Files
Tenant Files
Voucher File
Voucher File
Voucher review
Responses
Responses
HUDCAPS
Former Contract Admin
Your Bank


25
Your Site
Former Contract Admin
Tenant Files
Voucher File
Voucher review
Responses
HUDCAPS
Former Contract Admin
Your Bank


26
Now, that has all changed.
If LOCCS does not receive a voucher, no payment
is issued.
Therefore, your property WILL NOT GET PAID unless
the following happens each month
27
First Your voucher will need to go through EPS,
to TRACS, to LOCCS, each month.
Second You will have to have at least 90 of
your active tenant certifications on TRACS, or
TRACS will not send your voucher to LOCCS.
Lets take another look at the whole system
28
Your Site
TRACS
EPS
Tenant Files
Tenant Files
Voucher File
Voucher File
Responses
Responses
Voucher review
90 ok!
Voucher File
LOCCS
GHA
Voucher approval
Your Bank


29
Lets briefly go through the steps which will be
necessary to successfully complete your baseline.
We will discuss this in detail later.
1. Change your computer settings so your TRACS
files are transmitted to EPS.
2. Create the Baseline file using your software.
3. Check your Baseline file to make sure all
certifications are present.
30
4. Transmit your Baseline files to EPS.
5. Fax the Baseline Confirmation form to EPS, so
we know you are sending us information. This is
an important step!
6. Fax or email your paper HAP voucher to both
EPS and GHA.
7. Be prepared to spend time working with EPS, to
complete the baseline process.
31
Step 1
Change your Transmission Settings
Former Contract Admin
Your Site
TRACM?????
EPS
TRACM08941
32
Page 3, TRACS Information Packet
The Baseline Process Begin this process only
after you have spoken with your software
vendor. 1. Change your transmission settings to
TRACM08941 -- that is, zero-eight-nine-four-one.
This is the only change! Do not change your TRACS
ID, or your password! The only thing you are
changing is where the files are sent to.
33
Page 3, TRACS Information Packet
2. Prepare the baseline TRACS file.
34
Step 2 Prepare the baseline TRACS file
A baseline file contains certifications for each
Section 8 tenant currently receiving assistance.
You do not have to select each tenant. Your
software has a menu option to make a baseline
file.
If a tenant is on your current HAP Voucher, there
should be a certification in a baseline file for
that tenant.
35
Page 3, TRACS Information Packet
3. Check the baseline TRACS file against the most
recently completed Voucher. For example, check
your baseline files against your July 2007 HAP
voucher.
36
Step 3 Check the baseline TRACS file
The idea is to make sure we can match each tenant
listed on your paper HAP voucher, using the
certifications you transmit.
Unless a certification with the correct
assistance for each tenant is included in a TRACS
file, we will not be able to match your paper HAP
voucher.
There must be an Annual, an Interim, a Move in or
an Initial certification for each tenant. We need
the most recent.
37
Step 3 Check the baseline TRACS file
We also need any gross rent records, terminations
or unit transfers prepared since the most recent
Annual, Interim, Move-in or Initial. Transmit
these only AFTER the annual, interim, etc. certs
have been sent.
The most recent certification in the baseline
file should match the Assistance amount you are
requesting on your voucher.
TRACS will not accept baseline certifications
with an effective date greater than one year old.
38
Page 3, TRACS Information Packet
5. Transmit the baseline file or files to EPS.
39
Page 4, TRACS Information Packet
7 8 Fax or email your paper voucher to EPS and
to GHA
40
Steps 7 8. Send Paper Vouchers
TRACS
Your Site
EPS
Tenant Files
Voucher Files
Paper Voucher
GHA
LOCCS
Your Bank
41
Steps 7 8. Send Paper Vouchers
Why paper vouchers?
Because the Voucher TRACS files do not contain
the listing of each of your tenants.
42
Step 8. Send Paper Vouchers
Fax or Email is far preferable to mailing!
The earlier the better if we have your paper
voucher and TRACS files to us on or before the
first of the month, your voucher will be
reconciled quickly, and early in the month.
We can accept files before the first of the
month.
43
Page 5, TRACS Information Packet
EPS, Inc. 687 Marshall Avenue Suite
200 Williston, VT 05495 Fax Number
802-660-1949 EMail Helen.T_at_TRACSExperts.com

GHA 2296 Henderson Mill Rd. Suite
306 Atlanta, GA 30345-2739 Fax Number
866-629-7019 E-Mail ILLVCHRS_at_GHACA.org If you
have any questions about the procedures on this
checklist, please call Helen Taylor
802-660-2800, ext. 114 Richard Crowell
802-660-2800, ext. 118
44
Page 4, TRACS Information Packet
9. Fax or email us the Baseline Transmission
Confirmation form as soon as you transmit the
baseline file or files.
45
Page 8, TRACS Information Packet
Baseline transmission confirmation form The
purpose of this form is to notify EPS, Inc. that
you have transmitted your baseline TRACS files to
EPS. The form helps us identify if there are
problems with the TRACSMail addresses being used
to transmit the information. Property Name (as
it appears on your HAP Voucher)
_____________________________________________ HUD
Section 8 Contract Number IL __ __ __ __ __ __
__ __ __ TRACSMail ID TRACM __ __ __ __ __ Date
files transmitted ___/___/___ For Voucher
Month ___/________ (7/2007, for
example) TRACS Contact Information Name
__________________________________________________
____ Address ____________________________________
________________ City, State, Zip
_______________________________________________ Ph
one _____________________________________________
_________ Fax ___________________________________
_____________________ E-Mail address
_______________________________________________ TR
ACS Software ____________________________________
_________ (HUDControl, HUDManager,
CAMS, etc.) Return to EPS, Inc. by fax
immediately after transmitting your baseline
files. EPS, Inc. Fax Number 802-660-1949 Attn.
Helen Taylor
46
EPS Baseline review
The purpose of the baseline process is to build
our tenant database so that it matches yours.
Because the information on the TRACS system is
not always accurate, the best source for accurate
information are your baseline files.
47
EPS Baseline review
We compare all of the certifications you send us
to your HAP Voucher.
We examine each certification to make sure it is
properly formatted and can therefore go to TRACS.
48
EPS Baseline review
  • We check many different things, such as
  • contract rents,
  • utility allowances,
  • income limits,
  • number of efficiencies, single, double, etc.
    bedrooms,
  • whether certifications are up to date.

49
EPS Baseline review
Our efforts are guided by our internal checklist.
50
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51
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52
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53
EPS Baseline review
If we discover problems and discrepancies when
comparing your TRACS tenant data to your HAP
voucher during the baseline review, we will
contact you about the issues.
Please respond without delay! Not responding
could cause late payment of your Voucher.
54
EPS Baseline review
If you thoroughly check your baseline data before
sending it to us, it is much more likely that
your tenant data will be 100 correct. That means
We all save time!!
55
EPS Monthly review Deadlines
56
EPS Monthly review Deadlines
  • Your monthly reporting is due (in our office) by
    the 10th of each month.
  • Late submission may result in late payment.

Early submission almost always means you will
have your confirmation back during the first week
of the month! For example, if we receive all data
on the first, you may have your confirmation on
the second!
57
EPS Monthly review Deadlines
Its fine to send us information a few days
before the first of the month.
If you transmit information to us after the 10th
of the month, you might get paid late. If you
transmit to us after the 15th, its virtually
certain you will get paid late.
58
EPS Monthly review Process
59
EPS Monthly review Process
Each month, we look at all of the changes from
your prior months voucher, and scan them for all
of the criteria in the EPS checklist.
  • Each change on your voucher MUST be accompanied
    by a certification in a TRACS file! The only
    exceptions are
  • Manual adjustments
  • Special Claims

60
EPS Monthly review Process
Each month, take a few minutes and make sure all
of the changes are included in your TRACS files.
If all of the monthly changes that show up on the
paper Voucher are supported by the electronic
certifications you have transmitted and there are
no other problems with the information, we will
recommend that GHA pay the amount you requested
on your Voucher.
61
EPS Monthly review Process
If we find a discrepancy between your Voucher and
ours, we will contact you.
When we contact you, it is critical that you
respond promptly!
The purpose of our contact is to resolve the
discrepancy on the current voucher. Often, it
will involve you sending a certification through
TRACS.
62
EPS Monthly review Process
Typically, most problems can be corrected pretty
quickly (within a day or two), which will not
delay your current month's Voucher payment.
If we have no response within two days, we may go
ahead and produce a Voucher in the amount we
believe to be correct. However, we would rather
not do so, and will not do so automatically, if
the property is being responsive.
63
EPS Monthly review Process
If we create a revised voucher, we will send you
a copy for your records.
If you can successfully resolve the discrepancy,
we will recommend payment on that basis.
Each month, we will send you a close-out memo.
For example
64
Closeout Memos Analyst Kristen Goodwin Date
2007-05-16 091048 Comments Hi Kim,This is
written confirmation that I have processed your
06/07 Voucher and am recommending payment in the
amount of 41,647. Everything looks good! If
you have any questions please feel free to
contact me.
65
EPS Monthly review Process
After you submit your Voucher and tenant
information to us, please hold further changes we
have not discussed with you, for your next
month's voucher. If you feel you need to change
your current Voucher after you have submitted it
to us, please call us before you make the changes.
66
EPS Monthly review Process
Each month after GHA approves payment, we will
transmit your HAP and Tenant files to TRACS. We
will return all TRACS messages to you.
Its important to investigate and correct all
TRACS "Fatal Errors" and any "Action Required 1
and 2" error messages!
67
EPS Monthly review Process
Payments will be made by GHA as soon as HUD
provides the funds to GHA. Because HUD gives the
funds to GHA on or about the first business day
of each month, GHA will make payments to you on
or about the second business day each month.
68
EPS Monthly review Errors requiring immediate
response
69
EPS Monthly review Errors requiring immediate
response
The following errors will likely lead to late
payment, unless corrected. We will definitely
contact you when we notice any of the following.
Please note that other conditions not listed may
have the same result.
70
EPS Monthly review Errors requiring immediate
response
  • Missing Certifications
  • Late Annual Recertifications
  • Incorrect calculations on 50059's.
  • Inaccurate Contract Rents and Utility Allowances
  • Outdated Income Limits
  • Claims for any units that have been abated by HUD
    or by GHA
  • Claiming for the incorrect number of subsidized
    units
  • Incorrect calculations on your HAP voucher
  • Unresolved issues from prior periods

71
EPS Monthly review Errors requiring immediate
response
If you cannot correct an error, we may recommend
an assistance payment to GHA based on the last
good certification we have for that tenant, or we
may hold payment on that certification until the
discrepancy is resolved.
72
EPS Monthly review Errors requiring immediate
response
We usually do not hold payment on a certification
unless an annual is overdue for a second month,
or if we cannot determine the correct assistance
amount.
73
EPS Monthly review 90
74
EPS Monthly review 90
TRACS now checks tenant data, before releasing
payment of your voucher.
If you have only a small percentage of your
current and active certifications on TRACS, TRACS
will withhold your HAP payment until 90 or more,
of your tenant certifications are present in
TRACS.
75
EPS Monthly review 90
Its your responsibility to check HUDs internet
systems each month, to determine the accuracy of
your TRACS data.
76
Secure Connection
77
Secure Sign-In
78
Secure System Main Menu
79
Secure Connection
The system will ask you to log in again. After
the second log-in, use your browsers back
arrow, to return to the Secure System Main Menu.
80
Secure System Main Menu
81
Certification Query Application
The Tenant Certification Query can be used to
determine what certifications are current and
active in TRACS
82
Voucher Query Application
This application provides HUD users with access
to detailed voucher information.
83
EPS Monthly review 90
Compare the certifications in TRACS (the
Certification Query, shown on the previous
screen) to the certifications which appear on
your HAP Voucher.
84
This Compliance Percentage is updated daily.
85
EPS Monthly review 90
Resubmit any missing certifications (on your HAP
Voucher, but not on TRACS) to EPS.
Right after you transmit the missing
certifications, make sure you call the EPS Data
Analyst you are working with.
Let your Data Analyst know that you are sending
files to make corrections on TRACS.
86
EPS Monthly review 90
Check your TRACS error responses a few days after
you transmit the files, and look for any fatal
errors.
Also check the Certification Query on the HUD
Secure System a few days later, to make sure the
certifications got on to TRACS.
87
EPS Monthly review 90
If your payment was withheld by TRACS with a
VST53 error message, your payment will
automatically be released after you get enough
tenant certifications on TRACS to meet or exceed
the 90 Compliance Percent requirement.
Dont stop at 90! The goal is to have 100 of
your tenant certifications accurate and on TRACS.
88
VOUCHER SUBMISSION TO GHAPresented by Jeremy
Nelson, CFO
89
A FIRST STEP TO A SUCCESSFUL TRANSFER OF YOUR
CONTRACTTO GHA
  • Complete the following forms (in your packet) and
  • return to GHA within 10 days
  • New Owner/Agent Information Form
  • Direct Deposit Form
  • Signature Authorization Form
  • W-9 Form
  • To guide you in filling out the forms, there are
  • completed samples in your orientation packet.
    They may
  • be scanned and emailed or faxed to Mark Haggerty
  • mhaggerty_at_ghaca.org or 888-291-6502 (fax)

90
THE HAP VOUCHER PROCESS
  • This session covers what needs to be done
  • To get your HAP Voucher to GHA and
  • How to submit a special claim to GHA within the
    HUD mandated 180 day timeframe.

91
THE HAP VOUCHER PROCESS
  • AFTER YOU HAVE SUCCESSFULLY
  • PREPARED THE VOUCHER FROM YOUR
  • SYSTEM
  • QUESTIONS?
  • HOW DO YOU GET THE VOUCHER TO GHA (OR EPS)?

92
HOW TO GET THE VOUCHER TO GHA EPS
  • THREE EASY STEPS TO SUCCESS!
  • As stated earlier, fax a copy of the voucher to
    EPS on or before the 10th of the month. For
    example, the July 2007 HAP Voucher should be
    faxed no later than June 10, 2007.
  • Immediately fax the same voucher to us (GHA)
    using the dedicated GHA Toll Free Fax Number
    866-629-7019
  • Make sure the signed summary page of the HAP
    Voucher (HUD form 52670) is the 1st page. Do not
    include a cover page.

93
HOW TO GET THE VOUCHER TO GHA EPS
  • To fax the voucher to EPS, use Fax Number
    802-660-1949.
  • Always review your fax transmission report to
    ensure that the transmission was successful. Do
    not assume that the fax was sent error free!
  • These steps are critical because all our
    processes are 100 automated. We do not manually
    read or handle your voucher.

94
WHAT IS THE PROCESS FOR GETTING HAP VOUCHERS PAID
?
  • AFTER THE VOUCHER HAS BEEN RECOMMENDED BY EPS TO
    GHA
  • All vouchers approved by GHA are returned to EPS
    for transmission to TRACS.
  • Voucher responses are sent by TRACS to each
    property. Both EPS and GHA are aware of these
    responses.
  • A message such as VSP 00 or VSP 10 means that the
    voucher has been sent to Treasury for payment.
    Messages such as VST 53, VSR 26, or VST 41 need
    further resolution.

95
WHAT IS THE PROCESS FOR GETTING HAP VOUCHERS PAID?
  • On or about the end of the month, HUD disburses
    the HAP funds to GHA, which then sets up the ACH
    deposits to the property within 24 hours.
  • If you need to change your bank account, the 1199
    form can be retrieved from the GHA website
    www.ghaca.org
  • The 1199 should be completed and returned to us
    14 days ahead of the scheduled payment date.
  • IF YOU DO YOUR PART, THEN GETTING PAID IS AS
    SIMPLE AS ABC!!!

96
SUBMITTING SPECIAL CLAIMS TO GHAPresented by
Claude Oakley, Director of Finance Voucher
Services
97
SPECIAL CLAIM-Processing Guide
  • The processing guide can be found at
    hudclips.org/sub_nonhud/cgi/newsdoc_run.cgi.
  • It became effective on August 1, 2006.
  • Applies to all claims received on or after August
    1, 2006.
  • After you have read the new processing guide,
    your questions and comments, if any, can be sent
    to me, via email, as follows coakley_at_ghaca.org

98
GHAS OBLIGATION
  • HUD recognizes that properties need to be
    compensated for revenue losses arising from
    vacancies. We encourage properties to take
    advantage of this revenue stream.
  • When you send in your special claim, we take one
    of 3 actions
  • Approve, Reduce or Deny the Claim

99
MAIN ACTIONS
  • Approved Claim - will be assigned a 14-digit ID
    number.
  • Reduced Claim - will be assigned a 14-digit ID
    number, and we will indicate why the claim has
    been reduced.
  • Denied Claim - will be returned with the
    reason(s) for denial.
  • Incomplete Claim will be returned with the
    missing documentation noted.

100
DENIED OR REDUCED CLAIM ACTIONS
  • PLEASE NOTE The owner is allowed one original
    submission, one resubmission, and one appeal.
  • The owner has 30 days to appeal the decision.

101
CHECKLIST!
  • The checklist is required for all submitted
    claims.
  • For ease of reference, copies of the required
    checklist have been posted on the GHA website
    www.ghaca.org
  • Please ensure that your staff are completely
    familiar with the requirements of the current
    processing guide.

102
HOW TO SUBMIT A SPECIAL CLAIM TO GHA
  • HERE IS AN OVERVIEW OF THE PROCESS
  • Only 7 of all properties submit Special Claims.
    They are the ones that recognize
  • the significant revenue that filing claims
    generate for their property.
  • You are strongly encouraged to file claims!
  • To quickly figure out the additional annual
    revenue that can be generated, just
  • multiply your daily rent by your average monthly
    vacancy days times 12 months.
  • To start generating that additional revenue, the
    process is very simple!
  • (A) ELIGIBILITY
  • Owner must send information to TRACS about the
    move-out.
  • The former tenant must have received rental
    assistance at move-out, or assistance must have
    been terminated because tenant failed to live up
    to his/her responsibilities to the Section 8
    Program.
  • No special claim can be submitted IF the unit was
    either occupied by a police officer or security
    personnel. Also, no claim can be made when
    termination was based on the increased income of
    the tenant.

103
HOW TO SUBMIT A SPECIAL CLAIM TO GHA
  • (B) HUD FORMS NEEDED
  • FORM 52670-A, Part 2 Special Claims Schedule
    (See Appendix 1C, Processing Guide)
  • FORM 52671-A Special Claims for Unpaid
    Rent/Tenant Damages
  • FORM 52671-C Special Claims for Regular
    Vacancies (See Appendix 3A, Processing Guide)

104
SUPPORTING DOCUMENTS
  • In this short session, time does not allow us to
    cover in detail all the supporting documentation
    that you need to send in with your special claim.
  • The supporting documentation will depend on the
    type of claim that is being requested.
  • GHA has prepared several checklists in
    conjunction with the HUD prepared checklist.
    GHAs website is an excellent resource and you
    should familiarize yourself with its content.

105
KEY SUPPORTING DOCUMENTS
  • A signed HUD 50059 completed at move-in for the
    former tenant (it shows the amount of deposit).
  • Documentation that security deposit was collected
    from tenant (copy of original lease, copy of
    receipt or tenants ledger card).
  • Copy of security disposition notice (it shows
    tenants move-out date, amount of deposit
    returned, etc.).
  • Documentation to verify the date that unit was
    ready for occupancy (maintenance log, voucher
    adjustment page etc.).

106
KEY SUPPORTING DOCUMENTS (contd)
  • 5. Copy of waiting list must show
  • Contact made with applicant
  • Outcome of the contact
  • Where waiting list was not used to fill the
    vacancy, copies of marketing efforts or copies of
    advertisements will suffice.
  • 6. Copy of GHA checklist

107
TIMELINES
  • SUBMISSION DEADLINE
  • GHA must receive the claim within 180 days from
    date unit is ready for occupancy.
  • CLAIM START DATE
  • Claim period begins the day unit is ready for
    occupancy.
  • CLAIM END DATE
  • Claim period ends the date unit is re-rented.
  • LENGTH OF CLAIM PERIOD
  • Claim period cannot exceed 60 calendar days.

108
ADDITIONAL IN THE BANK
  • Do not hesitate to prepare and submit your
    Special Claims to GHA. ITS REAL MONEY!
  • We are here to help you earn this additional
    revenue,
  • so please call Claude 770-939-3939 (Ext. 2025),
  • Carol (Ext. 2020), Sylvia (Ext. 2018), or Jeremy
    (Ext. 2015) for any required technical
    assistance.
  • THANK YOU!!!

109
SUBMITTING RENEWALS/RENT ADJUSTMENTS, AND THE
RCSPresented byJeff Wirrick, Chief Management
Asset OfficerDebra Newman, Dir. of Asset
ManagementAndy Prodanovic, Appraiser
110
ILLINOIS ASSET MANAGEMENT TEAM
111
CONTRACT RENEWALS
  • In order to expedite the renewal process,
    there are four key pieces of required
    information
  • Contract Renewal Request Form Cover Sheet
  • Option Page (select 1 of the 6 available options)
  • Certification Page (sign and date it)
  • Rent Comparability Study (if applicable)

112
OWNER SUBMISSION
  • Q When should you submit your renewal request?
  • A At least 120 days before the expiration date
    of the HAP contract.

113
CONTRACT RENEWALS OPTIONS
  • OPTION ONE (Mark Up-To-Market)
  • OPTION TWO (Rents At or Below Comparable Market
    Rents)
  • OPTION THREE (Request Referral to OAHP)
  • OPTION FOUR (Renewal for Projects Exempted from
    OAHP)
  • OPTION FIVE (Portfolio Reengineering /
    Preservation Renewals)
  • OPTION SIX (Opt-Out of the Section 8 Contract)

114
RENT ADJUSTMENTS
  • There are Four Types of Rent Adjustments
  • Annual Adjustment Factor (AAF)
  • Operating Cost Adjustment Factor (OCAF)
  • Budget Based Rent Adjustment (BB)
  • Special Rent Adjustment

115
OWNER SUBMISSION
  • Q. When should you submit a rent adjustment
    request?
  • A. For contracts under MAHRA, 120 days prior to
    contract anniversary date.
  • For contracts under original term, 60 days
  • prior to the contracts anniversary date.

116
ANNUAL ADJUSTMENT FACTOR (AAF)
  • The Package Should Include the Following
  • Cover Letter Requesting an AAF Increase
  • Unit Turnover Report
  • Rent Comparability Study (if the current Gross
    Rents are greater than the current published Fair
    Market Rents)
  • Certification of Compliance (if applicable)
  • Utility Data Analysis

117
OPERATING COST ADJUSTMENT FACTOR (OCAF)
  • The Following Documents Must be Included in
    the Package
  • OCAF Rent Adjustment Worksheet
  • Utility Data Analysis
  • Verification of Debt Service (Mortgage Statement
    / Amortization Schedule)
  • Verification of Replacement Reserve (authorized
    monthly amount)
  • NOTE The 2007 published factor for Illinois is
    4.3

118
BUDGET-BASED RENT ADJUSTMENTS
  • Checklist for Budget-Based Rent Adjustments
  • 1. Cover letter stating reasons for increase, the
    projects physical condition, and any proposed
    change in service
  • 2. Budget Worksheet (HUD-92574-A)
  • 3. Statements/documentation from service provider
    for line item increases gt 5
  • 4. Notice to tenants (if applicable)
  • 5. Executed owners certification regarding
    Purchases and Practices and Reasonableness of
    Expenses Appendix 3

119
BUDGET-BASED RENT ADJUSTMENTS (contd)
  • Checklist (contd)
  • 6. Status report on energy conservation plan
    (Section 236 BMIR projects)
  • 7. Signed request for increase in R R
    Appendix 6
  • 8. Utility data analysis (type of utility, data
    sample 12 months)
  • 9. Verification of debt service (mortgage
    statement and/or amortization schedule)

120
BUDGET-BASED RENT ADJUSTMENTS (contd)
  • Supporting Documentation
  • Adequate documentation must be provided to
    justify requests that are in excess of the
    allowable amounts.
  • Service Coordinator expense items must be listed
    separately.
  • For request to increase monthly Replacement
    Reserve deposits, a Reserve Analysis must be
    submitted.
  • Failure to provide the required documentation
    will result in adjustments to the operating
    budget.

121
SPECIAL RENT ADJUSTMENTS
  • Special Rent Adjustments are allowed for
    properties that calculate rent increases using
    the Annual Adjustment Factor (AAF).
  • A Special Adjustment may be requested for
    increases in Property Taxes, Insurance and
    Utilities.

122
RENT SCHEDULES
  • Rent Schedules Must Meet the Following
  • Requirements
  • Complete and accurate
  • Section 8 units separated from non-Section 8
    units
  • Neatly prepared and legible (preferably typed)
  • The name and title of all principals comprising
    the Mortgagor Entity must be listed in Part G on
    Page 2.
  • SSN EIN are no longer required.
  • Remember that approved rents cannot be
    implemented unless you have an executed Rent
    Schedule.

123
UTILITY ALLOWANCE ADJUSTMENT
  • Documents required for a Utility Allowance
    Adjustment
  • Cover letter requesting an adjustment
  • Utility Analysis
  • Tenant data from the utility company (sample of
    at least 10 for each unit type)

124
RENT COMPARABILITY STUDY (RCS) PROCESS
  • GHA
  • Reviews for Section 8 Guidebook compliance and
    completeness (within 5 business days)
  • Forwards RCS to GHA Appraiser

125
RCS PROCESS (contd)
  • GHA Appraiser
  • Performs Administrative Desk Review
  • (As requested by GHA, may perform field review)
  • Provides Conclusions of the Review to GHA

126
INTERNET LINKS
  • All HUD Handbooks, Housing Notices, Section 8
    renewal information and forms can be downloaded
    from
  • www.hudclips.org
  • Georgia HAP Administrators, Inc.
  • www.ghaca.org

127
PREPARING FOR THE ANNUAL MANAGEMENT OCCUPANCY
REVIEWPresented by Mary Mauney, Dir., Illinois
Field OfficeJeff Wirrick, Chief Asset Management
Officer
128
FUNCTIONS OF ILLINOIS FIELD OFFICE
  • Follow up on Resident Concerns
  • Follow up on REAC inspections
  • Owners certify to our office instead of HUD
  • Complete yearly Management and Occupancy Reviews

129
WHAT TO EXPECT DURING THE MANAGEMENT AND
OCCUPANCY REVIEW
  • Annual comprehensive review of compliance with
    HUDs Eligibility and Occupancy Guidelines (HUD
    Handbook 4350.3)
  • Emphasis on your files and income calculations
  • Professional and courteous auditors

130
SCHEDULING TIME AND DATE
  • Telephone call from the Field Office Asset
    Manager to agree on the time and date.
  • Follow-up letter to confirm.
  • Letter will include items that will be reviewed
    while on-site, including a form that you need to
    have the owner complete regarding property
    composition that we are collecting for FHEO.
  • Request that you notify residents of a possible
    follow-up to the REAC inspection.

131
MAJOR PROPERTY DOCUMENTS WE WILL BE REVIEWING
  • Tenant Selection Plan
  • Application
  • Pet Policies
  • House Rules
  • Lease

132
IMPORTANCE OF PREPARATION
  • Checklist C
  • Save time have the following ready when we come
    on to the property
  • Tenant files most current inspections and
    recertifications filed
  • HAP Vouchers for the last 12 months
  • Security Deposit Register
  • Evidence of Utility Reimbursements
  • Waiting List
  • Move-outs for past year/Rejected files

133
TENANT SELECTION PLANREQUIRED TOPICS
  • Project eligibility requirements
  • Project Specific
  • Citizenship
  • Social Security Number
  • Income Limits (effective 3/20/2007)

134
TENANT SELECTION PLAN (contd)
  • Procedures for accepting applications and
    pre-applications
  • Procedures for applying preferences
  • Applicant screening criteria
  • Required drug-related or criminal activity
    criteria

135
TENANT SELECTION PLAN (contd)
  • Other allowable screening criteria
  • Procedures for rejecting applicants
  • Occupancy Standards
  • Unit Transfer Policies
  • Policies to comply with Section 504, Fair
    Housing, and other relevant civil rights laws
  • Policy for opening and closing the waiting list

136
APPLICATION
  • Basic Information - name, phone, address history,
    employment, etc.
  • Application process must meet mandatory screening
    requirements
  • Must include sex offender screening
  • Need for accessible unit/accessible features
  • Does application inquire about student status?

137
WAITING LIST
  • Must provide an auditable trail
  • Must contain all required elements
  • Date/Time
  • Head of Household
  • Unit Size
  • Income Level
  • Accessibility Need
  • Removed/Rejected
  • Move-in Date
  • Preference
  • Comments

138
GENERAL ISSUES
  • Are policies consistent with regulations?
  • Is the Tenant Selection Plan followed and
    accessible?
  • Are applicants/residents being treated equally?

139
RESIDENT FILE REVIEW
  • Required forms present
  • Application
  • HUD model lease
  • HUD fact sheet - How your rent is calculated
  • 9887 9887-A (new forms eff. 2/2007)
  • Residents Rights and Responsibilities
  • Fraud, Is it worth it? (New form 2/1/2007)

140
PHYSICAL FOLLOW-UP
  • Review of all EHS from last REAC inspection
  • May visit with a resident who has contacted our
    office about a concern

141
VACANT UNITS
  • Are they ready for occupancy?
  • How long are they vacant?
  • Is marketing consistent with property needs and
    AFHMP?
  • Are vacancies being filled timely?

142
OBSERVATION OF PROPERTY CONDITION
  • EHS handled similarly to REAC
  • Traffic Ticket
  • 72 hours to correct

143
GENERAL
  • Complete/Review 9834 Questionnaire
  • FHEO Questionnaire
  • Exit Conference
  • Review of findings with opportunity to respond
  • Not a discussion of the rating

144
MOST COMMON MOR FINDINGS
  • Time of application not listed on waiting list or
    application
  • Cant follow waiting list
  • Using the wrong lease/old version of lease
  • Not giving residents sufficient notice of rent
    increase

145
AFTER THE ON-SITE REVIEW
  • You will receive a report within 30 days 9834
    Summary sheet, rating, narrative of all findings
  • Customer survey
  • Owners/Agents will have 30 days to respond to the
    report and must address all findings
  • Any repayments to HUD will be tracked by EPS

146
Thank you for coming and have a safe trip
home!GHA website www.ghaca.org
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