HUD TENANT FILES

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HUDTENANT FILES

• Sponsored by
• AHMA NW, CMS ORCA INFORMATION
• Presented by
• KDC Solutions LLC
• Karen Crosta

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TENANT FILES

• Permanent Record
• Contains all information related to tenancy from
  application intake through date of move-out
• Maintain during tenancy 3 years
• Not a working file
• Security
• Locked file cabinet
• Limited access
• Proper disposal
• Organized and Properly Maintained
• Reviewed at HUD/CA MOR

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• MANAGEMENT REVIEW
• for
• MULTIFAMILY HOUSING PROJECTS
• Form HUD9834

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MOR

• Tenant Files and Records
• Are the tenant files organized and properly
  maintained?
• Do the files contain all documentation as
  required in Handbook 4350.3, Rev. 1?
• Application/Tenant Selection
• Were the applications in the file signed and
  dated by the applicant?
• Was screening conducted in accordance with the
  Tenant Selection Plan?

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MOR

• Lease
• Were the correct model leases used?
• Were the leases signed and dated by all required
  parties?
• Were the applicable attachments attached to the
  lease?
• Were security deposits collected in the correct
  amount for the program?
• Were pet deposits within acceptable range and
  payment installments allowed?

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MOR

• Certifications/Recertifications
• Were recertification notices issued in accordance
  with HUD requirements?
• Were all necessary verifications completed and
  properly documented?
• Were income and deductions calculated correctly
  prior to data entry?
• Did income information on the tenant
  certifications agree with verified file
  information?
• Were notices provided to tenants when their
  portion of rent increased in accordance with HUD
  tenant notification requirements?

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MOR (General)

• Is the lead-based paint acknowledgement in the
  file?
• Does the file contain the ethnicity and racial
  Data Certification as provided to the
  owner/agent?
• Have the HUD-9887/9887-A Consent forms been
  signed by head, spouse, co-head regardless of age
  and family members at least 18 years of age?
• Was the HUD-9887 Fact Sheet provided to tenant?
• Does the file contain the Resident Rights and
  Responsibilities acknowledgement?

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MOR (General)

• Have the following items been verified and
  documented?
• Social Security Numbers for all family members at
  least 6 years of age and older or certification
  if no SSN
• Eligible immigrant status or citizenship
• Criminal and drug screening sex offender
  registration
• Other screening as disclosed in Tenant Selection
  Plan
• Disability
• Student Status
• Age
• Did household certify whether or not they had
  disposed of assets during the past two years?

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Common MOR FindingsTenant Files

• Information in file and name on the HUD 50059
  dont match
• Middle initial
• Foreign names
• Security Deposit amount on 50059 does not match
  file documents (usually the lease)

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Common MOR FindingsTenant Files

• Citizenship documentation incomplete or missing
• Citizenship Declaration
• Owners Notice No. 1
• Owners Summary of Family Members
• Family Members Summary
• Incorrect corrections to prior MOR findings
• Processing an Interim Recertification rather than
  a Correction to a Prior 50059

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Common MOR FindingsTenant Files

• Using old forms that have since been revised for
  new move-ins
• House Rules/Pet Rules
• Lease Addenda
• Race/Ethnic data forms
• Etc.
• Not obtaining signatures/dates on
  new/current/revised forms
• House Rules/Pet Rules
• Lease Addenda

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Common MOR FindingsVERIFICATIONS

• Income/Assets/Deduction calculations dont match
  amount reported on HUD-50059
• Missing documentation of WHY third party
  verification not available or used
• Verification forms missing a space for the
  Agency/Organization supplying the information

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Common MOR FindingsLEASES

• Incorrect Initial term
• Using Incorrect Lease
• Incorrect Lease renewal terms
• Lease blanks not filled in

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• SOLUTIONS?

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6-PART TENANT FILE CHECKLIST

• Section 1 Application Tenant Eligibility
  Documents
• Section 2 Lease, House Rules, Other
  Property Policies
• Section 3 Move-In Certification
  Related Documents
• Section 4 Tenant Correspondence
• Section 5 Move-In/Move-Out Unit
  Inspection/Checklist
• Section 6 - Recertifications

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• SECTION 1
• Application and Eligibility Documents

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Move-In Worksheet/Checklist

• Provides
• History of application process
• Checklist of all items to complete, to obtain
  signatures and to provide to tenant
• Monitoring system for obtaining required
  verifications

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Section 1, contTenant to receive copy of all
Forms Procedures

• Resident Personal Information Sheet/Emergency
  Contact
• All adults in household
• Should update annually
• Verification of Eligibility
• Elderly
• Disabled
• Copy of Picture ID/Age ID
• All adults
• Enlarge copy
• Birth Certificates
• All household members
• Use to document age, citizenship, and/or custody

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Section 1, cont

• Social Security Number Verification
• ALL household members (effective 9/30/09)
• Front back (enlarged)
• HUD Citizenship Package
• All household members
• Owner Notice No. 1
• Applicant Declarations
• Owners Summary of Family
• Family Summary Sheet
• Verification Consent
• Final Decision letter
• COPIES of Non-citizen documents (if applicable)

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Section 1, cont

• Copy of Divorce/Separation Decree
• Pages re Alimony/Child Support/Child Custody
  only
• Race/Ethnicity Certification
• All HH members
• If applicant does not complete, notate form(s)
  retain in file
• Student Status Questionnaire and related
  verifications
• All adults
• Screening Applications, Releases Reports

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Section 1, cont

• Rental Application Packet
• Rental Application
• Cover Letter
• Application Status Notification
• Acceptance Notifications

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• Key Questions
• for
• Rental Applications

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Have you or any Household Member

• Ever been evicted or refused to pay rent?
• Ever been arrested, or charged for, or convicted
  of a crime?
• If yes to any of the above, give details. What
  is the nature of the offense?
• In what county(ies) and State(s)?
• When?
• Used any other names?
• If yes, list name(s)
• Registered or Unregistered Sex Offender?
• Currently using any illegal drugs?

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• SECTION 2
• Lease, House Rules
• and
• Property Policies

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Section 2

• HUD OMB or HUD Approved Model Lease
• Signed/dated by all adult HH members
• Signed/dated by owner representative (mgr.)
• Use correct Model Lease for program (Figure 6-2)
• Ensure all blanks are completed
• Ensure initial and renewal terms are correct for
  program (Figure 6-3)
• Ensure Security Deposit is correct for program
  (Figure 6-6)
• Same as on HUD 50059

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Section 2 cont

• Approved House Rules Regulations
• Signed/dated by all adults
• Violence Against Women Lease Addendum
• Certifications
• Verifications (if applicable)
• Disclosure of Mold Information Certification
  acknowledgement
• One booklet per HH
• WA State requirement
• Lead-Based Paint Disclosure Certification
• Pre- 1978
• One booklet per HH
• Other HUD approved Lease addenda or attachments

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Section 2 cont.

• Approved Pet Rules/Agreement/Pet Registration
• Elderly properties
• Recommend sign even if no pet
• Drug and Crime-Free Housing Policy (if
  applicable)
• Reasonable Accommodations/Modification Policy and
  Guidelines
• Include all documents related to applicant/tenant
• Requests/Responses
• Verifications (if applicable)
• Service animal rules (if applicable)

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Section 2 cont.

• Acknowledgement of receipt of
• Resident Rights and Responsibilities brochure
• Fraud Is it Worth It? Flyer
• HUD Fact Sheet (for program)
• Signed Dated
• Other approved policies
• Rent Collection
• EIV Policy
• Interim Recertification Policies
• Unit Transfer Policy
• Parking Policies
• Etc.

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Section 2 cont.

• Certifications and Documents for
• Smoke Detector
• Fire Policy
• Emergency Plan
• Grievance and Appeals Policy
• Acknowledgement of receipt of Tenant Selection
  Plan
• Key Issue Form
• Hot Water Temperature Certification

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• SECTION 3
• Move-In Rent Computation Documents

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Section 3

• Move-In Checklist
• Move-In form HUD 50059
• Signed dated by all adults ON/BEFORE move-in
  date
• Related rent computation documents
• Income/Asset Questionnaire
• Rent Computation Worksheet
• Verifications

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• SECTION 4
• Tenant Correspondence

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Section 4

• Lease Violations
• Late Rent Notices
• Contract Renewal Notices
• Lease/Rules Regulations Modification Notices
• Policy Change notices
• Etc

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• SECTION 5
• Move-In/Move-Out
• Unit Inspection and Checklist

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Section 5

• Move-In Inspection form
• Completed
• Signed/dated by tenant
• Signed/dated by owner agent (mgr)
• Copy of Security Deposit Receipt(s)
• Copy of Pet Deposit Receipt(s)
• Payment plans for Security/Pet Deposits
• Unit Inspection Notices/Checklists
• Unit Entry notices
• Do not use for work orders or unit maintenance
  logs use a separate Unit Maintenance file

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• SECTION 6
• Annual and Interim
• Recertifications

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Section 6

• Place in order with most current on top
• Include events that require a HUD-50059-A
• Completed Recertification Checklist
• Place on top of the recertification packet
• Completed HUD-50059/50059-A (computerized)
• May include hand-written HUD-50059/50059-A
• Signed/dated by owner/agent
• Signed/dated by tenant
• Verifications to support data on HUD-50059
• Documentation of WHY 3rd party not available with
  evidence of efforts to obtain

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Section 6 cont

• Computation/Data Entry Worksheet
• Third party Verifications of Income, Assets
  Deductions, and other related verifications
• Notification of Rent Change
• HUD 9887/9887A Authorization to Release package
• Include Fact Sheet or acknowledgement of receipt
  

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Section 6 cont.

• Annual acknowledgement of receipt of
• Resident Rights and Responsibilities brochure
• Fraud. Is it Worth It? Flyer
• HUD program Fact Sheet
• Signed by all adults
• Student Status questionnaire
• Annually
• All adults
• Include any verifications
• Zero Income Statements/Questionnaires (if
  applicable)

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Section 6 cont.

• Copy of 1st Reminder Notice with date issued
• Copy of 2nd Reminder Notice with date issued
• Copy of 3rd Reminder Notice/Termination of
  Assistance with date issued
• Should be 1st class mail and hand-delivery to
  adult at unit (or posting)
• Original Initial Notice of next recertification
• Tenant must sign/date
• Owner/agent must sign/date as witness
• Copy of signed notice to tenant
• Income/Asset Questionnaire
• All adults
• Each certification (Annual, Initial and Interim)

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• UPDATE
• HUD 4350.3, REV. 1, CHANGE 3

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HUD 4350.3, Rev. 1, Change 3LIVE-IN AIDE

• For Elderly, Near-Elderly or Disabled persons
• MUST verify the need for a live-in aide
• Necessary to provide the necessary supportive
  services essential to the care and well-being of
  the person(s)
• Obtain from persons physician, psychiatrist or
  other medical practitioner or health-care
  provider
• Must approve as a Reasonable Accommodation
• Must meet screening criteria
• Drug abuse and other criminal activity
• Other owner criteria optional (NA ability to pay
  rent on time)

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HUD 4350.3, Rev. 1, Change 3SAVE

• Updated instructions for obtaining access to
  use of SAVE system for verifying citizenship/
  immigration status

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HUD 4350.3, Rev. 1, Change 3STUDENT STATUS

• Student Status
• Clarified the rules regarding students in Section
  8 vs. students in other programs
• Added a paragraph to clarify that financial
  assistance is a mandatory exclusion from income
  for non-Section 8 student households
• Added to Tenant Selection Plan requirement to
  address Student Eligibility

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HUD 4350.3, Rev. 1, Change 3DEPLOYMENT OF
MILITARY PERSONNEL TO ACTIVE DUTY

• Encourages leniency to support affected
  households, such as
• Temporarily allow guardian to move into assisted
  unit on temporary basis income of guardian
  excluded
• Temporarily allow tenant to care for dependent(s)
  of deployed military personnel (head/spouse) in
  assisted unit income of child(ren) excluded
• Exclude from income hazard duty pay
• Take deployment into consideration if rent is
  late
• Allow assistance payments lease to remain in
  effect beyond that required by the Soldiers and
  Sailors Civil Relief Act of 1940 (3 months) even
  though the adult members of the military family
  are temporarily absent from the unit.

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HUD 4350.3, Rev. 1, Change 3INCOME

• The unearned income of Foster Children/ Adults is
  included in household income
• Exclude from income pension funds paid directly
  to a former spouse pursuant to a court decree of
  divorce, annulment or legal separation
• Federal Government
• Uniformed Services
• State
• Local Government
• Social Security
• Private
• Include as income pension funds received from a
  former spouse pursuant to a court decree of
  divorce, annulment or legal separation

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HUD 4350.3, Rev. 1, Change 3INCIDENTAL BUSINESS
IN UNIT

• Owners may establish rules re tenants who
  conduct incidental business in their unit
• Computer work
• Limited babysitting
• Etc.
• Rules to cover
• Foot vehicular traffic
• Noise associated with business
• Signage in unit windows
• Parking
• Hours of work if could disturb neighbors
• Other reasonable rules
• Incidental business is not a violation of Lease

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HUD 4350.3, Rev. 1, Change 3RECERTIFICATIONS

• If HUD terminates assistance payments for failure
  to submit recertification within 15 months from
  previous years recert anniversary date
• Owner must repay assistance received for the 3
  month period (13th, 14th 15th months)
• Adjust voucher
• When new certification completed, follow the
  guidance in Par. 7-8 regarding effective dates of
  TTP and HAP
• If owner or 3rd party fault
• HAP on RAD
• TTP Decrease on RAD Increase after 30 day
  notice

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HUD 4350.3, Rev. 1, Change 3HUD 50059-A

• Gross Rent Change, Unit Transfer Termination of
  Assistance
• Owner signature required prior to TRACS
  submission
• Head of Household signature required whenever
• There is a change in Tenant Rent or Utility
  Reimbursement
• There is a Unit Transfer
• Required by State/local law
• NOTE For Gross Rent Changes that affect Tenant
  Rent or Utility Reimbursement, signatures must be
  obtained within 60 days of implementation of the
  GRC. In all other cases, signatures must be
  obtained prior to TRACS submission
• Effective 8/1/09

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HUD 4350.3, Rev. 1, Change 3HUD-50059 SUBSIDY
DATA REPORTING

• Chapter 9 reissued in entirety to incorporate
  TRACS 202C requirements
• Added requirements for deposits to residual
  receipt account and returning subsidy to HUD for
  PRAC projects

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HUD 4350.3, Rev. 1, Change 3NEW APPENDICES

• HUD 50059-A (Appx. 7 7C)
• Unit Transfer, Gross Rent Change, Termination of
  Assistance Move-Out
• HUD 52670-A Part 3 (Appx. 10)
• Adjustments
• HUD 52670-A Part 4 (Appx. 10)
• Miscellaneous Accounting
• HUD 52670-A Part 5 (Appx. 10)
• Approved Special Claims

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• Thank You

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