MSHDA - Office of Housing Voucher Programs Policy and Procedures Manual

Chapter X: Moves

Effective: February 2007

Introduction

A family must notify their MSHDA Housing Agent (HA) of their pending move to a different unit and give the owner of the current unit proper notice in accordance with the lease or receive written permission from the current owner for early termination. Notification of a pending move may be made verbally or in writing by a tenant to the HA.

If a family is moving out-of-state, the move is considered a “port.” Refer to Chapter XVI, Portability.

If the family is moving out of the current county within the state, the move is considered a “transfer.” Refer to Chapter XV, Transfers.

MSHDA limits the family to one move in any 12-month period. Every move, even a move within a complex, requires a new Lease and HAP Contract. If the family fails to find an acceptable unit, the assistance in the current unit may continue (assuming the unit stays in compliance with program requirements and the owner agrees).

This Chapter outlines: 1) when moves are required or allowed; 2) tenant obligations requiring fulfillment prior to completion of the move by the HA; and 3) reasons for the denial of move requests.

Section A: Required Moves

The family is required to move if:

• MSHDA determines the unit is overcrowded. Refer to Chapter III, Issuance; or
• The HAP contract terminates because the owner fails to comply with HQS or other requirements of the HAP contract (Refer to Section 3 of the HQS manual); or
• The owner terminates the lease for cause (i.e., eviction) during the initial lease term; or
• The owner terminates the lease with or without cause at the end of the initial lease term or definite successive term.

Section B: Moves With Continued Assistance

Families may move to a new unit and keep their assistance if:

The Contract Lease for the old unit has terminated because:

• The HA/S terminated the HAP Contract due to owner’s breach; or
• The Lease was terminated by mutual agreement of owner and tenant; or
• The Tenant has given proper written notice of lease termination.

The Owner has:

• Given the tenant proper written 30-day notice to vacate; or
• Commenced an action to evict the tenant; or
• Obtained a court judgment or other process allowing owner to evict tenant; or
• Prepaid or opted out of a mortgage with HUD and the tenant has elected to move.

Note: The tenant may not be eligible for assistance at another unit if evicted for cause.

1. Initial Lease Term

When the family becomes a ‘program participant,’ they cannot move within the ‘initial’ lease term unless the tenant and landlord execute a Mutual Lease Termination Agreement (MSHDA 96). If the tenant moves during the initial lease term without a MSHDA 96 being executed, their participation in the program may be terminated. After the initial lease term, a family can only move once every twelve months. A RS may approve a move during the initial lease term in extenuating circumstances.

After the initial lease term (generally one year), the tenant must provide proper written notice to MSHDA and their landlord to move with continued assistance.

2. Moves After Initial Lease Term

The tenant must provide a written 30-day notice to the owner and MSHDA to terminate the Lease Agreement (after initial lease term). For example, if the tenant intends to move on December 31, the landlord must receive written notice on or before November 30. A copy of the notice must be furnished to MSHDA. The MSHDA 96 is preferred over a letter as a method of canceling the HAP contract. MSHDA must receive a copy of this form signed by all parties. If the tenant and landlord do not execute a MSHDA 96, MSHDA requires proper written 30-day notice, subject to the terms of the landlord lease renewal provisions.

3. Moved to Homeownership

Upon notification of termination of assistance, process the MSHDA 1344-247, MSHDA 1634b and MSHDA 95, if applicable. If Homeownership and another applicable code applies, always select the Homeownership code as the reason for termination.

4. Move at Annual Re-examination

When the tenant moves, and the family’s latest AR took effect within 120 days prior to the effective date of assistance in the new unit, do not complete new income verifications unless the family’s income has changed; then:

1. Obtain verification (of the changed items only) directly from the verification source.
2. Use any new verified information (income, assets, expenses) together with the information from the last AR to re-determine the family’s share of the rent and the MSHDA payment.

If the move becomes effective more than 120 days from the last AR, new verifications are required.

In Elite, when the tenant vacates the unit, Move the Resident Out of the Unit and process an Annual Re-examination Searching. See Chapter IX. Annual Re-examination policy for instructions.

5. Excessive Break-ins

In those unusual instances where there have been numerous or successive breaking and enterings of a unit which are not the fault of the tenant, a tenant has the right to terminate the lease and move because he/she has been constructively evicted, and the landlord has failed to assure that the housing unit is safe and secure. Discuss these cases with the RS prior to relocating the tenant.

Section C: Housing Agenttaff (HA) Responsibilities in a Move

When a tenant notifies the HA of their intention to move, the HA must:

1. Review Delinquencies

The HA verifies that the tenant is current on their payments toward any MSHDA repayment agreements. If the tenant is not current on payments or does not immediately pay in full, the tenant cannot relocate with continued MSHDA assistance.

2. Review Initial Lease Term Completed

The HA verifies the initial lease term has been completed.

3. Provide Movers Information Form (MSHDA 139)

Provide form to the tenant to advise them of their paperwork obligations/responsibilities with regard to moving. The following items must be included with the MSHDA 139:

1. Mutual Lease Termination agreement (MSHDA 96)
2. Declaration (MSHDA 1890) to update income information.
3. Family Composition (MSHDA 51a)
4. Two vouchers (HUD 52646) with 60-day issuance periods. (Keep an additional copy in the file prior to mailing to verify it was sent and to use if one is not returned.) The voucher issuance date is the day after the cancel date. The issuance date and the signature date need not match.
   1. The tenant must sign both voucher forms and return one copy to MSHDA.
   2. Tickler the expiration date of the voucher.
5. The HCV Tenant and Owner/Landlord Information Packet (MSHDA 57) and attachments:
   1. Guidelines for Landlord Brochure (MSHDA 9)
   2. Rental Unit Information (MSHDA 51b)
   3. Payee Registration Packet (MSHDA 219) and W-9
   4. Tenancy Addendum (HUD 52641A)
   5. Lead Paint Brochure (MSHDA 105c).
6. Voucher Information (MSHDA 146). The affordability limit must be disclosed to the family on the MSHDA 146 (i.e. 40% of their monthly adjusted income). If new income verifications are required, enter the current income amounts and indicate, “estimate.”

4. Select Units Outside Poverty/Minority Concentration

• Encourage clients to select units outside of areas of poverty and minority concentration.
• Refer to Chapter III, Expanding Housing Opportunity requirements and identification of affected counties.

5. Provide Additional Information

Provide the following information:

1. Good Place to Live Brochure (HUD 593)
2. Fair Housing Brochure
3. HUD Discrimination Complaint form
4. HAP Contract (HUD 52641)
5. Protect Your Family from Lead in Your House (EPA 747-K-99-001)
6. Disclosure of Information on Lead-Based Paint and its Hazards (MSHDA 1637b

6. Review for Zero HAP

The HA issues a voucher to move unless other grounds exist to deny assistance. Zero HAP clients cannot move if a “zero” HAP will continue at the new address. The tenant can move if a HAP payment will occur for the new address.

7. Housing Conversion Actions

The HA notifies the family the enhanced voucher will be discontinued upon moving and a HCV will be issued. After the move, the tenant no longer has a minimum rent requirement. Refer to Enhanced Voucher Policy, Chapter XX, for further information.

8. Criminal and Sex Offender Screenings

The HA determines if new adults will be added to the household. If so, the HA performs criminal and sex offender screening to determine if a new household member has a criminal record which prevents the addition to the household.

Section D: Denial of Move Request

Move requests by tenants must be denied if:

• The family violates HCV program obligations;
• The family is not current on a Repayment Agreement;
• The family meets the criteria for termination of assistance;
• MSHDA has insufficient funding for continued assistance; or
• The family is requesting a second move in the same 12-month period.

Note: The Resource Specialist (RS) may make written exceptions to these restrictions if there is an emergency reason for the move over which the participant has no control.

Section E: Tenant Locates Unit

Upon notification to the HA by the tenant that a unit has been located, the HA must:

1. Verify Proper Notice Given

• The HA verifies that proper notice was provided to the landlord and/or tenant by the first of the month preceding the month of the move.
• The tenant must give the owner written notice of their intent to move by the end of that month. (For example, if the tenant intends to move on June 30, the owner must receive the written notice on or before May 31); or
• Mutual Lease Termination Agreement (MSHDA 96) is preferred rather than a letter. MSHDA must receive a signed copy of the notice. If no MSHDA 96 is executed, MSHDA must have proper written 30-day notice.
• MSHDA must notify the owner of the cancellation via a Contract Termination Notice (MSHDA 95) unless a Mutual Lease Termination Agreement has been executed. The executed MSHDA 96 removes the need for a MSHDA 95.
• MSHDA must notify the tenant of cancellation (i.e. tenant termination) via an Application Denial/Program Termination (MSHDA 1634b) immediately upon receipt of the notice or eviction document.
• Stop Payment on current unit. If move-out date is known, process “Move Resident out of Unit” in Elite to stop payment. If move-out date is unknown, process an “Exclusion” in Elite to stop payments.

2. Rental Unit Information Form (MSHDA 51b)

Rental Unit Information Form (MSHDA 51b) must be received and reviewed by the HA prior to conducting an inspection.

3. Prohibited Relatives

No member of the household can be related to the owner/landlord unless it is necessary to provide reasonable accommodation for a family member with disabilities. Prohibited relatives are parents, children, grandparents, grandchildren, sisters and brothers. Approval of renting from a relative only applies at the time a family initially receives tenant-based assistance for occupancy of a particular unit needed for a reasonable accommodation. While the tenant stays in the same unit, there is not a requirement to re-approve the reasonable accommodation. However, if the tenant changes units, then a new reasonable accommodation request must be approved or disapproved for the new unit.

4. Determine Rent Reasonableness

The HA provides copy of the Reasonable Rent Test (MSHDA 37) for tenant completion. If appropriate comparables are not available, the tenant cannot receive assistance in the new unit. See Chapter VII, Rent Reasonableness.

5. Affordability

• Negotiate/clarify rent amount if necessary. The Tenant’s rent portion must not exceed 40% of their monthly adjusted income for rent and utilities. Perform the Affordability Test (applicable if gross rent exceeds payment standard) using the Affordability Worksheet, (MSHDA 248).
• The HA/S must manually or electronically calculate the limit using the worksheet after all income verifications have been received to assure compliance with the 40% rule. If the gross rent is less than or equal to the PS, the affordability cap does not apply. If the gross rent is greater than the PS, then the cap does apply.
• Calculate the limit by dividing the adjusted annual income divided by 12 (round) times .4. If the 40% cap is greater than or equal to the TTP, then the unit is affordable for family.
• If the Gross Rent is greater than the PS for the subject county, submit MSHDA 248 to the assigned DT with other paperwork when the case is submitted for approval.

  Note: Exempt or Disallowed Income cannot be included in the calculation.

6. HQ

• Inspect/re-inspect results are entered into Elite. Reasonable Rent Test Evaluation is still applicable. Refer to the HQS manual. If the unit is a manufactured home, the tenant must be renting both the manufactured home and the space it is occupying.
• Remember the payment assistance (i.e. HAP Contract and MSHDA 34) effective date must be on or after the passed inspection date.

7. Owner Delinquent

If the owner is delinquent, notify the Delinquency Accounts Coordinator.

8. Payee Registration (MSHDA219)

• If the owner is not currently in Elite or if the owner's information in Elite has changed, obtain a Payee Registration from the owner (if necessary) and immediately submit it to the departmental technician (DT).
• Owners can register online with Payee Registration for Electronic Funds Transfer (EFT). To register, go online to www.cpexpress.state.mi.us and follow the step-by-step instructions. Owners (vendors) receive an account password after completing online registration. This account allows the vendor to update their account information online. Refer to Chapter XI, Landlord Issues.

9. Income Verifications

Issue a request for Original Documents (MSHDA 53). New verifications are required if previous verifications are not dated within 120 days of the move effective date.

10. Voucher Issuance Date

The voucher issuance date must equal the first day after “Resident Move Out of Unit” date in Elite. Signature dates can be prior to Issuance date.

Section F: Moves Resulting in an End of Participation

• The HA submits applicable documentation at the time the participant is terminated from the Program.
• Refer to Chapter XIV for additional termination information and end of participation information; including voided moves and reinstatements if tenant decides to stay in place.

Section G: Unauthorized Moves

If an unauthorized move occurs due to extenuating circumstances, the HA must contact the assigned RS to determine if the participant can retain their voucher. If the RS determines that the family participation will be terminated, the HA must forward a MSHDA 1634b, identifying that the family’s participation is being terminated and the availability of an informal hearing. Submit the paperwork to cancel after the Informal Hearing Request time limit expires (if no hearing is requested).

Section H: Reinstate

1. Cancelled Contract

• The tenant and owner may sign a Mutual Lease Termination Agreement (or either party serves another type of written notice to terminate) and subsequently the tenant decides to remain in-place and the owner agrees.
• Write “Null and Void” across the top of the MSHDA 96 or 30-day notice. The tenant and owner re-sign and re-date the document (provide the tenant, owner, and the MSHDA file with a copy).
• If applicable, the HA/S must write “Null and Void” across the top of the MSHDA 95, sign and date the document and provide the tenant, owner, and the MSHDA file with a copy.
• Follow normal re-examination procedures utilizing the MSHDA 34 to reflect the Contract Rent, Tenant Rent, HAP, etc.

2. Reinstatement in ELITE

• If a HA “Null and Voids” a move and an overpayment notice has already been issued to recapture monies owed from the termination, the overpayment letter/request must be voided (provide the landlord, the tenant, if applicable, and the MSHDA file with a copy.)
• If there are no changes in amounts, forward the MSHDA 1344-247 and copies of the “Null and Void” documents to the assigned DT:
  1. Indicate “Reinstatement” in the comments section of the MSHDA 1344-247;
  2. The DT reverses the End of Participation (EOP) in Elite. Payments will resume.
  3. HA must have an available increment for use with the reverse EOP.

  Note: There cannot be a lapse (i.e. break) in payments.

• If amounts change, send a MSHDA 1344-247 and copies of the “Null and Void” documents to the assigned DT:
  1. Indicate “Reinstatement with Change and two Authorizations Necessary” in the comment section of the MSHDA 1344-247. The DT reverses the EOP;
  2. The HA enters the interim re-examination in Resident Processing in Elite;
  3. The HA forwards all interim re-examination paperwork (1344-247, MSHDA 34) to the assigned DT who authorizes.

Section I: Subsidy Overlaps

• After proper 30-day notice, if the family moves and leases a new unit within the same month, a ‘subsidy overlap’ may be allowed. If the family moves for a valid reason during the 30 days (and has satisfied all other program criteria), a ‘subsidy overlap’ could occur (i.e. payment could be made for both the old and new units). An example of a valid reason would be the family supplies copies of police reports which state that the family will be in danger if they continue to reside in the unit.
• With written RS approval (must be included in DT paperwork) MSHDA may pay:
  1. The full HAP for the last month at the old unit (full HAP for the month because the owner keeps the HAP for the entire month in which the family moves) and;
  2. Pro-rated HAP for the second unit; pro-rated from the rental assistance begin date.
• To process “mid-month” re-exam/new address contracts, the previous contract must be cancelled effective the actual date the tenant moved from the unit (versus the last day of the month).

Section J: Elite Procedures

• The HA must enter/update all information in Elite as directed in the MSHDA Elite User Manual.
• Enter the Owner/Unit information in Elite.
• Print the Case Data Summary (MSHDA 1344-247). (Refer to Elite Manual for instructions to print the MSHDA-1344-247 )

Section K: Execute Documents

The HA refers to the Forms Reference Submission Chart (MSHDA 284) to ensure all forms are executed. Forms should be typed (or clearly written, including FSS, if applicable). Use of correction fluid is not allowed.

The HA obtains appropriate signatures and distributes documents.

After the documents have been executed, they cannot be changed or altered in any way unless the appropriate parties initial the change. Strike-outs are not allowed unless properly initialed. (Note: HA must not sign or initial the landlord lease.) Use of correction fluid is not allowed.

1. Complete Part A of the HAP Contract

• Contract Information (HUD 52641, Pages 1&2). Obtain landlord & HA signatures.
• The HA must make every effort to have the HAP Contract fully executed prior to the effective date of the initial lease term.
• If the HAP Contract cannot be executed by the begin date of the initial lease term, the HAP Contract may be signed within 60 days after the effective date of the initial lease term IF:
  1. The Lease Agreement was executed on or before the effective date of the initial lease term (Note: The Lease Agreement cannot be signed after the initial effective date); AND
  2. The tenant and other appropriate family members have occupied the unit since the beginning of the initial lease term.
• The HAP Contract MUST be signed the same date or after the initial lease begin date but MAY NOT be executed (and/or dated) after 60 days from the effective date of the initial lease term under any circumstances.
  1. After the 60 days, the corresponding Lease Agreement is null and void and must be re-executed with an effective date no more than 60 days after the effective date of the initial lease term.
• Once executed, the HAP Contract cannot be changed or altered in any way unless all parties initial the change. ‘Strike outs’ are acceptable only if properly initialed by all parties.
  1. The Contract Rent cannot be changed for the duration of the initial contract.
  2. If the family residing in the unit is elderly or disabled (as evidenced by a properly completed MSHDA 16 or MSHDA 100) and requires the services of a full-time live-in aide, the term “Full-time Live-in Aide” must be included as a member of the family on the HAP Contract. Refer to Chapter III, Section B-12, Full-Time Live-in Aides.

2. Part B of HAP Contract

• Body of Contract (HUD-52641, Pages 3 – 10)
• Once the owner and unit are approved, the HUD-issued HAP Contract for the HCV Program (HUD-52641) may be executed. This HAP contract must be executed between MSHDA and owner for units newly occupied by families with a HCV.
• The term of the contract runs concurrently with the lease term. The HAP contract terminates if the lease terminates. The Lease dates for item 5 on the HAP Contract must match the Lease begin and end dates.

3. Tenancy Addendum (HUD 52641A)

The Tenancy Addendum (HUD 52641A) must be attached to the Lease and included in the MSHDA file.

4. Adjustment Notification (MSHDA-34)

Because the Contract and Lease do not identify the amount of the Tenant Rent, an Adjustment Notification must be prepared that identifies the payment breakdown.

• If applicable, prorated payment amounts may be identified in the MSHDA Optional Use Only section of the form.
• Prorated amounts are calculated by dividing the actual number of days in the prorated month and multiplying by the number of days of the pro-ration.

Section L: Chart of Required Paperwork for Moves

The HA must submit one copy of the following documents to the assigned DT to process a move. All are MSHDA forms except the 30-day notice.

*Note: The 1634b is only required when the participant leaves the program; issue (and submit to the DT) at the time the participant is terminated from the program.

Section M: Submit File Material

The HA verifies all necessary documents are present, copies them, and organizes the file in proper order (refer to MSHDA 284). The HA/S forwards original documents to the assigned DT who audits the file material and approves for landlord payment.

Section N: Tickler Systems (If Applicable)

The HA should have a tickler system in place for the following situations:

1. No Household Income (MSHDA 148).
2. Delayed Exterior Repair Agreement (MSHDA 86)
3. Zero HAP Contracts
4. Repayment Agreement/delinquency monitoring.

Section O: Definitions

Move: A move within the same county in Michigan where the tenant currently resides.

Portability: A move to or from the State of Michigan or from another Michigan PHA to MSHDA.

Transfer: A move within the State of Michigan, but out of the county where the tenant currently resides.

Section P: Applicable Forms List