Housing Voucher Programs - Policy and Procedures Manual

Chapter X Sections

1. Required Moves
2. Moves With Continued Assistance
3. HA Responsibilities in a Move
4. Denial of Move Request
5. Tenant Locates Unit
   1. Proper Notice Given
   2. Rental Unit Information (MSHDA 51b)
   3. Prohibited Relatives
   4. Rent Reasonableness (MSHDA 38)
   5. Affordability
   6. HQS
   7. Owner Delinquent
   8. Payee Registration (MSHDA 219)
   9. Income Verifications
   10. Voucher Issuance Date
6. Moves Resulting in an End of Participation
7. Unauthorized Moves
8. Reinstate
9. Subsidy Overlaps
10. Elite Procedures
11. Execute Documents
12. Chart of Required Paperwork for Moves
13. Submit File Material
14. Tickler Systems
15. Definitions
16. Applicable Forms List

Chapter X: Moves

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.