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Chapter XI: Landlord Issues

Effective: June 2006

Introduction

This chapter contains uniform procedures regarding landlords who participate in the U.S. Department of Housing and Urban Development (HUD) Housing Choice Voucher (HCV) Program.

Section A: Payee Registrations

1. Registering for Electronic Funds Transfer (EFT)
  • Housing Agents (HAs) should strongly encourage HCV landlords to maintain an account on the Contract and Payment Express (CP&E) website - www.cpexpress.state.mi.us. An account will help reduce the time for issuing the landlord’s initial payments and allows the landlord to:
    1. Update a mailing address for payments issued by through the State’s accounting system, and
    2. Register for Electronic Funds Transfer (EFT),
    3. If registered for EFT, landlords can also track and review EFT payments issued to their account.
  • Contract and Payment Express Account The CP&E website has step-by-step instructions, which lead prospective landlords through the registration process. If the prospective landlord has questions about registration for EFT, they can contact the EFT Coordinator at (517) 373-9344 or the Payee Registration unit at:

    State of Michigan
    Payee Registration
    P.O. Box 30026
    Lansing, Mi 48909

    Payee Registration Helpline: (517) 373-4111 or (888) 734-9749; Fax: (517) 373-6458.
    Office Hours: Monday – Friday, 7:30 a.m. – 4:30 p.m.

  • Landlords (vendors) will receive an account password after completing the online registration. This account allows them to update their account information online and review their payment history.
  • EFT Account Limit - EFT payments can only be sent to one bank account. Landlords cannot setup EFT’s to multiple bank accounts and will only be able to register for EFT on one account. Any other payments issued to the same Tax ID number must be issued as paper warrants, or be transferred (EFT) to the one bank account established for the payee’s Tax ID number.
  • Electronic Funds Transfer Documentation
    1. EFT payments do not receive a paper detail breakdown of the payment. If a landlord has questions regarding payments, they should be referred to their “contractor and payment express” account. MSHDA does not have access to a comprehensive breakdown of payment details, account numbers, or the name of the landlord’s financial institution. Refer the landlord to the Payee Registration unit for details on the routing and account numbers. Landlords can also request a paper detail from their financial institution, usually at a cost.
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2. Completing the Payee Registration Packet (PRP)
  • All landlords who wish to participate in the HUD HCV Program must register on the Michigan Administrative Information Network (MAIN). To register via paper documents, the Payee Registration Unit requires a W-9 form to be completed. In conjunction with the W-9, MSHDA requires the MSHDA-219 in order to register a landlord for participation in the Housing Choice Voucher (HCV) programs.
  • Items to note regarding the PRP:
    1. The MSHDA 219 and W-9 addresses do not need to match.
    2. The MSHDA 219 information is used to enter a mailing address and contact information into Elite.
    3. Landlord must provide a valid street address to register for payments.
    4. Both forms require the landlord’s signature.
    5. MAIN utilizes the W-9 mailing address to issue the 1099.
    6. The Internal Revenue Service (IRS) requires MAIN to have a W-9 on file for all vendors (landlords) to which the State issues payment.
    7. All PRPs/Form W-9s require the signature and date of the individual owner or official of the corporation (including title).
    8. The tax identification number on the W-9 must match the IRS record for the registered landlord’s name.
    9. If the landlord’s name and tax identification number do not match the IRS records, the Payee Registration unit will issue a B-Notice (form identifying discrepancy) which could result in backup withholding being deducted from a landlord’s rental payment if the discrepancy is not corrected or addressed.

      Note: The W-9 is not required if the Landlord registers through an online account.

  • If the landlord is not on MAIN, or has a different name/Social Security Number (SSN) or Federal Employer Identification Number (FEIN)/mailing address, the landlord must provide documentation as follows:
    1. PRP Form completion
      1. The landlord must complete all boxes on each form. If the payee uses a Social Security number, an individual’s name must be identified in the “Name of Owner” box on the MSHDA 219 and on the first line of the Form W-9. For joint owners, write the second individual’s (or if issuing the HAP in care of) name on the first line of the “Mailing Address.” Enter the actual mailing address on the MSHDA 219. On the W-9 enter (and circle) the name of the individual whose SSN is identified on the MSHDA 219. Write the second owner’s name on the second line (if joint). Indicate the proper type of ownership (i.e. individual, partnership, or corporation) on both forms.
    2. Providing a Valid Street Address
      1. Landlords must provide and maintain a valid street address on file in order to participate with the HCV programs. The may provide a P.O. Box as the remittance address for payments and correspondence for the HCV programs as long a valid street address is also maintained on file.
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3. Types of Ownership

Individual Ownership Versus Partnership

  • For IRS purposes, the definition of Partnership does not include a husband and wife unless the couple provides a Federal Employer Identification Number (FEIN). Partnerships require a FEIN whose configuration is: 00-0000000.

Corporation

  • All Payee’s which register as a Corporation require the use of a FEIN. A Corporation cannot use a SSN. Any PRP’s /Form W-9s indicating a business type of Corporation with a SSN (000-00-0000) must be corrected by the landlord prior to submission. Incorrect forms will be returned to the landlords by the Payee Registration unit.

Foreign Ownership

  • Although rare, if a foreign owner has a Social Security number, they must complete a W-9. If they do not have a Social Security number, a Form W-8 (obtainable at any IRS office or we can supply) is required. The Payee Registration Unit will assign the foreign owner with a “dummy Tax ID #” for MSHDA to use in Elite and MAIN. The Departmental Tech (DT) will enter the foreign owner using their Social Security number or the dummy Tax ID# supplied by MAIN.
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4. Landlord Address Changes
  • To process an address change, the landlord/owner must complete one of the following:
    1. A new PRP / Form W-9; or
    2. A signed and dated letter, containing old and new addresses, tax identification number, and names of all current residents; or
    3. The applicable sections of the Annual Re-examination Notice (ARN) (MSHDA 52). The Housing Agent (HA) must notify the assigned DT of the change with a copy of ARN prior to submitting annual re-examination paperwork.

    Note: The above document (ARN) must be identified as a landlord address change. In order to issue payments, a landlord’s information must be entered into Elite with a valid mail code and they must be registered on MAIN. Refer to the Elite user guides for details on Elite entry.

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5. Submission of Payee Registration Forms
  • The HA submits the PRP/Form W-9 or change of mailing address to Payee Registration and forwards a copy to the DT for the central office file:
    1. Facsimile (FAX) preceded by an e-mail advising that the PRP/Form W-9 or address change is being sent. Send original PRP/Form W-9 or address change documentation. MAIN requires an original PRP/Form W-9 be on file, or a signed document from the owner to change address; or
    2. Regular United States Mail or other carrier. Staple Form W-9 on top of the MSHDA 219 and provide one photocopy or documentation identifying the address change.
  • The HA enters the PRP/W-9 information into Elite, Entity Management, and attaches the HAP Payee to the Unit under the HAP Payee/Owner entry tab of the HCV – Unit Entry module. If the mail code is unknown, use 888 to complete the Entity Management entry.
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