Housing Voucher Programs - Policy and Procedures Manual

Chapter XI Sections

1. Payee Registrations
2. Proof of Property Ownership
   1. Acceptable Proof of Ownership
   2. Changes in Property Ownership
   3. Property Ownership not Verified
3. Change in Individual Ownership
4. Change in Management Company
5. Foreclosures/Forfeitures of Property
6. No Receipt of HAP
7. HAP Benefit Reduced by MAIN
8. Late Fees
9. Owner Disapproval and Restriction
10. Applicable Forms List

Chapter XI: Landlord Issues

Section B: Proof of Property Ownership

The HA submits the PRP/Form W-9 or change of mailing address to assigned MSHDA staff person and forwards a copy to the MSHDA Lansing office either by FAX or U.S. Mail or other carrier.

The MSHDA staff person enters the PRP/W-9 information into Elite, notifies the HA of the valid mail code, and forwards necessary documentation to MAIN.

1. Acceptable Proof of Ownership

At the time that an applicant is seeking housing, the Rental Unit Information (MSHDA 51b) form must be completed and include proof of ownership information. The property owner/landlord must provide the documentation required for proof of ownership and return the documentation to the assigned HA.

The acceptable proof of property ownership hierarchy is:

1. A title insurance policy for the property that shows the landlord as the owner of the property,
2. Title Commitment or Title Search
3. Copy of a recorded warranty deed, quit claim deed, or covenant deed.
4. Proof from a county or city website. Note: In some instances, it will be possible to ascertain proof of property ownership via the County or City’s website where the property is located. Property look-up services provided on-line vary with each government jurisdiction. For example, the Washtenaw County Register of Deeds allows free access to property tax information, while in Wayne County you must establish a business account and pay for all services on an individual basis.

Proof of ownership required for one to four (1-4) Unit Properties: Landlords may submit a title insurance policy, title commitment or title search showing the landlord as owner. The owner of the property will be described in Schedule A, No. 3 as having a "Free Simple Interest." Ownership must be confirmed for new admissions to the program for properties with one to four units.

As long as the tenant continues to reside in that unit, re-verification of property ownership is unnecessary. If at re-examination it is noted that only a Certification of Property Ownership (MSHDA 422) is in the file, the HA must verify property ownership and submit appropriate documentation with the re-examination transaction.

Note: If an authorized representative certifies ownership of a property on behalf of an owner, the Authorized Representative Certification of Property Ownership (MSHDA 423) must be used.

If there are five (5) or more units in the property: The owner/landlord must complete a MSHDA 51b for each assisted unit. However, proof of property ownership is not required.

2. Changes in Property Ownership

At the time that a change in property ownership occurs, new verification of property ownership must be obtained. Follow procedures in Section C - Change in Individual Ownership.

3. Property Ownership not Verified

A HAP Contract cannot be executed in cases where the property ownership cannot be verified. HA who are authorized to approve transactions must verify property ownership before approving a move in transaction.

For paperwork submitted to the central offices, if appropriate verification is not received by the Departmental Technician (DT), the DT will contact the HA and allow ten days for paperwork to be submitted. Cases lacking proof of property ownership cannot be approved. If documentation is not received within the ten days, then the case will be sent back to the HA. Note: A faxed copy followed by the original document will be acceptable.