Housing Voucher Programs - Policy and Procedures Manual

Chapter XI Sections

1. Payee Registrations
2. Proof of Property Ownership
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 C: Change in Individual Ownership

Changes in ownership occur when the individual, corporation, or partnership sells or transfers the property to another entity. If the new owner is not in Elite, a new PRP/W-9 must be obtained and forwarded to the Payee Registration unit. If this change affects multiple residents serviced by multiple HA, then forward a copy to the other affected HA to update all units changing ownership. A change in ownership does not require execution of a new contract/lease.

Required Documentation

1. When a change of ownership occurs, the HA must obtain a completed Assignment of Housing Assistance Payments Contract and Lease (MSHDA 411) signed by both the former and new landlords. The MSHDA 411 must identify all residents or a list of affected residents to be included with the MSHDA 411 and have an effective date for payments to change payees. The MSHDA 411 should be accompanied by one of the following legal documents:
   1. Bill of Sale; or
   2. Warranty Deed/Quit Claim Deed; or
   3. Land Contract; or
   4. Other Legal Document.

   Note: If one of the parties does not sign the MSHDA 411, MSHDA must receive one of the legal documents.

2. Documentation for other circumstances which change ownership includes:
   1. Landlord Death – A copy of the court order appointing a Personal Representative if the landlord died “Intestate.” The Personal Representative is normally required to obtain a FEIN from the IRS.
   2. Surviving Spouse – A copy of the death certificate and proof of joint ownership of property (i.e. current property tax statement or deed to property).
   3. Not survived by spouse – A copy of the death certificate and a copy of the landlord’s Last Will and Testament.
   4. Divorce – Copy of court order transferring property.

The effective date of the change of ownership in Elite should be the first day of the month following the transfer of property unless the MSHDA 411 states another effective date. The HA must process an Interim Re-examination in Elite to identify the date of the ownership transfer. Also review a HAP register by HAP Payee report to determine if other active residents are affected by the ownership change (if the change involves more than one HA, the originating HA should advise the other agents of the change). If there are multiple residents, Elite requires an Interim Re-examination entry for each tenant to correct the owner.

If the new landlord has an outstanding account balance due MSHDA, Elite will automatically deduct the balance from future payments issued to the landlord.

Note: The PHA may deny approval of Assignment of the HAP Contract for any of the reasons identified in Section I.