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 I: Owner Disapproval and Restriction

When this action occurs, the owner does not have a right to participate in the program. MSHDA disapproves owners for the following reasons:

1. HUD informs MSHDA that the owner has been disbarred, suspended or subject to a limited denial of participation under 24 CFR Part 24.
2. HUD informs MSHDA that the federal government has instituted an administrative or judicial action against the owner for violation of the Fair Housing Act or other federal equal opportunity requirements and such action is pending.
3. HUD informs MSHDA that a court or administrative agency has determined that the owner has violated the Fair Housing Act or other federal equal opportunity requirements.
4. Unless their lease was effective prior to June 17, 1998 (and the family has not moved), the owner cannot be a parent, child, grandparent, grandchild, sister, or brother of any family member. MSHDA may waive this restriction as a reasonable accommodation for a family member who has a disability.
5. The owner has violated obligations under a HAP contract under Section 8 of the 1937 Act (U.S.C.1437f).
6. The owner has committed fraud, bribery, or any other corrupt acts in connection with any federal housing program.
7. The owner has engaged in drug-related criminal activity or any other violent criminal activity.
8. The owner has a history or repeated practice of non-compliance with HQS for units leased under tenant-based programs or with applicable housing standards for units leased with project-based HCV assistance or under any other federal housing program.
9. The owner has a history or repeated practice of renting units that fail to meet State or local housing codes.
10. The owner has a history or practice of failing to terminate tenancy of residents of units assisted under the HCV program or any other federally assisted housing program for activity by the tenant, any member of the household, a guest or other person under the control of any member of the household that:
    1. Threatens the right to peaceful enjoyment of the premises by other residents; or
    2. Threatens the health or safety of other residents, of agents of MSHDA, or of owner employees or other persons engaged in management of the housing; or
    3. Threatens the health or safety of, or the right to peaceful enjoyment of their residences, by persons residing in the immediate vicinity of the premises; or
    4. Performs drug-related criminal activity or violent criminal activity.
11. The owner has not paid State or local real estate taxes, fines or assessments.
12. The owner has failed to comply with regulations, the mortgage or note, or the regulatory agreement for projects with mortgages insured by HUD loans or loans made by HUD.

If an owner has committed fraud or abuse or is guilty of frequent or serious contract violations, MSHDA may restrict the owner from future participation in the program for a period of time commensurate with the seriousness of the offense. MSHDA may also terminate some or all of the contracts with the owner. Before imposing any penalty against an owner, MSHDA reviews all relevant factors pertaining to the case, and considers such factors as the owner’s record of compliance, the number of violations, and the age of such violations. Note: If an “Entity Alert” appears on Elite which states that the owner is prohibited from participating in MSHDA’s program as the result of an investigation into fraud or other illegal activities perpetrated by said owner, contact the Fraud Investigator.