Housing Voucher Programs - Policy and Procedures Manual

Chapter VI Sections

1. Required Initial Verifications
2. Family Locates Unit
3. Eligibility of Unit
4. Landlord Screening/Selection of Tenant
5. Landlord Registration Requirements and Procedures
6. Owner Disapproval and Restrictions
7. Affordability (40%) Cap
8. Rent Reasonableness
9. Inspection
10. Lease Requirements
11. Changes in Family Size/Income Prior to Effective Date
12. Executing Initial HAP Contract
    1. Complete Part A of the HAP Contract
    2. Adjustment Notification (MSHDA-34)
    3. Part B and C of HAP Contract (HUD-52641)
    4. Tenancy Addendum (HUD 52641-A)
    5. Lead Based Paint Disclosure Addendum (MSHDA-1637b)
    6. Submit File Material
13. Landlord Unit Information in Elite
14. Tenant/Landlord Late Fees
15. Portability Option
16. Project-Based Assistance
17. Applicable Forms List

Exhibits

• Exhibit 2

Chapter VI: Initial Contracts

Section L: Executing Initial HAP Contract

1. Complete Part A of the HAP Contract

Contract Information (HUD 52641, Pages 1 and 2)

1. Obtain the landlord and HA signatures. Original signatures are required. FAXed copies of signatures are not accepted.
2. List the full names of all approved household members (including the head of household) in item 4. If a live-in aide is required as a member of the household, the words “Live-in Aide” must be entered under Item 4, Household.

The HA must make every effort to have the HAP Contract fully executed prior to the effective date of the initial lease term.

• If the HAP Contract cannot be executed by the begin date of the initial lease term, it must be executed no later than 60 calendar days from the beginning of the lease term.
• No HAP payment may be made to the owner until the HAP Contract has been executed.
• If the HAP Contract is executed during the 60-calendar day period from the beginning of the lease term, HAP payments will be made to the owner to cover the portion of the lease term before the execution of the HAP Contract (a maximum of 60 days.)
• The HAP Contract MAY NOT be executed (and/or dated) after the 60 days from the effective date of the initial lease term under any circumstances. Any HAP Contract executed after the 60 day period is null and void and no payments may be paid to the owner.

Once executed, the HAP Contract cannot be changed or altered in any way unless all parties initial the change. ‘Strike outs’ are acceptable only if properly initialed by all parties.

• The Contract Rent cannot be changed for the duration of the initial contract.

2. Adjustment Notification (MSHDA-34)

• Because the Contract and Lease do not identify the amount of the tenant rent, an Adjustment Notification (MSHDA-34) must be prepared that identifies the payment breakdown.
• If applicable, pro-rated payment amounts may be identified in the MSHDA Optional Use Only section of the form.
• Pro-rated amounts are calculated by dividing the actual number of days in the pro-rated month and multiplying by the number of days of the pro-ration.
• When calculating the pro-ration, round the final amount to the nearest dollar (i.e. 1-49 DOWN, 50-99 UP) before issuing a payment, overpayment notice, or an abatement.
• HUD mandates the 30-day pro-ration method for public housing and confirms the actual days as the best method to calculate the rent pro-ration for HCV vouchers. For example: HAP equals $500, and the assistance effective date is March 15. The March HAP equals $500 (HAP) divided by 31 (number of days in March), which equals 16.1290 (round to fourth decimal) multiplied by 17 days (effective date plus remaining days in March) which equals $274.19 rounded DOWN to $274.

3. Part B and C of HAP Contract (HUD-52641)

Body of Contract (Part B), Pages 3-7 and Tenancy Addendum (Part C), Pages 8-10.

1. Once the owner and unit are approved, the HUD-issued HAP Contract for the HCV Program (HUD-52641) may be executed. This contract must be executed between MSHDA and the owner for units newly occupied by families with a HCV.
2. The term of the contract runs concurrently with the lease term. The HAP contract terminates if the lease terminates. The Lease dates for item 5 on the HAP Contract must match the Lease begin and end dates.
3. The entire HAP Contract (Parts A-C) must be submitted with every file.

4. Tenancy Addendum (HUD 52641-A)

The Tenancy Addendum (HUD 52641A) is considered part of the Lease. It must be attached to the tenant's copy of the Lease and included with every MSHDA file submission.

5. Lead Based Paint Disclosure Addendum (MSHDA-1637b)

The Disclosure of Information on Lead-Based Paint and its Hazards is a required attachment to new and move transactions for units constructed prior to 1978.

6. Submit File Material

Organize the file in proper order. See MSHDA 284 Forms Reference Submission Chart. Agents should copy all documents for future reference. Forward all original documents to MSHDA for review and payment authorization. Complete the Case Data Summary and submit it on top of all file material.