Exhibits
Effective: March 2009
The Annual Re-examination (AR) procedures apply to Housing Choice Vouchers (HCV), the Moderate Rehabilitation Program (MRP), Single Room Occupancy (SRO) Program and project-based vouchers that were converted from HCV by MSHDA to its HCV project-based voucher allocation.
Housing Agents (HA) must complete Annual Re-examinations (ARs) promptly, regardless of the completion of other annual activities (e.g. income verifications, HQS inspection, and/or rent negotiations).
The income re-examination must be processed on the AR date regardless of whether the family stays in place, moves, or intends to move. A review of the family’s income must take place at least annually.
The U.S. Department of Housing and Urban Development (HUD) presents the following issues and parameters for AR:
The AR procedures comply with HUD/SEMAP mandates. Procedures emphasize timely completion/transmission of ARs regardless of whether other annual activities have been completed.
When the landlord requests a contract rent increase, the HA must research and submit rent reasonableness data (i.e. comparables). See Chapter VII. Rent Reasonableness.
Any AR that does not intend to renew would be considered either an End of Participation (EOP) or AR “Searching” which will address those participants who intend to move.
Refer to Exhibit 1 for the suggested AR Process Timeline chart. Compliance with deadlines identified on the chart ensures an on-time AR.
Following each monthly payroll (the first business day of the month), the Housing Agent (HA) must print the Upcoming Annual Re-examinations in Elite for the next 120 days. Refer to Elite User Guide. This report identifies all participants and landlords who must be contacted for AR. Print updated reports periodically to eliminate the possibility of missing a required re-exam (due to initial lease terms of less than one year or late processing of initials/moves). For example, after the May 1, 2005 payroll, print the report for the August 31, 2005 expirations.
MSHDA determines a reasonable submission date (cut-off) schedule to ensure timely MTCS transmissions and landlord/tenant payments.
Commence the AR income process 120 days in advance of the AR date to ensure the ability to meet HUD’s 100% on-time AR requirement. Refer to the Elite Cut-Off Schedule. Submit AR material to the Lansing or Detroit MSHDA office by the established cut-off date. A Department Tech (DT) reviews the material and approves accurate cases in Elite before the ‘Last Day to Cancel or Enter Abatement to Stop Payment’ date noted on the cut-off schedule. Even if abating, the AR must still be processed on time. The HA must enter abatement in the Elite by the ‘Last Day to Cancel or Enter Abatement to Stop Payment’ date on the cut-off schedule.
Any AR paperwork received after the cut-off date is considered late and cannot be guaranteed approval. If time permits, the DT will authorize; however, HA submissions will be monitored for DT cut-off date compliance. Late transactions adversely affect MSHDA’s on-time AR rate with HUD and timely payments to landlords.