Housing Voucher Programs - Policy and Procedures Manual

Chapter VIII Sections

1. Upcoming Annual Reexaminations and Cut Off Dates
2. Tenant Issues
3. Landlord Issues
4. Housing Quality Standards (HQS) Inspection
5. Rent Negotiation/Rent Reasonableness
6. Adjustment Notification to Tenant
7. Zero HAP
   1. Upon identification of Zero HAP
   2. Zero HAP Notification
8. Family Self Sufficiency (FSS)
9. Enhanced Vouchers
10. Moves at Annual Re-examination (Anniversary) Date
11. Annual Re-examination - Searching
12. Non-Renewing Annual Re-examination
13. Required Notice of Tenant Rent Increases/Effective Dates
14. Terminations
15. Elite
16. Executing Documents and Submission of File Materials
17. Case Material Deficiency Corrections
18. Subsidized Developments
19. Manufactured Home Space Rent (MHSR)
20. Tickler Systems Maintained by Housing Agents /Agents
21. SEMAP Monitoring Tools
22. Applicable Forms List

Exhibits

• Exhibit 1

Chapter VIII: Annual Re-Examinations

Section G: Zero HAP

If the family's income results in no HAP payment by MSHDA (i.e. TTP equals or exceeds the Gross Rent or PS, whichever is applicable) the family remains eligible for assistance provided they remain in the same unit and have an active HAP Contract (HUD 52641).

Note: The family may move during the grace period (6 months) if the move results in a HAP payment at the new unit. Under no circumstances can a new contract (e.g. in-place or move) be negotiated which results in a zero HAP.

1. Upon identification of Zero HAP

Upon identification of the Zero HAP payment, proceed as follows:

1. Verify the income in accordance with normal procedures and begin the AR in Elite.
2. Rent reasonableness requirements apply to gross rent increases or decreases due to contract rent or utility changes.
3. The unit must pass HQS and the owner must make all repairs within the prescribed time frame. If the owner refuses to make the repairs, the tenant may choose to make the repairs, or the contract must be terminated.
4. Re-certify the case reflecting the zero HAP for the entire renewal period of one year. The HA must prepare an Adjustment Notification reflecting the zero HAP for the upcoming one-year period. Note: If the zero HAP commenced prior to the AR date, honor the previous tickler date.
5. The HA must maintain a tickler list of all clients who have an active Contract reflecting zero HAP. (Refer to the Elite Manual for further information.) The list must include the tenant name, increment number and Zero HAP end date.

2. Zero HAP Notification

Complete the following actions for Zero HAP notification:

1. Notify the tenant and landlord of the zero HAP via the Zero Housing Assistance Payment Notification (MSHDA 25).
2. Utilize the Adjustment Notification (MSHDA 34) to reflect the changes for the entire upcoming one-year period.
3. Identify the HAP grace period as 6 months (or remaining period from the original commencement date) in the 'Additional Changes' Section of the Adjustment Notification (i.e. the six-month eligibility period expires on XX/XX/XX - date).
4. Forward the Zero HAP Notification and Adjustment Notification at least 30 days prior to the effective date of the zero HAP payment.
5. If the family's income subsequently decreases during the allowable time frame (6 months), process an Interim Re-examination in accordance with Chapter IX.
6. If the family's income does not decrease and no HAP payment has occurred for six months (180 days depending on the Contract revision date) or the remainder of the original commencement period, the Contract terminates. Process an End of Participation (EOP) in Elite.
7. Notify the tenant and landlord via the Contract Termination Notice (MSHDA 95). Forward the MSHDA 95 and 1634b at least 30 days in advance of the termination date. Check the appropriate 'Reason for Termination' (i.e. 180 days) in the box at the center of the MSHDA 95 form.
8. HA completes and forwards a MSHDA 1344 to the appropriate Lansing or Detroit office and a DT will cancel the case from Elite (EOP).