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
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
    1. For Tenant-Caused Delays
    2. Partial Submission and Good Faith
    3. For Other Delays
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 M: Required Notice of Tenant Rent Increases/Effective Dates

State law requires a 30-day advance written notice to the tenant of all Tenant Rent increases.

• The only exception occurs when the tenant directly causes the delay in notice (discussed below).

Since the AR process begins 120 days in advance, even with tenant delays, in most instances 30-day advance written notice should be achievable.

• Provide the notice via the Adjustment Notification. All MSHDA 34’s identifying an increase in Tenant Rent must provide at least a 30-day notice prior to the AR (anniversary) date.

Changes (increases or decreases) in Tenant Rent almost always become effective at the AR (anniversary) date.

• Rent decreases do not require a 30-day notice. Therefore, decreases in tenant rent usually take effect no later than the AR (anniversary) date.

1. For Tenant-Caused Delays

Note: Tenant-caused delays apply to late receipt of initial documents (1890, 9886, 51a). A tenant delay for income/asset/expense verifications only occurs if the source has not returned the verifications directly to MSHDA and the tenant does not comply with MSHDA’s request for tenant-provided original documents (i.e. statements, receipts, etc.).

If the cause of the delay has been documented, which has been documented by timely requests for documents and timely Final Notices, (which includes the waiver language):

• and the tenant-caused delay results in a tenant rent INCREASE, waive the 30-day notice and increase the tenant rent on the AR anniversary date. Use documents from the most recent re-examination to process the current AR and document the late receipt of verifications forms on the Supplemental Information Form (MSHDA 77). Process an Interim Re-examination the first of the month following receipt of the verifications.
• and a tenant-caused delay results in a tenant tent DECREASE and the AR has not yet been processed, process the AR with the lower tenant rent amount. If the AR has been processed using previous amounts, process an Interim re-examination the first of the month following receipt of the verifications. Document the late receipt of verification forms on the MSHDA 77.
• The tenant has a maximum of 30 additional days after the re-examination effective date (anniversary date) to complete the AR process.
  1. If the tenant does not submit the remaining documents after 30 days from the AR effective date, cancel following instructions in Section N, “No Documents Submitted by Anniversary Date.”
  2. Note ‘Tenant-Caused Delay’ on the Case Data Summary (MSHDA 1344-247).

2. Partial Submission of Documents and Good Faith Effort Put Forth

1. In order to meet HUD’s 100% on time AR requirement, perform the re-examination for the tenant using the previous income verifications. When receipt of the documents occur, process an Interim Re-examination (without 30 days’ notice because tenant-caused delay.)
2. Do not terminate a tenant who makes a ‘good faith effort’ to recertify within the 120-day period for failure to submit verification documents. Management defines a ‘good faith effort’ as at least partial submission of the verification documents. Note: Tenant-caused delays apply to late receipt of initial documents (1890, 9886, 51a). A tenant delay for income/asset/expense verifications only occurs if the source has not returned the verifications directly to MSHDA and the tenant does not comply with MSHDA’s request for tenant-provided original documents (i.e. statements, receipts, etc.).
3. The tenant has a maximum of 30 additional days after the re-examination effective date (anniversary date) to complete the AR process.
4. If the tenant does not submit the remaining documents after 30 days from the AR effective date, cancel following instructions in Section N, “No Documents Submitted by Anniversary Date.”

3. For Other Delays

If the tenant did not cause the delay (or proper documentation does not exist), the law requires a 30-day notice. Maintain the current tenant rent and provide the proper notice before increasing the rent. Two Elite transactions and Adjustment Notifications are required to complete the AR.

1. Process the AR first in Elite. The Adjustment Notification reflects the old Contract Rent, the previous income information, and the new HAP. (Enter the applicable PS effective date and new inspection dates in Elite.) Note “1st MSHDA 34/30 day notice using previous income” in the comments section of the MSHDA 1344; and
2. Second, process an Interim Re-examination effective on the first of the month following the appropriate 30-day notice period. The second Adjustment Notification reflects the new Contract Rent, the new Tenant Rent, and the new HAP. (Enter the applicable PS effective date in Elite.) Note “2nd MSHDA 34/30-day notice” in the comments section of the MSHDA 1344.

If the delay results in a Tenant Rent DECREASE, process the AR with the lower tenant rent amount. If the AR has been paid, process a change active contract effective with the AR date.

Document late receipt of verifications on the MSHDA 77 form to explain why the previous income information is being used.