Tenant Assistance Programs - ky Housing

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Transcript of Tenant Assistance Programs - ky Housing

Tenant Assistance Programs

Stacie M. Sutton

Assistant Director

(502) 564-4577 x772 or

[email protected]

Tenant Assistance Programs – MOR Staff

Melissa J. Corbett

PBCA Asset Manager

Extension 739

[email protected]

Anita Toll Nichelle Hillis

MOR Asset Specialist II MOR Asset Specialist I

Extension 728 Extension 268

[email protected] [email protected]

Management & Occupancy Review

(MOR)

According to the HUD Handbook 4350.1, Chapter 6:

Contract Administrators are responsible for

assessing the management and oversight of

housing projects and for ensuring that owners

comply with the requirements of the HAP contract.

Refer to HUD-9834 form for the complete review checklist

Management & Occupancy Review

(MOR)

• Effective March 18, 2020 HUD suspended MOR activity; however,

by June 2020 MOR activity was re-instated.

– FY2019 - KHC conducted 77 MORs

– FY2020 – 96 were conducted (none completed from March 16 to May 30)

– FY2021 – we hope to increase to nearly 170

To determine a schedule KHC works with HUD staff to create a workplan and

gives priority to those properties who have not had a review in a longer period of

time, those that are considered “troubled” and/or having major issues that have

been brought to our attention such as a below 60 REAC.

How can you be prepared or know what to

expect?

MOR Notification

• KHC staff will contact you by phone and e-mail to schedule the review.

– Be sure that we have your correct contact information. Report these changes timely!

• KHC will follow up by sending you a formal notification letter noting the date/time that was discussed.

MOR Notification

• BE SURE TO READ the information contained in the letter.

• It will include:• A list of information that must be made available

(Addendum C) on the day of the review.

• A copy of the HUD-9834 form.

• A copy of Addendum B – owners must completed & sign this prior to the review so that this document can be turned in to the KHC reviewer the day of the MOR.

Steps you can take to be prepared

• Inspect the property for trash/debris especially the morning of the MOR.

• Consider closing the office for the day to avoid distractions.

• Prepare a separate workspace for KHC staff to work while auditing files. Be sure it is clean!

• To save time, have documentation already pulled and ready for reviewer(s) - refer to Addendum C which

was attached to the notification letter.

Steps you can take to be prepared

• Check your bulletin board to ensure that all required information is posted:

– Fair Housing Poster

– AFHMP - Has it been reviewed and/or updated in the past 5 years?

– Hours of Operation and Emergency Numbers

– Tenant Selection Plan (TSP) – current version

– KHC Contact Poster

– Most Recently: The COVID-19 HUD Brochure

Fair Housing Poster

• HUD-9834 page 8 of 18:

Section 14 question o and p.

Is the fair housing sign posted

in the rental office? Is the FH

logo included in advertising?

• HHB 4350.3 Chapter 2-5E

AFHMP

• HUD-9834 page 8 of 18, Section 14n. Does the advertising comply with existing AFHMP?

• HHB 4350.3 Chapter 2-5 and Chapter 4-12

• HUD Memo issued 9/22/14

Emergency Numbers

• HUD-9834 form –

Section 25 General Management:

f. Are there signs enabling persons to locate the

office?

g. Are after hours and emergency telephone

numbers posted?

TSP

• Does the o/a have a written TSP?

• Does it contain all required criteria from Chapter 4 of the HHB 4350.3?

• HUD-9834 - Section 14, Application Processing and Tenant Selection Plan, page 7 of 18 question g.

KHC Contact Poster

• In 2015 we changed our phone number for the

Project-Based Contract Administration staff:

(804)-797-5078 Toll Free in KY Only

(502) 564-4577

Need a copy?

Ask your MOR Asset Specialist or Call extension 701

or email us at [email protected]

Multifamily Tenant Concerns COVID-19

Brochure April 2020

Posted to the HUD and KHC web sites

HUD web site for all MF - COVID-19 info:

https://www.hud.gov/program_offices/

housing/mfh

KHC web site for COVID-19 Resource

page for all program areas:

http://www.kyhousing.org/Resources/P

ages/COVID-19.aspx

On the Day of the Review

• KHC staff will:

– Arrive at the property at the agreed upon time.

– Request copies of the required documents that

were provided with Addendum C and attached to

the Notification letter.

– Provide staff with a list of the random sampling of

current tenant files and move-out files that will

also be reviewed for compliance.

Documents Requested for Review

File Sampling Requirementsee section 22 Summary of Tenant File Review page 11 of 18

HUD-9834 – Part I Desk Review

• Question 42: Are monthly rental subsidy vouchers submitted on time?

• Question 43 Is the o/a submitting tenant certification data to TRACS to support the voucher billing?

• Question 47 Does review of the EIV reports include info that needs a resolution?

• Question 51 Review complaints, congressional inquiries etc.

Tenant Selection Plan

Rental Application

AFHMP

Waiting List Master Log & Applications

HUD-9834 Part II On-site Review

• KHC staff will walk the property to observe general appearance and will ask about:

– REAC follow up

– Property Security, any concerns?

– Conduct tenant interviews and visit units with level 3 findings and visit a minimum of 2 vacant units (per MOR - FAQ issued by HUD).

– Ask about LBP and obtain copy of certification

HUD-9834 Part II On-site Review

Category C. Maintenance and Standard Operating Procedures

• Preventive Maintenance & how often completed

• Review a list of inventory or review system.

• Review written procedures for inspecting units.

• Review written procedures for completing work orders including written procedure for emergency work orders.

• Review documentation by unit with information on appliances.

• Review sampling of work orders.

HUD-9834 Part II On-site Review

Category D. Financial Management/Procurement

• KHC will not conduct a review/nor rate any of these items

HUD staff are responsible for this area and may choose to conduct a review per the HHB 4350.1, Chapter 6:

HUD-9834 Part II On-site Review

Category E. Leasing and Occupancy:

KHC will ask to review your Master Waiting List Log (MWLL)

• The log must include:

– Date and Time Application was Received

– Name of Head of Household

– Income Level ELI / VL / L

– Identification of the Need for Accessible Unit/Features

– Preference Status

– Unit Size

Note: there should also be notes/updates made to describe any actions taken with each application.

HUD-9834 Part II On-site Review

Category E. Leasing and Occupancy:

• Applications must include:

– Whether the applicant or any member of the applicant's household is subject to state lifetime sex offender registry

– Listing of states where the applicant and members of the household have resided

– Disclosure of SSN for the applicant and all members

– Owner must include as an attachment to the application form HUD-92006

HHB 4350.3, Chapter 4-14 and HUD-9834 Section 14

HUD-9834 Part II On-site Review

• Rejected Applications – reviewed under

Tenant File Portion

HUD-9834 Part II On-site Review

Section 14 Application Processing and Tenant Selection:

• KHC will review information regarding preferences,

extremely low income targeting and screening.

• Are you handling applications consistently, moving folks in

order and according to your TSP and HUD requirements?

• What about in-house transfers? Do you maintain a list does

your TSP address priority.

HHB 4350.3, Chapter 4-14 and HUD-9834 page 7 of 18

HUD-9834 Part II On-site Review

Section 15 Leases and Deposits:

• KHC will review leases, addendums and security deposits.

– Are all sections completed consistently and correctly?

– Have all adult household members signed/dated?

– Rents collected and policy on late fee in compliance?

– Is the security deposit amount listed on the lease correct and does it match all other documents?

• the move-in HUD-50059,

• Security Deposit payment schedule,

• ledger cards etc.

– According to the lease is interest paid on the security deposit?

This information reviewed at the same time as current tenant files.

HUD-9834 Part II On-site Review

Section 16 Eviction/Termination of Assistance Procedures• KHC will review a random sampling of eviction files.

– Are tenants notified timely of termination?

– Documentation in the file to show reasons?

– Right to request meeting (10 calendar days)?

– Has the O/A provided VAWA forms 5230 & 5240?

HHB 4350.3 Chapter 8 – Owners must enforce the lease and house rules, and if lease obligations are not fulfilled, initiate termination proceedings to guarantee

the other residents’ health, safety, and peaceful enjoyment of the property.

Note: Addendum D must be completed to identify any eviction due to household member subject to a state lifetime sex offender registration.

HUD-9834 Part II On-site Review

HUD-9834 Part II On-site Review

Section 17 - EIV System Access and Security Compliance:

• KHC staff will review:

– Owner approval letter for access to EIV

– CAAF/UAAF – initial and current

– Signed copies of Rules of Behavior for those not using system

but accessing reports

– Annual Security Awareness Training Certifications

– Written Policies and Procedures for staff

HUD-9834 Part II On-site Review

Section 18 Compliance with using EIV Data and Reports:

• KHC staff will review:

– Master Reports and Tenant File Reports for documentation of

use and taking appropriate action to correct discrepant data.

– To ensure these are being ran according to HUD requirements

and the owner’s policy.

HUD-9834 Part II On-site Review

EIV Findings are a common MOR issue

• No evidence that the O/A was using the EIV system. The last reports in the file were for 2017.

• Missing Master file reports or tenant file reports.

• No documentation that errors noted in these reports were ever resolved or follow up on.

• No evidence that the Income Discrepancy Report or the No Income Report was printed at the time of the certification.

• Individual(s) with active access to the EIV system had not completed the annual Cyber Security Awareness Training – no certifications available for review.

HUD-9834 Part II On-site Review

Common EIV Findings Cont’d

• Existing Tenant Search reports being ran after the date of move-in.

• A copy of the Owner’s approval letter authorizing the coordinator, Dorothy of Kansas, access to the EIV system as the EIV Coordinator was not available for review. A copy should be placed in the EIV Master File.

• Move-in files reviewed did not contain evidence that the Income Report was ran and reviewed within 90 days after the transmission of the move-in certification to TRACS.

• HHB 4350.3, Chapter 9, Paragraph 9-8, Paragraph 9-12, Paragraph 9-19 and Paragraph 9-20.

HUD requires specific format to document findings

in the MOR Report

Condition: Management is not fully utilizing the Enterprise Income Verification (EIV) System. None of the mandatory EIV reports have been ran since 2018 and none were available for review on the day of the MOR.

Criteria: Per HUD Handbook 4350.3, REV-1, Change 4, Chapter 9, Paragraph 9-19. O/A’s are required to use EIV in its entirety as a third-party source to verify tenant employment and income information to reduce administrative and subsidy payment errors.

Cause: It appears there has been a lack of training and adequate supervision for the new property manager.

Effect: Failure to use EIV will result in a 5% reduction to the total voucher payment for the month following the date the violation was found and each subsequent voucher payment until the violation is cured.

Corrective Action: Provide an action plan for how management will provide the necessary training for staff and ensure that EIV reports are ran and followed up on according to HUD requirements and owner policy.

HUD-9834 Part II On-site Review

21. Tenant File Security

• KHC will ask to see/verify that tenant files and EIV information is kept locked and secured in a confidential manner.

– Is information being properly disposed of?

– Document retention in compliance?

• During the MOR review we ask that other persons not be in the room while going over tenant file information on the day of the review.

– Recommend to lock the office during this time

– Other staff without a business need should not be present while reviewing confidential tenant file information.

HUD-9834 Part II On-site Review

22. Summary of Tenant File Review

• Tenant File Review – See Addendum A

HUD-9834 Part II On-site Review

23. Tenant Concerns

• KHC will ask to review:

– Written procedure for resolving tenant complaints or concerns.

– What about appeals?

– Is there a tenant organization, neighborhood networks, service

coordinator, services offered

– Is the project staff able to adequately perform management and

maintenance functions?

– How is training provided to staff? Access to current/updated

Policies and Procedures, access to current HUD Notices

Addendum A – Tenant File Review

Worksheet

There are 4 types of file reviews:

• Applicant Rejection

• Tenant Move-in

• Tenant Move-out

• Certification/Recertification

Addendum A – Applicant Rejection

KHC will review a sample of rejected applications.

• Was a formal notice sent to the applicant?

• Was it clear the reason for the rejection?

• Did the manager provide copies of the required VAWA forms with the rejection letter to the applicant?

• Was applicant given opportunity for appeal the decision with someone other than the person making the initial decision?

Is it clear with in O/A policy that a third party must review and make final decisions on appeals?

HHB 4350.3, Chapter 4-14 and HUD-9834 Section 14

Addendum A – Tenant Move-In

KHC will review a sample of recent move-in files to determine:

• Was proper eligibility determined and tenant screened according to policy?

• Were all one-time documents obtained? Per HHB, 4350.3, Appendix 3

• Birth certificate

• SSN

• Citizenship

• Race/Ethnicity

• Disability status

• Was the move-in inspection completed and were proper notes included on the form and was it signed/dated by all parties?

• Did all adult household members sign/date all the required documents such as but not limited to: the lease, the HUD 50059, the HUD-9887

Addendum A – Tenant Move-In

Move-in File Review Cont’d

• Did management obtain proper verification of all income/assets/allowances for all household members?

• Were owner consent forms and HUD-9887 forms properly obtained signed and dated by all adult household members? NOTE: these forms expire 15 months after they are signed. Per HHB, Chapter 5-16A

• Were the HUD-92006 forms provided and obtained?

• Was the EIV system used to verify income?– Was the Existing Tenant Search ran prior to MI?

– Did the manager obtain the Income Verification report 90 days after the move-in was transmitted to TRACS?

• Did management provide the resident with copies of the Fact Sheet/Resident Rights/EIV and You Brochure/LBP?

• Was the tenant rent and security deposit calculated correctly?

Addendum A

Addendum A

Addendum A

Addendum A – Tenant Move-Out

KHC will review the following:• Did the Tenant provide a 30-day Notice of Intent to Vacate?

• Did management complete the MO Inspection?

– Was it completed timely and any damages documented?

– Was the tenant given an opportunity to attend?

– Was the form signed & dated by all parties?

• Security deposit refunded within 30 days? Was interest on the deposit paid?

• Did management provide an itemized list of damages and charges to the tenant?

• Security Deposit Disposition form complete and provided to tenant?

• Does the tenant’s move-out date (documented in file) match the date transmitted through TRACS?

• Was a copy of the HUD 50059A form, completed and maintained in the move-out file? Per the MAT Guide, Chapter 7.8, paragraph C.

Addendum A – Move-out File Review

Addendum A – Tenant Move-Out

Common Finding with Security Deposits

It is very important to know how the security deposit amount is

determined. Can you collect the TTP at move-in? OR should you use

the greater of $50 or TTP as the total for the Security Deposit. Are you

required to pay interest on the deposit?

For the following properties whose Section 8 New Construction with

AHAP executed before November 5, 1979 or Substantial Rehab with

AHAP executed before February 20, 1980 or an LMSA contract -

You must collect the TTP and you are not required to pay

interest.

HHB 4350.3, Chapter 6, Figure 6-7

Addendum A – Tenant Move-Out

Security Deposits Cont’d:

For all other properties whose Section 8:

New Construction with AHAP executed on or after November 5, 1979

or Substantial Rehab with AHAP executed on or after February 20,

1980 and all PDs and 202s

You must collect the greater of TTP or $50 and you are required

to pay interest.

HHB 4350.3, Chapter 6, Figure 6-7

Addendum A - Tenant Move-out

HHB 4350.3 Chapter 8-10 Allowable Use of Security Deposits

• If a tenant fails to pay the required rent or if there are tenant damages to the unit, an owner may use the tenant’s security deposit to pay the outstanding rent and/or damages. Any remaining funds must be paid to the tenant. An owner must follow the requirements and guidelines for security deposits and other charges outlined in paragraph 6-18 regarding the refunding and use of the security deposit.

Pet Deposit

Addendum A –

Certification/Recertification

Interim Recertification and/or Annual Recertification

• KHC will review the following:

– Were the proper notices given timely?

– Was a 30-day notice of rent increase given?

– Certifications completed timely and accurately and

signed/dated by all parties?

– Transmitted through TRACS?

Addendum B

• HUD requires that PBCA forward Part A of Addendum B to the owner/agent when scheduling an on-site review and to enter the information into the iREMS system.

• The owner or a principal in the ownership entity should sign the certification. If someone is signing on behalf of the owner, they must have power of attorney. (see MOR – FAQ document 5/5/06)

• If an owner does not sign or complete the information on Addendum B, the reviewer is required to issue a 10-day letter requiring the owner to submit the completed Addendum B. MFH staff is required to monitor the 10-day timeframe. If information is still not received, MFH staff is required to flag the owner in APPS.

Addendum C

• Have all the required documents ready and

available prior to the review.

• Review to ensure all policies and procedures and

other documents have been updated and comply

with all current HUD requirements.

• Most current version of policies & procedures

available to staff and to all properties?

Addendum C

Addendum D

• State Lifetime Sex Offender Statistics

– Be prepared to answer the questions provided on

this form.

Other – MOR Recommendations

#1. Most Important Tip:

Provide regular and on-going training to your staff!

Even the most experienced staff need training when

HUD issues new requirements.

Other – MOR Recommendations

• Implement a “Resident File Checklist”

• Develop a system that works for you

• Use colored sheets of paper to separate Interim & Annual

Recertifications

• Secure loose documents in the file

• Place one-time documents on one side of the folder or

together in same location.

Other – MOR Recommendations

Be informed and share information with staff on new HUD

regulation changes.

• Sign up to receive notifications and HUD Newsletters.

– We recommend to sign up on HUD’s Multifamily RHIIP ListServ:

– https://www.hud.gov/program_offices/housing/mfh/rhiip/mfhrhiip

• When updating policy documents include a revision date at

the bottom and ensure all properties have a copy of the most

recent update.

Other – MOR Recommendations

Review Chapter 6 of the HHB 4350.1– Overview of the Purpose of an MOR

– Requirement to use the HUD-9834

– PBCA and Owner requirements are outlined

– Information on ratings and completing the Summary Report.

– Information broken down by section of the HUD-9834 to reference back to the Statutory/Regulatory Requirements

– Appendix 2 - FAQs

MOR Summary Reports

• KHC will send a Summary Report to the owner with in 30- days of the date of the MOR.

• If there are no deficiencies noted, no additional action is required by the owner/agent.

• If there are deficiencies noted the owner must take action to resolve.– Targeted Completion Dates (TCD)s must be noted for all deficiencies

identified during the review and may not exceed 30 calendar days.

– Owners must provide documentation to support that the deficiencies were correct by the TCD.

– If additional time is needed the o/a must still submit an action plan.

MOR Summary Reports

• Owner’s are required to submit a response to KHC within

30 days of the date of the MOR cover letter (Summary

Report).

• Your response should include detailed actions that were

taken to correct any/all deficiencies noted.

• Do not send several different responses at different times.

Please include all information into one response.

MOR Summary Reports

• If there are items that were not responded to, you will

receive a follow up letter from KHC asking for additional

action to be taken on those items.

• HUD requires a response to all items.

• If you have a finding that requires a correction to a HUD

50059 you must be sure to transmit this.

– It is not a sufficient response to simply state it has been corrected.

We must ensure it is transmitted and any adjustments are applied

to the voucher request.

MOR Summary Reports

• For those items that cannot be completed in 30-days send

us a written plan that provides the following:

– Why the corrections could not be made within the 30-

days.

– When do you plan to make the corrections?

– How you will address these items (remember to include

the details).

MOR Summary Reports

Appeal Procedures

• If an o/a receives a “Below Average” or

“Unsatisfactory” overall rating the o/a may

appeal the rating using the process outlined in

Chapter 6 of the HHB 4350.1.

MOR Resource Documents

• HUD Handbook 4350.1 – Chapter 6

• HUD Handbook 4350.1 – Appendix 2 - MOR – Frequently Asked Questions Document

• HUD Handbook 4350.3 – Know your Occupancy Rules – Get Training!

• HUD 9834 – Review It! -- HUD is currently reviewing the MOR process and we hope to see improvements in this process in the near future.

• Rent and Income Determination Quality Control Monitoring Guide for Multifamily Housing Programs– https://www.hud.gov/sites/documents/DOC_20477.PDF

MOR Resources on the web

HUD Notices: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/notices/hsg

RHIIP: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/rhiip/mfhrhiip

HUD’s Multifamily Housing: https://www.hud.gov/program_offices/housing/mfh

MOR Resources

Additional Resources – Yes, there is an

APP for that!

AHR – Affordable Housing Resource

• HUD 4350.3 HUD Income Exclusions

• IRC 42 & Audit Guide Technical Advice Memos

• 8823 Guide IRS Notices

and more………..