Traditional Contracts

VOUCHER SUBMISSION
Traditional Voucher Processing Team is responsible for processing all Section 8 Housing Assistance Payments (HAP) vouchers (HUD-52670 & HUD-52670-A-Part 1).

Vouchers submitted to MHDC by the 10th of the month will be processed so that monthly payments are made to the owner no later than the first business day of the month. An original signed copy of the paper voucher (HUD 52670) is required. Owner submissions received after the 10th of the month are reviewed and paid according to the date of receipt, within 20 days of receiving the voucher transmissions.

VOUCHER REVIEW AND APPROVAL

Staff verifies the accuracy of the voucher prior to paying the owner. An original signed copy of the paper voucher (HUD 52670) is required by mail. MHDC will monitor the current form HUD 50059 data in TRACS:

	Upon receipt of the HAP voucher, (HUD 52670) it is reviewed to insure accuracy
	The voucher paper HAP voucher (Hard Copy) (HUD 52670) is compared to the TRACS system for accuracy.
	Discrepancies are reviewed, and developments are made aware of changes that need to be adjusted, in cooperation with development’s representative.
	All adjustments in order to receive proper payment/credit must be submitted with necessary back-up information. (Needed information is based on a case by case basis), and/or corrected certifications must be accompanied by the corresponding 50059 and/or Special Claim documentation
	Review Special Claim information to ensure that correct pre-approval and back-up and claim(s) are attached prior to paying the pre-approval of Section 8 Special Claims on the voucher
	After completion of all the above requirements a request is submitted to Accounting for payment. Approved Vouchers are submitted for EFT

The owner(s) will be notified of missing TRACS/HAP Voucher (paper copy) discrepancies by telephone or fax. TRACS and/or the HAP Voucher discrepancies must be received prior to payment or the changes will not be processed until next voucher period. 24 hour period or the voucher will be processed without the updated changes. Adjustments will be made on the next voucher period if the TRACS files are transmitted.

RENT AND UTILITY ALLOWANCE CHANGES

MHDC will verify that approved rent and utility allowance changes are reflected in the Section 8 HAP voucher and change was implemented accurately. The increase can be implemented on the first voucher submitted after receipt of the owner’s executed Rent Schedule (form HUD-92458).

DISCREPANCY NOTIFICATION
MHDC will review the voucher and make any necessary adjustments or corrections. If the voucher amount that is approved is different from the voucher amount that is requested by the owner, a Monthly Voucher Report will be faxed to the owner with a description of the discrepancy.

OWNER PAYMENTS
MHDC will pay the amount requested on the HAP voucher via Electronic Funds Transfer (EFT) no later than the first business day of the month or within 20 days of receipt of the voucher if the voucher is submitted after the 10th day of the month.

SPECIAL CLAIM REVIEW
The owner may claim reimbursement from MHDC for unpaid rent, tenant damages and vacancy losses on covered units. Claims should be submitted to MHDC on form HUD-52670-A Part 2 and forms HUD-52671-A, B or C. Eligible claims must be pre-approved by MHDC prior to being submitted with the owner’s monthly voucher.

MHDC will analyze, verify, approve or deny owner claims in accordance with HUD regulations found in HUD Handbook 4350.3 Chapter 6 using TRACS and the documentation provided by the owner.

EXPIRING TRADITIONAL HAP CONTRACT RENEWAL AND RENTAL ADJUSTMENTS

Traditional Contract Renewal Team is responsible for processing the paperwork to renew, or amend a HAP Contract. All Renewal requests are due in the MHDC St. Louis office 120 days before the contract expiration date. This provides sufficient time to do all paperwork and forward to HUD for Funding. HUD requires 60 days to process the Funding documents. Therefore, if an owner does not submit the request 120 days prior to contract expiration, there is a chance that one or more months of HAP payments will be curtailed.

If you do not have a copy of the HUD Section 8 Renewal Guide, it is most important that you order a copy right away. You may access the HUD website at www.hudclips.org or by calling the toll free number 1-800-767-7468.

Three (3) types of renewal

	Initial: (first renewal after the expiration of the original contract)
	Amends: (Multi-year contracts which only have funding for 12 months, must apply for an Operating Cost Adjustment Factor (OCAF) or Budget Based rent adjustment and funding for remaining years of the contract)
	Subsequent: (the next renewal after the Initial renewal expires)

In accordance with the HUD Section 8 Renewal Handbook:

Initial Renewal Request Requirements:

	Rent Comparability Study (RCS) (excluding HUD Section 202 or Rural Development Section 515 properties) must be performed no more than 90 days prior to submission, or updated prior to submission.
	Project’s budget
	Notice to Tenants
	Renewal Transmittal with the OCAF worksheet

Please refer to Section 3A-1 of the Section 8 Renewal Guide for Clarification.

For Initial Renewals only – the rents are adjusted based upon the “lesser of” rule and a comparison between the RCS, budget and OCAF adjustment. Contracts can be for 1 year or up to 5 years. If the owner renews for 1 year only, then the following year the renewal will be a Subsequent Renewal. If the owner renews for 5 years, the succeeding years are called Amend Rents (Funding Renewals). In certain instances, an owner may request a longer term (up to 20 years) with some qualifications. See Section 8 Renewal Handbook, Chapter 2 for specifics.

Housing Assistance Payment; HAP Contract Assignment form

Sec 8 HAP Assignment & Modification sample.doc *

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