> Voucher Processing
Traditional Voucher Processing Team is responsible for processing all
Section 8 Housing Assistance Payments (HAP) vouchers (HUD-52670 &
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
|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
|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.|
Owner/agents will be notified of TRACS
Voucher discrepancies by e-mail, facsimile, or telephone. Corrected
TRACS files should be transmitted via TRACS/IMAX within 24 hours of
notification to ensure proper payment of the voucher. If the necessary
TRACS files are not received, adjustments will be made on the next
|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).
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
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
|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
|Subsequent: (the next renewal after the Initial renewal
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
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 one year or up to five years. If the owner renews for
only, then the following year the renewal will be a Subsequent Renewal.
If the owner renews for five 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