Guidance for Completing Special Claims Presented by: Sarah Rockafellow MSHDA

General Overview What Are Special Claims? Processing Claims Claim Issues Important Links Questions???

What Are Special Claims? HUD recognizes the financial risks owners undertake in their efforts to provide affordable housing. It is HUD’s intent to ensure that owners involved in this effort remain financially viable partners. The special claims process is one tool that owners can use to be reimbursed for their financial loss. Owners are encouraged to submit special claims for eligible losses.

3 Types of Special Claims Regular Vacancy Unpaid Rents Tenant Damages

Special Claim Eligibility Section 8 Development Security Deposit must be collected Resident must be receiving Subsidy –Can still make a claim for a terminated resident as long as the resident wasn’t terminated due to their TTP being at Market Rent because of income

Processing Timelines Claim Submissions –Within 180 days from RFO (ready for occupancy date) –90 calendar days to put approved claim on HAP –60 Days ~ Maximum number of days HUD will pay for vacancy loss –Cannot submit a vacancy claim until 60 days has passed or a new tenant has moved in (the earlier of the two) –30 Calendar Days ~ CA must return approval to property from date rec’d

Special Claim Forms HUD A Part 2 –Project Name –Contract Number –Columns 1- 4, 6 –SIGNATURE! Please place as many units on a page as your software allows Please DO NOT put the social security number on this page

Special Claim Forms HUD C ~ Regular Vacancy –Section 8 uses Part A –SIGNATURE! Be Aware of… –# 3 Date Unit Ready for Occupancy –#5 Date unit was re-rented –#8 Daily Contract Rent

Special Claim Forms HUD A ~ Unpaid Rent/Tenant Damages Charges Not Allowed for Unpaid Rent –Legal Fees –Collection Agency Fees –Unpaid Utility Bills –Cost of photographing unit to prove damages SIGNATURE!

How do I fill in the Forms? Special Claims Schedule (HUD A Part 2) Regular Vacancy (HUD C) Unpaid Rent/Tenant Damages (HUD A)

Processing Claims ~ Checklist Requirements Regular Vacancy –HUD 52670A Part 2 –HUD C –TRACS Print Out from HUD Secure Systems MI/MO Query Certification Query for UT’s –Waiting list 3 months OR Pages displaying contact & outcome of new tenant

Processing Claims ~ Checklist Requirements Regular Vacancy Cont. –Copy of Reconditioning Log NOTE: Date unit ready for occupancy is the first FULL day after work completed –Disposition of Security Deposit –Copy of Original Lease Page 1, the page showing Security Deposit, and signature page

Processing Claims ~ Checklist Requirements Regular Vacancy cont. –Copy of signed HUD competed at MI for former tenant –Copy of completed checklist

Processing Claims ~ Checklist Requirements Unpaid Rent/Tenant Damages –HUD 52670A Part 2 –HUD A –Disposition of Security Deposit –Copy of Certified Letter to resident of Damages and related Charges –Collection Agency notice that debt collection has been attempted

Processing Claims ~ Checklist Requirements Unpaid Rent/Tenant Damages Cont. –Copy of Original Lease Page 1, the page showing Security Deposit, and signature page –TRACS Print Out from HUD Secure Systems MI/MO Query Certification Query for UT’s

Processing Claims ~ Checklist Requirements Unpaid Rent/Tenant Damages Cont. –Copy of signed HUD competed at MI for former tenant –Copies of MI/MO Inspection Reports –Copy of completed checklist

Regular Vacancy, Unpaid Rent & Tenant Damage Exercise

HUD TRACS Secure Systems

TRACS MI/MO Query & Certification Query

TRACS MI/MO Query

TRACS MI/MO Query

TRACS Cert Query for UT’s

TRACS Certification Query Unit 114 ~ Move Out 6/18/07 Unit 114 ~ Unit Transfer/Interim effective 6/22/07

Examples of RFO Logs Name, unit #, MO Date Prep, Paint, Maintenance, Clean, and Carpet Date Ready for Occupancy Date (day following all repairs) New Resident, MI Date

Examples of RFO Logs MO date Locks changed Maintenance Prep Painting Cleaning Repairs Vinyl/Carpet Replaced Final Inspection Unit Ready for Occupancy MI date of new resident

Examples of Security Deposit Dispositions Resident Name and Unit Security Deposit and Interest Earned Description of Damages and Repair Costs Unpaid Rent with From/To dates Other fees Total for Unpaid Rent and Damages

Examples of Security Deposit Dispositions Tenant Name and Unit Date of MI/MO notice and Actual MO Security Deposit and Interest earned Balances owed for rent and fees Damages owed

HAP Voucher Reporting for Special Claims

Preferred Order of Claims for Submission Paper clipped together: –HUD A Part 2 –Waiting List (1 copy per package) –TRACS Queries (1 list per package) Claim Order for Regular Vacancy –HUD C –Checklist –RFO Log –Security Deposit Disposition –Lease –Move-In HUD-50059

Preferred Order of Claims for Submission Claim Order for Unpaid Rent/Tenant Damages –H–HUD A –C–Completed Checklist –S–Security Deposit Disposition –C–Copy of Certified Letter to Resident –C–Collection Agency letter –L–Lease –M–Move-In HUD –M–Move-In/Move-Out Inspection Reports –T–TRACS Queries

Common Mistakes No Signatures! Move Ins/Move Outs/Unit Transfers not viewable in TRACS Not utilizing the A Part 2 to its fullest capability (list all units on one) Security Deposit being deducted twice Vacancy being submitted before 60 day period is over (if no new MI) Security Deposit not being deducted if kept by the property Security Deposit interest not being claimed New resident is a Market Renter or 236 resident –Please note it on the checklist and provide the Move In Submitting claims that are over 180 days from RFO date

Housekeeping Items Please send claims via USPS if they are over 20 pages. is always acceptable for any size. Faxes are fine if under 20 pages Please make sure your claims print on one page. If the formatting is creating two pages, please contact your software vendor to correct. Please do not use Legal Size paper. Shrink to fit on a standard 8 ½ x 11 piece. Double sided copies are encouraged. Please use paper clips rather than staples. MSHDA has 30 calendar days to review and return claims. Please do not call before the 30 days has expired.

Important Links Special Claims Processing Guide (June 2006) – ~ search for Special Claims Processing Guide.

More Important Links Special Claims Processing Guide FAQs – Online Secure Systems (TRACS) – – TRACS Hotline –

MSHDA Contact Information Maggie Droste (Traditional CA Portfolio) – phone – fax