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

Special Claim Forms HUD 52670-A Part 2 Project Name Contract Number Columns 1- 4, 6 SIGNATURE! Please place as many units on a page as your software allows

Special Claim Forms HUD 52671-C ~ Regular Vacancy Be Aware of… 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 52671-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 52670-A Part 2) Regular Vacancy (HUD 52671-C) Unpaid Rent/Tenant Damages (HUD 52671-A)

Processing Claims ~ Checklist Requirements Regular Vacancy HUD 52670A Part 2 HUD 52671-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-50059 competed at MI for former tenant Copy of completed checklist

Processing Claims ~ Checklist Requirements Unpaid Rent/Tenant Damages HUD 52670A Part 2 HUD 52671-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-50059 competed at MI for former tenant Copies of MI/MO Inspection Reports Copy of completed checklist

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 - Jones Unit 114 ~ Unit Transfer/Interim effective 6/22/07 - Smith

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 cont. 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 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

Processing Timelines Claim Submissions Within 180 days from RFO (ready for occupancy date) 90 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

Preferred Order of Claims for Submission Stapled Together: HUD 52670-A Part 2 Waiting List (1 copy per package) TRACS Queries (1 list per package) Claim Order for Regular Vacancy HUD 52671-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 HUD 52671-A Completed Checklist Security Deposit Disposition Copy of Certified Letter to Resident Collection Agency letter Lease Move-In HUD-50059 Move-In/Move-Out Inspection Reports TRACS Queries

A well organized and complete claim package makes for a HAPPY MSHDA

Most Common Mistakes (and how to avoid them)

Common Mistakes No Signatures! Move Ins/Move Outs/Unit Transfers not viewable in TRACS Not utilizing the 52670-A Part 2 to its fullest capability (list all units on one) Security Deposit being deducted twice 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 50059

Housekeeping Items Please send claims via USPS if they are over 50 pages. Email is always acceptable for any size. Faxes are fine if under 50 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. 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) www.google.com ~ search for Special Claims Processing Guide.

More Important Links Special Claims Processing Guide FAQs http://www.hud.gov/offices/hsg/mfh/rfp/faq_scpg.pdf Online Secure Systems (TRACS) http://www.hud.gov/offices/reac/online/reasyst.cfm TRACS Hotline 1.800.767.7588 tracs_hotline@hud.gov

MSHDA Contact Information Sarah Rockafellow (PBCA Portfolio) rockafellows@michigan.gov 517.335.6024 phone 517.335.6050 fax Maggie Droste (Traditional CA Portfolio) drostem@michigan.gov 517.241.0369 phone 517.335.6050 fax

Questions????