1. Guidance for Completing Special Claims
Presented by:
Sarah Rockafellow
MSHDA

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

3. 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.

4. 3 Types of Special Claims
Regular Vacancy
Unpaid Rents
Tenant Damages

5. 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

6. 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

7. 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

8. 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!

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

10. 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

11. 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

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

13. 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

14. 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

15. 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

16. HUD TRACS Secure Systems

17. TRACS MI/MO Query & Certification Query

18. TRACS MI/MO Query

19. TRACS MI/MO Query

20. TRACS Cert Query for UT’s

21. TRACS Certification Query
Unit 114 ~ Move Out 6/18/07 - Jones
Unit 114 ~ Unit Transfer/Interim effective 6/22/07 - Smith

22. 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

23. 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

24. 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

25. 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

26. HAP Voucher Reporting for Special Claims

27. 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

28. Preferred Order of Claims for Submission
Stapled 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

29. Preferred Order of Claims for Submission
Claim Order for Unpaid Rent/Tenant Damages
HUD 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

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

31. Most Common Mistakes (and how to avoid them)

32. 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
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

33. Housekeeping Items
Please send claims via USPS if they are over 50 pages. 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.

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

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

36. MSHDA Contact Information
Sarah Rockafellow (PBCA Portfolio)
phone
fax
Maggie Droste (Traditional CA Portfolio)
phone
fax

37. Questions????