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  • Section 8 Contract Administration

    Section 8 Contract Administration provides information on processing Housing Assistance Payment (HAP) requests, annual management and occupancy reviews, contract renewals, rent adjustments, and REAC inspections.

    TRACS Mail Addresses

    For submission of tenant and voucher data to WHEDA use TRACM23434. 

    Special Claims

    HUD has established a  Special Claims process for property owners to get reimbursed for their financial loss due to vacancy, unpaid rent, or other damages.

    Eligibility

    2016 Section 8 Income Limits
    Determine the income eligibility of applicants for Public Housing, Section 8 and other programs subject to Section 3(b)(2).

    Guidelines

    HUD Contract Administration
    HUD's Home page for Section 8 Contract Administration.
    TRACS
    HUD's Home page for the Tenant Rental Assistance Certification System.
    HUDClips
    HUD's Client Information and Policy System.

    Frequently Asked Questions

  • My contract is expiring. What do I need to do to renew my contract?

    One year prior to expiration, you need to notify all current residents that the contract will be expiring and that you intend to renew or do not intend to renew. A sample letter can be found in Chapter 11 of the Section 8 Renewal Policy Guidebook.

    You must choose one of the six options as described on the HUD Contract Renewal Request Form. Your selection must be submitted 120 days prior to the expiration of your contract.

     

    I would like to request a rent increase. What is required, and which forms must be completed?

    Rent increases must be requested in writing. Increase types are: budget based, the Annual Adjustment Factor (AAF), or the Operating Cost Adjustment Factor (OCAF). Submission requirements are:

    1. Budget Based Increase
      1. Budget Worksheet HUD Form 92547A to WHEDA, prepared in accordance with Chapter 7 of the HUD 4350.1 Manual (or Rural approved budget)
      2. Line-by-line explanation of any increase over 5% (unless less than $500)
      3. Verified debt service
      4. Copy of the tenant notification letter
      5. Certification of compliance with tenant comment procedures (HUD 4350.1 Manual, Ch 7 App 2). Sample Appendix 2
      6. Certification as to Owner's Purchase Practices and Reasonableness of Expenses (HUD 4350.1 Manual, Ch 7 App 3)
      7. Utility Analysis (if project has utilities)
      8. Attachment 5 - Projects Preparing a Budget-Based Rent Increase
    2. AAF Increase
      1. Unit turnover data for the previous 12 months. Sample Unit Turnover Report
      2. Copy of the tenant notification letter
      3. Certification of compliance with tenant comment procedures (HUD 4350.1 Manual, Ch 7 App 2). Sample Appendix 2
      4. Utility Analysis (if project has a utility allowance)
      5. For rents above Fair Market Rent, submit a Rent Comparability Study; rent comparability studies are to be completed in compliance with HUD Section 8 Renewal Guidebook chapter 9. If a rent comparability study is less than 5 years, the study may be updated for the submission.
    3. Automatic OCAF Increase
      1. 150 days prior to the Contract Anniversary Date, the Owner/Agent will receive the following letter stating the OCAF increase.
        1. Option 2 and 4: http://portal.hud.gov/hudportal/documents/huddoc?id=9627.pdf
        2. Option 1 and 3: http://portal.hud.gov/hudportal/documents/huddoc?id=9626.pdf
      2. Verify debt service
      3. Utility Analysis Methodology (if Project has utilities): http://portal.hud.gov/hudportal/documents/huddoc?id=15-04hsgn.pdf
      4. Owner/Agent fill out three Rent Schedules HUD Form 92458: http://portal.hud.gov/hudportal/documents/huddoc?id=92458.pdf
    *** OCAF Rent Adjustment Worksheet (to be filled out for Contract Renewal Only): http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_14525.pdf

    What does WHEDA look for in a management review?

    We are required to utilize HUD 9834 Management Review form which is a 25-page questionnaire plus addendums. The areas looked at (taken from the Summary Sheet) are:

    1. General appearance and security
    2. Follow-up and monitoring of project inspections
    3. Maintenance and standard operating procedures
    4. Financial management/procurement
    5. Leasing and occupancy
    6. Tenant/management relations
    7. General management practices

    Owners/agents should be familiar with the Summary Sheet and Questionnaire.

    What information is required in each tenant file?

    1. Application.
    2. Signed and dated HUD 50059 form.
    3. Move-in/move-out dated and signed checklist.
    4. Citizenship 214 Declaration. See HUD Handbook 4350.3 Exhibit 3-5 for sample declaration form.
    5. HUD Form 9887 and 9887A, notice and consent for release of information.
    6. Third-party income, asset and expense verifications.
    7. Disposal of assets form.
    8. Appropriate lease and amendments, signed and dated.
    9. Resident Rights and Responsibilities brochure.
    10. Lead Base paint disclosure.
    11. Documentation of annual unit inspections.
    12. Initial letter to tenant regarding annual re-certification.
    13. HUD Fact Sheet. See HUD Handbook 4350.3 Appendix 14.
    14. Criminal background check documentation.
    15. Any documentation used to verify and/or determine eligibility.

     

    How do I contact the Department of Housing and Urban Development's (HUD) Real Estate Assessment Center (REAC)?

    There are three avenues for contacting REAC.

    1. First, try REAC's website. There is a "Send comments or questions" link on this website that will allow you to e-mail comments to REAC directly from the website.
    2. If the website does not have what you need, then contact the REAC Technical Assistance Center (TAC) via phone at the following number: 1-888-245-4860
    3. Or via mail at the following address:

      Department of Housing and Urban Development (HUD)
      Real Estate Assessment Center (REAC) 
      Technical Assistance Center
      1280 Maryland Avenue, SW, Suite 800 
      Washington, DC 20024-2135

     

    What do I do when Exigent Health and Safety items identified by the REAC inspector are mitigated?

    Attachment 3 is to be copied onto the owner's letterhead (or indicate that they do not have letterhead stationary) and signed by the owner. The owner must sign it. The agent may sign for the owner only when a specific authorization to do so, signed by the owner, accompanies the 'Attachment 3'. The signed form is to be sent to WHEDA.

    Why do I send some of my information to HUD and some to WHEDA?

    HUD is still handling some aspects of your development, specifically as the items relate to the mortgage servicing (including reserves). WHEDA's role is to ensure that the developments are in compliance with the Section 8 program and related responsibilities. When in doubt, feel free to contact us and we will be glad to help you.

    Who processes my requests to draw funds from my reserves?

    This process will not change. In most instances reserve requests will still require approval of HUD, Rural Housing Service, and/or your mortgagee. 

    Who processes my Transfer of Physical Assets (TPAs)?

    HUD will continue to process transfers of physical assets. 

    Who approves management certifications?

    HUD will continue to handle these approvals. 

    What should I do when my bank account changes?

    We need a new Automatic Clearing House (ACH) Agreement completed when bank account information changes. Please allow 30 days for processing the new information.