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Management and Occupancy Review Frequently Asked Questions
1. We have not received HUD updates, notices and Handbooks in awhile - how do we get on their mailing list?
It is HUD's policy to no longer automatically send updates, notices and Handbooks to Management and owners, but it is the responsibility of the Management and the Owner to obtain these items from the HUD web site - WWW.HUDCLIPS.ORG or WWW.HUD.GOV.
2. What is MMAM responsible for and what is HUD responsible for?
Please refer to the following link: CA/HUD responsibilities chart (PDF file)
3. How often should the Utility Allowance survey be conducted?
Each time the property requests an increase in the HUD authorized rent potential, the utility allowance must be analyzed.
1.) If there is no increase, or the increase is 10% or less, you must certify to MMAM that the utility allowance(s) do not need to be changed.
2.) If the increase is greater than 10%, you must submit a recommendation to MMAM of the proposed utility allowance. Submit consumption data for at least 25% of each unit type or a minimum of 5 per unit type.
4. What is the maximum HUD allowable Pet Deposit?
The maximum amount is $300 that can be paid with a $50 initial payment and the balance paid off at a rate of $10 a month. However, if this is an assistive animal then you may not charge a Pet Deposit.
5. Can we require the residents to have insurance for their pets?
No, according to HUD you cannot require the resident to have insurance.
6. We want to deter the residents from losing the main entrance building key by charging the residents $100 per key. Is this allowable?
No. Unless HUD approves it or it is a cooperative, the property may recover only actual costs of the key (or any damages as a general rule) and may not fine a resident for behavior.
7. How often should we update the Affirmative Fair Housing Marketing Plan (AFHMP)?
The AFHMP must be reviewed and updated, if necessary, at least every 5 years. Form HUD-935.2A
8. How do we obtain the Social Security income verification?
This can be obtained from the Enterprise Income Verification (EIV) System web site.
9. How often should the property waiting list be printed and updated?
The waiting list should be printed with the date and time; monthly and retained in a file and updated every six months. If the waiting list for a certain unit type is over one year, HUD suggests the property close the waiting list for that unit type and reopen once the list gets below the one-year mark.
10. What should be included on the waiting list?
Date and time applied
applicants name
unit size
preference eligible (if applicable)
required barrier free
method of contact
income category (Extremely Low, Very Low and Low),
follow up contacts
acceptance or rejection
move-in date and comments
11. Why must the applications be time and date stamped?
This is a HUD requirement. Since applications are date sensitive and you could have multiple persons applying on the same date. For example, Mr. Smith applied on 4/5/03 at 10:04am, and Ms. Jones applied on 4/5/03 at 10:27am, Mr. Smith would be higher on the waiting list than Ms. Jones.
12. How do we know if the property is in compliance with the 40% E.L. income target?
40% of new move-ins are of Extremely Low (EL) income
13. How should we implement the HUD lease contained in HUD Handbook 4350.3 Rev-1?
The HUD leases and Michigan Law Addendums can be obtained on the MMAM website Model Lease page. The lease must be used exactly as it is on the web site. Any changes MUST have HUD approval. All new move-ins and all current residents (at the time of their Annual Recertification) must sign the new lease.
14. How often should we distribute the new HUD Fact Sheets "How your Rent is Determined" and the Residents Rights and Responsibilities pamphlet?
The new HUD Fact Sheets "How your Rent is Determined" and the Residents Rights and Responsibilities pamphlet should be distributed at move-in and with every annual recertification. If you have not distributed the new HUD Fact Sheets "How your Rent is Determined" and/or the Residents Rights and Responsibilities pamphlet to the residents as of yet, you should distribute a copy to all residents as soon as possible.
It is also suggested that the resident sign a receipt showing they received the new HUD Fact Sheets "How your Rent is Determined" and the Residents Rights and Responsibilities pamphlet. This signed receipt should be kept in the tenants file.
15. How do we obtain the new HUD Fact Sheets "How your Rent is Determined" and the Residents Rights and Responsibilities pamphlet?
Click on the applicable web address:
Residents Rights and Responsibilities
HUD Fact Sheet Section 202 PAC/PRAC
16. How can we obtain new Handbooks and pamphlets from HUD?
They can be ordered directly from the HUD web site - HUD Clearinghouses or you can call the HUD Clearinghouse at 800-767-7468 or 800-685-8470.
17. We are in the process of trying to obtain a 3rd party verification, but as of yet it has not been returned. What should we do?
If you have not received the 3rd party verification form back after two weeks, you should resend the 3rd party verification form. However, if the second form is also not received, the 4350.3 states "when written verification is not possible, the next most acceptable form is direct contact with the source, in person or by phone. The owner/agent must document the conversation in the applicant's/tenant's file including all information that would have been included in a written verification" (4350.3 Page 3-58 paragraph 3-31 section 3)
18. It was discovered that a resident did not report income and now the resident owes $1,000 back to HUD. How should this be handled on the HAP Voucher?
First prepare the corrected 50059. Find out what the resident actually owes and make a payment agreement with the resident. When you prepare the 50059 the computer will automatically adjust your HAP. You will then need to make a manual adjustment on the HAP voucher to credit for the 1st adjustment on the HAP voucher. As the resident pays back the money you will complete a manual adjustment on the HAP voucher paying HUD back the money owed.
If fraud is discovered, as defined in the 4350.3, HUD should be notified immediately.
19. What is HIPAA - Privacy (Updated 8/16/02)?
The HIPAA Privacy rule established standards to protect the confidentiality individually identifiable health information maintained or transmitted electronically in connection with certain administrative & financial transactions. The rule provides new rights for individuals with respect to protected health information about them & mandates the obligations of health care providers, and health care clearinghouses. The compliance date for privacy is April 14, 2003.