HUDBlast May 12, 2006

Release of New MOR FAQs

On May 8, 2006, HUD has released a new version of the Management & Occupancy Review (MOR) Frequently Asked Questions (FAQs). 

 

As always, additional guidance from HUD is always appreciated.  HUD has opted to organize the FAQs in the same manner that the HUD Form 9834 is organized.   HUD has listed new questions and answers in blue in order to be allow you to differentiate the new questions from the old questions.

 

There is some interesting information about a variety of topics including Mod Rehab, Lead-based paint requirements and CA reporting requirements.  RBD strongly recommends that you read the entire document, regardless of whether you are an owner/agent or a CA, to be sure you understand HUD’s expectations.   

 

Some Highlights:

 

Findings:  Section C of the instruction page indicates that findings should include the condition, criteria, cause, and effect, and required corrective action. Since the instruction does not say must include, some reviewers have felt that including the condition, criteria, cause and effect is optional.  HUD has clarified that including this information is required for any finding.  HUD also noted that the form would be edited to use the word “must” instead of “should”.

 

Unit Inspections:  The 9834 directs CA Reviewers to perform unit inspections for various reasons.  HUD has clarified that follow up and inspection of units for reasons other than those indicated on the form are not allowed.

 

Resident File Security:  An office with a lockable door is not considered a “lockable area” even if, when the manager is not in the office, the door is locked and the files are not accessible. A lockable area is defined as an area that is not accessible to unauthorized staff. For example, if staff persons have keys to the lockable door (i.e., maintenance staff, etc.), and are not authorized to access tenant files, the files are not considered locked and secured in a confidential manner.

 

Signatures on Part A of Addendum B:  The owner or a principal in the ownership entity should sign the certification. If someone is signing on behalf of the owner, they must have power of attorney. HUD is revising the form to state "Signature of Owner" as opposed to "Signature of Owner/Agent".

 

Sending Information Before the On-Site Review:  Some CA’s request that items on Addendum C are sent to their office prior to the review.  HUD has instructed that information should be gathered on-site unless the owner/agent does not object to sending the information. The Reviewer cannot “require” an owner/agent to send information prior to the review.

 

Other Information Indicated on Addendum C:  With regards to the term “Other”, the Reviewers have the flexibility to request additional information such as rent receivables ledger, security deposit statements, list of tenants associated with security deposits, bank deposit slips associated with tenant rent payments to the extent that the “other” information is necessary.

 

The new MOR FAQs can be found on the HUD web site on the Contract Administration page http://www.hud.gov/offices/hsg/mfh/rfp/sec8rfp.cfm, under Frequently Asked Questions and on the Multifamily Housing page http://www.hud.gov/offices/hsg/hsgmulti.cfm, under WHAT'S NEW.

 

Additional Changes to the MOR Process

As the new 9834 is implemented nationally, HUD, the CAs and the owner/agents are collaborating together to make sure the process is working and that the impact on the industry as a whole is positive.  In light of that, you may see changes in requirements that make certain areas of the MOR process more meaningful. 

On May 5th, HUD staff and Performance-Based Contract Administrators (PBCAs) were advised of changes in the process to collect documents for FHEO as indicated in Part D of Addendum B. 

Based on HUD field office comments, FHEO and Multifamily Housing (MFH) Headquarters staff have renegotiated Addendum B Part D form HUD- 9834, "Documents Reviewer Should Obtain From Owner/Agent" of the civil rights front-end and limited monitoring review protocol.

The modification to Part D will state that HUD Multi-family Housing staff (MFH) and CAs will only collect documents as indicated in Part D of Addendum A if requested by FHEO. FHEO may only send these requests to MFH on an annual basis. MFH will then provide the applicable FHEO information request to the CA. If FHEO does not send a request to MFH, all on-site visits will include collection of the entire list of documents as indicated on Part D of Addendum A until July 1, 2006. After July 1, 2006, no documents as indicated on Part D of Addendum A will be collected unless specifically requested by FHEO.

MFH and the CAs will honor the requests for the next on-site review for which they have not yet sent a letter informing the owner/agent of the date of the MOR nor requested any documents. If a property has already been reviewed, the FHEO documentation request for that property will be included in the next MOR.

This new procedure is effective immediately. At this time, FHEO may send a revised annual request to the MFH staff requesting documents to collect for all properties or for specific properties.  FHEO may also advise MFH staff that there are no requests to bring back any documents for any projects.

NEW Sample Verification Form – Students

We have added a new sample verification form to the web site.  This form provides a sample of a verification form to be used for verifying the income of parents of students applying for or receiving Section 8 assistance.  You view this form at http://www.rbdnow.com/noticesforms.htm

PHA TASS Users

Please be advised that after June 6, 2006 no new tenant recertification data will be posted in TASS for PHA households. This means that the SS/SSI income data for households due for recertification in October 2006 (and subsequent months) will not be available in TASS.

 

In March 2006, TASS functionality was incorporated into the Enterprise Income Verification (EIV) System. After the September 22, 2006 EIV Release, all access to the TASS system will be terminated.  The EIV system is available to all TASS users nationwide and now makes integrated income data available from one source, via the Internet. The EIV system provides the following data:

 

• Monthly employer new hires,

• Quarterly wages and unemployment compensation, and

• Monthly social security and supplemental security income benefits.  

 

For additional information and answers to some PHA questions, go to http://www.hud.gov/offices/reac/products/tass/PDFs/tass-web-outmftass.pdf

Additional information regarding the EIV system can be found on:

http://www.hud.gov/offices/pih/programs/ph/rhiip/uivsystem.cfm

PDF Reports in Schedule/View Inspections - Issue Resolved:

As of May 1, 2006, the technical issue that prevented access to Inspection Summary Reports and Investor Reports via the "Schedule/View Inspections" link in Secure Systems has been resolved. Contact the Technical Assistance Center (TAC) at 1-888-245-4860 if further assistance is required.  http://www.hud.gov/offices/reac/

Spring 2006 Fair Housing News

The Spring 2006 issue of our Fair Housing News newsletter is now available at http://www.hud.gov/offices/fheo/library/newsletterspr06.pdf

Rental Housing Integrity Improvement Project (RHIIP) List Serve

RBD encourages our customers to sign-up for the RHIIP Listserv, so they too can receive current RHIIP related information from HUD http://www.hud.gov/subscribe/mailinglist.cfm

RBD does not act as a legal advisor nor as a regulatory governing agency.  The recipient should understand that any materials or comments contained herein are not designed for, nor should be relied upon as a source of legal guidance or as a final authority with respect to any particular circumstance. Ross Business Development, Inc. makes no warranty of merchantability or fitness for a particular purpose or any other warranty of any type. Owners and management should seek competent legal advice in developing and carrying out policies and procedures.  While we have been diligent in our efforts to provide comprehensive and accurate regulatory information, Ross Business Development, Inc. shall not be responsible for errors or inaccuracies.