TRACS Compliance Percentage Increases from 85% to 90% Starting April 1, 2006


The TRACS Tenant Compliance Percentage Standard, currently at 85%, will be raised to 90%, effective April 1, 2006. The new increase will affect any voucher submitted on or after April 1, 2006. Any questions regarding the new 90% Standard should be directed to the Multifamily Help Desk.


Please be sure to monitor your compliance percentage to ensure continued payment.  If you do not know how to access TRACS or how to obtain your compliance percentage, you can download instructions from our web site at


Please keep in mind that HUDís position is that it is the owner/agentís responsibility to monitor the quality of the data recorded in HUDís electronic systems.  If you need additional information about how the compliance percentage is calculated, feel free to download the document ďCompliance PercentageĒ from our web site at


TRACS Industry Meeting Postponed


The TRACS Industry Meeting scheduled on March 9th & 10th, 2006 has been postponed.  HUD will let us know when a new date is selected.


Contract Renewal


HUD has released a proposed rule and a final rule related to Section 8 contract renewals.  HUDís descriptions of these rules follow:


Renewal of Expiring Section 8 Project-Based Assistance Contracts Ė Proposed Rule


HUD has published a proposed rule regarding contract renewal for Project-based Section 8 contracts. 


This proposed rule would revise current HUD regulations that govern the renewal of expiring Section 8 project-based assistance contracts. Specifically, the proposed rule would amend the regulations to include tenant protections in the case of a contract that is not renewed, and establish rent levels when an expiring contract is renewed. Certain other changes to these regulations are being made by a final rule (see below for information about the new final rule referenced here).


Comments are due to HUD by March 13, 2006.  Interested persons are invited to submit comments regarding the rule to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 Seventh Street, SW., Room 10276, Washington, DC 20410-0500. 

Interested persons may also submit comments electronically through the HUD electronic Web site at: Those wishing to comment should follow the instructions provided on that site to submit comments electronically. 


Facsimile (FAX) comments are not acceptable.  For more information on the proposed rule, please see:$[NO]&SECT5=FR05&SECT1=TXTHLB&l=50&u=../cgi/newsdoc_run.cgi&p=1&r=1&f=G



Renewal of Expiring Section 8 Project-Based Assistance Contracts Ė Final Rule


This new final rule became effective on February 13, 2006. 


This final rule governs renewal of Section 8 project-based assistance contracts, except renewal as part of a restructuring plan (Restructuring Plan) in the Mark-to-Market program. Currently, contracts are being renewed under the authority of an interim rule that became effective October 11, 1998, and later statutory changes.  You can review the new rule from the following web site:$[NO]&SECT5=FR05&SECT1=TXTHLB&l=50&u=../cgi/newsdoc_run.cgi&p=1&r=1&f=G


For further information, contact Willie Spearmon, Director, Office of Housing Assistance and Grant Administration, Department of Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 20410-8000, telephone (202)708-3000. (This is not a toll-free number.) For hearing- and speech-impaired persons, this number may be accessed through TTY by calling the toll-free Federal Information Relay Service at 1-800-877-8339.


Study Regarding Late HAPS


The U.S. Government Accountability Office (GAO) has issued its long-awaited report outlining recommendations on how HUD should streamline processes to ensure timely Housing Assistance Payments.  The National Affordable Housing Management Association has been a leader in the effort to secure the GAO study, in which the agency makes recommendations to the Secretary of HUD to improve the timeliness of housing assistance payments and mitigate the effects of delayed payments.


GAO recommends that HUD streamline and automate the contract renewal process to prevent errors and delays. GAO is also making other recommendations to improve HUDís monitoring of contract funding levels and notifying owners about late payments. The report said that HUD has agreed with the GAO conclusions.  NAHMA members can access NAHMA Analysis for additional comments.


The full GAO Late HAPS report can be accessed from the following web site. is a 44 page document.  There is also a one page Executive Summary available from the following web site: