HOTMA & TRACS Errors - Resolved

In December, we let you know that TRACS was issuing some errors based on HOTMA changes even though owner/agents are not yet required (or able) to implement those HOTMA changes. 

These edits were inadvertently "turned on" but HUD has resolved the issue. 

If you submitted a certification that included a foster or a Live-in Aide, you may have received the following FATAL error. 

F0292 - FATAL Error F0292 - Income/Asset No Longer Count under HOTMA Rules for Foster, Live-in Aide, None of the Above. 

If the certification is an AR and the AR is missing, TRACS will eventually make the resident inactive and no EIV information will be provided when it is time to create the next certification. This will also reduce your compliance percentage which could result in interruption of Assistance Payments. 

The Elderly Allowance - TRACS was also generating the EHA Discrepancy - TRACS Calculated Elderly Allowance Differs From Reported Value and the TA Discrepancy - TRACS Calculated Total Allowance Differs from Reported Value. 

These two errors indicate the Elderly/Disabled Family Deduction is set to $400 even though the HOTMA Elderly/Disabled Family Deduction is $525. These two errors also drive other errors related to TTP, AP, UA, etc. 

These certifications have been accepted by TRACS and are recorded in the TRACS database. However, the TRACS calculated values are stored and not the values that are actually on the 50059, so owner/agents may need to resubmit these certifications so the tenant data in TRACS is correct. 

Owner/agent Action (Next Step) - Each month, owner/agents are responsible for checking to ensure that tenant and voucher data is recorded correctly. 

To check your tenant data, review the current TRACS Certification Query.

1.  Go to Secure Systems

2.  Log on using your unique MID and password

3.  Click on the link to access TRACS

4.  Click on the link to access TRACS Certifications/Vouchers

5.  Click on Certification Query

6.  Enter the appropriate information to see if the certification is included in the query

 If the certification has been recorded correctly, no further action is required. 

If the certification is missing and if you submit directly to TRACS, you can resubmit the certification. If the certification is included in the TRACS Certification Query, but the values are incorrect, then you must submit the certification as a correction (administrative resubmission). 

If the certification has not been recorded correctly and if you submit to a Contract Administrator, contact the Contract Administrator and ask if they would like you to submit a new certification (correction - Administrative Resubmission) or if they are already planning to resubmit the certification themselves. 

The New 0.40 Passbook Rate - While not a HOTMA change, TRACS is also generating errors when owner/agents switch the passbook rate from 0.06% to 0.40%. 

While HSG Notice 2023-10 indicates that the 0.40% passbook rate should be used for all certifications effective 1/1/2024 or later, certifications submitted with the new passbook rate cause TRACS to return several calculation errors starting with ASI - TRACS Calculated Income From Assets Differs from Reported Value. 

Historically, HUD has updated the TRACS system to accept a new Passbook Rate immediately after the new rate is announced since no major TRACS update is required. However, when asked if owner/agents should implement the new 0.40% passbook rate, HUD has indicated that guidance about the new passbook rate is forthcoming and will be provided in an upcoming Notice. 

We will send another HUDBlast when HUD issues formal guidance. 

RBD FASTForms
We are completing updates to the RBD FASTForms library. Please keep in mind that any customers who have purchased HOTMA FASTForms will be provided with updates through Q1 2024. 

We will send another HUDBlast once edits to HOTMA and other forms are complete. 

RBD OnDemand Training
If you're looking for a class providing a basic explanation of the HOTMA changes, check out the RBD OnDemand Training -HOTMA for MFH. 

For those of you interested in additional HUD Occupancy training, we are evaluating each On Demand class to determine if we need to update the curriculum. 

Classes currently available are compliant based on pre-HOTMA rules and will remain available until the HOTMA implementation deadline. 

In the next few months, we will be adding new classes explaining HOTMA changes. For example, the EIV classes explain current requirements, but we will be adding EIV classes that explain EIV requirements after owner/agents implement HOTMA. 

Some classes do not need changes (e.g. Fair Housing for Federally Funded Properties & Assistance Animals). 

Watch for HUDBlasts announcing the availability of new classes.