Instructions for TRACS 202DForm HUD-50059 A - … document... · INSTRUCTIONS FOR TRACS 202DFORM HUD-50059 A Move-outs, ... When automatically printing or manually filling out this

INSTRUCTIONS FOR TRACS 202DFORM HUD-50059 A

Move-outs, Terminations, Gross Rent Changes and Unit Transfers

JULY 28, 2013 ROSS BUSINESS DEVELOPMENT, INC.

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Instructions for Completing TRACS 202D Form HUD-50059 A

Page 1 of 18 revised 7/27/2013

Copyright 2013 Ross Business Development, Inc.

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Not for Duplication or Distribution without Written Permission.

Not for Publication on Any Other Web Site

Table of Contents General Notes.......................................................................................................................................................... 2

References ............................................................................................................................................................... 3

Field by Field Definitions ....................................................................................................................................... 4

Move Outs ............................................................................................................................................................. 10

Terminations ......................................................................................................................................................... 11

Gross Rent Changes and Unit Transfers ............................................................................................................... 13

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GENERAL NOTES

The following are some general notes regarding these instructions:

1. When completing this form, if a conflict arises between these instructions and the instructions provided

in the Definitions and Edits section of the TRACS 2.0.2.D MAT User Guide, the TRACS 2.0.2.D MAT

User Guide takes precedence.

2. When automatically printing or manually filling out this form, Owner/Agents or TRACS compliant

software may add additional descriptors when the instructions require a Code to be chosen. As long as

the required Code is filled in for TRACS reporting purposes, the additional descriptors are acceptable.

Take for example Item 3, Subsidy Type. If the property is Section 8, the required Subsidy Type Code in

Item 3 should be filled in with a 1. Also shown are instances in which an added descriptor may be

printed with the required Code.

3. Subsidy Type 1 Or 3. Subsidy Type 1-(Section 8) Or 3. Subsidy Type 1-Sec. 8

These variations are samples of what is acceptable on the completed HUD-50059 A. Even though we

see added descriptors on the completed form, the TRACS data field created by TRACS compliant

software would be filled in with a 1 because TRACS allows for only one character in the Subsidy Type

data field.

3. The Owner/Agent must sign and date the completed form

4. The Head of Household must sign and date the completed form HUD-50059 A when there is a change in

the amount of rent the household must pay, a change in the utility reimbursement, when there is a unit

transfer and when required by state or local law. See 4350.3 REV-1: Paragraph 9-8.C.

NOTE: Tenant signatures for gross rent changes affecting the rent the household must pay or utility

reimbursement must be obtained within 60 days from the date the gross rent change is implemented by

the owner, as evidenced by the owner’s submission of the voucher whereby the owner begins vouchering

for assistance based on the new rents.

Signatures for a unit transfer or when required by state or local law must be obtained before submitting

the data to the Contract Administrator or TRACS.

5. A copy of all HUD-50059-As must be retained in the tenant file for the term of tenancy and for three

years after tenancy ends for any reason. See 4350.3 REV-1: Paragraph 9-8.C and Paragraph 5-22.

6. For TRACS reporting purposes:

MAT 40 is a Move-out (MO)

MAT 65 is a Termination of Assistance (TM)

MAT 70 is a Gross Rent Change (GR) or Unit Transfer (UT)


http://www.hud.gov/offices/hsg/mfh/trx/trxmatg.cfm




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REFERENCES

Some general references to consider when completing the applicable Items on the form HUD-50059 A are:

HUD’s TRACS web site: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/trx/trxsum

HUD Handbook 4350.3 Revision 1 -

http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4350.3

TRACS 202D MAT User Guide - http://www.hud.gov/offices/hsg/mfh/trx/trxmatg.cfm

TRACS 2.0.2.D Cross Reference

TRACS 202D Final Industry Specification Documents -

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/trx/trxdocs

TRACS Discussion Forum – A page where industry stakeholders ask questions and discuss challenges

surrounding TRACS

http://ptp.hud.gov/forumswww/main.cfm?CFID=7203371&CFTOKEN=70548446&CFApp=34&

HUDClips – HUD forms are stored on this page. This is where you can download current versions of HUD

Forms 50059 and 50059A.

http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/forms

HUD’s Forms Matrix providing owner/agents permission to remove the OMB Approval Number and OMB

Expiration Date from the lease and certain TRACS forms.

http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_20481.pdf


http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/trx/trxsum

http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4350.3

http://www.hud.gov/offices/hsg/mfh/trx/trxmatg.cfm


http://ptp.hud.gov/forumswww/main.cfm?CFID=7203371&CFTOKEN=70548446&CFApp=34&

http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/forms

http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_20481.pdf




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FIELD BY FIELD DEFINITIONS Item 1 Name of

Project (MAT TENHR

Field 20)

Enter the project name that appears on the regulatory agreement or subsidy

contract. This will be the current project name in the Contracts database.

TRACS will use this project name for all Fields under this TENHR

Item 2 Project Number (MAT TENHR

Field 23)

Enter the 8-digit FHA, Elderly Housing, or State Agency noninsured project

number. This field is mandatory for Section 236, BMIR, Rent Supplement,

RAP, 811 PRA Demo, PAC, and PRAC subsidy types. It is also required

for those Section 8 contracts for which an FHA project number applies.

Sample entries are as follows:

FHA Insured Projects – 12144026

Elderly Housing Projects – 121EH001

Other noninsured Projects – 121001NI

Note: Do not use “0000FMHA” as a project number for an FMHA/RHS

property. There should not be a project number for these properties.

Item 3 Subsidy Type (MAT TENHR

Field 21)

Enter the code for the type of subsidy the tenant is receiving at the time of

this Transaction. Valid codes are as follows:

1- Section 8 Note: Use 1 – Section 8 for RAD or SPRAC

2- Rent Supplement

3- RAP

4- Section 236PAC

5- BMIR

6- 811 PRA Demo

7- Section 202/PRAC

8- Section 811 PRAC

9- Section 202/162

0- Market Rent (Acceptable with only MAT15 Address records) See MAT

Guide Chapter 4, Section 4-7 for Subsidy Type 0

Item 4 Contract

Number (MAT TENHR

Field 24)

This number is mandatory for Section 8 (including State Agency and USDA

RHS 515/8 projects), 202/162 PAC, 202 PRAC, and 811 PRAC subsidy

types. This number will be used for all transactions under this TENHR.

Enter the 11-digit contract number. Do not enter dashes in this

alphanumeric Item (e.g.: AK123456789)

Item 5 Transaction

Type (MAT 40 Field 4) (MAT 65 Field 4)

(MAT 70 Field 4)

Enter the code that best describes the main reason for preparing this form.

Note: Do not use a termination to end subsidy after the death of a sole

member. Use the move-out transaction.

NOTE: Unit Transfers can only be used if the project number and contract

number do not change. Otherwise, a Termination and an Initial

Certification is used to affect the transfer when the project stays the same.





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A Move-out and a Move-in Certification should be used when the transfer is

between projects. See MAT User Guide Chapter 4.

Note: If a Gross Rent Change has the same effective date as a full

certification (AR, MI, IC, IR) include the new GRC information on the full

certification (50059) instead of this form. If a Unit Transfer has the same

effective date as a full certification (AR, IR, IC), include the new GRC

and/or UT information on the full certification (50059) instead of this form.

Item 6 Head of

Household (MAT 40 Fields 6, 7

and 8)

(MAT 65 Fields 6, 7

and 8)

(MAT 70 Fields 6, 7

and 8)

List the name (Last, First, Middle Initial) of the Head of Household. (Last,

First, Middle Initial)

Item 7 Unit Number (MAT 40 Field 11)

(MAT 65 Field 14)

(MAT 70 Field 11)

For a Move-out, Termination or Gross Rent Change, enter the Unit Number

in which the tenant was residing at the time of this Transaction.

For a Unit Transfer, enter the new Unit Number into which the tenant is

moving.

Item 8 No. of

Bedrooms (MAT 10 Section 2

Field 71)

Enter the number of bedrooms for the unit number listed in Item 7.

Item 9 Building ID Future Field - Leave this Item blank. REAC-assigned Building Number.

Item 10 Effective Date (MAT 40 Field 10)

(MAT 65 Field 10)

(MAT 70 Field 10)

Enter the date this Transaction is to be effective. Enter the Transaction date

as MMDDYYYY.

MO – For a MO transaction, Enter the last full day in the unit. If the

resident moves out before mid-day, use the previous day)

Note: Some owners have a policy of submitting a move-out effective the last

day of the month even if the notice period ends earlier. Others will submit a

move-out effective at the end of the notice period even if the tenant has

moved out earlier. Neither of these practices is appropriate. The move-out

date is always the actual move-out date or the date that the owner takes

possession of the unit in the case of a skip. See MAT Guide Chapter 4,

Section 4.3 and HH 4350.3 R1, Appendix 7.

TM - For most TM codes, this is the last day subsidy is paid. NS and DS

codes may only be used if the resident was not eligible when subsidy started

(NS) or was receiving HUD housing assistance in another home (DS). The

effective date of the TM is the same day as the MI or IC. When using NS or

DS, all subsidy will be removed)





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UT - The date this transaction (rent change or unit transfer) is effective.

This is the first day in the new unit.

GR - This is the effective date of Gross Rent Change.

Note: If the GR effective date corresponds to that of a partial certification:

If the existing certification is a MAT40 move-out or MAT65 termination,

submit the GR and then resubmit the MO or TM after waiting for

TRACS to successfully process the GR. Set the Correction Type flag to

“R”.

If the existing certification is a MAT70 unit transfer, submit a MAT70

UT with the rent applicable after the GR and set the MAT70 correction

flags as appropriate. The only way to transmit both transactions

simultaneously to TRACS is as a single MAT70 Unit Transfer record as

opposed to two MAT70s--one UT and one GR. This will take care of the

unit number change and will change the rent. If one certification is

transmitted before the other, especially in the same nightly batch, the

luck of the draw will determine which record is processed first and you

might not get the result you want. The only way to enforce sequence of

processing of records of the same type is to submit them on different

days.

If the existing certification is a MAT70 gross rent, you are correcting a

gross rent change and should submit a MAT70 GR setting the correction

flags.

See 2.0.2.D MAT Guide: Chapter 4 (TRACS Operating Tips), Sections 4.12

through 4.15.*

Item 11 Head ID Code

(SSN) (MAT 40 Field 5)

MAT 65 Field 5)

(MAT 70 Field 5)

Enter the 9-digit Social Security Number (SSN) for the Head of Household.

If the member SSN was originally entered as 999999999 use the TRACS ID

number assigned by TRACS.

Enter 999999999 if the head of household has no SSN/TRACS ID, and

enter the Head of Household’s name (Item 6) and birth date (Item 12).

Note: Do not enter an ITIN (Individual Tax Identification Number) or a

Social Security Benefits Claim Number.

Item 12 Head Birth

Date (MAT 40 Field 9)

(MAT 65 Field 9)

(MAT 70 Field 9)

Enter the Birth Date for the Head of Household. Enter date as

MMDDYYYY.





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Item 13 Correction

Type (MAT 40 Field 16)

(MAT 65 Field 16)

(MAT 70 Field 27)

Leave blank if this is not a correction.

Enter R = Correction/Re-transmittal

Note: You cannot currently change the effective date of a 50059A. In order

to correct the effective date, you must submit the last MAT 10 as a

correction. Then submit the 50059A with the correct effective date. See

MAT Guide Chapter 4, Section 4-20.

See 2.0.2.D MAT Guide: Chapter 4 (TRACS Operating Tips), Sections 4.2,

4.14 and 4-20.

Item 14 EIV Indicator (MAT 40 Field 19)

(MAT 65 Field 18)

(MAT 70 Field 29)

The indicator is set for a UT or GR if it is being corrected as a result of a

change to a full certification whose EIV Indicator is set to Y.

Similarly, if the result of use of the EIV system is the termination or

eviction of a household, the indicator is set on the TM or MO.

If a certification is created or corrected because of en EIV Discrepancy,

enter Y.

If not, leave this field blank.

Item 15 Transaction

Date Being

Corrected

Future Field - Leave this Item blank.

Item 16 Anticipated

Voucher Date (MAT 40 Field 15)

(MAT 65 Field 15)

(MAT 70 Field 21)

Enter the voucher period (month, day, year) for which the (re)certification

may first appear. See Appendix H, Sections 13 & 14 of the 2.0.2.D TRACS

MAT Guide outline the timing of reporting (re)certifications/transactions on

vouchers.

When the (re)certification is for Subsidy Type “4” (Section 236) or Type

“5” (BMIR), enter the date that is the first of the month corresponding to the

(re)certification effective date.

Note: When entering the date MMDDYYYY, the “DD” will always be “01”

Anticipated Voucher Reported on Date

New for 202D: A GR transaction, for a tenant living in a Section 8 property, with an effective date of August

1st, could first be reported on the August voucher as long as the GR transaction is executed and entered before

the August voucher is created (no later than July 10th). However, a GR, for a tenant living in a Section 8

property, with an effective date from August 2nd through August 31st, cannot appear on any voucher before the

September voucher.





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This chart shows the first month that a given cert may appear on a voucher when the contract type is Section 8,

PAC, PRAC, RAD, 811 PRA Demo, or SPRAC.

Certification Effective

Date

August 1

Aug 2-31

(any date between the 2nd

and last day of the month)

First Possible Voucher Month

AR (Annual) Aug (created no later than July 10) NA

An AR can be completed in advance. If an August AR is complete when the August voucher is created in July,

that AR will be included on the August voucher. If the AR is not complete when the August voucher is created in

July, then the AR will appear on a subsequent voucher. OAs must follow the guidance provided in HH 4350.3 R1,

C3, Paragraph 7-8.

IR (Interim) Aug (created no later than July 10) Oct (created no later than Sept 10)

An IR can be completed in advance. If an IR effective August 1 is complete when the August voucher is created

in July, that IR will be included on the August voucher. If the IR effective August 1 is not complete when the

August voucher is created in July, then the IR will appear on a subsequent voucher.

IC (Initial) Aug (created no later than July 10) Oct (created no later than Sept 10)

An IC can be completed in advance. If an IC effective August 1 is complete when the August voucher is created

in July, that IC will be included on the August voucher. If the IC effective August 1 is not complete when the

August voucher is created in July, then the IC will appear on a subsequent voucher.

MI (Move-in) Sept (created no later than Aug 10) Oct (created no later than Sept 10)

Move-in transactions should not be completed until the prospective resident takes possession of the unit.

MO (Move-out) Sept (created no later than Aug 10) Oct (created no later than Sept 10)

Move-out transactions should not be completed until the resident actually leave the unit or until the owner/agent

takes possession of the unit. See HH 4350.3 R1, C3, Appendix 7

TM (Termination) Sept (created no later than Aug 10) Oct (created no later than Sept 10)

A TM is often completed in advance. If a TM effective August 1 is complete when the August voucher is created

in July, that IC will be included on the August voucher. If the TM effective August 1 is not complete when the

August voucher is created in July, then the TM will appear on a subsequent voucher.

GR (Gross Rent) Aug (created no later than July 10) Sept (created no later than Aug 10)

In TRACS 202 D If a GR effective August 1 is complete when the August voucher is created in July, that GR will

be included on the August voucher. If a GR effective between August 2 and August 31 is complete when the Sept

voucher is created in August, that GR will be included on the September voucher.

UT (Unit Transfer) Sept (created no later than Aug 10) Oct (created no later than Sept 10)

UT transactions should not be completed until the resident takes possession of the new unit.





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This chart shows the first month that a given cert may appear on a voucher when the contract type is Rent Supp

or RAP.

Certification

Effective Date

August 1

Aug 2-31

(any date between the 2nd

and last day of the month)

First Possible Voucher Month

AR (Annual) Aug (created no later than Aug 10) NA

An AR can be completed in advance. If an August AR is complete when the August voucher is created, that

AR will be included on the August voucher. If the AR is not complete when the August voucher is created,

then the AR will appear on a subsequent voucher. OAs must follow the guidance provided in HH 4350.3 R1,

C3, Paragraph 7-8.

IR (Interim) Aug (created no later than Aug 10) Sept (created no later than Sept 10)

An IR can be completed in advance. If an IR effective August 1 is complete when the August voucher is

created in July, that IR will be included on the August voucher. If the IR effective August 1 is not complete

when the August voucher is created in July, then the IR will appear on a subsequent voucher.

IC (Initial) Aug (created no later than Aug 10) Sept (created no later than Sept 10)

An IC can be completed in advance. If an IC effective August 1 is complete when the August voucher is

created in July, that IC will be included on the August voucher. If the IC effective August 1 is not complete

when the August voucher is created in July, then the IC will appear on a subsequent voucher.

MI (Move-in) Aug (created no later than Aug 10) Sept (created no later than Sept 10)

Move-in transactions should not be completed until the prospective resident takes possession of the unit.

MO (Move-out) Sept (created no later than Sept 10) Sept (created no later than Sept 10)

Move-out transactions should not be completed until the resident actually leave the unit or until the

owner/agent takes possession of the unit. See HH 4350.3 R1, C3, Appendix 7

TM (Termination) Sept (created no later than Sept 10) Sept (created no later than Sept 10)

A TM is often completed in advance. If a TM effective August 1 is complete when the August voucher is

created in July, that IC will be included on the August voucher. If the TM effective August 1 is not complete

when the August voucher is created in July, then the TM will appear on a subsequent voucher.

GR (Gross Rent) Aug (created no later than Aug 10) Sept (created no later than Sept 10)

In TRACS 202 D If a GR effective August 1 is complete when the August voucher is created in July, that GR

will be included on the August voucher.

UT (Unit Transfer) Aug (created no later than Aug 10) Sept (created no later than Sept 10)

UT transactions should not be completed until the resident takes possession of the new unit.





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MOVE OUTS

Item 17 Move Out

Code (MAT 40 Field

13)

Enter the valid code which best describes the reason for the Move-out.

Note: For Discrepancies discovered on the EIV Deceased Tenant Report

When an IR is appropriate, DO NOT CREATE A “FALSE” MOVE OUT

TRANSACTION TO CORRECT AN EIV DECEASED TENANT REPORT

DISCREPANCY. Doing so is non-compliant. This could create problems

with your ability to receive subsidy for this household.

1= Owner initiated for nonpayment of rent (4350.3 REV 1: Paragraph 8-

13.A.5)

2= Owner initiated--other

3= Tenant initiated--other

4= Death of sole family member (note: only use if no other household

member remains in the unit)

5= Unit Transfer between two projects. See 2.0.2.D MAT Guide: Section

4.1

6= Reserved for TRACS use only (HQ Move Outs)

7= Abandoned Unit (4350.3 REV 1: Paragraph 6-9.B.2 and 8-13.A.2) –

PDD

8= Failure to submit SSN

9= Uninhabitable unit – Abated.

10= Substantial Rehab or Repair – Tenant Expected to Return

11= RAD to Housing Choice Voucher—Choice Mobility Option

Exercised

Note for code 11: Used only for a RAD tenant accepting a Housing Choice

Voucher (HCV)

Item 18 Date of

Death of

Sole

Member (MAT 40 Field

14)

Enter as MMDDYYYY. Required if Move-Out Code is “4”.

Note: The tenant’s subsidy (assistance payment) must end no more than 14

days from the date of death of the sole family member.

After a death, the move-out transaction should be entered and transmitted

ONLY when the owner/agent is able to take possession of the unit (family

members move contents out). It is proper to bill for subsidy until the unit is

vacated. The MO code 4 with an appropriate date-of-death must generate a

voucher adjustment to 14 days after the date of death if the unit is not

vacated within 14 days. The actual Move-out date is the date the

owner/agent may take possession of the unit and may be after the 14-day

period. See HH 4350.3 R1, C3, Paragraph 9-12 and MAT Guide Chapter 5,

Section 5-8.





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Item 19 Description

(for MO) (MAT 40 Field

18)

Enter the text corresponding to the code entered in Item 17.

1= Owner initiated--Nonpayment of rent

2= Owner initiated--Other

3= Tenant initiated--Other

4= Death of sole family member

5= Unit Transfer between two projects

6= TRACS use only (HQ Move Outs)

7= Abandoned Unit

8= Failure to submit SSN

9= Uninhabitable unit - Abated

10= Substantial Rehab or Repair - Tenant expected to return

11= RAD to Housing Choice Voucher—Choice Mobility Option

Exercised

TERMINATIONS

Item 20 Termination

(MAT 65 Field

11)

Enter the valid code which best describes the reason for the

termination.

Note: Do not use a termination to end subsidy after the death of a sole

member. Use the move-out transaction.

TI = TTP Equals/Exceeds Gross Rent or moving to market rent

(Section 236 and BMIR) (4350.3 REV 1: Paragraph 8-5.C).

TC = Did not supply citizenship/eligible alien documentation.

TR = Did not re-certify on time. Tenant required to pay market rent.

(See HH 4350.3 REV 1: Paragraph 8-5.A)

TF = Tenant refused to transfer as agreed or submitted false data.

(See HH 4350.3 REV 1: Paragraph 8-5.D)

CE = Subsidy contract expired-not renewed. Do not use when renewal

is delayed. See 2.0.2.D MAT Guide: Chapter 4, Section 4.19 regarding

Last HAP Vouchers

ST = Ineligible Student. Not available for PRAC. Tenant must move

out.

DS = Double subsidy at move-in. Use to terminate subsidy when a

move-out from a former property is effective after the move-in or

initial certification date for the new property. The code is intended to





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be used on a termination effective on the move-in or initial certification

date. It will result in an adjustment on the voucher that gives back

subsidy for the TM date. See Note below.

ND = Natural Disaster or Uninhabitable Unit or Presidentially

Declared Disaster

AB = HUD abated unit.

RR = Substantial rehab or repair – Tenant expected to return.

NS = Resident did not qualify for subsidy at MI for reason other than

Double Subsidy. For example, income at MI or IC is being corrected as

a result of an EIV discrepancy or other investigation and the tenant was

not income eligible. Per the 4350.3, you can only go back five years

when investigating misreporting. Therefore a TM using the NS code

cannot apply to a move-in (MI) more than five years old.

OT = Other. A reason not covered by any of the other codes.

Note: When terminating assistance, remember that the effective date of

the termination certification (for all termination codes except NS and

DS) is the last day subsidy is paid.

Note: When using NS or DS, the effective date of the termination must

coincide with an MI or IC. When using these codes, TRACS software

will create an adjustment to reverse all housing assistance.

For additional information see HH 4350.3 R1, C3, Paragraph 8-5.

The following termination codes are reserved for HUD use only:

EN = Contract terminated for enforcement action.

HQ = TRACS generated termination for failure to recertify, submit

termination or move-out. May be superseded by an Annual

Recertification.

Item 21 Description

(for

Termination) (MAT 65 Field

12)

Enter the text corresponding to the code entered in Item 20.

TI = TTP Equals/Exceeds Gross Rent or moving to market rent

TC = Did not supply citizenship documentation

TR = Did not re-certify on time

TF = Tenant refused to transfer or submitted false data

CE = Subsidy contract expired-not renewed

ST = Ineligible Student

DS = Double subsidy at move-in





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ND = Natural Disaster or Uninhabitable Unit

AB = HUD abated unit.

RR = Substantial rehab or repair - Tenant expected to return

NS = Resident did not qualify for subsidy at MI--Not Double Subsidy

OT = Other. A reason not covered by any of the other codes

EN = Contract terminated for enforcement action

HQ = TRACS generated termination for failure to recertify

GROSS RENT CHANGES AND UNIT TRANSFERS

The Gross Rent Change Transaction is used for both Rent Changes and Utility Allowance Adjustments.

If a Gross Rent Change has the same effective date as a full certification (AR, MI, IC, IR) include the new GRC

information on the full certification (50059) instead of this form. If a Unit Transfer has the same effective date

as a full certification (AR, IR, IC), include the new GRC and/or UT information on the full certification (50059)

instead of this form. New rules apply to IR/UT combinations.

Item 22 Previous Unit

No. (UT only) (MAT 70 Field 22)

This is a “from/to” transaction. The resident is moving from this unit

(number) to a new unit.

Note: If this unit transfer includes changes in family composition

and/or income, assets or expenses, complete a full certification

(50059), instead of this form. New rules are provided (with the

implementation of 202D) changing rules about effective dates of

interim certification (IR) and unit transfer combinations.

If the change in household composition and/or household income

occurred on or before the unit transfer date, an IR must be created

with the unit transfer flag set to Yes. If the rent changes (up or down)

as a result of the change in household composition or household

income, the IR/UT (rent change) will be effective on the same date as

the unit transfer. This means that a mid-month IR/UT is required

when there is a change in household income and/or household

composition and the transfer date is other than the first of the

month. This policy is based on 4350.3, 7-15.C. “In the case of a unit

transfer, both the change in rent and change in the assistance

payment are effective on the day the tenant actually occupies the new

unit.

See MAT Guide Chapter 4, Section 4.1

Item 23 Secondary

Subsidy Type (MAT 70 Field 23)

If this transaction type (Item 5) is a GR or UT…

Enter “S” if this tenant is receiving Section 8, RAP, or Rent

Supplement assistance and is living in a Section 236 property.





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Enter “B” if this tenant is receiving Section 8, RAP or Rent

Supplement assistance and is living in a BMIR property.

Otherwise, leave blank.

Item 24 236 Basic/

BMIR Rent (MAT 70 Field 24)

Refer to HUD-92458 (Rent Schedule) for the property

If Item 23 has an “S”, enter the Section 236 Basic Rent amount.

If Item 23 has a “B”, enter the BMIR Rent amount.


Item 25 Market Rent (MAT 70 Field 25)

This Item is required to be filled in if Section 236 or BMIR is the

primary or secondary subsidy.

Enter the market rent approved for this unit type.

If not applicable, leave blank.

Item 26 Contract Rent (MAT 70 Field 14)

The Contract Rent is the Section 8/RAP Contract Rent, the Section

236 Basic Rent, the Section 221(d)(3) BMIR Contract Rent, or the

Rent Supplement Unit Rent, as applicable.

Note: This amount cannot be zero.

For the Section 202 PAC or PRAC and Section 811/PRAC projects,

if the tenant pays utilities separately, enter the operating rent

(operating cost) minus the HUD-approved utility allowances. If all

of the utilities are included in the rent, enter the operating rent.

For a Gross Rent Change, enter the new approved rent for this unit

type.

For a Unit Transfer, enter the Contract Rent for the new unit

Item 27 Utility

Allowance (MAT 70 Field 18)

HUD’s or the Contract Administrator’s estimate of the average

monthly utility bills (except telephone) for an energy-conscious

household. The estimate considers only utilities paid directly by the

tenant. If all utilities are included in the rent, there is not a utility

allowance. Utility allowances vary by unit type and are listed on the

project’s rent schedule or HAP contract. Refer to the HUD-92458

(Rent Schedule) for the property.

If all utilities are included in the rent, enter 0.

Otherwise, enter the amount HUD or the Contract Administrator has

approved for this unit type. This amount can be obtained from the

project’s Rental Schedule (Form HUD-92458) or subsidy contract.

For a Unit Transfer, enter the Utility Allowance for the new unit.





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Item 28 Gross Rent (MAT 70 Field 17)

Note: Also known as the PRAC Operating Rent and the PAC

Operating Cost.

Enter the sum of Item 26, Contract Rent (CR), plus Item 27, Utility

Allowance (UA). CR + UA = GR

For a Unit Transfer, enter the Gross Rent for the new unit.

Item 29 TTP at RAD

Conversion (MAT 70 Section 2

Field 30)

If not Section 8 leave blank.

If Section 8 sub-type is not RAD leave blank.

For RAD:

If no rent phase-in is involved, leave blank.

If Rent Phase in is in process, enter the TTP (Total Tenant

Payment) the tenant is/was paying at the time of conversion to

RAD.

Note: If the TTP, TR, AP and/or UR for a tenant family needs to be

prorated, please follow the Pro-ration procedures listed after Item

36.

NOTE: This is not Tenant Rent. Tenant Rent = TTP less any Utility

Allowance

Item 30 Total Tenant

Payment (MAT 70 Field 16)

The Total Tenant Payment (TTP) is the amount a tenant is expected

to contribute for rent and utilities. See HH 4350.3 REV 1:

Paragraph 5-25, Figure 5-6, Paragraphs 7-16 & 7-17, Exhibit 5-8

For BMIR and Section 236 tenants, leave blank.

For Section 8, RAP, PRAC, PAC, the Total Tenant Payment (TTP)

is the greater of:

30% monthly adjusted income;

10% monthly gross income;

Welfare rent (welfare recipients in as-paid localities only);

$25 minimum rent (Section 8 only).

For Rent Supplement:

The Total Tenant Payment (TTP) is the greater of:

30% of monthly adjusted income;

30% of gross rent.





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Item 31 TTP Before

Override (MAT 70 Field 31)

Note: For information regarding the Rent Override function, see

HUD MAT Guide Chapter 4, Section 4.30.

If this is a Rent Override situation (Item 35, Rent Override must be

set to Y) and the rent calculation involves TTP, enter the TTP that

would normally be calculated without the override.


NOTE: For a RAD rent phase-in, on the first certification in which

the TTP Before Override equals the Total Tenant Payment, enter the

amounts in this Item and Item 29. The fact that TTP Before Override

= Total Tenant Payment signals that the phase-in is complete. For

future transactions (those with effective dates after the one that ends

the rent phase-in), leave this Item and Item 29 blank.

Item 32 Tenant Rent (MAT 70 Field 15)

For Section 8/RAP/Rent Supplement/Section 202 PAC, Section

202 PRAC and Section 811 PRAC: Tenant Rent (TR) is the portion

of the TTP the tenant pays each month for rent.

When utilities are paid by the property, the Tenant Rent (TR) will

equal the Total Tenant Payment (TTP).

When utilities are paid by the tenant, the TR equals the TTP minus

the Utility Allowance (UA).

If the Utility Allowance (UA) is greater than the TTP, enter zero and

calculate the Utility Reimbursement (Item 33).

For Section 236 and BMIR tenants: See 4350.3 REV-1: Exhibit 5-8

for calculating Tenant Rent

See HH 4350.3 REV 1: Paragraph 5-26.A

Item 33 Utility

Reimbursement (MAT 70 Field 19)

If the Utility Allowance exceeds the Total Tenant Payment, subtract

the TTP from the Utility Allowance and enter the difference.

For Section 236 and BMIR, leave blank.

See HH 4350.3 REV 1: Paragraph 5-26.C

Item 34 Assistance

Payment (MAT 70 Field 20)

Enter the amount the owner bills HUD on behalf of the tenant living

in a Section 8, RAP, Rent Supplement, 202/811 PRAC or PAC

property.

To determine this amount, subtract the TTP (Item 30) from the GR

(Item 28).





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GR - TTP = AP.

For Section 8, RAP, Rent Supplement, 202 PAC property, if the

TTP is greater or equal to the GR, enter zero.

For 202/811 PRAC, the assistance payment (AP) for a PRAC tenant

is the Operating Rent minus the TTP. Enter the AP amount, even if

the amount is a negative number (e.g.: -75).

See HH 4350.3 REV 1: Paragraph 5-26.B

Item 35 Rent Override (MAT 70 Field 26)

Note: For information regarding the Rent Override function, see

HUD MAT Guide Chapter 4, Section 4.30.

Enter “Y” if the normal rent calculations have been overridden for

this transaction.


See HUD Handbook 4350.3 REV 1: Paragraph 5-30 for some of the

general requirements as to when a HUD calculated rent may be

overridden.

See also the rent calculation spreadsheet (TRACS 202D

Specification - 202DCalculatingTenantRent.xlsx) for how

overrides impact calculations.

Item 36 Security

Deposit (MAT 70 Field 13)

The owner must collect a security deposit at the time of the initial

lease execution for the following properties:

1. Section 8 New Construction with an AHAP executed on or

after November 5, 1979;

2. Section 8 Substantial Rehabilitation with an AHAP executed

on or after February 20, 1980;

3. Section 8 State Agency with an AHAP executed on or after

February 29, 1980;

4. Section 202/8;

5. Section 202 PAC;

6. Section 202 PRAC; and

7. Section 811 PRAC.

See HH 4350.3 R1, Paragraph 6-16 Figure 6-6 for additional

information about Security Deposit Requirements.

Enter the amount that should have been collected from the tenant

when they moved into the project.







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Unit Transfer: When a tenant transfers to a new unit, an owner

may:

1. Transfer the security deposit. If this transaction is a Unit Transfer,

include any amounts transferred from the previous unit. ; or

2. Charge a new deposit and refund the deposit for the old unit. If the

deposit for the old unit is refunded, the owner must establish a

security deposit for the new unit based on the requirements listed in

paragraph 6-15 regarding the collection of a security deposit.

If this transaction is a Unit Transfer, include any amounts collected

for the new unit

Note: The security deposit amount was determined at move-in and

should not change, unless the O/A refunded the old deposit and an

Interim/Unit Transfer (IR/UT) or an Annual/Unit Transfer (AR/UT)

determines a new amount.

Note: HUD policy has ruled that, when a MI or IC certification is

corrected, any security deposit required is to be recalculated. When

this happens the change should be noted on the lease and the OA and

tenant should initial the change. Note that not all original ICs

establish a security deposit. Only corrections to ICs that originally

established a security deposit will update the deposit. See MAT

Guide Chapter 5, Section 5.3
