Guidance for Completing Special Claims Presented by: Sarah Rockafellow

Guidance for Completing
Special Claims
Presented by:
Sarah Rockafellow
MSHDA
General Overview
• What Are Special
Claims?
• Processing Claims
• Claim Issues
• Important Links
• Questions???
What Are Special Claims?
HUD recognizes the financial risks
owners undertake in their efforts to
provide affordable housing. It is HUD’s
intent to ensure that owners involved in
this effort remain financially viable
partners. The special claims process is
one tool that owners can use to be
reimbursed for their financial loss.
Owners are encouraged to submit special
claims for eligible losses.
3 Types of Special Claims
• Regular Vacancy
• Unpaid Rents
• Tenant Damages
Special Claim Eligibility
• Section 8 Development
• Security Deposit must be collected
• Resident must be receiving Subsidy
– Can still make a claim for a terminated resident
as long as the resident wasn’t terminated due to
their TTP being at Market Rent because of
income
Processing Timelines
•
Claim Submissions
– Within 180 days from RFO (ready for occupancy date)
– 90 calendar days to put approved claim on HAP
– 60 Days ~ Maximum number of days HUD will pay for
vacancy loss
– Cannot submit a vacancy claim until 60 days has passed
or a new tenant has moved in (the earlier of the two)
– 30 Calendar Days ~ CA must return approval to property
from date rec’d
Special Claim Forms
• HUD 52670-A Part 2
–
–
–
–
Project Name
Contract Number
Columns 1- 4, 6
SIGNATURE!
• Please place as many
units on a page as
your software allows
• Please DO NOT put
the social security
number on this page
Special Claim Forms
• HUD 52671-C ~
Regular Vacancy
– Section 8 uses Part A
– SIGNATURE!
• Be Aware of…
– # 3 Date Unit Ready
for Occupancy
– #5 Date unit was
re-rented
– #8 Daily Contract
Rent
Special Claim Forms
• HUD 52671-A ~ Unpaid
Rent/Tenant Damages
• Charges Not Allowed
for Unpaid Rent
– Legal Fees
– Collection Agency
Fees
– Unpaid Utility Bills
– Cost of
photographing unit to
prove damages
• SIGNATURE!
How do I fill in the Forms?
• Special Claims
Schedule
(HUD 52670-A Part 2)
• Regular Vacancy
(HUD 52671-C)
• Unpaid
Rent/Tenant
Damages
(HUD 52671-A)
Processing Claims ~ Checklist
Requirements
• Regular Vacancy
– HUD 52670A Part 2
– HUD 52671-C
– TRACS Print Out
from HUD Secure
Systems
• MI/MO Query
• Certification
Query for UT’s
– Waiting list
• 3 months OR
• Pages displaying
contact &
outcome of new
tenant
Processing Claims ~ Checklist
Requirements
• Regular Vacancy
Cont.
– Copy of
Reconditioning Log
• NOTE: Date unit
ready for
occupancy is the
first FULL day
after work
completed
– Disposition of
Security Deposit
– Copy of Original
Lease
• Page 1, the page
showing Security
Deposit, and
signature page
Processing Claims ~ Checklist
Requirements
• Regular Vacancy cont.
– Copy of signed HUD50059 competed at
MI for former tenant
– Copy of completed
checklist
Processing Claims ~ Checklist
Requirements
• Unpaid Rent/Tenant
Damages
– HUD 52670A Part 2
– HUD 52671-A
– Disposition of
Security Deposit
– Copy of Certified
Letter to resident of
Damages and
related Charges
– Collection Agency
notice that debt
collection has been
attempted
Processing Claims ~ Checklist
Requirements
• Unpaid Rent/Tenant
Damages Cont.
– Copy of Original
Lease
• Page 1, the page
showing Security
Deposit, and
signature page
– TRACS Print Out
from HUD Secure
Systems
• MI/MO Query
• Certification
Query for UT’s
Processing Claims ~ Checklist
Requirements
• Unpaid Rent/Tenant
Damages Cont.
– Copy of signed HUD50059 competed at
MI for former tenant
– Copies of MI/MO
Inspection Reports
– Copy of completed
checklist
Regular Vacancy,
Unpaid Rent & Tenant Damage
Exercise
HUD TRACS Secure Systems
TRACS MI/MO Query & Certification Query
TRACS MI/MO Query
TRACS MI/MO Query
TRACS Cert Query for UT’s
TRACS Certification Query
• Unit 114 ~ Move Out 6/18/07
• Unit 114 ~ Unit Transfer/Interim effective 6/22/07
Examples of RFO Logs
• Name, unit #, MO Date
• Prep, Paint, Maintenance, Clean, and Carpet Date
• Ready for Occupancy Date (day following all
repairs)
• New Resident, MI Date
Examples of RFO Logs
•
•
•
•
•
•
•
•
•
•
MO date
Locks changed
Maintenance Prep
Painting
Cleaning
Repairs
Vinyl/Carpet Replaced
Final Inspection
Unit Ready for
Occupancy
MI date of new resident
Examples of Security Deposit
Dispositions
• Resident Name and
Unit
• Security Deposit and
Interest Earned
• Description of
Damages and Repair
Costs
• Unpaid Rent with
From/To dates
• Other fees
• Total for Unpaid Rent
and Damages
Examples of Security Deposit
Dispositions
• Tenant Name and Unit
• Date of MI/MO notice
and Actual MO
• Security Deposit and
Interest earned
• Balances owed for
rent and fees
• Damages owed
HAP Voucher Reporting
for Special Claims
Preferred Order of Claims for
Submission
•
Paper clipped together:
– HUD 52670-A Part 2
– Waiting List
(1 copy per package)
– TRACS Queries
(1 list per package)
• Claim Order for
Regular Vacancy
–
–
–
–
HUD 52671-C
Checklist
RFO Log
Security Deposit
Disposition
– Lease
– Move-In HUD-50059
Preferred Order of Claims for
Submission
• Claim Order for Unpaid Rent/Tenant Damages
–
–
–
–
–
–
–
–
–
HUD 52671-A
Completed Checklist
Security Deposit Disposition
Copy of Certified Letter to Resident
Collection Agency letter
Lease
Move-In HUD-50059
Move-In/Move-Out Inspection Reports
TRACS Queries
Common Mistakes
• No Signatures!
• Move Ins/Move
Outs/Unit Transfers
not viewable in
TRACS
• Not utilizing the
52670-A Part 2 to its
fullest capability (list
all units on one)
• Security Deposit being
deducted twice
• Vacancy being
submitted before 60
day period is over (if
no new MI)
• Security Deposit not
being deducted if kept
by the property
• Security Deposit
interest not being
claimed
• New resident is a
Market Renter or 236
resident
– Please note it on the
checklist and provide
the Move In 50059
• Submitting claims that
are over 180 days
from RFO date
Housekeeping Items
• Please send claims via USPS if they are over 20
pages. Email is always acceptable for any size.
Faxes are fine if under 20 pages
• Please make sure your claims print on one page. If
the formatting is creating two pages, please contact
your software vendor to correct.
• Please do not use Legal Size paper. Shrink to fit
on a standard 8 ½ x 11 piece. Double sided copies
are encouraged.
• Please use paper clips rather than staples.
• MSHDA has 30 calendar days to review and return
claims. Please do not call before the 30 days has
expired.
Important Links
• Special Claims Processing Guide (June 2006)
– www.google.com ~ search for Special Claims
Processing Guide.
More Important Links
• Special Claims Processing Guide FAQs
– http://www.hud.gov/offices/hsg/mfh/rfp/faq_scpg.pdf
• Online Secure Systems (TRACS)
– 1-888-245-4860
– http://www.hud.gov/offices/reac/online/reasyst.cfm
• TRACS Hotline
– 1.800.767.7588
– [email protected]
MSHDA Contact Information
• Maggie Droste
(Traditional CA Portfolio)
– [email protected]
– 517.241.0369 phone
– 517.335.6050 fax