Presentation on theme: "Guidance for Completing Special Claims"— Presentation transcript:
1 Guidance for Completing Special Claims Presented by:Sarah RockafellowMSHDA
2 General Overview What Are Special Claims? Processing Claims Claim IssuesImportant LinksQuestions???
3 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.
4 3 Types of Special Claims Regular VacancyUnpaid RentsTenant Damages
5 Special Claim Eligibility Section 8 DevelopmentSecurity Deposit must be collectedResident must be receiving SubsidyCan 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
6 Special Claim Forms HUD 52670-A Part 2 Project NameContract NumberColumns 1- 4, 6SIGNATURE!Please place as many units on a page as your software allows
7 Special Claim Forms HUD 52671-C ~ Regular Vacancy Be Aware of… Section 8 uses Part ASIGNATURE!Be Aware of…# 3 Date Unit Ready for Occupancy#5 Date unit was re-rented#8 Daily Contract Rent
8 Special Claim Forms HUD 52671-A ~ Unpaid Rent/Tenant Damages Charges Not Allowed for Unpaid RentLegal FeesCollection Agency FeesUnpaid Utility BillsCost of photographing unit to prove damagesSIGNATURE!
9 How do I fill in the Forms? Special Claims Schedule (HUD A Part 2)Regular Vacancy (HUD C)Unpaid Rent/Tenant Damages (HUD A)
10 Processing Claims ~ Checklist Requirements Regular VacancyHUD 52670A Part 2HUD CTRACS Print Out from HUD Secure SystemsMI/MO QueryCertification Query for UT’sWaiting list3 months ORPages displaying contact & outcome of new tenant
11 Processing Claims ~ Checklist Requirements Regular Vacancy Cont.Copy of Reconditioning LogNOTE: Date unit ready for occupancy is the first FULL day after work completedDisposition of Security DepositCopy of Original LeasePage 1, the page showing Security Deposit, and signature page
12 Processing Claims ~ Checklist Requirements Regular Vacancy cont.Copy of signed HUD competed at MI for former tenantCopy of completed checklist
13 Processing Claims ~ Checklist Requirements Unpaid Rent/Tenant DamagesHUD 52670A Part 2HUD ADisposition of Security DepositCopy of Certified Letter to resident of Damages and related ChargesCollection Agency notice that debt collection has been attempted
14 Processing Claims ~ Checklist Requirements Unpaid Rent/Tenant Damages Cont.Copy of Original LeasePage 1, the page showing Security Deposit, and signature pageTRACS Print Out from HUD Secure SystemsMI/MO QueryCertification Query for UT’s
15 Processing Claims ~ Checklist Requirements Unpaid Rent/Tenant Damages Cont.Copy of signed HUD competed at MI for former tenantCopies of MI/MO Inspection ReportsCopy of completed checklist
21 TRACS Certification Query Unit 114 ~ Move Out 6/18/07 - JonesUnit 114 ~ Unit Transfer/Interim effective 6/22/07 - Smith
22 Examples of RFO Logs Name, unit #, MO Date Prep, Paint, Maintenance, Clean, and Carpet DateReady for Occupancy Date (day following all repairs)New Resident, MI Date
23 Examples of RFO Logs cont. MO dateLocks changedMaintenance PrepPaintingCleaningRepairsVinyl/Carpet ReplacedFinal InspectionUnit Ready for OccupancyMI date of new resident
24 Examples of Security Deposit Dispositions Resident Name and UnitSecurity Deposit and Interest EarnedDescription of Damages and Repair CostsUnpaid Rent with From/To datesOther feesTotal for Unpaid Rent and Damages
25 Examples of Security Dispositions Tenant Name and UnitDate of MI/MO notice and Actual MOSecurity Deposit and Interest earnedBalances owed for rent and feesDamages owed
27 Processing Timelines Claim Submissions Within 180 days from RFO (ready for occupancy date)90 days to put approved claim on HAP60 Days ~ Maximum number of days HUD will pay for vacancy lossCannot 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
28 Preferred Order of Claims for Submission Stapled Together:HUD A Part 2Waiting List (1 copy per package)TRACS Queries (1 list per package)Claim Order for Regular VacancyHUD CChecklistRFO LogSecurity Deposit DispositionLeaseMove-In HUD-50059
29 Preferred Order of Claims for Submission Claim Order for Unpaid Rent/Tenant DamagesHUD ACompleted ChecklistSecurity Deposit DispositionCopy of Certified Letter to ResidentCollection Agency letterLeaseMove-In HUD-50059Move-In/Move-Out Inspection ReportsTRACS Queries
30 A well organized and complete claim package makes for a HAPPY MSHDA
32 Common Mistakes No Signatures! Move Ins/Move Outs/Unit Transfers not viewable in TRACSNot utilizing the A Part 2 to its fullest capability (list all units on one)Security Deposit being deducted twiceSecurity Deposit not being deducted if kept by the propertySecurity Deposit interest not being claimedNew resident is a Market Renter or 236 residentPlease note it on the checklist and provide the Move In 50059
33 Housekeeping ItemsPlease send claims via USPS if they are over 50 pages. is always acceptable for any size. Faxes are fine if under 50 pagesPlease 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.MSHDA has 30 calendar days to review and return claims. Please do not call before the 30 days has expired.
34 Important Links Special Claims Processing Guide (June 2006) ~ search for Special Claims Processing Guide.
35 More Important Links Special Claims Processing Guide FAQs Online Secure Systems (TRACS)TRACS Hotline