1 A D V A N C E D T E C H N O L O G Y S Y S T E M S U.S. Department of Housing and Urban Development (HUD) Tenant Rental Assistance Certification System (TRACS) TRACS Security Deposits March 3, 2005

2 Agenda n Current Security Deposit Logic n Revised Handbook Security Deposit Changes n Security Deposits Amount n Revised Discrepancies n New Discrepancies

3 Current Security Deposit Logic n Based on subsidy type. n Does not differentiate among Section 8 programs.

4 Revised Handbook Changes n Differentiates among Sec 8 programs. n Expects a specific security deposit amount based on subsidy type and/or program guideline id. n Makes collecting a security deposit a prerequisite for special claims approval (Sec 8, PAC, PRAC).

5 Amount collected for Sec 8 depends on: n Program type n Date AHAP or HAP contract was signed. n Amount of TTP Security Deposit Amount

6 Revised Discrepancies n CE131 –Transaction type other than MI (Sec 8, PAC, or PRAC) –Submitted security deposit equals $0.0. –“Security Deposit is Now Being Collected by TRACS.” –Action Required = 3

7 Revised Discrepancies n CE252 –Transaction type equals MI -Subsidy type (202 PAC, 202/811 PRAC) -Submitted amount does not equal the greater of TTP or $50.

8 Revised Discrepancies n CE252 - “Security Deposit Should Equal the Greater of Total Tenant Payment or $50.” –Action Required = 3

9 New Discrepancies n CE259 _ Transaction type = MI – Subsidy type = Section 8 – Program types a) New Construction (with AHAP executed before 11/5/79) b) New Construction FMHA (RHS 515 with Section 8)

10 New Discrepancies n CE259(cont) c) Substantial Rehab (with AHAP executed before 2/20/80) d) State Agency (with AHAP executed before 2/29/80)

11 New Discrepancies n CE259(cont) - Submitted amount does not equal 1 month’s TTP. - “Security Deposit for this Section 8 Program Should Equal One Month’s TTP.” - Action Required = 3

12 n CE260 – Transaction type = MI – Subsidy type = Section 8 – Program types a) Property Disposition (with sale of HUD owned property) b) Section 202 (with Section 8 or PAC) New Discrepancies

13 n CE260 (cont) c) State Agency (with AHAP executed on or after 2/29/80) d) New Construction (with AHAP executed on or after 11/5/79) e) Substantial Rehab (with AHAP executed on or after 2/20/80) New Discrepancies

14 n CE260 (cont) -Submitted amount is not the greater of 1month’s TTP or $50. - “Security Deposit for this Sec 8 Program Should Equal the Greater of TTP or $50.” -Action Required = 3 New Discrepancies

15 n CE261 –Transaction type = MI –Subsidy type = Section 8 –Program type Loan Management Set-Aside New Discrepancies

16 n CE261 -Submitted amount is greater than 1 month’s TTP. –“Security Deposit for this Sec 8 Program May Not Exceed TTP.” –Action Required = 3 New Discrepancies

17 n Submission of a security deposit in installments n Opt-Out provision for PAC and PRAC properties Features Requiring Tenant MAT Changes

18 n Rent Supp, RAP, Sec 236, BMIR -TRACS will accept the s ubmitted security deposit amount. -No discrepancy will be generated. Other Subsidy Types

19 trxdocs.cfm TRACS Documents Page

20 The End TRACS Security Deposits