1. TRACS 202D Webinar: “Ask the Expert” Members Only Webinar
February 19, 2015
2:00p.m.
TRACS 202D Webinar:
Defining the Changes
Instructor: Tim Shearer
Just two weeks before the scheduled implementation deadline of January 31st, HUD announced yet another extension for the conversion to TRACS 202D. The announcement can be found at:
The extended deadline is now February 27, Beginning March 2nd, TRACS 202C files will be rejected by Contract Administrators and/or TRACS. If you’re getting nervous about the conversion, tune in to this webinar to hear Tim Shearer provide a brief overview of TRACS 202D and some operational clarity before you go live. After his overview, Tim will field your questions.

2. TRACS Release 2.0.2.D Tim Shearer Contract Administration Coordinator
500 Office Park Drive
Suite 300
Birmingham, AL

3. Today’s Agenda – 2.0.2.D Introduction Implementation timeline
2.0.2.D overview
Certifications
Vouchers
Questions

4. Introduction – TRACS 202D Is HERE!
Update TRACS system to comply with changes to HUD Handbook
Modified and activated data elements
Allow industry submission of required data
Verify submissions consistent through the current handbook
Eliminates need for sites to send paper HAPs
Requires CAs to transmit approved voucher back
History Baseline function added
The 202D Specification Document contains new fields, new or extended meanings for old fields and new and revised policy guidance. Remember that none of the D changes or new requirements may be enforced prior to when a project starts using D or at the end of the D transition period, whichever date is earlier.
The industry should keep in mind that, after the end of the transition period, it will take a minimum of 12 months for TRACS data to reflect all of the new fields as there is no requirement for previously submitted certifications to be corrected to add new fields.

5. TRACS Modernization What do we know about TRACS system?
Unsupported since 1996
Last update was 2009
Several handbook changes, housing notices, and final rules published not incorporated
Overnight processing with 200,000 file limit
Beginning October 2014 with scheduled completion 2017
Estimated 17 months to completion
Real time processing ends overnight batching – YAY!!
Shared financial system with payments based on DUNS number

6. Implementation Timeline
We are live - effective 8/1/2014
Industry Specifications revised June 2014

7. Implementation schedule
August 1, 2014 through February 27, 2015 will accept both 202C and 202D
March 2, 2015 will accept only 202D

8. TRACS 202D Changes con’t 2.5 Owner and Parent Company DUNS and TINs
H required DUNS number transmitted to TRACS
Voucher and Tenant MAT header records modified
Taxpayer Identification Number (TIN) also added
Will eventually result in voucher payments being denied if not included
Yearly update of information required in System Awards Management (SAM) system

9. TRACS 202D Changes con’t 2.7 Rent Overrides - Section 8 RAD
Flag added to certifications
Used to indicate tenant rent phase-in
TTP at RAD Conversion
MAT User’s Guide Chapter
4 section 4.30

10. TRACS 202D Changes con’t
2.9 Extenuating Circumstances code (Formerly Tenant Unable to Sign Indicator)
Added 10 codes
1 = medical 2 = late annual certification due to accommodation or extenuating circumstances 3 = late annual certification due to owner/agent delay 4 = late annual certification due to third party delay (guardian) 5 = military deployment 6 = eviction 7 = court order 8 = no signature required (retroactive GR done after a MO - no requirement for a tenant signature ) 9 = no signature required for 60 days (based on anticipated voucher reported on date) 10 = other

11. TRACS 202D Changes con’t 2.10 Eligibility Check Not Required field
At Move In or Initial - only when an eligibility check is not required due to situations outlined in HUD
Appropriate codes: Y or blank
Examples this would be used are:
Tenant transfers to unit in comparable project as a reasonable accommodation
In response to VAWA
100% Section 8 property where in place tenants was terminated due to increased income that later decreased making them eligible
Contract combination
Presidentially Declared Disaster - PDD

12. TRACS 202D Changes con’t 2.11 Member Relation Code Changes
L – Live-in Aide
F – Foster
N – None of the above
2.12 Household Member Special Status
M – Military
P – Presidentially Declared Disaster (PDD)
Relation codes - TRACS D has the L code is being split into three codes:
L reverts to its traditional meaning of Live-in Aide.
F is being used for both foster children and foster adults. The difference between the two can be determined by the age of the member. If it is less than 18 it is a foster child. HUD PIH also uses F in this way.
N means None of the Above and is intended to refer to people living in the unit whose income and circumstances do not count in determining eligibility.
More information can be found in the 202D zip file on the HUD website including a Relationship Rules spreadsheet that will guide you in making the appropriate decision.
Member Special Status – HUD is interested in tracking US Military veteran and people living in units temporarily due to PDD.

13. TRACS 202D Changes con’t 2.13 Household Member Sex codes
M, F, or blank
2.14 Household Member SSN Exception Codes
Instances where a valid reason exists
Options are:
C – does not contend eligible immigration status
E – 62 or older as of January 31,2010
M – New household under 6 where disclosure of SSN
is delayed for 90 – 180 days. Not to be used on MI/IC
History Baseline uses include OA sending to new CA, CA to OA who lost all data, CA to new CA. Along with the MAT90 records, fields were added to the MAT Header records to identify a file as containing a History Baseline. The use of the MAT90 series of records is mandatory for CA created History Baselines. NOT intended to be sent to TRACS.
Extenuating Circumstances Codes - The old Tenant Unable to Sign Indicator field has been renamed to better indicate its use. This will allow HUD to track more closely the reasons for lack of a signature on a certification. Some examples of new codes:
2 = Late annual certification due to accommodation or extenuating circumstances.
3 = Late annual certification due to owner/agent delay
4 = Late annual certification due to third party delay (such as Guardian)
5 = Military Deployment
6 = Eviction
7 = Court order

14. TRACS 202D Changes con’t 2.19 Move Out codes expanded to 11 codes
5 = unit transfer between two projects - see MAT guide chapter 4
6 = reserved for TRACS use only (HQ move outs)
7 = abandoned unit (6-9.B.2) (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 Exercise
2.20 Move Out field additions
Correction field and EIV Indicator
Move Out codes - The following new codes are included in D.
5 = Unit Transfer between two projects. See MAT Guide Chapter 4
6 = Reserved for TRACS use only (HQ Move Outs)
7 = Abandoned Unit (6-9.B.2) (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
In addition to the new MO codes above, a description field has been added to hold text describing the reason for the move-out.
A field indicating that the MO is a correction and a future field giving the effective date of a MO being corrected have also been included along with an EIV indicator.
Termination Codes:
Termination codes have been expanded to cover the following cases.
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 or IC for a reason other than Double Subsidy. Typically, this would be a situation where income at MI or IC is being corrected as a result of an EIV or other investigation and it is found that the tenant was not eligible. Just like the DS code, a TM/NS gives back subsidy for the TM date.
15 = Termination under the 15-month rule.
OT = Other. A reason not covered by any of the other codes.
A field indicating that the TM is a correction and a future field giving the effective date of a TM being corrected have been added along with an EIV indicator.
A correction field was also added to UT/GR MAT70 files. Speaking of the Gross Rents-the upgrade will now allow you to claim a gross rent similar to the old way. If the gross rent is effective on the 1st day of the month, then it can now be claimed on that months voucher. Ex: July 1st GR can be claimed on July voucher which is done in June. If Gross Rent is effective 2nd through 30th or 31st, it must be pushed to the next voucher month. So in this example the rents would be allowed on the September voucher.

15. TRACS 202D Changes con’t 2.21 Termination codes expanded
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 or IC for a reason other than double subsidy - typically, this would be a situation where income at MI or IC is being corrected as a result of an EIV or other investigation and it is found that the tenant was not eligible (just like the DS code, a TM/NS gives back subsidy for the TM date)
OT = other - a reason not covered by any of the other codes
2.22 MAT 65 Termination Fields
Correction field and EIV Indicator

16. TRACS 202D Changes con’t 2.23 Unit Transfer/Gross Rent
Able to mark as correction
EIV indicator
Mid-month IR/UT guidance
HUD C
When household change occurs simultaneously
Does not require notice of change in rent
History Baseline uses include OA sending to new CA, CA to OA who lost all data, CA to new CA. Along with the MAT90 records, fields were added to the MAT Header records to identify a file as containing a History Baseline. The use of the MAT90 series of records is mandatory for CA created History Baselines. NOT intended to be sent to TRACS.
Extenuating Circumstances Codes - The old Tenant Unable to Sign Indicator field has been renamed to better indicate its use. This will allow HUD to track more closely the reasons for lack of a signature on a certification. Some examples of new codes:
2 = Late annual certification due to accommodation or extenuating circumstances.
3 = Late annual certification due to owner/agent delay
4 = Late annual certification due to third party delay (such as Guardian)
5 = Military Deployment
6 = Eviction
7 = Court order

17. TRACS 202D Changes con’t 2.24.3 Security Deposits
Re-calculate when a corrected MI or IC is done
Tenant and O/A should initial change on lease
Full cert signatures due to GR change
No change to tenant rent – only O/A signature required
Change to tenant rent – both must sign but tenant has 60 days to sign the form

18. TRACS 202D Changes con’t 2.24.5 Indicator for EIV corrections
HUD is tracking the use/effect of EIV
How do you use it?
When EIV system is cause of corrections
Set EIV Indicator to Y
All certs regardless of type (full or partial)

19. TRACS 202D Changes con’t 2.24.6 Previous Housing Codes expanded
5 – lacking a fixed nighttime residence
6 – fleeing/attempting to flee domestic violence

21. TRACS 202D Voucher Changes
2.2 Activates MAT30 (voucher) records
Detail and Adjustments included
New Sections 3 - Detail and 4 - Adjustments
Fields added to Sections 5 – Special Claims and 6 – Miscellaneous Accounting Request
Automated comparison
Eliminates need for paper HAP copies
Final CA voucher sent to O/A
Added to 5 and 6:
amount paid
field for vendor software submitted data

22. TRACS 202D Voucher Detail

23. TRACS 202D Adjustments

24. TRACS 202D Paper HAP

25. TRACS 202D Voucher Changes con’t
Site must maintain signed, printed copy in file
Both paper and full electronic voucher required during transition
CA can eliminate this if they desire
Paper HAP - the site will maintain a printed and signed voucher in its files. The CA is required to send a final approved voucher, in the new MAT30 format, to the OA for use in reconciliation activities at the property.
For the CA, the advantage of the full electronic voucher is that it permits an automated comparison between the OA voucher and the one generated by CA software. This comparison should be faster, more accurate and more complete than the current manual compare.
Mid-month IR - When a change in household composition or income that would normally be reported on an IR happens simultaneously with or earlier than a unit transfer, a full cert UT, including the household changes, must be submitted if the IR that would normally be submitted is not yet effective. This policy is based on , 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.” With a UT, there is no notice requirement for a change in rent and a new lease is executed.
Security Deposit - Both the owner/agent and the tenant should initial the change on the lease.

26. TRACS 202D Voucher Changes con’t
2.25 Miscellaneous Request codes
EIVP – 5% EIV Penalty
RESR – Residual Receipts Offset
RSPC – Recouped Special Claims Funds
UUTL – Unclaimed Utility Reimbursement check
MAT User’s Guide - Guidance has been updated for many topics. New topics include:
Treatment of Market Tenants on the HAP Voucher
Market Tenants in Tax Credit Communities
Repayment Agreements—Extensively revised
First and Last HAP Vouchers
Households with vouchers in 236 and BMIR Projects
Anticipated Voucher Dates
Double Subsidy
Completing the HUD A
Abatements
Presidentially Declared Disasters
Policies and Procedures for the Conversion of Efficiency Units to One-Bedroom Units
Rent Overrides
Recert Notices
Missing Historical Data
Utility Reimbursements and MO Adjustments
Special Claims Involving PRACs
Unit Numbers
Financial Management Center and CA Advice
The Meaning of F, M and MOC for Fields in the MAT Guide Note Column
CA Acceptance of Site Transmissions
Sorting on HAP Vouchers
Returning Messages to OAs

27. TRACS 202D Voucher Changes con’t
2.26 Voucher Repayment Agreement record (HUD Part 6)
Improved tracking and reporting
No longer reported in Miscellaneous Requests
Agreement Types
T – tenant
O – owner
N – none
EIV indicator - Instead of adding new correction codes to help HUD track the impact of EIV, a new field, EIV Indicator, is being added to the and A. (This is field number #19 on the form)
If use of the EIV system is the cause of a correction to a full certification (AR*, IR*, MI*, IC*) the indicator is set to Y. Do not set the indicator on a current (uncorrected) AR. If an IR is being added (not a correction) as a result of EIV information, the indicator is set to Y. For partial certifications, 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 an EIV investigation is the termination or eviction of a household, the indicator is set on the TM or MO.
52670 Part 6 form - To allow for improved tracking and reporting, repayment agreements will no longer be reported as miscellaneous accounting request transactions. Instead, they will be accounted for with a new MAT30, Section 7 Repayment Agreement record. A new voucher page (52670-A, part 6 form) has been added for printing repayment agreement transactions on the voucher.

28. HUD A Part 6 Repayment
Repayment agreement set up – offset on voucher

29. HUD 52670-A Part 6 Repayment con’t
**Chapters 4 and 6 of the MAT User’s Guide will provide more information.

30. TRACS 202D Voucher Changes con’t
2.27 Gross Rent Changes
Effective first day of Voucher month can be implemented
Ex: Rent Increase effective 6/18/2013 – claimed on July 2013 voucher submitted on June 1st
2.28 Form changes
HUD and A Certifications
HUD Voucher
HUD A Part 3 Adjustments
HUD A Part 6 Repayment Agreement
HUD A Part 2 and HUD A Special Claims

31. 7 Spreadsheets for calculation and rules – 2.29
Tenant Rent
Adjustments
Repayment
Non-citizen rule
Special Claims rounding
Imputed Income
Relationship summary

32. Upcoming 202D Changes con’t
2.30 MAT User’s Guide Chapter 4
24 new topics!
Updated guidance on many topics
Errors reviewed
Updated and/or removed if no longer needed or was not meaningful
Added detailed information to help O/A better understand
Visit Vouchers section of Navigate Website for direct link