The CA Quarterly Review Fall 2014 Edition Page 1

New York State SSP amount and EIV

Effective October 1, 2014, responsibility for the administration of the State Supplement Program will transfer from the Social Security Administration (SSA) to New York State. SSI recipients will receive 2 payments each month – one from SSA and one from NYS. The SSP Bureau in the Center for Employment and Economic Supports within the NYS Office of Temporary and Disability Assistance (OTDA) will operate the Program. There will be no walk-in office. All business will be conducted by telephone, fax and mail. A customer support center with a toll free number will be available to assist recipients. Benefit amounts have not changed. SSP benefit amounts continue to be based on the recipient’s State living arrangement category. There is no change to these categories. See “SSI/SSP 2014 Maximum Monthly Benefit Amounts.” SSP payments will be received on or before the 1

st of

the month. The SSP payment will be received in the same way that the SSI Benefit is received – direct deposit or check.

HOW THIS IMPACTS EIV and NEW VERIFICATION REQUIREMENTS At this time, HUD does not have Computer Matching Agreements (CMAs) with individual states. Therefore, the amount that NY State will be awarding cannot be transmitted to EIV and there is no current timetable to add this functionality to EIV. As you are aware, EIV already reflects this change for any households that have been updated in the September batch. These households now show $0 for the state amount. With each household member that shows a federal SSI payment in EIV, it will be expected that the Owner verifies the State SSP award amount. According to HUD via RHIIP Listerv Posting #316:

Multifamily Housing has recently been informed that some states no longer have their State Supplementary Payments (SSP), which supplement the Federal Supplemental Security Income (SSI) benefit, administered by the Social Security Administration (SSA). Because of this, SSA has advised they are not able to maintain any information about SSP in these states. The new protocol effects the income amounts provided by SSA to HUD and displayed in the Enterprise Income Verification (EIV) System. In order to verify the payment in states administering SSP, verification can be obtained by the tenant from the state office and as outlined in Chapter 5 and Appendix 3 of HUD Handbook 4350.3 REV-1. As explained in Chapter 5 of HUD Handbook 4350.3, REV-1, the verification must be provided within 120 days of the certification date and must not be older than 120 days from the date provided to the owner. If the above causes a discrepancy in the EIV system, note the reason for the discrepancy and place in the tenant file.

New York Housing Trust Fund Corporation

Welcome to the Fall 2014 edition of the CA quarterly newsletter. Its purpose is to provide useful information regarding compliance and HUD policy changes as well as provide recent HUD news. If you are not already receiving this publication via e-mail, or if you have ideas, suggestions or questions for future publications, we’d like to hear from you. Please visit : www.pbcany.com to submit comments.

NYS SSP and EIV 1

202 D Update 2

TAP Update 4

RCS Checklist 5

Waiver Authority 8

What’s new with EIV 9

Succession Rights 10

Income Limits 11

What’s New on HUDClips

11

Inside This Issue

THE NEWS AND INFORMATION QUARTERLY FOR OWNERS AND AGENTS OF THE

PERFORMANCE BASED CONTRACT ADMINISTRATION FOR NEW YORK STATE

The CA Quarterly Review Fall 2014 Edition Page 2

NYS SSP Amount and EIV

HOW TO REQUEST BENEFIT AWARD LETTERS If adequate verification cannot be provided by the tenant/applicant Benefit Award Letters can be requested from the NYS Office of Temporary and Disability Assistance (OTDA) by:

Telephone: 1-855-488-0541 FAX: 1-518-486-3459 Email -otda.sm.ssp@otda.ny.gov US Mail: NYS OTDA, State Supplement Program, PO Box 1740, Albany NY 12201.

Each request must include the name, last 4 digits of the SSN, residence and mailing address, DOB and the month the benefit information is for. For further details on this transition please visit the OTDA SSP Web Page EDITOR’S NOTE. We greatly appreciate the efforts of Mr. Richard Colon the Director of Recertification and

Compliance at Manhattan North Management Co., Inc. We are able to include this guidance in a timely manner in

this edition of the Quarterly Review in part as Richard played a fundamental role is assisting and facilitating a

dialogue between CGI, HTFC and the OTDA.

202D Update

Effective August 1, 2014, CGI began accepting voucher transmissions in both TRACS 202D and

202C formats. CGI has received four vouchers in 202D format during these first two months of

transition and we as an organization have received 39 vouchers in other jurisdictions and have

processed them successfully. We have been working closely with each vendor to ensure that

both of our software systems are handling each scenario exactly the same. We believe this

approach will reduce the number of discrepancies users might otherwise see, however we

strongly encourage you to attend any and all meetings hosted by your software vendor as many

items will be software specific for data entry and information.

Some of the changes in 202D include but are not limited to:

1. DUNS Number Requirement: While this field has been added, at the present time neither the

Contract Administrator or TRACS requires it to be included. However it is the industry’s

understanding that at some point in the near future HUD will require the Contract Administrator

and TRACS to reject a voucher if this field is not properly completed. As such we highly

recommend that you qucily reach compliance with HUD notice H2012-6 that requires owners

with project-based section 8 properties to obtain a DUNS number. We suggest that you begin

to include the project’s DUNS number when submitting your voucher. If you do not have a

DUNS number we recommend that you apply for one here immediately.

The CA Quarterly Review Fall 2014 Edition Page 3

202D Update continued

2. MAT30 Changes: The full electronic voucher with detail will be included in the voucher

transmission

3. Voucher Form Changes: The 52670-A, Part 6 Repayment Agreement form is a new form

dedicated to the reporting of repayment agreement transactions. NOTE: The voucher will

detail Repayment Agreement transactions.

4. New and Updated Fields on Forms 50059 and 50059-A

5. Miscellaneous Accounting Request Codes (Added)

6. Move Out and Termination Codes (Expanded)

7. Eligibility Requirement Checks

8. Gross Rent changes effective on the 1st of the month can now be processed on the same

voucher month

9. Updated Special Claim Forms

Additionally, Owners and Agents can expect to see a difference in the Reconciliation Reports CGI

sends each month. Certain sections will be expanded and more details have been added. The

following fields will be impacted:

While HUD will allow a parallel process from 8/1/2014 through 1/31/2015 (September voucher -

February voucher), wherein vouchers will be accepted in both formats, Owners/Agents must be

202D compliant no later than February 1, 2015 (with the submission of March 2015 voucher).

The final TRACS 202D specification documents and implementation schedule have been posted

to the TRACS webpage. Click here for more information and access to reference materials.

The CA Quarterly Review Fall 2014 Edition Page 4

Technical Assistance Program Continues

In October 2011, HTFC and CGI launched the complimentary Technical Assistance Program. The first stage of this program included the TAP Onsite Review Service. These services (based on determined needs by the owner) range from occupancy and operational reviews to information sharing on topics. For clarity, assessments are not MOR’s. They are for informational purposes and CGI staff is providing their professional opinions only. The reviews are not endorsed by nor affiliated with HUD. Feedback from those who have participated in an onsite review has been overwhelmingly positive. In our last Issue, we asked for your assistance to identify and rank the important issues that facing housing professionals. The results of this survey indicated that entry level trainings for 202D and Language Assistance Programs (LAP) and advanced trainings for EIV/Repayment Agreements and Calculating Income/Certification requirements are the most preferred topics for us to cover. Last month we facilitated a 202D webinar and we plan to provide webinars for LAP and Income/Recertification issues later this fall and Winter. We are in the final planning stages for small group workshops to address the issues of EIV and Repayment Agreements. These sessions, that are planned for mid to late October, will mimic the small group workshops that were held during the summer of 2012. Workshop Sessions are planned for Buffalo, Syracuse, Albany, and Manhattan. This advanced training workshop will be designed so that participants will share best practices established and work together to address the current set of issues that EIV, Repayment Agreements, 202D, and the new state portion of the SSI present. Bring your ideas, your enthusiasm, your questions. CGI will be moderating and facilitating discussions during these sessions and will report back the best practices in a follow-up document for all who attend state-wide. Registration information for all future Webinars and the EIV workshop can be found on the home page of www.pbcany.com

The CA Quarterly Review Fall 2014 Edition Page 5

HUD Issues New RCS Checklist

Effective September 1, 2014 any Rent Comparability Study (RCS) completed by an owner and

submitted to your Performance-based Contract Administrator as part of a Contract Renewal or Rent

Adjustment request will be reviewed using a newly issued checklist required by HUD. Current

policy regarding the content and timing of owner submitted RCS’s does not change. In fact, owners

will not notice any processing differences. The HUD-issued checklist is designed to provide a

more thorough review of the RCS requirements already in effect and detailed in Chapter 9 of the

Section 8 Renewal Policy Guide.

When an owner submits an RCS to the PBCA, staff completes an Initial Review for completeness

and timeliness of the submission. This means the PBCA staff check to ensure all the requirements

listed in Chapter 9 of the Section 8 Renewal Guide are present. Also, the chapter clearly lists

timelines to ensure data is current. The following items from Chapter 9-14 are required for an RCS

to be complete:

Appraiser’s Transmittal Letter

Scope of Work

Description of Subject Property (including color photographs)

Identification of the Subject’s Market Area

Description of Neighborhood

Narrative Describing Selection of Comparables

Locator Map for Subject and Comparables

Rent Comparability Grid for Each Primary Unit Type

Narrative Explaining Adjustments and Market Rent Conclusions (one set of explanations

for each Rent Grid)

Comparable Property Profiles (each including a color photograph)

Appraiser’s Certification

Copy of Appraiser’s License (only if relying upon a temporary license)

…...Continued on following page

The CA Quarterly Review Fall 2014 Edition Page 6

HUD Issues New RCS Checklist (Cont.)

Owners and Agents can ensure the RCS they submitted conforms to all requirements as listed

on the Initial Review Checklist by checking the items below before submitting the RCS.

RCS Documentation Compliance Check

These are the items from the checklist that CGI will be reviewing:

Signed and dated Owner’s Cover Letter as per Section 9-16

Signed and dated Appraiser’s Certification

Signed and dated Appraiser’s Transmittal Letter

RCS Submitted and contents in the order presented in Section 9-14

Are all of the items in Section 9-14 of the Guide included?

Are all of the items in Section 9-16 of the Guide included?

Is market area identified by locator maps?

Was the selection of comparables explained?

Is the Rent Grid included at least every primary Section 8 unit type?

Did the appraiser explain how market rents were derived for any secondary unit

types?

Did the appraiser explain the adjustments in each Rent Grid?

Did the appraiser explain how the market rent was derived from adjusted rents?

Timeline Compliance Check

These items on the RCS will be reviewed by CGI:

Date of RCS Appraiser’s Transmittal Letter

Did the appraiser sign the certification/ fill in the blanks/ enter license information?

Is the date on the RCS appraiser's cover letter within 90 calendar days of the date

the owner submitted the study?

…...Continued on following page

The CA Quarterly Review Fall 2014 Edition Page 7

HUD Issues New RCS Checklist (Cont.)

Did the appraiser updated the data in the RCS within 90 calendar days prior to his/

her report?

Date of RCS

Date of RCS collection of data (generally provided in Scope of Work)

Date of Owner’s submission to HUD (should be the date of the Owner’s Letter)

Owner/Agents can go to the following website to get more information on the checklist and download a complete copy for review:

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/mfhsec8

Below is a screen shot indicating where the RCS Checklist and related information can be found:

The CA Quarterly Review Fall 2014 Edition Page 8

Waiver Authority for Provisions of the Section 8 Renewal Guide

On August 28, 2014, Benjamin T. Metcalf, Deputy Assistant Secretary for Multifamily Housing

Programs HT, issued a memorandum giving HUB Directors the ability to approve waivers for

property owners for five specific circumstances in an effort to help preserve existing affordable

housing stock.

The memo allows HUB Directors discretion in applying some of the provisions stated in the

Guide. If the appropriate standards and conditions are met by a property, the HUB Director

may waive any one of the following provisions of the Section 8 Renewal Guide:

Prohibition on a for-profit to participate in Chapter 15, Preservation Efforts.

The HUB Director MAY allow a for-profit to participate IF there is evidence that the

for-profit entity or its principals have experience and are capable of undertaking the

rehabilitation and/or long-term management of the project.

Section 15-8 of the Guide that requires the project manager/contract administrator

(PM/CA) lower the comparable market rents in the Rent Comparability Study (RCS) to

reflect any use restriction on the rents that can be charged.

The HUB Director MAY waive this provision IF evidence exists that the current rents

exceed the use restricted rents.

Section 15-6.C.1. that post-rehabilitation rents for substantial rehabilitation be

effective only after the rehabilitation is complete.

The HUB Director MAY waive this requirement with evidence that the lender requires

full debt service at closing and that the owner has agreed to sign Form HUD-93182

Section 15-5.B.2. that does not allow the early termination of a pre-MAHRA contract.

HUB Director MAY waive this provision with evidence that the owner is willing

to renew the contract for 20 years under Option 1, 2, 3 or 4 and is also agreeing to

the terms of the Preservation Agreement (found in Form HUD Notice 2013-17) where-

by the owner agrees to renew the contract for the remaining balance on the contract

being terminated. The owner must sign form HUD-93184 “Rider to Original Section 8

Housing Assistance Payments Contract.”

The CA Quarterly Review Fall 2014 Edition Page 9

Waiver Authority for Provisions of the Section 8 Renewal Guide (cont.)

Section 3-2.A. that a property score of 60 or above on its REAC physical inspection in order

to be eligible for renewal under Mark-Up-to-Market (MUTM).

HUB Director MAY waive this provision IF there is evidence that the proposed scope of work

will rectify the deficiencies identified in the REAC inspection and your offices’ determination that

the work will in all likelihood increase any subsequent REAC score above 60.

If you believe your property meets one of the criteria above and you are interested in obtaining a

waiver, contact your HUD office directly as waivers are not handled by the Performance-based

Contract Administrator.

Click here to read the memo in it’s entirety.

What’s New in EIV

Owners and Agents should take note of the following updates and new functions now available in Multifamily EIV:

Internet Explorer 10 (IE 10) browser: only IE 10 and the previous version will work with EIV.

All reports that had mismatched project and contract names are corrected.

Income reports can be viewed for all household members including those members who have

names with more than 19 characters.

The results from the Reported Annual Wages and Benefits from EIV now show exact cents

on the Income Discrepancy Report, and future Dual Entitlement payments will not double

tenants’ income due to a Social Security Administration (SSA) file reload.

The drop down menu in any of the HQs Management Reports will select the radio button

when HUB, State or Servicing Center/Field Office is selected.

Identity Verification Report - Pending Verification Report eliminates waste with reformatted

page break.

Users are able to print full O/A Certification Report without errors.

The CA Quarterly Review Fall 2014 Edition Page 10

Tenant Participation Requirements in accordance with 24 CFR Part

HUD Notice H2014-12 supersedes Notice H 2012-21 addressing the same subject. Procedures for tenants to appeal findings of complaints filed with the Hub or Program Center (Hub/PC) have been added to Section F. The Department of Housing and Urban Development’s regulations governing tenant participation in multifamily housing projects are found at 24 CFR Part 245 Subpart B. These regulations reflect HUD's commitment to tenant participation, individually and through legitimate tenant organizations as defined in 24 CFR 245.110. HUD believes that tenant participation is an important element to maintaining sustainable projects and communities. This Notice addresses available sanctions and the use of civil money penalties as tools to enforce the HUD's commitment to tenant participation. The entire notice can be read here: HUD NOTICE 14-12

Review and Approval of Affirmative Fair Housing Marketing Plans On September 22, HUD Deputy Assistant Secretary for Multifamily Housing Programs Ben Metcalf issued a memorandum clarifying previous guidance on the review and approval of multifamily property owners; Affirmative Fair Housing Marketing Plans (AFHMP). HUD's Office of Fair Housing and Equal Opportunity (FHEO) is required to review initial AFHMPs for multifamily properties and any existing AFHMPs that have been updated based on the owner’s internal review and determination that the plan required modification. Metcalf's memorandum provides greater detail regarding the circumstances under which owners must submit updates to existing AFHMPs to FHEO for its review and approval. The new guidance also specifies that an AFHMP is required for projects new to multifamily assistance, including projects transitioning to the Project-Based Rental Assistance program through the Rental Assistance Demonstration Program. Additionally, the guidance stipulates that owners adopting a new residency preference in their admission policies must submit a modified AFHMP to FHEO for approval. Read the memo here: HUD Memo on AFHMP Review

The CA Quarterly Review Fall 2014 Edition Page 11

Questions or Comments?

Visit us at

www.pbcany.com

New Definition of Extremely Low Income Limit

As of July 1, 2014, the definition of Extremely-Low Income (ELI) has changed for the Section 8 pro-

gram. Section 8 property managers must make sure that the new Extremely Low Income Limits are en-

tered into site software, or ensure that the software vendor has entered the new income limits.

Extremely-Low Income families are now defined as families whose incomes do not exceed the higher

of Federal Poverty Level or 30 percent of Area Median Income. This change does not affect eligibility of

existing residents. This change does impact the ELI Income Targeting strategy for multifamily project-

based Section 8 programs.

As of July 1, 2014, compliance with the targeting requirements must take into account the new defini-tion of ELI. An owner/agent shall meet its targeting requirements through a combination of ELI admis-sions prior to the effective date (using the old definition), and ELI admissions after the effective date (using the new statutory definition.

What’s New on HUDClips

Posted Date Link to Full Notice Description

9/5/2014 Housing Notice 2014-12 Implementation of Tenant Participation Re-quirements in Accordance with 24 CFR 245

8/27/2014 FR-5807-C-02 Proposed Fair Market Rents for FY2015

8/21/2014 HUD Form 92006 Supplement to Application for Federally As-sisted Housing

7/1/2014 FR-5778-N-01 New Definitions for Extremely Low Income