Tuesday Tip
A gross rent change can seem straightforward. However, questions often come up once the change reaches the 50059: Who needs to sign it? And what happens when the gross rent change affects a certification that has already been completed?
Those questions become especially important when a gross rent change is processed retroactively.
This week’s Tuesday Tip breaks down the signature requirements and what Owners and Agents should review when a gross rent change overlaps another certification.
What is a Gross Rent Change?
A gross rent change occurs when the unit rent, utility allowance, or both change.
Unlike other certifications, the change does not result from a specific tenant’s circumstances. Instead, it reflects a change to the unit rent or utility allowance.
After approval, enter the gross rent change into your software. Then, generate a new gross rent (GR) 50059 with the updated amounts.
Depending on the change, the new 50059 may show an updated:
- Gross rent
- Utility allowance
- Total Tenant Payment
- Tenant rent
- Assistance payment
Transmit the new 50059 so the HAP voucher reflects the correct information. In addition, provide the tenant with a copy of the signed GR 50059 and keep a copy in the tenant file.
Who Signs a Gross Rent 50059?
This is where the requirements differ for the Owner/Agent and the tenant.
The Owner/Agent must always sign and date the GR 50059.
The tenant, however, is required to sign and date the GR 50059 only when the gross rent change results in a change to the tenant’s rent amount or utility reimbursement.
For example, suppose a gross rent change includes a unit rent increase and a change to the utility allowance. If that utility allowance change affects the tenant’s payment, both the Owner/Agent and tenant must sign and date the GR 50059.
On the other hand, consider an assisted unit with no utility allowance. If the gross rent increases but the tenant’s payment does not change, the tenant is not required to sign the GR 50059. The Owner/Agent still must sign and date it.
The key question: Did the gross rent change affect the tenant’s rent amount or utility reimbursement?
What if The Gross Rent is Retroactive?
Retroactive gross rent changes require another layer of review.
Suppose an approved rent increase is effective July 1, but the Owner/Agent does not process the gross rent change until September. Any certifications already completed with an effective date of July 1 or later may contain the previous gross rent information.
Therefore, those certifications must be corrected to reflect the new gross rent change amounts.
For example, if a household had an Annual Recertification effective August 1, that certification would need to be corrected to incorporate the July 1 gross rent change.
Software systems handle this process differently. Some may automatically generate the necessary correction when the gross rent change is processed. Nevertheless, Owners and Agents should verify that the correction was generated and that the correct information is being reported.
Who Signs a Corrected 50059?
The signature requirements remain important when a gross rent change triggers a correction to another certification.
The Owner/Agent must sign the corrected certification.
Meanwhile, the tenant needs to sign the corrected 50059 if the correction results in a change to the tenant’s payment. According to this week’s guidance, this would typically occur when a utility allowance change affects the tenant’s payment.
When a tenant signature is required on the corrected 50059, the tenant has 60 days to sign it.
Build a Review Into Your Gross Rent Change Process
Don’t stop after generating the GR 50059.
Instead, check the effective date. Then, determine whether the change overlaps any certifications you already completed.
Confirm the new amounts. Determine whether you need a tenant signature. Finally, make sure your software generated any required corrections.
That extra review can help you catch missing corrections, signatures, or reporting issues before they create bigger problems.
Gross Rent Change 50059 FAQs
Does a tenant have to sign a gross rent change 50059?
Not always. The tenant must sign and date the GR 50059 if the gross rent change affects the tenant’s rent amount or utility reimbursement. The Owner/Agent must always sign and date the GR 50059.
What happens when a gross rent change is retroactive?
Review certifications effective on or after the gross rent change effective date. If you completed them using the previous gross rent amounts, you must correct them to reflect the new amounts.
Does a gross rent change require corrections to other 50059s?
It can. A retroactive gross rent change may require corrections to certifications completed with the previous gross rent information.
Who signs a corrected 50059 after a gross rent change?
The Owner/Agent must sign the corrected certification. The tenant must also sign if the correction changes the tenant’s payment.
How long does a tenant have to sign a corrected 50059?
When the corrected 50059 requires a tenant signature, the tenant has 60 days to sign it.
