The Accounting Specialist Team is responsible for processing Project Based Section 8 Housing Assistance Payments (HAP) Vouchers and Special Claim requests. Prompt processing and transferring of HAP subsidy payments to our owners is a commitment Navigate stands behind. We strive to assist and educate our owners on industry matters building close working relationships in the process. Click here to view an overview of the processing cycle showing all actions taken throughout this process to ensure accurate, timely HAP payments.
With the change to TRACS 202D, signed paper HAPs are no longer required and should not be sent. You may submit your special claims by email or fax at specialclaims@navigatehousing.com or 1-888-723-8932.
The deadline for voucher submission is the 10th calendar day of the month preceding the voucher payment month. Chapter 7, figure 7-2 MAT User’s Guide states in part:
Section 8, PAC, and PRAC Properties. The deadline for transmission of vouchers (form HUD-52670) and all related TRACS files supporting the voucher is the 10th calendar day of the month directly preceding the voucher payment month. For example, the February voucher TRACS transmission would be due on January 10.
Vouchers submitted after this deadline date may risk late payment.
“HUD-50059s/HUD-50059-As should be submitted throughout the month as the completed data is available. HUD-50059s/HUD-50059-As supporting a voucher must be transmitted prior to voucher transmission.”
When a resident does not report or under-reports income, it will affect the amount of assistance they receive. Once this income discrepancy is discovered and verified, corrections to the resident’s previous certifications are required to ensure the correct amount of assistance is paid. He or she may repay in a lump sum; enter into a repayment agreement; or a combination of the two. If the tenant is unable to repay the difference between the original assistance paid and the corrected amount that will include unreported income, a Repayment Agreement should be completed. Repayment Agreements have specific requirements which are outlined in HUD Housing Notice 2013-06. (Visit our Resource Center for a copy of this Notice.)
Repayment Agreements
Properties are required to make the needed corrections to all previous certifications affected by the unreported income amount. These corrections will generate adjustments on the voucher for the change(s) that were made. Properties are required to report all repayment agreements in Section 7 of the MAT30. Detailed information is outlined in MAT User’s Guide Chapter 4 and Chapter 6 as well as instructions posted along with the form on the HUD 5 forms page. In addition to Housing Notice 2013-06, you will find more information about this topic in the HUD Handbook 4350.3, Chapter 8, Section 4 to help with identifying when an owner must investigate; how to distinguish between tenant error and fraud; and how to take action when a discrepancy is found.
The property must enter the agreement information into their software and have an agreement id that is unique to each instance of misreporting. This id is required for the reversal and each payment made. Additional instances of misreporting would require a new agreement id. The reversal (this will be a positive amount to offset the negative adjustments generated by the corrected certifications) and is reported in Repayment Agreements (Section 7) of the MAT30. The reversal amount must not be greater than the adjustments generated by the corrected certifications.
You will find an Excel spreadsheet in the TRACS Industry Specification zip file that will assist you in determining the repayment amount owed. The spreadsheet also includes examples to help you properly reporting it on a voucher.
As payments are received from the tenant, the property will report the payment on their in Section 7 using the agreement id. Owner/Agents may retain a portion of the money collected to cover incurred expenses as result of the unreported income/program violation. The retained funds must be the lesser of the actual cost or 20% of the amount collected from the tenant as detailed in Chapter 8, 8-21, B-2 of HUD Handbook 4350.3.
Please visit the Resources Center to review HUD Notices and Handbooks.
Tenant Rental Assistance Certification System (TRACS) is a HUD database. It was developed to improve financial control over assisted housing programs by updating manual procedures to include automated processes and controls. Sign into Secure Systems by using your WASS ID and select TRACS. If TRACS is not listed as an option, you will need permission assigned to you from your company Coordinator or System Administrator.
For detailed information on using the Voucher and Certification queries in TRACS download the TRACS PDF here.
TRACS 202D
TRACS Release 202D was implemented on March 2, 2015. Questions related to this TRACS version change can be answered using the 202D documents posted to the TRACS webpage. We strongly encourage you to review the documents as we continue to better understand the changes. A good place to begin is with the TRACS Industry Specification Document located on the TRACS documents page. The link below will point you directly to the TRACS 202D information.
TRACS 202D Information
Instructions for submitting a Direct Deposit Form (1199A):
Complete each Section as follows:
Direct Deposit Form
Section 1 (To be completed by Payee)
A. Name of Payee, address and telephone #
B. Property Name
C. Contract # & Owner’s TIN #
D. Type of Depositor Account – (Checking or Savings)
E. Depositor Account #
F. Type of Payment – Check Other and enter Housing Assistance Payment (HAP)
Original Payee signature and date
Section 2
Government Agency Name – Navigate Affordable Housing Partners
Government Agency Address – 500 Office Park Dr. Suite 300, Birmingham, AL 35223
Section 3 (To be completed by the Financial Institution)
Original signature of the Bank Representative, signature date, printed name and phone #
1199A’s submitted to Navigate must be accompanied by a voided check.
*Electronic copies of 1199A’s are acceptable and may be emailed to dbaker@navigatehousing.com; however, an original must be mailed.
Please visit the Resources Center for a copy of this HUD form.
If your property is required to use funds from the Residual Receipts account to offset HAP payments, you should review HUD Housing Notice 2012-14 and the HUD FAQs for more information. It is important that you take your mortgage offset in to account when determining the amount of HUD-9250 Residual Receipt offset. The RR Offset amount must allow enough funds to cover the mortgage. A HUD approved HUD-9250 form is required in order to close the voucher.
The Special Claim process is an opportunity for owners to be compensated for financial loss when a tenant vacates a unit. Claims may be for financial loss when a tenant vacates a unit. Use the below links and information to help with preparing a special claim submission.
All claims must be submitted for approval within 180 days from the date the vacated unit is available for occupancy. The following documentation must accompany all special claims submitted:
Damages and Unpaid Rent Claims:
- Form HUD-52671-A
- Certified letter to tenant detailing the unpaid rent and other charges
- Verification of security deposit, and disposition statement
- Documentation that the matter was turned over to a collection agency and that the agency has attempted to collect the debt
Click here to view Examples of Tenant Damages versus Normal Wear and Tear – Appendix 5C & Sample Life Expectancy Chart – Appendix 5D
Vacancy Claims:
- Form “HUD-52670-A Pt 2”
- Form “HUD-52671-C
- Documentation of the status of the waiting list and the outcome of applicants that were contacted
- Vacancy reconditioning log or other maintenance record showing the move-out date
- If move-out is due to Unit Transfer:
- Documentation stating the reason for the transfer to another unit
- Evidence the security deposit was transferred, or a new security deposit was secured
Additional information regarding General Guidelines for Processing Special Claims can be found in the Special Claims Processing Guide in our
Resources Center.
I received a rent increase that is effective 5/15/2015. Can I apply that to my June voucher?
Yes, with the TRACS 202D changes you may now apply a rent change effective up to the voucher date on that month’s voucher. For example: a 8/1/2015 rent change could be applied to the August 2015 voucher that is completed in July. You will find more information on this TRACS 202D MAT User’s Guide, Appendix H. Remember, rents must be fully executed before claiming them on a voucher. A fully executed rent schedule means it has passed all the checks needed – all signatures are in place including the property and Navigate officials, HUD has approved and funded the change by allocating the increased funds to the account. It is only then that the rents are eligible to be claimed on the voucher. If you are unsure, please contact your assigned Accounting Specialist.
I have a tenant that did not recertify and now I need to terminate them. What is the effective date of the Termination?
Most of all Terminations are effective on the last day of the month; however, there are times when the date could be another day but those cases are few. In this example the Termination date would be the last day of the month prior to when the Annual was due. for example: A 5/1 Annual is due so the Termination would be effective 4/30.
What constitutes a complete voucher packet?
The electronic voucher file through iMAX and all electronic tenant data (50059 and 50059-A certification) changes.
I have a tenant already residing on property that now qualifies for the Section 8 Housing program. Should I complete an Interim or Initial certification to do this?
An Initial is the certification type you should use. Initial certifications are done to place tenants already living on the property on the subsidized program. An Interim is done when a tenant already receiving subsidy has a change in family composition or an increase/decrease of $200 or more a month in income. Section 2 of Chapter 7 in HUD Guidebook 4350.3 Rev-1 Chg. 3 explains in detail the guidelines for processing an Interim.
I have a tenant that turned in a 30-day notice to vacate on May 1st, but they actually moved out on May 12th. Will my Move Out date be May 31st since that is the end of 30 days?
No, the Move Out date would be the actual date the tenant vacates the unit. Chapter 9, E-1, of HUD Handbook 4350.3 talks about partial month occupancies and will provide you with more information should you need it.
I have an EIV income discrepancy that has resulted in a repayment agreement totaling $3,250. Can I enter this as an offset on my monthly HAP voucher?
Yes, you must create the Repayment Agreement in your software and assign it a unique Agreement Id. Submit the reversal through the Repayment Agreements section of your monthly HAP voucher. This entry should be a positive amount, $3,250 in this case. As the tenant makes monthly payments to you, you would return those as monthly HAP voucher in the Repayment Agreement section under the same Agreement Id assigned when the agreement was created in your software. Please reference MAT User’s Guide Chapter 4 and Chapter 6 for additional information.
Special Claims FAQ
When do I submit my claim?
Both regular vacancy and unpaid rent/tenant damage claims should be submitted to Navigate within 180 days of the unit ready date. The unit ready date is the day after all work in the unit (turning the unit) has been completed.
When does a vacancy period start when filing for a regular vacancy claim?
The date the unit is ready for occupancy.
When does the vacancy period end?
Either, when the unit has been re-rented or 60 days.
When is the unit “ready for occupancy?”
The unit ready date is the day after all work in the unit has been completed.
Where can I find HUD’s Special Claims FAQ’s?
Where can I find the checklist for special claim submission?
There are two checklists, one for vacancy claims and one for damages/unpaid rents.
The vacancy special claims checklist can be found in Appendix 3 of the special claims processing guide:
The unpaid rent/damages special claims checklist can be found in Appendix 5 of the special claims processing guide:
How many days do I have after a tenant moves out to submit a special claim?
The claim must be submitted within 180 days from the date is ready for occupancy.
What do I do if my claim is returned to me for being incomplete?
If you receive a letter saying your claim packet is incomplete, simply send the requested data to Navigate within 30 calendar days of the date of the incomplete package letter. The incomplete package letter will provide you with details regarding the information that is needed. Note: if the requested data is not received within 30 calendar days, then the claim will be denied and is ineligible for appeal in accordance with HUD regulations.
What if I disagree with the denial or adjustment of a claim?
You have 30 days from the date you were notified of our decision to appeal. You may submit missing document and/or further documentation so the decision may be reviewed. If adequate support is provided, we may change our initial determination.
Remember you are only allowed one submission, one resubmission and one appeal so please read our cover letter stating exactly what is needed to process the claim.
When do I request payment for my claim?
Ideally, you should request payment on your next voucher but you must request payment within 90 days of the approval letter. You will need to enter the claim amount on your voucher and include the 14 digit Special Claim ID number that was listed on your approval letter.
