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TRACS 202D – Changes to the 50059 & 50059A – March 2014

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TRACS 202D CHANGES TO THE 50059 & 50059A WORKBOOK

A Review of HUD’s TRACS System Update

ROSS BUSINESS DEVELOPMENT, INC. www.rbdnow.com

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Copyright 2014 Ross Business Development, Inc.

All rights reserved. Not for duplication.

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Ross Business Development, Inc.

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Disclaimer

“The material contained in this document is not comprehensive of the continually emerging issues surrounding

policies in The Multifamily Housing industry. In addition, the handbook guidance is derived from The HUD

Handbook 4350.3 Rev 1 Change 4 released in August 2013 and subsequent notices, the TRACS MAT Guide and

the EIV Guides and Notices.

The student should understand that these training materials are not designed for, nor should be relied upon, as a

source of legal guidance or as a final authority with respect to any particular circumstance.

Ross Business Development makes no warranty of merchantability or fitness for a particular purpose or any other

warranty of any type with regard to these materials.

Owners and management should seek competent legal advice in developing and carrying out resident selection

and fair housing policies and procedures.

While we have been diligent in our efforts to provide comprehensive and accurate regulatory training, Ross

Business Development shall not be responsible for errors or inaccuracies.”





TRACS 202D INTRODUCTION

Since 2003, HUD has introduced many changes via new Handbook releases and new Housing Notices and Final Rules. The most recent major changes include the HUD implemented a new Final Rule changing the Social Security Number disclosure requirements and mandating the use of EIV to identify errors. And, in August 2013, HUD introduced additional changes in HH 4350.3 R1, Change 4. TRACS has not been updated since 2009 and major changes to this database are required. TRACS’ resident certification process modifications include new, modified and activated features that allow TRACS to verify certification transactions in a manner more consistent with the HUD 4350.3 REV-1. The TRACS 202D revisions also modify requirements for transmission of vouchers from sites to CAs, eliminating the need for sending paper vouchers and requiring CAs to transmit full approved electronic vouchers to sites for reconciliation purposes. In addition, a new History Baseline format is implemented to facilitate the exchange of data between and among sites and CAs. This class provides detailed discussion of the 202D Changes.

SCHEDULED IMPLEMENTATION

HUD and the Industry TRACS Working Group have been working diligently to finalize specification documents for the next TRACS release – 202D. This document is in the final-final stage of edit. Projected release dates were published as follows.

Vendor testing began in April 2013.

Contract administrators and software vendors will be required to process TRACS 202D files once OMB

approves the new HUD Forms.

TRACS will accept both TRACS 202C and TRACS 202D files for six months from the implementation

date.

However, things have changed again. The rollout date has changed and we don’t really know the start date. OMB has not approved the new 50059 and 50059A. Until OMB approves, HUD cannot move forward with public release (although TRACS was updated the first week in September 2013). Once OMB approves the form, HUD will make an announcement to the industry saying that the 202D rollout will start the first of the following month that is no less than 30 days from the date of the announcement. The industry will have a six month implementation period from the “start date”. For example:

If OMB approves on April 15, the rollout will be June 1.

The implementation deadline will be December 1 (January vouchers)





Changes to the HUD Certifications HUD 50059 and HUD 50059-A GENERAL INFORMATION

HUD Form 50059 and HUD Form 50059-A have been re-designed to accommodate changes in regulatory requirements. It is important that you are familiar with changes to the forms and with changes to the rules regarding certification submission. For reference purposes, HUD Form 50059 is used when creating or correcting full certifications – also known as MAT 10 Records:

Move-in (MI)

Initial Certification (IC)

Annual Recertification (AR)

Interim Recertification (IR)

Corrections to any of the above certifications

HUD Form 50059-A is used when creating a partial certification or an Action such as:

Move-out (MO) – MAT 40

Termination (TM) – MAT 65

Unit Transfer (UT) – MAT 70

Gross Rent Change (GR) – MAT 70

When the effective date of a full certification and a partial certification (UT or GR) are effective on the same day, only a full certification is created and the full certification includes the unit transfer or gross rent change information as appropriate. Copies of all HUD 50059s and HUD 50059-As must be retained in the tenant file for the term of tenancy and for three years after tenancy ends for any reason. See HH 4350.3 R1, C4, Paragraph 5-22.

CHANGES TO THE CERTIFICATION FORMS

In order to comply with regulatory requirements and to make use of the 50059 a little easier, the 50059 and 50059-A have been modified. The following instruction provides information about changes to the certification fields. In some cases, the field name has remained the same, but HUD has provided additional options or clarification.

PROPOSED CHANGES TO THE HUD 50059 – FIELD BY FIELD

The following section allows us to take a look at the TRACS 202D version of HUD Form 50059 and review new fields and new HUD Clarification. This is not a review of the entire form. If you would like an explanation for every field on the proposed TRACS 202D 50059, visit our web site at www.rbdnow.com.





Section B. Summary Information: Item 2 Subsidy Type Added New Codes

Enter the code for the subsidy the tenant will receive during the period covered by this (re)certification. Only one code can be entered. Valid codes are: 1- Section 8 Note: Use 1 – Section 8 for RAD or SPRAC 2- Rent Supplement 3- RAP 4- Section 236PAC 5- BMIR 6- 811 PRA Demo 7- Section 202/PRAC 8- Section 811 PRAC 9- Section 202/162 0- Market Rent (Acceptable with only MAT15 Address records) See MAT Guide Chapter 4, Section 4-7 for Subsidy Type 0 If the tenant benefits from more than one type of subsidy, use the code for the project-based subsidy the tenant will be receiving.

If a tenant in a Section 236 property will receive Section 8 assistance, other than a Section 8 Housing Choice Voucher, enter “1”.

If a tenant in a Section 236 property receives Section 8 assistance through a Housing Choice Voucher (HCV), no HUD-50059 is to be completed. The PHA issuing the HCV is responsible for reporting the tenant’s information to HUD.

See HH 4350.3 R1, C4, Paragraph 7-4.C and 2.0.2.D MAT Guide: Chapter 4, Section 4.23

Item 7 Project iMAX ID

Note: Formerly called “Project Telecom Address” Note: iMAX stands for integrated Multifamily Access eXchange

Item 10 Previous Housing Code

Complete only for Move-ins. Select the code that best describes the physical condition of the housing from which the family is moving. 1 = Substandard - Note: “Substandard” means physically substandard and does not include overcrowding. 2 = Without or Soon to Be Without Housing (Note: legacy code to be used Only for TRACS 202C MIs or corrections to MIs originally transmitted under TRACS 202C.) Not valid for a new MI in TRACS 202D. 3 = Standard 4 = Conventional Public Housing (Owned by a Public Housing Agency) 5 = Lacking a Fixed Nighttime Residence Note: Defined as individuals and families who lack a fixed, regular, and adequate nighttime residence and includes a subset for an individual who resided in an emergency shelter or a place not meant for human habitation and who is exiting an institution where he or she temporarily resided.





6 = Fleeing/Attempting to Flee Violence Note: Defined as individuals and families who are fleeing, or are attempting to flee, domestic violence, dating violence, sexual assault, stalking, or other dangerous or life-threatening conditions that relate to violence against the individual or a family member.

Item 11 Displacement Status Code

Complete only for Move-ins. Select the code that best describes the reason the family was displaced. If the family was not displaced, enter Code “4”. 1 = Government Action 2 = Natural Disaster 3 = Private Action 4 = Not Displaced

THE EIV INDICATOR

The EIV Indicator is a new field which will be used to help HUD track certifications that have been created or corrected as a result of use of EIV. This indicator addresses two types of issues:

1) The indicator will identify data entry issues which must be corrected

2) The indicator will identify residents who failed to fully and accurately report income information or

identity information.

For example:

Hilton family’s certification history for the last year is:

o AR effective October 2013

o IR effective May 2014

Owner/agent is completing an annual certification effective October 1

When reviewing the EIV Income Discrepancy report, the OA discovers that one of the household

members failed to disclose employment income that started in March 2014

Household is contacted an income is verified

Lease violation is issued

Owner/agent:

o Creates a new interim certification affective April 1 and the EIV Indicator is set to yes

o Corrects the interim certification effective May 2014 and the EIV indicator is set to yes

o Creates the annual certification effective October 2014 and the EIV indicator is blank

Resident signs certifications and either returns assistance-paid-in-error or enters in to repayment Item 19 EIV Indicator The indicator is set for certification if it is being corrected as a result of discovery in

EIV. If this is the case, the EIV Indicator is set to Y. Similarly, if the result of use of the EIV system is to add a new, retroactive interim certification (IR), the EIV Indicator is set to Y. If not, leave this field blank.

Item 20 Previous Subsidy Type

Formerly called Subsidy Change Indicator For Initial Certifications (IC) only. Note:





Item 24 Unit Transfer Code

Enter “Y” if this IC, AR or IR includes a Unit Transfer The contract and project numbers must be the same as the previous certification. If this is a unit transfer but there is no change in income and no change in household composition, complete a HUD-50059 A (partial certification) for the Unit Transfer (MAT70 TRACS record). See 2.0.2.D MAT Guide: Section 4.1 for a discussion of the rules concerning full certification unit transfers. In particular, note that an IR/UT may be effective other than the first of the month. Note: If the unit number in a (re)certification is not the same as it was in the last (re)certification, and the Unit Transfer code does not have a “Y” for this Item, the (re)certification will fatal at TRACS.

Item 32 TTP at RAD Conversion

If not Section 8 leave blank. If Section 8 sub-type is not RAD leave blank. For RAD:

If no rent phase-in is involved, leave blank.

If Rent Phase in is in process, enter the TTP (Total Tenant Payment) the tenant is/was paying at the time of conversion to RAD.

NOTE: This is not Tenant Rent. Tenant Rent = TTP less any Utility Allowance

Section C – Member Information Item 37 Relationship

Code Enter each person's relationship to the head by using one of the codes listed below. Only one of the following codes may be entered for each member. H - Head (There can be only one head.) If there is a spouse or co-head, list the same person as head on each (re)certification, as long as that person resides in the household. List the other person as spouse or co-head on each (re)certification. S - Spouse (There can either be a spouse or a co-head, but not both.) There can be only one spouse. K - Co-head (There can either be a spouse or co-head but not both.) There can be only one co-head. See HH 4350.3 R1, C4, Paragraph 5-6.A for guidance on how to count emancipated minors. D - Dependent. See HH 4350.3 R1, C4, Paragraph 5-10.A. Count any member of the family currently living in the unit who is not the Head, Spouse or Co-Head and:

Age 17 or younger

18 or older and disabled or a full-time student.

Child temporarily absent due to placement in a foster home.

Child who is subject to joint custody agreement (See explanation of Joint Custody Codes in Item 42 of these instructions)

Full-time student (regardless of age) away at school but lives with family during school breaks.

Child being adopted (or custody being sought) and living in unit.





O - Other adult member of the family who is not the head, spouse or co-head and whose income is counted in determining the family's annual income. See HH 4350.3 R1, C4, Paragraph 5-6. This member's status cannot be used to justify the family's eligibility for the elderly or medical allowances. F - Foster child under the age of 18 or foster adult or the child of a foster adult. See HH 4350.3 R1, C4, Paragraph 5-6.A. Fosters are considered part of the family and are included in the number of family members when income limits are considered. Unearned income for a foster child is counted but earned income for a foster child is not counted in determining the family’s annual income. (Do not count monies paid to the household for foster aid – this income is excluded.) All income of a foster adult is counted in determining the family’s annual income. The foster child or adult does not qualify the family for a dependent allowance. Medical or disability assistance expenses are considered for children in this category if the household qualifies for such expenses. Child care expenses for children in this category who are 12 years old or younger are considered for the child. L - Live-In Attendant. See HH 4350.3 R1, C4, Paragraph Fig. 5-2 and Paragraph 3-6.E for guidance on live-in attendants. Persons in this category do not have rights under the lease. Persons in this category are not considered members of the family and their income is not counted when determining the family's annual income. N - None of the Above. Others Living in the Unit Who are not Members of the Tenant Family. Persons in this category do not have rights under the lease. Persons in this category are not considered members of the family and their income is not counted in determining the family's annual income. One example is the parent of a household member who is the HOH and who has been deployed to active military duty. The HOH’s parent may move in the unit, temporarily, to care for grandchildren remaining in the unit until the HOH returns.

Item 38 Sex For each member enter: F for Female M for Male Leave blank if either the O/A did not ask for the information or the tenant did not voluntarily report. Note: In March 2012, HUD mandated new protections for anyone applying to or living in federally funded housing. These protections are based on sexual orientation, gender identity or marital status. Household members may not be required to disclose gender for HUD programs. This may conflict with other funding programs such as LIHTC-Section 42 or Rural Development-515. The ability to leave this field blank begins when the owner/agent converts to the new 50059 created for TRACS version 202D.





Item 42 Special Status Code

Enter all Special Status Codes that describe the household member. For each member, enter all of the codes that apply E = Elderly Head, Co-Head, or Spouse (At least 62 years of age on (re)certification effective date) S = Full-time Student 18 or older who is not the Head, Co-Head or Spouse as of the effective date of this (re)certification. Must have a D (Dependent) indicated in Item 37 (Relationship Code). H = Family member who is Disabled M = Family Member who is a US military veteran. P = Person being housed temporarily pursuant to the guidance in the HUD Handbook 4350.1, Chapter 38. Joint Custody Codes: C = Dependent (D) whose custody is jointly shared by more than one family but who does not receive a dependent allowance and who lives in the unit less than 50% of the time. Such a person’s child care expenses count toward the child care allowance. When a child (anyone who is under 18 years of age as of the effective date of the certification) is in a joint custody arrangement or when a child may appear on a 50058 or 50059 for more than one household, certain rules apply. The child must live in the unit at least 50% of the time to be qualified as a household member for Income Limits, Unit Size and the Dependent Deduction. If the child does not live in the unit 50% of the time, always use code C. In this case, the child care deduction applies, but the dependent deduction does not apply and the child should not be considered when applying unit size standards. JK = Dependent (D) whose custody is jointly shared by more than one family and who receives a dependent allowance along with a child care allowance where applicable. CK = Dependent (D) whose custody is jointly shared by more than one family and lives in the unit 50% or more of the time. Count for unit size and income limit purposes. If the child lives in the unit at least 50% of the time and is listed on a 50058 or 50059 for more than one household, the child is considered, in both units, for:

Income Limits

Unit Size

Dependent Deduction See HH 4350.3 R1, C4, Paragraph 5-10. When more than one family shares custody of a child and both live in assisted housing, only one family at a time can claim the dependent deduction for that child. The family with primary custody or with custody at the time of the initial certification or annual recertification receives the deduction. If there is a dispute about which family should claim the dependent deduction, the owner should refer to available documents such as copies of court orders or an IRS return showing which family has claimed the child for income tax purposes. And Paragraph 5-6: When more than one family shares custody of a child and both families live in assisted housing, only one family at a time can claim the dependent deduction. The family that counts the dependent deduction also





counts the unearned income of the child. The other family claims neither the dependent deduction nor the unearned income of the child.

Item 44 ID Code (SSN)

Enter the 9-digit Social Security Number for each of the household members. Do not use dashes when entering these numbers. Enter 999999999 if the head of household has no SSN/TRACS ID If the SSN 999999999 was used for this member on a previous certification, use the TRACS ID number assigned by TRACS Note: Do not enter an ITIN (Individual Tax Identification Number) or a Social Security Benefits Claim Number. See HUD Handbook 4350.3 R1, C4 Paragraph 3-9 for additional information regarding Social Security Number requirements.

Item 45 SSN Exception

Choose the appropriate code if an individual without a valid SSN qualifies for an SSN exception. Leave blank if a Social Security Number was provided and no exception applies. C = Individual who does not contend eligible immigration status E = Individual age 62 or older as of January 31, 2010, whose initial determination of eligibility in either a Multifamily or PIH Housing program was begun prior to January 31, 2010 (a break in assistance does not void the exemption) M = New household member under the age of 6 where disclosure of SSN is delayed for 90-180 days (cannot be used on a MI certification) See HUD Handbook 4350.3 R1, C4, Paragraph 3-9 for additional information regarding Social Security Number requirements.

Item 46 Citizen Code Formerly Member Eligibility Code Leave blank for BMIR, 202/811 PRAC or 202/162 PAC. For additional information see HH 4350.3 REV-1: Paragraph 3-12, Appendix 2, Exhibit 3-5

Item 50 Family has Mobility Disability?

If a family member has a mobility disability, enter a “Y”. Otherwise, leave blank. See HH 4350.3 R1, C4, Paragraph 2-11 for additional information about reporting information about families with members who have disabilities.

Item 51 Family has Hearing Disability?

If a family member has a hearing disability, enter a “Y”. Otherwise, leave blank. See HH 4350.3 R1, C4, Paragraph 2-11 for additional information about reporting information about families with members who have disabilities.

Item 52 Family has Visual Disability?

If a family member has a visual disability, enter a “Y”. Otherwise, leave blank See HH 4350.3 R1, C4, Paragraph 2-11 for additional information about reporting information about families with members who have disabilities.

Item 54 Number of Non-Family Members

Enter the number of members with Relationship Code (Item 37) L – Live-in Attendant or N – None of the Above. These non-family members are not counted in Item 53.





Section D – Income Information Item 69 SSN Benefits

Claim No. Enter the Social Security Benefits Claim number under which a member of the household receives Social Security income benefits (Item 67) only if the Social Security Benefits Claim number is different from that member’s own Social Security number. Enter the alpha/numeric suffix attached to the end of the Social Security claim number. Do not enter dashes. For example: 123456789HB1. The claim number will typically be 9 digits followed by a letter and 0-2 additional letters and/or numbers. Otherwise, leave blank. Note: If the member has income under more than one Claim Number, enter one income per Claim Number.

Section E -Asset Information Item 78 Cash Value

Formerly called Asset Value Enter the cash value of each asset. The cash value of an asset is the market value of the asset minus any expenses that could occur with the selling of the asset, or converting the asset into cash. The lowest cash value is 0. TRACS will not accept a negative value. See HH 4350.3 R1, C4 Paragraph 5-7.C and 5-7.D for additional information about the difference between fair market value and cash value of assets. Also see Appendix 3 and Appendix 6 for information about acceptable verification of the value of assets.

Item 81 Total Cash Value of Assets

Formerly Total Asset Value Enter the total cash value of all assets listed in Item 78.

Section F - Allowances & Rent Calculations: Item 96 Household

Citizenship Eligibility

Formerly Membership Eligibility See HH 4350.3 R1, C4, Paragraph 3-12 and Glossary

Adjusted Income - Deductions For Items 97 through 107, leave blank if this is a BMIR (re)certification. See 4350.3 REV-1: Chapter 5, Section 2: Item 109 TTP Before

Override If this is a rent override situation (Item 114, Rent Override set to “Y”) and the rent calculation involves TTP, fill with the TTP that would normally be calculated without the override. Currently, this is used when a PRAC resident pays less than operating rent and that resident refuses to participate in the annual certification process. In this case, use the Rent Override function to force the Tenant Rent to operating rent.





This is also used for RAD rent phase-in (see below) Otherwise, leave blank. For information regarding the Rent Override function, see HUD MAT Guide Chapter 4, Section 4.30 and TRACS 202D Specification Document Appendix K. Rent phase-in rules under RAD If the tenant is subject to rent phase-in (this fact is determined by the Owner/PHA), the Owner/PHA determines the phase-in schedule (3-5 years) and the TTP amount for each certification. To assist in monitoring the phase-ins, a TTP At RAD Conversion field has been added to the MAT10, Section 2 record (Field 101) and the MAT70 record (Field 30). For each tenant certification during the phase-in, the TTP at RAD Conversion field is to be filled. The value does not change from cert to cert and is supplied by the Owner/PHA. It is whatever the TTP was just before the tenant converts to RAD. During the phase-in the TTP Before Override field is filled with the TTP as it would be calculated without the override. Also the Rent Override field is set to Y. The use of these fields allows HUD to monitor for improper payments. For certifications effective after the MI or IC to RAD, during phase-in the Total Tenant Payment must be less than the TTP Before Override. The phase-in ends either at the end of the phase-in period or when the TTP Before Override is less than or equal to Total Tenant Payment on the prior certification. To mark this event (end of phase-in), the Rent Override Flag is NOT set and both the TTP At RAD Conversion and the TTP Before Override fields are filled. For any certifications with effective dates greater than the date of the cert that marks the end of the phase in, fill the TTP At RAD Conversion and TTP Before Override fields with 0s.

Item 114 Rent Override Enter “Y” if the normal rent calculations have been overridden for this certification. Otherwise, leave blank. See HUD Handbook 4350.3 REV-1: Paragraph 5-30 for the general requirements as to when a HUD calculated rent may be overridden. See also the rent calculation spreadsheet (202DCalculatingTenantRent.xlsx) for how overrides impact calculations.

Item 117 Eligibility Check Not Required

Applies only to Move-in or Initial certifications. If this certification is not a MI or IC, leave blank. If standard eligibility rules apply, leave blank. Enter “Y”, is standard eligibility rules will not be applied. Examples of situations where the use of this designation is appropriate: 1. If a tenant moves in to a unit in a comparable project as a reasonable

accommodation (See HH 4350.3 R1, C4, Paragraph 2-32.C.1.a), eligibility is not checked on Move-in certification

2. If a tenant moves in to a unit in a comparable project in response to claims of status as a victim under VAWA.





3. For a contract combination, the tenant is first terminated from the old contract (Termination Code = CC) and an Initial Certification is created for the new contract. Eligibility is not checked on the Initial Certification.

4. Under the HH 4350.3 R1, C4, Paragraph 7-12.B.3, a tenant who fails to respond to a notice to provide information about changes in composition or income must be terminated. When the tenant submits the information, assistance must be reinstated (IC). Eligibility is not checked on this Initial Certification.

5. For 100% Section 8 properties. If the project is 100% subsidized, in the case where an in-place tenant’s assistance was terminated due to an increase in income and whose income decreases and they are again eligible for assistance, the tenant should be certified (IC) and receive the assistance. The tenant’s income eligibility was determined at move-in and does not have to be determined again.

6. PDD—Presidentially Declared Disaster 7. Other These are not Eligibility Waivers, as indicated for Item 116.

EXTENUATING CIRCUMSTANCES CODE (FORMERLY TENANT UNABLE TO

SIGN INDICATOR)

For years, owner/agents have had permission to submit certifications without resident signatures if certain extenuating circumstances exist. Examples include hospitalization, military deployment and reasonable accommodation. While this practice is compliant, HUD would like more detail about certifications submitted without resident signatures. The following codes will be used when a resident has not signed the certification but the owner/agent is allowed to collect subsidy.

Note: This is not the same as refusal to sign. When (if) the resident returns and is able to sign, submit a correction with the Tenant Signed Date populated and the Extenuating Circumstances field blank. The correction reason is administrative re-submission. It is important that you follow HUD guidance when documenting the tenant file. HH 4350.3 R1, C4, provides the following instruction: “… The owner may consider extenuating circumstances when an adult family member is not available to sign the HUD-50059, for example, an adult serving in the military, students away at college, adults who are hospitalized for an extended period of time, or a family member who is permanently confined to a nursing home or hospital. In these instances, the owner must document the file why the signature(s) was not obtained and, if applicable, when the signature(s) will be obtained. The owner must provide the tenant a copy of the signed HUD-50059 and retain a copy in the tenant’s file.”





Item 118 Extenuating

Circumstances Code

Formerly “Tenant Unable to Sign” Leave blank if any tenant has signed this (re)certification. If the tenant has not signed this (re)certification, this Item must be filled in with one of the following codes. 1 = Medical 2 = Late annual (re)certification due to accommodation or extenuating circumstances. 3 = Late annual (re)certification due to owner/agent delay 4 = Late annual (re)certification due to third party delay (For example a Guardian) 5 = Military Deployment 6 = Eviction In Progress. Must be for a valid HUD Handbook reason. 7 = Court order 8 = No Signature Required (Retroactive GR done after a MO or a GR correction to a previously transmitted 50059 where the only change is the GR modification of the contract rent and where none of the TTP, Tenant Rent, or Utility Allowance changes). See 202D MAT Guide 9 = No signature required for 60 days (based on anticipated voucher reported on date). An example would be a retroactive GR causing a correction to a previously transmitted 50059 and where any of the TTP, Tenant Rent or Utility Allowance changes. A signature is required but the cert may be transmitted immediately and the signature collected within 60 days. 10 = Other See The HUD MAT Guide: The owner may consider extenuating circumstances when an adult family member is not available to sign the HUD-50059, for example, an adult serving in the military, students away at college, adults who are hospitalized for an extended period of time, or a family member who is permanently confined to a nursing home or hospital. In these instances, the owner must document the file why the signature(s) was not obtained and, if applicable, when the signature(s) will be obtained. The owner must provide the tenant a copy of the signed HUD-50059 and retain a copy in the tenant’s file. Note: When/if the tenant is able to sign, submit a corrected (re)certification with the tenant’s signature and leave this Item blank. Note: With respect to Code 8—this is to be used whenever a full cert for a moved-out tenant is corrected by a GR—even in cases where a code 9 would normally be used. This is because a tenant signature will never be obtained because the resident has already moved out. Note: A code of “Y” is allowed when correcting a (re)certification originally created under TRACS 202C or earlier with a “Y” in this Item.





PROPOSED CHANGES TO THE HUD 50059-A

There have been changes to the 50059-A as well. Most of the changes to the 50059 (as appropriate) have been carried to the 50059-A. Field by Field Definitions The following section allows us to take a look at the TRACS 202D version of HUD Form 50059-A and review new fields and new HUD clarification. This is not a review of the entire form. If you would like an explanation for every field on the proposed TRACS 202D 50059-A, visit our web site at www.rbdnow.com. Item 5 Transaction Type Enter the code that best describes the main reason for preparing this form.

Note: Do not use a termination to end subsidy after the death of a sole member. Use the move-out transaction. Note: If a Gross Rent Change has the same effective date as a full certification (AR, MI, IC, IR) include the new GRC information on the full certification (50059) instead of this form. If a Unit Transfer has the same effective date as a full certification (AR, IR, IC), include the new GRC and/or UT information on the full certification (50059) instead of this form.

CORRECTING PARTIAL CERTIFICATIONS

Historically, owner/agents have not had the ability to correct partial certifications. With TRACS 202D, owner/agents will be able to correct certain information on partial certifications and re-submit. A correction indicator will be included to ensure that the transaction is recorded successfully. Owner/agents must be familiar with the new rules surrounding corrections to partial certifications. Blank = Not a correction R = Any correction that does not correct a previous effective date. Correcting effective dates for partial certifications is still complicated. In order to correct the effective date of a partial certification, OAs must follow the steps below:

Send the last MAT 10 record (AR, IR, MI or IC) as a correction (Administrative resubmission) Check TRACS certification query to confirm successful receipt of that certification Send all subsequent partial certifications, one at a time, in separate TRACS transmissions, on separate

days Check TRACS certification query after each transmission and before the next transmission to confirm

successful receipt of each partial certification

Item 13 Correction Type Leave blank if this is not a correction. Enter R = Correction/Re-transmittal Note: You cannot currently change the effective date of a 50059A. In order to correct the effective date, you must submit the last MAT 10 as a correction. Then submit the 50059A with the correct effective date. See MAT Guide Chapter 4, Section 4-20.





Item 14 EIV Indicator 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 use of the EIV system is the termination or eviction of a household, the indicator is set on the TM or MO. If a certification is created or corrected because of en EIV Discrepancy, enter Y.

Move Outs

Item 17 Move Out Code

Enter the valid code which best describes the reason for the Move-out. 1= Owner initiated for nonpayment of rent (4350.3 REV 1: Paragraph 8-

13.A.5) 2= Owner initiated--other 3= Tenant initiated--other 4= Death of sole family member (note: only use if no other household

member remains in the unit) 5= Unit Transfer between two projects. See 2.0.2.D MAT Guide: Section 4.1 6= Reserved for TRACS use only (HQ Move Outs) 7= Abandoned Unit (4350.3 REV 1: Paragraph 6-9.B.2 and 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 Note

for code 11: Used only for a RAD tenant accepting a Housing Choice Voucher (HCV)

Note: For Discrepancies discovered on the EIV Deceased Tenant Report When an IR is appropriate, DO NOT CREATE A “FALSE” MOVE OUT TRANSACTION TO CORRECT AN EIV DECEASED TENANT REPORT DISCREPANCY. Doing so is non-compliant. This could create problems with your ability to receive subsidy for this household.

Item 18 Date of Death of Sole Member

Enter as MMDDYYYY. Required if Move-Out Code is “4”. Note: The tenant’s subsidy (assistance payment) must end no more than 14 days from the date of death of the sole family member. After a death, the move-out transaction should be entered and transmitted ONLY when the owner/agent is able to take possession of the unit (family members move contents out). It is proper to bill for subsidy until the unit is vacated. The MO code 4 with an appropriate date-of-death must generate a voucher adjustment to 14 days after the date of death if the unit is not vacated within 14 days. The actual Move-out date is the date the owner/agent may take possession of the unit and may be after the 14-day period. See HUD MAT Guide Chapter 5, Section 5-8.

Item 19 Description (for MO)

Enter the text corresponding to the code entered in Item 17.

1. Owner initiated--Nonpayment of rent

2. Owner initiated--Other

3. Tenant initiated—Other

4. Death of sole family member

5. Unit Transfer between two projects





6. TRACS use only (HQ Move Outs)

7. Abandoned Unit

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

Terminations

Item 20 Termination

Enter the valid code which best describes the reason for the termination. TI = TTP Equals/Exceeds Gross Rent or moving to market rent. See HH 4350.3 R1, C4, Paragraph 8-5.C. TC = Did not supply citizenship/eligible alien documentation. TR = Did not re-certify on time. Tenant required to pay market rent. See HH 4350.3 R1, C4, Paragraph 8-5.A TF = Tenant refused to transfer as agreed or submitted false data. See HH 4350.3 R1, C4, Paragraph 8-5.D) CE = Subsidy contract expired-not renewed. Do not use when renewal is delayed. See 2.0.2.D MAT Guide: Chapter 4, Section 4.19 regarding Last HAP Vouchers ST = Ineligible Student. (Not available for PRAC; tenant must move out.) DS = Double subsidy at move-in. Use to terminate subsidy when a move-out from a former property is effective after the move-in or initial certification date for the new property. The code is intended to be used on a termination effective on the move-in or initial certification date. It will result in an adjustment on the voucher that gives back subsidy for the TM date. See Note below. 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 for reason other than Double Subsidy. For example, income at MI or IC is being corrected as a result of an EIV discrepancy or other investigation and the tenant was not income eligible. The code is intended to be used on a termination effective on the move-in or initial certification date. It will result in an adjustment on the voucher that gives back subsidy for the TM date. See Note below. OT = Other. A reason not covered by any of the other codes. Note: When terminating assistance, remember that the effective date of the termination certification (for all termination codes except NS and DS) is the last day subsidy is paid. Note: When using NS or DS, the effective date of the termination must coincide with an MI or IC. When using these codes, TRACS software will create an adjustment to reverse all housing assistance.





For additional information see HH 4350.3 R1, C4, Paragraph 8-5. The following termination codes are reserved for HUD use only: EN = Contract terminated for enforcement action. HQ = TRACS generated termination for failure to recertify, submit termination or move-out. May be superseded by an Annual Recertification. Note: LR = Did not re-certify on time. Legacy code for terminations with effective dates less than or equal to TRACS 202C transition date. Note: Do not use a termination to end subsidy after the death of a sole member. Use the move-out transaction. See HUD MAT Guide

Item 21 Description (for Termination)

Enter the text corresponding to the code entered in Item 20. TI = TTP Equals/Exceeds Gross Rent or moving to market rent TC = Did not supply citizenship documentation TR = Did not re-certify on time TF = Tenant refused to transfer or submitted false data CE = Subsidy contract expired-not renewed ST = Ineligible Student DS = Double subsidy at move-in ND = Natural Disaster or Uninhabitable Unit AB = HUD abated unit. RR = Substantial rehab or repair - Tenant expected to return NS = Resident did not qualify for subsidy at MI--Not Double Subsidy OT = Other. A reason not covered by any of the other codes EN = Contract terminated for enforcement action HQ = TRACS generated termination for failure to recertify LR = Did not re-certify on time

Item 29 TTP at RAD Conversion

If not Section 8 leave blank. If Section 8 sub-type is not RAD leave blank. For RAD:

If no rent phase-in is involved, leave blank.

If Rent Phase in is in process, enter the TTP (Total Tenant Payment) the tenant is/was paying at the time of conversion to RAD.

Note: This is not Tenant Rent. Tenant Rent = TTP less any Utility Allowance

Item 31 TTP Before Override

Note: For information regarding the Rent Override function, see HUD MAT Guide Chapter 4, Section 4.30. If this is a Rent Override situation (Item 35, Rent Override must be set to Y) and the rent calculation involves TTP, enter the TTP that would normally be calculated without the override. Otherwise, leave blank.

Item 35 Rent Override

Note: For information regarding the Rent Override function, see HUD MAT Guide Chapter 4, Section 4.30. Enter “Y” if the normal rent calculations have been overridden for this transaction. Otherwise, leave blank.





See HUD Handbook 4350.3 REV 1: Paragraph 5-30 for some of the general requirements as to when a HUD calculated rent may be overridden.

SUMMARY – CHANGES TO THE 50059S

As you can see, the changes to the 50059 and 50059-A are significant. It is important that anyone responsible for the certification process is familiar with the changes. It is also important to update critical documents that feed into the 59s. This includes applications, annual certification questionnaires and interim certification questionnaires.





APPENDIX A REFERENCES HUD’s TRACS web site: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/trx/trxsum HUD Handbook 4350.3 Revision 1 http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4350.3 TRACS 202D MAT User Guide - http://www.hud.gov/offices/hsg/mfh/trx/trxmatg.cfm TRACS 202D Cross Reference (part of the Industry Specification Documents) TRACS 202D Final Industry Specification Documents http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/trx/trxdocs TRACS Discussion Forum – A page where industry stakeholders ask questions and discuss challenges surrounding TRACS http://ptp.hud.gov/forumswww/main.cfm?CFID=7203371&CFTOKEN=70548446&CFApp=34& HUDClips – HUD forms are accessed from this page. This is where you can download current versions of HUD Forms 50059 and 50059A. http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/forms HUD’s Forms Matrix providing owner/agents permission to remove the OMB Approval Number and OMB Expiration Date from the lease and certain TRACS forms. http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_20481.pdf



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

http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4350.3

http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4350.3

http://www.hud.gov/offices/hsg/mfh/trx/trxmatg.cfm

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

http://ptp.hud.gov/forumswww/main.cfm?CFID=7203371&CFTOKEN=70548446&CFApp=34&

http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/forms

http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_20481.pdf



APPENDIX B: 202D 50059





APPENDIX C: 202D 50059-A





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