HOUSING VOUCHER PROGRAMS - POLICY AND PROCEDURES MANUAL

Section	Title
	Introduction
Section A	Processing Elite Financial Transactions Validating Mail Codes Authorizing Elite Transactions Elite Generated Adjustments Users Processing Manual Adjustments.
Section B	Warrant (Payment) Inquiries and Concerns Housing Assistance Payment (HAP) Inquiries Utility Assistance Payment (UAP) Inquiries Stop Payment on an Issued Warrant ESCHEATS Requesting Warrant Copies Suspected Forgery
Section C	Accounts Receivable Procedures Pursuing Collection of Receivables Resident Repayment Agreements Landlord Repayment Agreements Informal Reviews/Hearings FSS Payouts and Resident Debts Portabilities and Resident Debts Fraud Claim Settlements
Section D	Reports HA Production Report Aged Annual Re-examinations Report Certification Error Log Report Cycle Time – Annual Re-examination Report Cycle Time – Initial Contracts Report PIC Transaction and Error Reports Agent Performance Report Housing Agent Monthly Payroll Report Other Miscellaneous Reports
Section E	Voucher Request/Process Requesting More Voucher Slots Tracking Voucher Allocations Returning a Voucher Slot Transferring Vouchers Between Increments
Section F	Abatements
Section G	Undeliverable Warrants
Section H	1099’S Mailing of 1099’s Questions Regarding 1099’S Requesting 1099 Corrections
Section I	Public Information Center (PIC) Reporting PIC General Information Correction of Fatal Errors Identified by PIC PIC Reports
Section J	Applicable Forms List
Exhibit A	Standard Overpayment Notice
Exhibit B	Overpayment Notice to Active Resident

INTRODUCTION

Operations policy covers the various tasks involved with processing residents HUD 50058 transactions.

List of Operations Titles and Duties

Accounts Receivables Technician (ART)

• Records all payments into Elite.
• Reviews/processes undeliverable warrants.

Delinquency Accounts Coordinator (DAC)

• Addresses calls from HAs, landlords, and residents, and the Michigan Department of Treasury regarding accounts receivable.
• Sends delinquent debts to Treasury for collection.
• Addresses delinquencies concerns/problems.

Data Coordinator (DC)

• Generates monthly reports.
• Creates miscellaneous reports upon request.
• Processes Housing Agents (HA) monthly payroll and adjustments.

Elite Coordinator (EC)

•  Addresses Elite concerns/problems/updates/maintenance.
Addresses HUD audit reviews and requests.

Funding Coordinator (FC)

• Oversees the programs budgetary needs.
• Addresses all funding concerns/problems/updates/maintenance.
Monitors voucher number increment and allocations.

HAP Generation and PIC Coordinator (HPC)

• Processes monthly/weekly HAP/UAP and portability payments.
• PIC Coordinator – addresses transmissions/errors/reports, etc.

Operation Secretary (OS)

• Processes late fee payments to Landlords.

Warrant Coordinator (WC)

• Processes all stop payments.
• Processes all check copy requests and forgery concerns (warrant issues).
• Answers all 1099 inquiries and corrections.
• Processes all Escheats concerns.

SECTION A:  PROCESSING ELITE FINANCIAL TRANSACTIONS

Departmental Technicians (DT) and Housing Agents (HA) perform the following processes in the Elite database and MAIN Administrative Information Network (MAIN) to process payments for HUD 50058 transactions:

• Validating Mail Codes;
• Authorizing Elite Transactions;
• Elite Generated Adjustments;
• Users Processing Manual Adjustments.

1.   Validating Mail Codes

Prior to authorizing a transaction in Elite, the approver must validate the proper landlord’s tax identification number and mail code has been entered within the HAP Payee & Owner entry tab of the HCV - Unit Entry module.  The approver should also validate the landlord’s tax identification number and mail code information is active on MAIN (ADPICS).  If any of this information is invalid the next HAP generation (all HAP/UAP being issued) could fail to execute or the payments on the individual transaction could be delayed.

If the “Payment Group” window has been completed under the “Maintain Participant payments group” button, then the user must validate the information in the window has been completed properly.  The approver must update all mail codes where 888 or 999 has been entered.  These are temporary mail codes used to enter landlords into Elite as they begin the registration process with the State of Michigan – Payee Registration Unit.  Approvers will receive notification of any payments, which errors out of HAP generation process for timely correction and tracking for log error purposes.

2.   Authorizing Elite Transactions

The DT reviews paperwork received from the HA based on audit criteria outlined in PPM Chapter VIII – File/Review Procedures.  The forms required for the transaction being approved must match the information entered into Elite prior to payment authorization.  Some HA’s have received access to process transaction approvals.  These HA’s should identify a basic review for approving transactions in Elite or utilize the basic audit structure setup by Existing Housing management in Chapter VIII of the PPM to audit and approve casework transactions.

Refer to the proper chapter of the PPM to learn more about the requirements of the specific transaction being processed.

Refer to the Elite User Guides for step-by-step directions on where and how to approve a pending transaction.

3.  Elite (System) Generated Adjustments

Approvers must review the list of adjustments, which Elite displays upon the authorization of certain transactions.  These adjustments address increases or decreases in the Housing Assistance Payment (HAP) or Utility Assistance Payment (UAP) issued to landlords and residents, respectively, by Elite. 

Adjustments appear during the authorization process when the transactions are being processed after its effective date.  The person approving the transaction must verify all payments issued/deducted within the affected timeframe.  Items to note when approving:

• If a recission was performed for the resident prior to authorizing a transaction, Elite may have already provided adjustments for payments to the current date.
• Review the Resident Processing, Financial Information and open Manual Adjustments to determine if the payment adjustment are still required.
• If an adjustment error appears during the approval process, double check the adjustments identified to guarantee Elite has generated all the necessary adjustments for the transaction.  

Adjustments typically fall into the following categories:

• Supplemental payments – payments, which increase the HAP/UAP amounts for the previous month’s payments.  Verify the correct negative amounts for the previous months payments and the new positive amounts are identified as adjustments.  A separate amount should appear for each month’s positive and negative payments.
• Interim Re-examinations where the HAP/UAP increases - e.g. HAP paid for April and May 2006 was $250 per month and then the HA receives notification and verifies that the HAP should have been $300 for April and May 2006 on May10, 2006.  Elite must increase the previous month’s HAP for April and May 2006 and will setup four manual adjustments:  two for -$250 and two for +$300, which will net to +$50 for each of the previous month’s HAP.
• Ownership Changes – e.g. the HAP for April and May 2006 was paid to the previous landlord and the ownership to the property changed on April 1, 2006.  Elite must issue HAP to the new landlord for April and May 2006 and deduct the HAP from the previous landlord for April and May 2006.  Negative amounts deducting the previous owner’s payments should be accepted in order to collect the overpayments sent to the previous landlord.
• HAP/UAP Deductions – payment reversals, which decrease the amount of HAP/UAP amounts for previous monthly payments.
• Move outs – e.g. resident has moved out of their unit on April 30, 2006 and the transaction is received and entered on May 10, 2006.
• End of Participations (EOP) – e.g. resident leaves the HCV program on January 31, 2006 and the transaction is received and entered on April 30, 2006 (Note this is after the cut-off for the MAY HAP generation, so February through May 2006 HAP and UAP will need to be retrieved with a negative adjustment for each month).
• Interim Re-examinations where the HAP/UAP decreases – e.g. a resident’s rent portion increases effective May 1, 2006, but the transaction is not entered into Elite until May 5, 2006.
• Abatements – these transactions rarely occur on the first of a month and thus require HAP deductions, refer to the Elite user guide for further instructions.

Adjustment increases to HAP/UAP will automatically be processed with the next weekly or monthly HAP generation.

Adjustment decreases to HAP/UAP will be processed when the landlord or resident has his/her next positive payment issued or through an overpayment letter as addressed later in this policy under Section C.1 – Pursuing Collection of Receivables.

5.     Users Processing Manual Adjustments

If Elite does not properly calculate the adjustments to an authorized transaction, the user may enter a manual adjustment within the Elite - Manual Adjustments module.

Two primary reasons for users manually entering adjustments are to:

• Replace a HAP/UAP returned as undeliverable, and
• Deduct outstanding balances due to MSHDA.

Refer to the Elite User Guides for instructions on entering manual adjustments.

SECTION B:  WARRANT (PAYMENT) INQUIRIES AND CONCERNS

Performing one of the following procedures addresses most payment inquiries:

• HAP inquiries,
• UAP inquiries,
• Stop Payment on an Issued Warrant,
• Incorrect Addresses on Stopped Warrants,
• Requesting Warrant Copies,
• Suspected Forgery.

1.      Housing Assistance Payment (HAP) Inquiries

When a Landlord contacts the HA about the status of payment on paperwork previously submitted to MSHDA, the HA should review the following to determine the status of payments:

a)      On Elite, retrieve the residents record within Resident Processing and view the Financial Information listed in the Common Tasks box on the left middle of the screen.  Elite’s payment history displays with detailed payment information for the resident’s complete financial history in Elite.  Otherwise, run a report of “HAP Register by HAP Payee” under HCV, Accounts Payable, Financial Reports to view the details of all a landlords’ payment for a specified period.

b)      If the HA needs more detailed warrant information, review MAIN or contact a DT.

The DT and HA can review MAIN (R*STARS) to gather the following information:

• Warrant number;
• Mailing address;
• Amount;
• Date issued;
• Warrant status.

The DT will inform the HA of warrant information (i.e. warrant cashed on date or warrant still pending, etc.) so the HA can inform the landlord/resident.  The landlord/resident should not call the DT directly.  Refer to the MAIN user guides for more information regarding payment inquiries within MAIN.

2.      Utility Assistance Payment (UAP) Inquiries

When a Resident contacts the HA about the status of payment on paperwork previously submitted to MSHDA, the HA should review the following to determine the status of resident’s payments:

a)      On Elite, retrieve the residents record within Resident Processing and view the Financial Information listed in the Common Tasks box on the left middle of the screen.  Elite’s payment history displays with detailed payment information for the resident’s complete financial history in Elite.  Otherwise, run a report of “HAP Register by Resident” under HCV, Accounts Payable, Financial Reports to view the details of all a resident’s UAPs for a specified period.

b)      If the HA needs more detailed warrant information, review MAIN and contact a DT to help identify the payment information.

The DT can access the HAP generation file on the S: drive [S:\Payroll Register\(payroll date)] for all resident payment inquiries.  The HAP generation file provides the batch number and sequence number required in viewing resident payments in MAIN.  The DT can capture the same information in MAIN as identified under HAP inquiries.

3.   Stop Payments on an Issued Warrant

When stopping a warrant the following standards apply:

• Only a warrant in an “I” – issued status can be stopped.
• Warrants hold the State’s backing for payment, thus the landlord should expend extra effort to verify receipt or recovery of the original warrant.
• Once a vendor (landlord) decides to stop payment on a warrant, the warrant cannot be cashed.
• If a vendor receives the warrant after a stop payment has been processed, the landlord should contact the WC for further direction.

The HA and DT must verify with the landlord the following information before referring a vendor to the WC:

• Month issued;
• FEIN OR SSN;
• Warrant status.

When E-mailing HA pertinent warrant information, the DT should copy the WC.  The WC:

a)      E-mails the HA and DT when the stop payment has been placed, and

b)      When the landlord or resident address is incorrect, the WC will complete a manual adjustment to replace the HAP/UAP once a signed and notarized affidavit has been returned.

A stop payment can occur for one of the following reasons:

• Warrant not received;
• Lost Warrant;
• Stolen Warrant;
• Mutilated Warrant.

Under each stop payment reason for a warrant, the user can indicate whether the warrant had a good or bad address.  Once a warrant has been stopped:

a)      The landlord (vendor) must complete an affidavit verifying they have not cashed the warrant.

b)      Upon receipt, the landlord must sign, notarize, and return the affidavit to the issuing party.

c)      The Issuing party confirms the affidavit’s completeness and re-issues the warrant.

Stop Payment, Good Address - If the WC stops with a good address, Treasury issues the affidavit after the stop has been entered into MAIN.  Treasury reissues to the same name and address on the original warrant.

Stop Payment, Bad (Incorrect) Address - If the WC stops with a bad address, the WC issues the affidavit and reissues the warrant upon receipt of the completed affidavit and an address correction.  Note: the affidavit must be received prior to re-issuance, because Treasury must receive the affidavit in order to credit MSHDA for the amount of the original warrant.

Whenever a stop warrant occurs, the HA and WC must verify the correct mailing address with the landlord/resident.  If the landlord requires a mailing address correction, the HA must:

a)      Obtain all necessary documentation.

b)      Submit the landlord address correction to the DT to update MAIN.

If the resident address requires correction, the HA must:

a)      Correct Elite; and,

b)      Submit the required paperwork to the DT for authorization.

Once the address has been updated, the HA or DT notifies the WC for replacement.  The WC verifies that the landlord or resident address has been updated in Elite and proceeds with re-issuance via a manual adjustment or payment voucher.

4. ESCHEATS

Annually, Treasury initiates an Escheats process where outstanding warrants (not cashed or canceled) for greater than one year become recaptured by the State.  Treasury issues affidavits on all identified outstanding warrants, which require recapture or re-issuance.  In order to properly determine whether to recapture or reissue a warrant, the WC will involve the HA and DT as necessary to gather the proper information regarding entitlement to the warrant.  The HA and DT may also need to assist in updating the vendor’s mailing information.  If the warrant requires re-issuance, the WC processes the replacement.

5.      Requesting Warrant Copies

To receive a photocopy of an endorsed warrant from Michigan Department of Treasury, the landlord or resident must:

a)      Contact the WC and identify the payments desired,

b)      Submit $15 for each copy of a warrant requested (copies include the front and back of cashed warrants).

After collecting the $15 fee, the WC:

a)      Submits a M-1005 to the Michigan Department of Treasury, Operations Center,

b)      Waits for the photocopy of warrant,

c)      Reviews the copy for discrepancies, and

d)      Forwards the copy to the landlord or resident with a cover letter informing the recipient that they should review the copy for informational discrepancies and possible forgery.

6.     Suspected Forgery

If a landlord or resident suspects forgery upon reviewing a warrant copy, they must contact the WC to initiate the forgery investigation.  The WC will:

a)      Confirm that the landlord/resident does not believe an authorized signature appears on the warrant.

b)      Sends a memorandum to Treasury soliciting intervention into the case of an alleged forgery of a State warrant.  Note: Treasury’s investigation may take three to six months to complete.

• Treasury Approval:  The WC issues a manual adjustment to reimburse the landlord/resident’s HAP/UAP.
• Treasury Denial:  Treasury or the WC issues a denial letter to the landlord/resident with the final results of the investigation.

SECTION C:  ACCOUNTS RECEIVABLES PROCEDURES

1.   Pursuing Collection of Receivables

A.      Debt Notification Procedures

When a negative adjustment has been outstanding on Elite for 45 days or more, the OS must generate overpayment letters to the active residents not receiving a UAP and inactive landlords and residents.  Overpayment letters request repayment of HAP/UAP dollars unable to be recaptured through the HAP generation process.

This process has the following basic steps:

a)      Issue an Overpayment Notice – 45 days after the initial collection adjustment on Elite.

b)      Issue a Final Overpayment Notice – 45 days after no response occurs from the initial Overpayment Notice.

c)      Issue a ‘Final Notice of Debt’ letter, which notifies debtor that a 15% penalty will be added to the debt if it is referred to Treasury Collections – 45 days after issuance of Final Overpayment Notice.

d)      Refer to Treasury Collections – 45 days after issuance of ‘Final Notice of Debt’ letter.  Debts cannot be referred to Treasury Collections until MSHDA has tried to collect for at least 6 months.  The DAC coordinates the collection of all delinquent accounts with Treasury collections.

Use the following ‘Initial’ overpayment notices to inform debtors of outstanding accounts receivable:

a)      Standard Overpayment Notice (See Exhibit A);

• Identifies the reason, month(s), amount, and resident for which the debt occurred.  This letter also specifies where to send the payment for the debt.

b)      Resident – active on the program (See Exhibit B);

• Identifies that if the resident disagrees with the reason or amount of the debt, they have ten days from the date of the Notice to contact the HA (either verbally or in writing) to request an Informal Hearing.  (Refer to Chapter XV Terminations and End of Participations.)  NOTE:   This informal hearing does NOT remove the resident’s right to request a separate informal hearing if the unpaid debt results in program termination.

B.     Debt Parameters and Write Offs

Elite will automatically pursue collection of a negative adjustment by deducting the amount from the next positive payment to the landlord or resident.  Once the adjustment has been outstanding on Elite for 45 days or more, the OS will generate overpayment letters based on the following criteria:

• Debts $0 to $10 will not receive an overpayment notice, due to the processing costs of sending notification, tracking, and recording receipt of payment.
• Debts $10 to $50 will receive only the initial overpayment notice.
• Debts $50 to $100 will receive both an initial overpayment notice and a final overpayment notice.
• Debts $100 and over will be pursued until collected.

Debts will be written off as follows:

• Debts $0 to $10 will be written off after one year of inactivity.
• Debts over $10 will remain active for collection until six years of inactivity has past.

Debts for any amount can be used to pursue program termination for non-payment until write off has occurred.  The DAC will inform the HA to begin termination of active residents for violation of program responsibility when the resident’s account becomes past due.  HA’s should work with active residents to avoid termination by:

• Setting up a repayment agreement (See PPM Chapter XXV Processing Tenant Repayment Agreements) and capturing the initial payment on the agreement, or
  • If a repayment agreement already exists, refer to PPM Chapter XXV Processing Tenant Repayment Agreements.
• Capturing the total payment of the debt.

When a debtor contests a receivable, the timeframes remain on hold until the debtor receives confirmation that MSHDA will continue to pursue the debt as legitimate.  Confirmation will follow the same form of correspondence as MSHDA received from the debtor, e.g. phone calls will receive return calls; letters will receive return written correspondence.

C.     Handling Accounts Receivable Correspondence

If the person (or representative) receiving the notice contacts the Operations Section to contest the debt, the DAC will attempt to resolve the issue.  However, the DAC may not have sufficient information to address the debtor’s concerns and the DAC will advise the caller/respondent to contact the HA to discuss/resolve the issue or initiate the hearing process.

a)      The HA may need to further contact the debtor either verbally or in writing for clarification regarding the contested debt.  The HA must advise the DAC if the debtor contests the debt.

• If the HA receives verbal contact with the debtor, they should note the conversation on a Supplemental Information Form (MSHDA 77) and forward a copy to the DAC.

• The HA should forward any written communication from a debtor to the DAC, too.

b)      Subsequently, if the HA determines that the owner or resident no longer owes the debt, the HA must notify the DAC (via E-mail) to void the accounts receivable due accordingly and process the proper paperwork, if necessary, to correct Elite transactions.

• Upon notification of void, the DAC will stop pursuing the debt, remove the debt from Elite, and make a note to the file voiding the overpayment and the reason why.  If the HA holds the file, then no note is necessary from the DAC.

D. Residents – Non-payment of Debt

If a resident has been terminated for non-payment of a debt, they cannot become a resident of the HCV program until at least half the outstanding debt has been repaid and a Repayment Agreement has been set up for the remaining amount of the debt.  (Refer to PPM Chapter XXV Processing Tenant Repayment Agreements for details regarding Repayment Agreements.)  The applicant/resident must maintain timely payments to remain eligible for the program.

Residents with an outstanding debt can apply for the waiting list.  Contact the DAC for assistance in determining the status of an applicant or resident’s account.

E.  Ownership Changes

If an overpayment notice occurs due to an ownership change, the person approving the transaction approver will use the transfer date to determine what money to collect from the previous landlord despite any forwarded monies between the two landlords.  HA’s must discourage landlords from forwarding any HAP money received after a property transfers to a new owner.  If the previous landlord forwards the HAP, Treasury will issue the incorrect 1099 amount, because the warrants were issued under the previous landlord’s tax identification number.  MSHDA will issue the new landlord the proper payments based on the effective transfer date.

The transfer date will be:

• The identified effective date on the Assignment of HAP Payments Contract and Lease (MSHDA 411), if the document has been signed by both the new and previous landlords, or
• The first of the month following the effective date of the transfer document.

2.   Resident Repayment Agreements

Refer to PPM Chapter XXV Processing Tenant Repayment Agreements.     

3.      Landlord Repayment Agreements

In rare instances, the DAC can enter into a repayment agreement with an inactive landlord in order to collect an outstanding accounts receivable balance.  See Chapter XXV Processing Tenant Repayment Agreements and follow the Repayment Agreement Parameters for minimum payment amounts and term of repayment.

4.      Informal Reviews/Hearings

MSHDA must offer applicants/residents an Informal Review/Hearing to contest an outstanding debt when refusal to pay a debt can result in denial or termination of assistance.  If the applicant/resident requests a Review/Hearing (either verbally or in writing), the HA must:

a) Forward an MSHDA 97, to the resident, and

b) Notify the DAC via E-mail that no Informal Review/Hearing will occur.

Refer to PPM Chapter V Denials for the Informal Review Procedures and PPM Chapter XXIII for Mediations and Informal Hearing procedures.

5.      Family Self-Sufficiency (FSS) Payouts and Resident Debts

Prior to processing any escrow payments, the Resource Specialist (RS) leading FSS must verify whether the resident has an outstanding debt with MSHDA.  The RS must complete the following procedures as part of the FSS payout process:

a)      Delinquency Review – Review Resident Processing, Messages to determine if the resident has an “AR current balance.”  If the “AR current balance is checked, go to Accounts Receivable, Financial Processing and select “Maintain Invoices” to check on the resident’s current balance.  Contact the DAC if questions arise concerning a resident’s debt.

b)      Deduct any outstanding debt from the FSS recipient’s eligible FSS Escrow payment;

c)      Notify the DAC via E-mail or memo of the deduction from the payout in order to credit the recipient’s accounts receivable balance.

6.     Portabilities and Resident Debts

Residents who maintain their program responsibilities (pay off any debts or remain current with their repayment agreement) can exercise their portability rights.

A resident who exercised their portability rights and subsequently becomes past due or delinquent in their repayment obligations can be terminated for violation of their program responsibilities.  All PHAs have the authority to terminate an applicant/resident who owes a debt to another PHA.

• The Portability Coordinator (PC) notifies any receiving PHA if/when a resident becomes past due or delinquent and requests that the PHA terminate their program participation based on violation of program responsibility.
• The PC tracks the letter for 30 days to confirm the receiving PHA sends a response.

The Operations Policy or procedures cover applicants/residents who exercise their portability rights, except for the following situations:

• Generally, a UAP cannot be withheld on a portability record,
• The PC performs all data entry into Elite and copies the administering PHA on all correspondence to the resident.
• The DAC notifies the PC if a resident’s debt becomes delinquent.
• The Informal Hearing offered for administered port-out residents must be held in the Lansing or Detroit offices.

7.     Fraud

‘Fraud’ requires objective proof that an act of intentionally deceiving or misrepresenting data occurred.  Unintentional oversights should NOT be considered ‘fraud.’  Fraud could include unreported as well as under-reported income (where the client had a clear intent to deceive). Report suspected fraud to the EIV/Fraud Coordinator in order to determine the steps to verify fraud has occurred.

When fraud has been proven, inform the DAC and OA upon submission of the accounts receivable to Operations, because HUD allows PHAs to keep 50% of the fraudulent funds collected.  The DAC and ART track amounts received for credit to the HCV program administrative fee account.

8.     Claim Settlements

Claim settlements for unpaid rent and/or damages are not allowed under the HCV program.  Claim settlements are still used in the MRP and Project Based-Certificate programs.

SECTION D:  REPORTS

In order to monitor HA performance, voucher allocations, and the overall performance of the Existing Housing Programs, the DC generates the following reports:

• HA Production Report
• Aged Annual Re-examinations Report
• Certification Error Log Report
• Cycle Time – Annual Re-examination
• Cycle Time – Initial Contracts
• PIC Transaction and PIC Error Reports
• Agent Performance Report
• Housing Agent Monthly Payroll Report
• Other Miscellaneous Reports

 1.    HA Production Report

Program Management Report – Displays caseworker and voucher information for the HA Production Report when the report is generated.  The report can be used to:

• Determine lease-up for the specified period generated;
• Monitor voucher slots under lease, shopping by bedroom size, and average HAP/UAP;

2.      Aged Annual Re-examination Report

Displays all expired re-examinations (re-exams not completed by the first) for the specified month.  HA and staff can use the report to:

• Identify late re-examinations pending resolution.
• Calculate the re-examination rate or percentage for each HA.

3.      Certification Error Log Tracking Report

This report displays all transactions entered into the Elite Log Tracking and is produced during the first week of each month.  The DC uses the data to:

a)      Create an error percentage based on number of errors and number of cases approved during the month specified.

b)      Summarize errors discovered by the DT during their reviews of incoming paperwork.

c)      Notify the HA, Resource Specialist, and Regional Managers of the errors identified in this report.

4.   Cycle Time – Annual Re-examination (Certification Log Tracking report)

Displays all transactions entered into the Elite Log Tracking and is produced during the first week of each month.  The DC uses the data to:

a)      Calculate the number of Annual Re-examinations received during weekly dates as specified.  Refer to the Agent Performance Cycle Time schedule.

b)      Calculate the percentage of re-exams sent in during the month by each cycle time identified week.

5.      Cycle Time – Initial Contracts (Certification Log Tracking report)

Displays all transactions entered into the Elite Log Tracking and is produced during the first week of each month.  The DC uses the data to calculate the number of Initial Contracts received over a one-month period and the number of days each case is received prior to/past effective date.

6.      PIC Transaction and Error Reports

This report requires a comparison of Elite and HUD data to compile a comprehensive identification of PIC Transactions and Errors.  The report is produced during the last week of the month and the DC uses the data to:

a)      Identify all transactions processed during a month.

b)      Calculate the total number of PIC errors per HA.

c)      Notify the HA, DT, and/or Regional Manager of any PIC errors that can be fully attributed as a processing error.

7.      Agent Performance Report

This report requires a comparison of Elite and HUD data to compile a comprehensive rating for each HA based on performance criteria. This report is produced during the first two weeks of each month for the previous months transactions and statistics and is due by the 15^th of the month.  The DC compiles data to:

a)      Notify each HA of their previous month’s performance rating based on the following six reports identified above:

• HA Production – Uses the production percentage based on the number of contracted and issued (moves) vouchers divided by the total allocation without over-issuance vouchers.
• Re-examination Rate – Uses the number of re-exams completed on time divided by the total number of re-exams due for the month.
• DT Log Errors – Uses the number of log errors divided by the total number of approved cases in a month.
• PIC (MTCS) Errors – Uses the number of vouchers with MTCS errors divided by the total number of transactions completed in monthly period.
• Cycle Time for Annual Re-examinations – Uses the number of re-exams submitted to MSHDA during the month divided by the total Re-examinations due per the Agent Performance Cycle Time schedule.
• Cycle Time for Initial Contracts – Uses the total number of Initials submitted late (after 60 days).

b)      Notify the Resource Specialists and Regional Managers of each HA’s performance rating.

8.      Housing Agent Monthly Payroll Report

Displays all vouchers under contract and is produced immediately prior to the monthly HAP generation.  The DC uses the data to:

a)      Notify each HA of all the vouchers they have under contract for the previous month.

b)      Identify monthly corrections/changes made through a MS WORD created invoice and copies to be given to each HA.

c)      Adjust each HA’s pay detail to account for:

•  Cancelled contracts
• Performance pay
• Housing Conversion Action pay
• Miscellaneous concerns.

9.      Other Miscellaneous Reports

Occasionally HUD or Management requires other report compilations to evaluate an area of the program not monitored monthly or for statistical analysis of residents utilizing the program.

SECTION E:  VOUCHER REQUEST/PROCESS

1.      Requesting More Voucher Slots A HA must perform the following steps to request a voucher beyond their identified baseline voucher allocation:

a)      Contact the Resource Specialist for approval to receive an extra voucher.

b)      After approval has been received, the HA must e-mail the FC, the following information:

• E-mail Subject Line:  Request for New Voucher Slots
• Body of E-mail should indicate:
  • Number of slots.
  • Date Voucher slots are needed.
  • Reason for request.
  • Attach RS approval.

The FC will process the request within three working days and issue a confirmation E-mail upon completion.  Please do NOT send a second notification until the fourth day after the original request, unless you need to correct the original request.

2.      Tracking Voucher Allocations

On a monthly/quarterly basis, agents should print a Contract Status Report under the Resident Processing, Reports menu to:

• Identify their current vouchers allocations.
• Review the status of voucher allocations – occupied, shopping, available.

Upon evaluation of the report, the HA should E-mail the FC to discuss any concerns regarding their increment allocation.  HA’s should discuss baseline voucher allocation changes with their Resource Specialist.

3.      Returning a Voucher Slot

If a HA wishes to return voucher slots to the central office, the HA must receive approval from their assigned Resource Specialist.  The RS e-mails the FC to initiate the return of vouchers.

4.      Transferring Vouchers Between Increments

If the HA needs to transfer a voucher to another county and/or HA, the HA must E-mail the request to the incoming PC and identify the following information:

• E-mail Subject Line:  Request to Transfer Voucher
• Body of E-mail should indicate:
  • Resident name
  • Current county name (i.e. Wayne)
  • Current HA name
  • Contract begin/effective date
• New county name and number (if transferring to another county)
• New HA name (if transferring to another HA)
• Reason for request.

The incoming PC will process the request within three working days and issue a confirmation E-mail to the new (if applicable) and current HA upon completion.  Please do NOT send a second notification until the fourth day after the original request, unless you need to correct the original request.

SECTION F:  ABATEMENTS

Refer to the HQS Manual for details regarding paperwork and field process concerning abatements.

Refer to the Elite manual for entry and processing directions regarding abatements.

SECTION G:  UNDELIVERABLE WARRANTS

Treasury provides Existing Housing (EH) with the stubs of all returned warrants issued by Treasury upon EHs interface request.  Most returned warrants occur because the U.S. Post Office cannot deliver warrants to the address identified in MAIN.  The ART processes returned warrants by:

a)      Recording the warrant’s information for the budget and Finance to track program expenses.

b)      Notifying the HA of the undeliverable warrant’s status and informing the HA of the undeliverable warrant number, date, and the reason for the return,

c)      Correcting the mail code and address correction within Elite, if necessary.

d)      Approving a correction transaction to update the address information within Elite, if necessary.

e)      If a warrant issued on behalf of a resident is returned more than one month in a row, the ART may process an exclusion to stop further warrants from being issued until the undeliverable concern is resolved.

f)        Upon resolution, submitting the stub to the resident file.

Upon notification, the HA must verify the mailing address with the landlord/resident.  If the address requires correction, the HA must:

a)      Contact the landlord and/or resident to confirm the need for new documentation to update the voucher status or mailing address in MAIN.

b)      Obtain all necessary documentation

c)      Submit the corrections to the ART for resolution within Elite and re-issuance of the payment, if necessary.

d)      Correct the resident address information in Elite and submit updated paperwork to the ART.

The ART processes the address correction and verifies the mail code, if necessary.  The ART reissues the warrant via a manual adjustment.

SECTION H:  1099’S

The Payee Registration Unit coordinates the issuance of a 1099-MISC form to all landlords who receive greater than $599 in HAP from MSHDA.  The Internal Revenue Service (IRS) regulations require the State to issue a 1099-MISC form to each vendor who:

• Does not qualify as a corporation, or government, and
• Receives payments for rent totaling greater than $599 during the calendar year.

1.      Mailing 1099’S

The State mails the 1099 forms for the previous calendar year to vendors/payees by January 31^st of each year.  The IRS website (www.irs.gov) displays the 1099-MISC and 1099-INT forms (attached Exhibits 1 and 2).  Provide ample time for the vendor/payee time to receive the 1099 before referring 1099 inquiries to WC.  The WC does not receive notification of 1099 amounts until after January 21^st.

2.      Questions Regarding 1099’S

The WC responds to vendor/payee inquiries regarding reportable payments made by Existing Housing.  The State provides an insert for each 1099-MISC and 1099-INT form with supplemental payment and contact information for each agency that made vendor payments to the receiver.  (The supplemental information explaining each reporting box on the form has been provided as part of Exhibits 1 and 2.)

3.      Requesting 1099 Corrections

If the WC determines an error occurred on a 1099 form, they must request correction of the 1099 form by contacting the Office of Financial Management, which issues corrected 1099 forms.  (Separate forms for requesting corrections to 1099-MISC and 1099-INT have been attached as Exhibits 1 and 2).

Backup Withholding – If a question arises regarding a backup withholding reduction in a vendor’s payments, the vendor must contact the Vendor Registration helpline to resolve their questions at 1-888-734-9749. Backup withholding from payments become reported on the 1099-MISC forms.

SECTION I:  PUBLIC INFORMATION CENTER (PIC) REPORTING

1.      PIC General Information

HUD mandates that all PHAs transmit the Family Report form (HUD-50058) electronically, on a timely basis, each month.  One Hundred percent of the 50058’s must be transmitted to HUD’s Public Information Center (PIC) website.  Refer to the cut-off schedule (Appendix B) for the monthly PIC transmission dates.

HUD uses the data from PIC to monitor MSHDA’s SEMAP performance, match income from the SS Office for Earned Income Verifications, and many other reports/tracking.  HUD requires all agencies to maintain a minimum of submission accuracy of 95% of their resident records.

2.      Correction of Fatal Errors Identified By PIC

All fatal errors received from PIC transmissions must be corrected by the HA assigned to the case.  Errors that do not receive correction continue to count against MSHDA’s transmission accuracy until a correction has been submitted.  These errors also count against the HA.

3.      PIC Reports

Users of the PIC can access the following reports:

Late Re-examination Report - Identifies expired re-examinations based on transmitted data and identifies missing re-examinations due to MTCS fatal errors.

Invalid Tenant Identification Reports – Identifies records where a SSN of a household member does not match the Social Security Administrations (SSA) records.

Late HQS Report – Identifies annual HQS inspections, which have not been processed.

HUD is currently revising this report and SEMAP factor.

Incorrect Resident Rent Report - Identifies incorrect resident rent errors reported by MSHDA.  Operations staff correct these errors if possible and involve the HA when necessary.

SECTION J:  APPLICABLE FORMS LIST

MSHDA 77	Supplemental Information Form
MSHDA 97	Informal Review/Hearing Request
MSHDA 103	Resident Repayment Agreement
MSHDA 411	Assignment of HAP Contracts and Lease
MSHDA 1344	Case Data Summary
MSHDA 1634b	Application/Program Denial/Termination
HUD 50058	Family Report
HUD 52641	Contract

 

 

 

 

 

 

(Effective June 2006)