HOUSING VOUCHER PROGRAMS - POLICY
AND PROCEDURES MANUAL
CHAPTER XI. MOVES
Section
|
Title
|
|
|
Introduction |
|
Section A |
Required Moves |
|
Section B |
Moves With Continued
Assistance
|
|
Section C |
HA/S Responsibilities in
a Move
|
|
Section D |
Denial of Move Request |
|
Section E |
Tenant Locates Unit
|
|
Section F |
Moves Resulting in an End
of Participation |
|
Section G |
Unauthorized Moves |
|
Section H |
Reinstate Cancelled
Contract |
|
Section I |
Subsidy Overlaps |
|
Section J |
Elite Procedures |
|
Section K |
Execute Documents |
|
Section L |
Chart of Required Paperwork for Moves |
|
Section M |
Submit File Material |
|
Section N |
Tickler Systems |
|
Section O |
Definitions |
|
Section P |
Applicable Forms List |
|
Exhibit I |
Affordability Worksheet |
Introduction
A family
must notify their MSHDA Housing Specialist/Agent (HA/S) of their pending move
to a different unit and give the owner of the current unit proper notice in
accordance with the lease or receive written permission from the current owner
for early termination. Notification of a pending move may be made verbally or
in writing by a tenant to the HA/S.
If a family
is moving out-of-state, the move is considered a "port". Refer to Chapter XVIII, Portability.
If the
family is moving out of the current county within the state, the move is
considered a “transfer.” Refer to Chapter XVII,
Transfers.
MSHDA limits
the family to one move in any 12-month period. Every move, even a move
within a complex, requires a new Lease and HAP Contract. If the family
fails to find an acceptable unit, the assistance in the current unit may
continue (assuming the unit stays in compliance with program requirements and
the owner agrees).
This Chapter
outlines: 1) when moves are required or allowed; 2) tenant obligations
requiring fulfillment prior to completion of the move by the HA/S; and 3)
reasons for the denial of move requests.
Section A: Required
Moves
The family
is required to move if:
- MSHDA determines the unit is overcrowded. Refer
to Chapter III, Issuance; or
- The HAP contract terminates because the owner fails to
comply with HQS or other requirements of the HAP contract (Refer to
Section 3 of the HQS manual); or
- The owner terminates the lease for cause (i.e.,
eviction) during the initial lease term; or
- The owner terminates the lease with or without cause at
the end of the initial lease term or definite successive term.
Section
B: Moves with Continued Assistance
Families may move to a new
unit and keep their assistance if:
- The Contract Lease for the old unit has terminated
because:
- The HA/S terminated the HAP Contract due to owner’s
breach; or
- The Lease was terminated by mutual agreement of owner
and tenant; or
- The Tenant has given proper written notice of lease
termination.
- The Owner
has:
- Given the tenant proper written 30-day notice to
vacate; or
- Commenced an action to evict the tenant; or
- Obtained a court judgment or other process allowing
owner to evict tenant; or
- Prepaid or opted out of a mortgage with HUD and the
tenant has elected to move.
NOTE: The tenant may not be eligible for assistance at
another unit if evicted for cause.
1. Initial
Lease Term
When the
family becomes a ‘program participant,’ they cannot move within the ‘initial’
lease term unless the tenant and landlord execute a Mutual Lease Termination
Agreement (MSHDA 96). If the tenant moves during the initial lease term
without a MSHDA 96 being executed, their participation in the program may be
terminated. After the initial lease term, a family can only move once every
twelve months. A RS may approve a move during the initial lease term in
extenuating circumstances.
After the
initial lease term (generally one year), the tenant must provide proper written
notice to MSHDA and their landlord to move with continued assistance.
2. Moves
After the Initial Lease Term
The tenant must
provide a written 30-day notice to the owner and MSHDA to terminate the Lease
Agreement (after initial lease term). For example, if the tenant
intends to move on December 31, the landlord must receive written notice on or
before November 30. A copy of the notice must be furnished to MSHDA. The
MSHDA 96 is preferred over a letter as a method of canceling the HAP
contract. MSHDA must receive a copy of this form signed by all
parties. If the tenant and landlord do not execute a MSHDA 96, MSHDA
requires proper written 30-day notice, subject to the terms of the landlord
lease renewal provisions.
3. Moved to
Homeownership
Upon
notification of termination of assistance, process the MSHDA 1344-247, MSHDA
1634b and MSHDA 95, if applicable. If Homeownership and another
applicable code applies, always select the Homeownership code as the
reason for termination.
4. Move at
Annual Re-examination (AR)
When the
tenant moves, and the family's latest AR took effect within 120 days prior to
the effective date of assistance in the new unit, do not complete new income
verifications unless the family's income has changed; then:
- Obtain verification (of the changed items only)
directly from the verification source.
- Use any new verified
information (income, assets, expenses) together with the information from
the last AR to re-determine the family’s share of the rent and the MSHDA
payment.
If the move
becomes effective more than 120 days from the last AR, new verifications are
required.
In Elite,
when the tenant vacates the unit, Move the Resident Out of the Unit and
process an Annual Re-examination Searching. See Chapter IX. Annual Re-examination policy for
instructions.
5.
Excessive Break-ins
In those
unusual instances where there have been numerous or successive breaking and enterings of a unit which are not the fault
of the tenant, a tenant has the right to terminate the lease and move because
he/she has been constructively evicted, and the landlord has failed to assure
that the housing unit is safe and secure. Discuss these cases with the RS
prior to relocating the tenant.
Section
C: Housing Agent/Staff (HA/S) Responsibilities in a Move
When a
tenant notifies the HA/S of their intention to move, the HA/S must:
1. Review Delinquencies - The HA/S verifies that the tenant
is current on their payments toward any MSHDA repayment agreements. If
the tenant is not current on payments or does not immediately pay in full, the
tenant cannot relocate with continued MSHDA assistance.
2. Review Initial
Lease Term Completed – The HA/S verifies the initial lease term has been completed.
3. Provide a
Mover’s Information Form (MSHDA 139) to the tenant to advise them of their paperwork
obligations/responsibilities with regard to moving. The following items
must be included with the MSHDA 139:
- Mutual Lease Termination
agreement (MSHDA 96)
- Declaration (MSHDA 1890) to
update income information.
- Family Composition (MSHDA 51a)
- Two
vouchers (HUD 52646) with 60-day issuance periods. (Keep an
additional copy in the file prior to mailing to verify it was sent and to
use if one is not returned.) The voucher issuance date is the day
after the cancel date. The issuance date and the signature date
need not match.
- The tenant must sign both
voucher forms and return one copy to MSHDA.
- Tickler the expiration date
of the voucher.
- The HCV
Tenant and Owner/Landlord Information Packet (MSHDA 57) and attachments:
- Guidelines for Landlord
Brochure (MSHDA 9)
- Rental Unit Information
(MSHDA 51b)
- Payee Registration Packet
(MSHDA 219) and W-9
- Tenancy Addendum (HUD 52641A)
- Lead Paint Brochure (MSHDA
105c).
- Voucher Information (MSHDA
146). The affordability limit must be disclosed to the family on
the MSHDA 146 (i.e. 40% of their monthly adjusted income). If new
income verifications are required, enter the current income amounts and
indicate, “estimate.”
4. Encourage
clients to select units outside of areas of poverty and minority
concentration. Refer to Chapter III, Expanding Housing
5. Provide the
following information:
- Good Place to Live Brochure (HUD 593)
- Fair Housing Brochure
- HUD Discrimination Complaint form
- HAP Contract (HUD 52641)
- Protect Your Family from Lead in Your House (EPA
747-K-99-001)
- Disclosure of Information on Lead-Based Paint and its
Hazards (MSHDA 1637b
6.
Review for Zero HAP - The HA/S issues a voucher to move unless other grounds exist to deny
assistance. Zero HAP clients cannot move if a “zero” HAP will
continue at the new address. The tenant can move if a HAP payment will
occur for the new address.
7. Housing Conversion Action - The HA/S
notifies the family the enhanced voucher will be discontinued upon moving and a
HCV will be issued. After the move, the tenant no longer has a minimum
rent requirement. Refer to Enhanced
Voucher Policy, Chapter XXI, for further information.
8.
Criminal and Sex Offender Screening - The HA/S determines if new adults will be added to the
household. If so, the HA/S performs criminal and sex offender screening
to determine if a new household member has a criminal record which prevents the
addition to the household.
Section
D: Denial of Move Request
Move requests by tenants
must be denied if:
- The family violates HCV program obligations;
- The family is not current on a Repayment Agreement;
- The family meets the criteria for termination of
assistance;
- MSHDA has insufficient funding for continued
assistance; or
- The family is requesting a second move in the same
12-month period.
NOTE:
The Resource Specialist (RS) may make written exceptions to these
restrictions if there is an emergency reason for the move over which the
participant has no control.
Section E:
Tenant Locates Unit
Upon
notification to the HA/S by the tenant that a unit has
been located, the HA/S must:
1.
Verify Proper Notice Given – The HA/S verifies that proper notice was provided
to the landlord and/or tenant by the first of the month preceding the month of
the move.
- The tenant must give the owner written notice of their intent to move by the end of that month. (For example, if the tenant intends to move on June 30, the owner must receive the written notice on or before May 31); or
- Mutual Lease Termination Agreement (MSHDA 96) is preferred rather than a letter. MSHDA must receive a signed copy of the notice. If no MSHDA 96 is executed, MSHDA must have proper written 30-day notice.
- MSHDA must notify the owner of the cancellation via a Contract Termination Notice (MSHDA 95) unless a Mutual Lease Termination Agreement has been executed. The executed MSHDA 96 removes the need for a MSHDA 95.
- MSHDA must notify the tenant of cancellation (i.e. tenant termination) via an Application Denial/Program Termination (MSHDA 1634b) immediately upon receipt of the notice or eviction document.
- Stop Payment on current unit. If move-out date is known, process “Move Resident out of Unit” in Elite to stop payment. If move-out date is unknown, process an “Exclusion” in Elite to stop payments.
2.
Rental Unit Information Form (MSHDA 51b) - Must be received and reviewed by the HA/S prior to
conducting an inspection.
3.
Prohibited Relatives - No member of the household can be related to the owner/landlord
unless it is necessary to provide reasonable accommodation for a family member
with disabilities. Prohibited relatives are parents, children,
grandparents, grandchildren, sisters and brothers. Approval of renting
from a relative only applies at the time a family initially receives
tenant-based assistance for occupancy of a particular unit needed for a
reasonable accommodation. While the tenant stays in the same unit,
there is not a requirement to re-approve the reasonable accommodation.
However, if the tenant changes units, then a new reasonable accommodation
request must be approved or disapproved for the new unit.
4.
Determine Rent Reasonableness – The HA/S provides copy of the Reasonable Rent Test
(MSHDA 37) for tenant completion. If appropriate comparables are not available,
the tenant cannot receive assistance in the new unit. See Chapter VII,
Rent Reasonableness.
5.
Affordability
- Negotiate/clarify rent amount if necessary. The Tenant’s rent
portion must not exceed 40% of their monthly adjusted income for rent and
utilities. Perform the Affordability Test (applicable if gross rent
exceeds payment standard) using the Affordability Worksheet, (MSHDA 248).
The HA/S
must manually or electronically calculate the limit using the worksheet after
all income verifications have been received to assure compliance with the 40%
rule. If the gross rent is less than or equal to the PS, the
affordability cap does not apply. If the gross rent is greater than the
PS, then the cap does apply.
Calculate
the limit by dividing the adjusted annual income divided by 12 (round) times
.4. If the 40% cap is greater than or equal to the TTP, then the unit is
affordable for family.
If the Gross
Rent is greater than the PS for the subject county, submit MSHDA 248 to the
assigned DT with other paperwork when the case is submitted for approval.
NOTE: Exempt
or Disallowed Income cannot be included in the calculation.
6.
HQS -
Inspect/re-inspect results are entered into Elite. Reasonable Rent Test
Evaluation is still applicable. Refer to the HQS manual. If the
unit is a manufactured home, the tenant must be renting both the manufactured
home and the space it is occupying.
Remember the
payment assistance (i.e. HAP Contract and MSHDA 34) effective date must be on
or after the passed inspection date.
7. Owner
Delinquent -
if the owner is delinquent, notify the Delinquency Accounts Coordinator.
8.
Payee Registration (MSHDA219) - If the owner is not currently in Elite or if the owner's
information in Elite has changed, obtain a Payee Registration from the owner
(if necessary) and immediately submit it to the departmental technician
(DT).
- Owners can register online with
Payee Registration for Electronic Funds Transfer (EFT). To register,
go online to www.cpexpress.state.mi.us
and follow the step-by-step instructions. Owners (vendors) receive
an account password after completing online registration. This
account allows the vendor to update their account information
online. Refer to Chapter XII, Landlord Issues.
9. Income
Verifications
- Issue a request for Original Documents (MSHDA 53). New verifications
are required if previous verifications are not dated within 120 days of the
move effective date.
10. Voucher
Issuance Date
– The voucher issuance date must equal the first day after “Resident
Move Out of Unit” date in Elite. Signature dates can be prior
to Issuance date.
Section F:
Moves Resulting in an End of Participation
The HA/S
submits applicable documentation at the time the participant is terminated from
the Program.
Refer to
Chapter XV for additional termination information and end of participation
information; including voided moves and reinstatements if
tenant decides to stay in place.
Section G:
Unauthorized Moves
If an
unauthorized move occurs due to extenuating circumstances, the HA/S must
contact the assigned RS to determine if the participant can retain their
voucher. If the RS determines that the family participation will be terminated,
the HA/S must forward a MSHDA 1634b, identifying that the family’s
participation is being terminated and the availability of an informal
hearing. Submit the paperwork to cancel after the Informal Hearing
Request time limit expires (if no hearing is requested).
Section
H: Reinstate Cancelled Contract
The tenant
and owner may sign a Mutual Lease Termination Agreement (or either party serves
another type of written notice to terminate) and subsequently the tenant
decides to remain in-place and the owner agrees.
Write “Null
and Void” across the top of the MSHDA 96 or 30-day notice. The
tenant and owner re-sign and re-date the document (provide the tenant, owner,
and the MSHDA file with a copy).
If
applicable, the HA/S must write “Null and Void” across
the top of the MSHDA 95, sign and date the document and provide the tenant,
owner, and the MSHDA file with a copy.
Follow
normal re-examination procedures utilizing the MSHDA 34 to reflect the Contract
Rent, Tenant Rent, HAP, etc.
Reinstatement
in ELITE
If a HA/S
“Null and Voids” a move and an overpayment notice has already been
issued to recapture monies owed from the termination, the overpayment
letter/request must be voided (provide the landlord, the tenant, if applicable,
and the MSHDA file with a copy.)
If there are
no changes in amounts, forward the MSHDA 1344-247 and copies of the “Null
and Void” documents to the assigned DT:
- Indicate
“Reinstatement” in the comments section of the MSHDA 1344-247;
- The DT reverses the End of
Participation (EOP) in Elite. Payments will resume.
- HA/S must have an available
increment for use with the reverse EOP.
NOTE: There
cannot be a lapse (i.e. break) in payments.
If amounts
change, send a MSHDA 1344-247 and copies of the “Null and
Void” documents to the assigned DT:
- Indicate “Reinstatement
with Change and two Authorizations Necessary” in the comment section
of the MSHDA 1344-247. The DT reverses the EOP;
- The HA/S enters the interim
re-examination in Resident Processing in Elite;
- The HA/S forwards all interim
re-examination paperwork (1344-247, MSHDA 34) to the assigned DT who
authorizes.
Section
I: Subsidy Overlaps
After proper
30-day notice, if the family moves and leases a new unit within the same month,
a ‘subsidy overlap’ may be allowed. If the family moves for a
valid reason during the 30 days (and has satisfied all other program criteria),
a ‘subsidy overlap’ could occur (i.e. payment could be made for
both the old and new units). An example of a valid reason would be the
family supplies copies of police reports which state that the family will be in
danger if they continue to reside in the unit.
With written
RS approval (must be included in DT paperwork) MSHDA may pay:
- The full HAP for the last month
at the old unit (full HAP for the month because the owner keeps the HAP
for the entire month in which the family moves) and;
- Pro-rated HAP for the second
unit; pro-rated from the rental assistance begin date.
To process
“mid-month” re-exam/new address contracts, the previous contract
must be cancelled effective the actual date the tenant moved from the unit
(versus the last day of the month).
Section J:
Elite Procedures
The HA/S
must enter/update all information in Elite as directed in the MSHDA Elite User
Manual.
Enter the
Owner/Unit information in Elite.
- Print the Case Data Summary
(MSHDA 1344-247). (Refer to Elite Manual for instructions to print the
MSHDA-1344-247 )
Section
K: Execute Documents
The HA/S
refers to the Forms Reference Submission Chart (MSHDA 284) to ensure all forms
are executed. Forms should be typed (or clearly written, including FSS,
if applicable). Use of correction fluid is not allowed.
The HA/S
obtains appropriate signatures and distributes documents.
After the
documents have been executed, they cannot be changed or altered in any way
unless the appropriate parties initial the change. Strike-outs are not
allowed unless properly initialed. (NOTE: HA/S must not sign or
initial the landlord lease.) Use of correction fluid is not allowed.
1.
Complete Part A of the HAP Contract: Contract Information (HUD 52641, Pages 1&2).
Obtain landlord & HA/S signatures.
The HA/S
must make every effort to have the HAP Contract fully executed prior to the
effective date of the initial lease term.
- If the HAP Contract cannot be executed by the begin
date of the initial lease term, the HAP Contract may be signed within 60
days after the effective date of the initial lease term IF:
- The Lease Agreement was
executed on or before the effective date of the initial lease term (Note:
The Lease Agreement cannot be signed after the initial effective date);
AND
- The tenant and other appropriate family members have
occupied the unit since the beginning of the initial lease term.
The HAP
Contract MUST be signed the same date or after the initial lease begin date but
MAY NOT be executed (and/or dated) after 60 days from the effective date of the
initial lease term under any circumstances.
- After the 60 days, the corresponding Lease
Agreement is null and void and must be re-executed with an effective date
no more than 60 days after the effective date of the initial lease term.
Once
executed, the HAP Contract cannot be changed or altered in any way unless all
parties initial the change. ‘Strike outs’ are acceptable only
if properly initialed by all parties.
- The Contract Rent cannot be changed for the
duration of the initial contract.
- If the family residing in the unit is elderly or
disabled (as evidenced by a properly completed MSHDA 16 or MSHDA 100) and
requires the services of a full-time live-in aide, the term “Full-time
Live-in Aide ” must be included as a member of the family on the HAP
Contract. Refer to Chapter III, Section B,
Full-Time Live-in Aides.
2. Part
B of HAP Contract: Body of Contract (HUD-52641, Pages 3 – 10)
Once the
owner and unit are approved, the HUD-issued HAP Contract for the HCV Program
(HUD-52641) may be executed. This HAP contract must be executed between
MSHDA and owner for units newly occupied by families with a HCV.
The term of
the contract runs concurrently with the lease term. The HAP contract
terminates if the lease terminates. The Lease dates for item 5 on the HAP
Contract must match the Lease begin and end dates.
3. Tenancy
Addendum (HUD
52641A)
The
Tenancy Addendum (HUD 52641A) must be attached to the Lease and included in the
MSHDA file.
4.
Adjustment
Notification (MSHDA-34)
Because the Contract and Lease
do not identify the amount of the Tenant Rent, an Adjustment Notification must
be prepared that identifies the payment breakdown.
- If applicable, prorated payment amounts may be
identified in the MSHDA Optional Use Only section of the form.
- Prorated amounts are calculated by dividing the
actual number of days in the prorated month and multiplying by the number
of days of the pro-ration.
Section L: Chart of Required Paperwork for Moves
The HA/S must submit one
copy of the following documents to the assigned DT to process a move. All
are MSHDA forms except the 30-day notice.
|
Type of Termination |
Required Documents |
|
30-day notice by tenant |
1344-247, 30-day notice, 95,
1634b* |
|
Move (within |
1344-247, 95, 96 if a mutual
termination, or 30- day notice |
|
Mutual termination |
1344-247, 96 |
|
Eviction
|
1344-247, 1634b*, Notice of
eviction order |
|
*Note: The 1634b is only
required when the participant leaves the program; issue (and submit to the
DT) at the time the participant is terminated from the program. |
|
Section M: Submit File Material
The HA/S verifies all
necessary documents are present, copies them, and organizes the file in proper
order (refer to MSHDA 284). The HA/S forwards original
documents to the assigned DT who audits the file material and approves for
landlord payment.
Section N: Tickler Systems (If Applicable)
The HA/S should have a tickler system in place for the
following situations:
- No Household Income (MSHDA 148).
- Delayed Exterior Repair Agreement (MSHDA 86)
- Zero‑HAP Contracts
- Repayment Agreement/delinquency
monitoring.
Section O: Definitions
Move: A move within the same county in
Portability: A move to or from the State of
Transfer: A move
within the State of Michigan
Section
P. Applicable Forms List
|
MSHDA 34 |
Adjustment Notification |
|
MSHDA 37 |
Reasonable Rent Test |
|
MSHDA 38 |
Reasonable Rent Test
Evaluation |
|
MSHDA 51b |
Rental Unit Information |
|
MSHDA 53 |
Request for Original
Documents |
|
MSHDA 57 |
Housing
Choice Voucher (HCV) Tenant & Owner/Landlord Information Packet |
|
MSHDA 95 |
Contract Termination
Notice |
|
MSHDA 96 |
Mutual Lease Termination
Agreement |
|
MSHDA 139 |
Mover’s Information
|
|
MSHDA 146 |
Voucher Information |
|
MSHDA 148 |
Verification of No
Household Income |
|
MSHDA 219 |
Payee Registration |
|
MSHDA 248 |
Affordability Worksheet
(Chapter VI, Initial Contracts Exhibit 1) |
|
MSHDA 280 |
Quarterly Inspection
Report |
|
MSHDA 284 |
Forms Reference -
Submission Chart |
|
MSHDA 1344-247 |
Case Data Summary |
|
MSHDA 1634b |
Application
Denial/Program Termination |
|
MSHDA 1637b |
Disclosure of Information
on Lead-Based Paint and its Hazards |
|
MSHDA 1890 |
Declaration |
|
HUD 52641 |
HAP Contract |
|
HUD 52641A |
Tenancy Addendum |
|
HUD 593 |
A Good Place to Live! |
(February 2007)