The Application Procedure Is to Be Implemented by the Manager on Site

Chapter 11 Section 3

VACANCIES DURING RENT-UP SPECIAL CLAIMS

Section 8 Vacancy Claims during Rent-up basically means that HUD will compensate a new property for vacancies that occur from the effective date of the PRAC contract until all units are occupied, not to exceed 60 days. The procedures that follow will deal with how to prepare and apply for the special claim.

ELIGIBILITY REQUIREMENTS There are several requirements that must be met in order to qualify for Vacancy Claims during Rent-up.  Units must be decent, safe, and sanitary  Claims should be submitted only after the claim period has ended  Diligent marketing should be performed not fewer than 90 days prior to the anticipated opening date  Compliance with the HUD approved Affirmative Fair Housing Marketing Plan and all Fair Housing and Equal Opportunity requirements. All feasible actions have been and will continue to be taken to fill any vacancies  Eligible applicants are not rejected except for good cause

LIMITATIONS ON YOUR CLAIM AMOUNT It is important to remember that the amount of the claim you are entitled to, is determined by the type of contract you have with HUD. PRAC contracts are only entitled to 50% of your loss.

There are three (3) steps to a special claim request:  Identify the claim  Prepare your request  Submit your request

PREPARING YOUR REQUEST The following information must be gathered to complete your vacancy during rent up request.

 Daily Contract Rent -- The daily contract rent for your property is determined by dividing the monthly contract rent by the number of days in the month ($276.00/30 = $9.20). Please do not round this number. Rounding should only occur on the final Schedule of Special Claims that will be explained below.  Resident Name -- Because the claim period ends either at 60 days or on the move-in date of the first resident (whichever is less) it is important to identify who the new resident is for future reference.  PRAC Contract Date -- This date is vital to your claim because it determines when your claim period begins. This date can be found on page 1 of your PRAC contract.  60 Days Cut-off -- This is your PRAC contract date plus 59 days. 60 days are the maximum time period you will be allowed to claim.  Resident Move-in Date -- Is the actual date the new resident moves into the unit. This is an important date because it is used to determine when the claim period ends.

Chapter 11, Section 3 Vacancies during Rent-up Special Claims May 2012 Page 1 of 4 Chapter 11 Section 3

 Claim Cut-off Date -- The claim period is the 60 Days Cut-off date or the day before Resident Move-in Date which ever occurs first. When determining your claim cut- off date, it is important to remember that you can not claim both rent assistance and special claims on the same day.  Days not covered by Claim -- For Vacancy Claims during Rent-up the days not covered by the claim will be the days the unit is vacant in excess of the 60 day time limit. For example, if your 60 day cut-off date is January 14, 2006, and a resident does not move into the unit until January 16, 2006, your days not covered by the claim would be one (1) day. You can not use January 16th as part of the days not covered by the claim because you will receive rental assistance for the resident from HUD for this day.  Loss not covered by Claim -- This amount is the number of days not covered by the claim times the daily contract rent. This is the amount you will be unable to recover from HUD. Although you will not be able to claim this amount from HUD, using this information as a tool that can possibly reduce or prevent such losses from occurring.  # of Days to Claim -- The number of days to claim is the number of days the unit is vacant. Beginning with the PRAC contract date and ending with the day before the Resident Move-in Date or the 60 Days cut-off date whichever comes first. Please remember do not include the actual date of move-in as a day to claim because you will be receiving rental assistance on this day for the resident.  Actual Loss -- This amount is the number of days to claim plus the days not covered by the claim times the daily contract rent. This is the actual amount of money lost by your property due to the vacancies.  HUD’s Limit -- This percentage is the limit that HUD will pay for the loss incurred by your property. This percentage is determined by the type of contract your property has with HUD. PRAC contracts only receive 50% of the loss.  Amount Claimed -- This amount is the actual amount HUD will pay for your loss. The amount is determined by multiplying the allowable loss times HUD’s limit.

Preparing the HUD forms for Submission The two (2) forms that HUD requires for this type of claim are the HUD-52670-A Part 2 and the HUD-52671-B. Both of these forms can be generated in Yardi.

HUD-52671-B (Form J-8) This form shows HUD how you arrived at the amount you are claiming. For this reason it is extremely important that you understand what information they are requesting. Below you will find an explanation for each column listed on the HUD-52671-B. If you have any additional questions that are not answered below please refer to your 4350.3. If you are unable to find your answers in the 4350.3 please contact your Regional Property Manager, for further assistance.

Unit Number -- This is the Apt. # from your spreadsheet.

Unit Size -- This is the number of Bedrooms from your spreadsheet.

Period Vacant -- The period vacant is the Effective date of your PRAC contract to the Resident Move-in date. These are the actual number of days you are claiming.

# days vacant -- This is the total number of days the unit was vacant. Beginning with the effective date of the contract and ending the day before the new resident move-in date. daily contract rent -- This amount is the same as the Daily Contract Rent on your spreadsheet.

# days times daily contract rent -- This amount is determined by taking the number of days you will be claiming times the daily contract rent. Please do not use the total number of days that the unit is actually vacant if the unit is vacant more than the 60 days that HUD will allow.

HUD’s limitation -- This is the percentage that is shown on your spreadsheet in the column HUD’s Limit.

Amount Claimed -- Once again this amount comes directly from your spreadsheet. The amount can be found in the column labeled Amount Claimed.

HUD-52670-A Part 2 (Form J-5) This form is the cover sheet for the HUD-52671-B. It summarizes the information contained on the HUD-52671-B. The major difference between the two forms is that the HUD-52670-A includes the Resident name.

Place the Resident Name and the Unit # in the appropriate spaces.

Under the column Rent-Up, 52671-B, place the total amount you are claiming for each unit. This amount comes from the HUD-52671-B under the column Amt. claimed.

SUBMITTING YOUR CLAIM Once you have gathered all the information required, organize. Make one copy for your files and mail the other copy to your HUD asset manager. If you are not sure who to send your special claims requests, please contact your Regional Property Manager.

Vacancy during Rent-up Special Claim HUD requirements are very strict. If any item is not completed correctly we will not receive rent-up special claims for that unit.

HUD has 30 days from the receipt of your request to process the rent-up special claims. If you have not received a response within 30 days please contact the appropriate person to check on the status of your rent-up special claims request. Prior to contacting HUD or

SCSHFDA please contact your accounting specialist and make sure they have not received.

Once you receive the rent-up special claims approval from HUD provide a copy of the approval to your Accounting Specialist.

The Accounting Specialist will put the approved rent-up special claims request on your next months HAP voucher.

Chapter 11, Section 3 Vacancies during Rent-up Special Claims May 2012 Page 4 of 4