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Property Owner/Management Agent Questions

  1. When will I receive my HAP payment?
    LOMOD releases the payment when the funds (for a contract for a particular month) are received from HUD.  LOMOD’s bank requires two (2) business days to provide the funds to the Owner/Agent’s bank.
  2. Why does LOMOD send me so many letters reminding me of deadlines for contract and funding renewals?
    When paperwork for a project arrives at LOMOD later than 120 days before the contract or funding expiration date, it is very likely that the monthly HAP payments will be delayed to the property.  To avoid the situation, CMS sends out reminders at 13, 7, 6, 5, and 4 months before the expiration date.
  3. Do I have to submit a tenant paid utility analysis each time I request a rent adjustment?
    If you are requesting a budget-based rent adjustment, you must include a recommended utility allowance as part of the submission.  For other rent adjustments, there should be documentation of an analysis of the utility allowance at least every three (3) years.
  4. If a property owner is suspended or debarred, is the project eligible for restructuring under Option 3?
    If a property owner is suspended or debarred, the project is not eligible for full debt restructuring (Full).  The project may be eligible for a “Lite” on a case-by-case basis determined by OAHP.  Refer to Chapter 5 of the Section 8 Renewal Guide for more detailed information.
  5. If I am in a pre-MAHRA contract, how are my rents adjusted?
    Each HAP contract dictates the terms of the annual adjustments. Your options will be the Annual Adjustment Factor (AAF) or a Budget-Based adjustment. If the AAF is not enough (often it is only 1% or 2%), you have the option to request a Special adjustment. This adjustment covers increases in utilities, taxes and insurance. Guidance for requesting a Special adjustment is found in HUD Handbook 4350.1 rev 1, Chapter 34.
  6. What is included in the debt service for the purposes of the OCAF Worksheet:
    The debt service is made up of the property's annual payment to Principal, Interest and the Mortgage Insurance Premium (if applicable) for the property's current loan. If your property's original loan is a 236 loan or has been decoupled, be sure to subtract the Interest Reduction Payment from the total debt service.
  7. The monthly housing assistance payment (HAP) I received does not match the voucher I submitted.
    Although the list is not all inclusive, these are the most common things that could cause CA voucher to differ from the Owner/Agent’s voucher: 
    • Tenant data not received due to fatal error
    • Gross rent change was processed incorrectly
    • Remove because the claim is adjusted or denied prior to being placed on the voucher
    • Tenant data was transmitted but had not been received by LOMOD due to transmission errors
    • Tenant data was not transmitted/received by the 10th of the month
    • Incorrect calculation of adjustments
    • Expired annual renewal certifications
    • An approved special claim is entered on a voucher more than 90 days past its approval date
    • 202C certification timing rules were not followed by the Owner/Agent
  8. I have received my HUD responses to the TRACS files.  How do I find out the meaning of the error codes, and how do I correct them?
    You will want to look at the Monthly Activity Transmission User’s Guide.  This guide lists all of the errors and messages and why they occur.  Also included are the required actions to be taken and the timeline to correct errors.
  9. I have changed banks—where can I obtain a new Direct Deposit Form?
    The Direct Deposit form can be obtained by downloading it here – Direct Deposit Form.
  10. What is debt service comprised of? Do I add Interest Reduction Payments?
    Debt service is comprised of Principal, Interest and Mortgage Insurance Premiums multiplied by 12 to get an annual debt service figure.  If the project is receiving Interest Reduction Payments, please subtract the IRP from your monthly debt service figure and then multiply by 12.
  11. I recently performed an RCS and noticed that I do not qualify for an Option 1A, Mark up to Market as my RCS gross rent potential is slightly lower than the Fair Market Rent potential. Can I still get my rents marked up to market?

Option 1 Mark up to market is an incentive program for eligible projects with current rents that are below market and offers the opportunity for a substantial rent increase. Though you do not qualify for an Option 1a MUTM since the FMR potential is greater than your RCS gross potential, you may still be eligible for a MUTM under Option 1B Discretionary Authority Eligibility. HUD will consider these requests if the project meets at least one of the following three characteristics:

  • Vulnerable Populations: The tenants of the property are a particularly vulnerable population, demonstrated by a high percentage (at least 50%) of the units rented to elderly families, disabled families, or large families (large family is defined as a family of five or more persons);
  • Vacancy Rates: The property is located I a low-vacancy market area (or in a rural area with no comparable rental housing) where there is a lack of affordable housing and where Housing Choice vouchers would be difficult to use.

    The determination of a low vacancy area should be made using the most recent available data on the rental inventory, renter households, rental vacancy rates and other factors as appropriate. A market with a rental vacancy rate of less than 3 percent is considered a low vacancy area.
  • Community Support: The property is a high priority for the local community as demonstrated by contribution of State or local funds to the property. This matching requirement may be in the form of tax abatements, capital improvement funds, etc.

    Please refer to Chapter 3 of the Section 8 Renewal Policy guidebook for further details.

12.  I’m currently in my 2nd year of a 5 year contract. Do I need to submit a one year tenant notification?
No. An owner is required to submit a one year tenant notification to our office when the contract is in its last year.

13.  Can I reschedule my MOR?
MORs must be conducted within 12 months from the date of the last MOR.  If you need to reschedule your MOR, you must contact LOMOD with 10 days after the scheduling phone call and we will attempt to reschedule within the same month. If there are extenuating circumstances, contact LOMOD with the details and a request to reschedule will be sent to HUD for approval.  You will be notified once HUD makes a decision.

14.  Where can I access HUD forms, rules, and regulations?
You can check HUDClips at HUD Client Information and Policy System (HUDCLIPS)
LOMOD’s News and Announcement section also provides you with the latest in HUD news and regulations.  The Library provides you with the latest forms for contracts within LOMOD’s portfolio.

15.  When will I be officially notified of my Management Review?
We will call you to schedule the Management Review; however, we will send you written confirmation approximately two to three weeks prior to the on-site review.  The confirmation letter is sent to the owner and management agent and includes a request for a submission of documents prior to the on-site review.

16.  Why do you request so much information prior to the Management Review?
In order to facilitate an efficient review, we attempt to complete as much of the Management Review as possible in our office prior to our on-site visit.

17.  How can I get our contact information updated in the HUD systems?
As of April 2, 2009 all changes in Owner/Agent contact information must be made in APPS.  Therefore updates should be made directly in APPS or requests should be sent to HUD Headquarters.  Please note that LOMOD does not officially change its O/A contact information until it is changed in the HUD systems (i.e. iREMS).

There are two options for managing information change requests:
1.    Mail or email requests to HUD HQ or
2.    Register to gain access to HUD’s Active Partners Performance System (APPS)

Requests can be mailed to:        

Dept. of Housing & Urban Development
Attn: Participant Data Correction Center
Room 6180
451 7th Street, SW
Washington DC 20410

Or emailed to:

If the requests are mailed or emailed the following is required:

Converting Tax ID to SSN
•    The person’s SSN and the company’s Tax ID
•    A clear legible copy of IRS Form SS4
•    Email address of the company or individual

Converting SSN to Tax ID
•    SSN card or driver’s license showing the SSN
•    Signed HUD Form 2530 with the person’s name, address and SSN
•    Email address of the company or individual

Company Name Change
•    A clear legible copy of IRS Form SS4
•    A clear legible copy of notices filed to change the name with the    IRS
•    Email address of the company or individual

Company Name Correction
•    A clear legible copy of IRS Form SS4 (showing the correct name)
•    Email address of the company or individual
Individual Name Change
•    A clear legible copy of IRS forms that assign the SSN card
•    A clear legible copy of paper work filed to change the name with the IRS

Individual Name Correction
•    A SSN card or driver’s license showing the SSN or
•    Signed HUD Form 2530 with the person’s name, address and SSN or
•    Notarized letter with the above information
•    Email address of the company or individual

Company Address Change
•    A clear legible copy of IRS Form SS4
•    Company letterhead with Tax ID identified, signed by the CEO with the signature notarized
•    Email address of the company or individual

Individual Address Change
•    A SSN card or driver’s license showing the SSN or
•    Signed HUD Form 2530 with the person’s name, address and SSN or
•    Notarized letter with the above information
•    Email address of the company or individual

The Active Partners Performance System (APPS) “allows HUD’s business partners to manage their company and individual participation information”.  It also allows “entities to keep their personal information updated, i.e. Address, Phone Number, Fax Number etc.”  The use of this system requires that a coordinator from each Owner/Management Agent entity be registered.   Coordinators control access to the system and assign rights to users.  To register a coordinator or for more information about APPS please visit the following web site: