U.S. Department of Housing and Urban Development

H O U S I N G

Special Attention of: Notice H 96-40 (HUD)

All Secretary\'s Representatives,

State and Area Coordinators, Issued: May 17, 1996

Directors, Housing, Public/ Expires: May 31, 1997

Indian Housing/Housing

Management, Multifamily Housing Cross References:

Division Directors; Rural Housing

Services (RHS) Agency State

Office Directors

Subject: Instructions for Use of the Line of Credit Control System/Voice

Response System (LOCCS/VRS) for the Congregate Housing Services

Program (CHSP)

I. PURPOSE:

This Notice provides instructions to CHSP Grantees (52 originally funded

in 1978 and 61 initially funded in Fiscal Years 1993 through 1995), HUD

State and Area Offices, and Department of Agriculture Rural Housing

Services (RHS) Agency (formerly the Farmers Home Administration (FmHA))

on the use of the Line of Credit Control System/Voice Response System

(LOCCS/VRS). This Notice replaces Notice H-94-41, and is identical

thereto, except for the following changes:

\(1\) modifies Paragraph I to include a reference that this Notice

instructions apply to grantees funded through Fiscal Year 1995;

and, indicates that the Farmers Home Administration (FmHA) is

renamed the Rural Housing Services (RHS) Agency;

\(2\) modifies Paragraph II, to delete reference that grantees
originally

funded in 1978 must transition from use of the SF-270 to the

LOCCS\\VRS to receive payment;

\(3\) changes Paragraph III to extend the applicability of Notice

provisions to grantees funded through FY 1995;

\(4\) modifies Paragraph IV to delete the reference to Notice H-93-35;

and revises the note under this section to expand LOCCS access

instructions to include GTRs in the RHS Hilo and Bismark State

Offices;

\(5\) modifies subparagraph V D. to change the grantee submission cycle

for the SF-269 from quarterly to semiannually; and, expands

coverage of this provision to include grantees initially funded

through FY 1995;

HMHP: Distribution: W-3-1,R-1,R-3-1(H)(RC),R-3-2,R-3-3,R-6,R-6-2,R-7,

R-7-1,R-8

\(6\) modifies subparagraph VI D.1 to indicate that grantees must now

submit the SF-269 semi-annually and gives the new CHSP semi-annual

reporting periods;

\(7\) adds a separate paragraph VI D.2 on CHSP Annual Reports
(HUD-90006)

and establishes the HUD-90006 reporting date as October 30 of each

year;

\(8\) creates a new section VI E. and changes the title of subsection VI

E. I. from \"Existing Grantees\" to \"Grantees Funded Under the 1978

Act\". Also renumbers VI D 2 b. to VI E 2.. Under subsection E.2,

clarifies that the annual budget is entered into the LOCCS/BLIs

after receipt of the 2nd semi-annual SF-269;

\(9\) expands section VIII instructions pertaining to RHS grantees to

include those funded through FY 1995, changes the name FmHA to RHA

throughout, changes the SF-269 reporting cycle from quarterly to

semi-annually; and, adds names, addresses and telephone numbers for

contact persons in the RHS Hilo and Bismark Offices. Deletes

paragraph VIII 4.;

\(10\) modifies section IX to delete the reference to transitioning from

use of the SF-270 to the LOCCS system, deletes subsection IX B;

and, renumbers subsequent subsections accordingly. Revises

subsection IX E. to expand applicability to grantees funded in FY

1994 and 1995, changes the SF-269 submission from quarterly to

semi-annually;

\(11\) modifies subsection IX H. to update telephone numbers of

Headquarters contact persons who assist with LOCCS problems.

Government Technical Representatives/Monitors (GTR/GTMs) in HUD State

and Area Field Offices and the Amherst, MA, Bismark, ND and Hilo, HI RHS

State Offices shall distribute this Notice to all CHSP Grantees.

The OMB Clearance Number, 2502-0485, expires May 1997.

II\. APPLICABILITY TO CHSP GRANTS FUNDED ORIGINALLY UNDER TKE 1978 ACT:

CHSP Grantees originally funded under the 1978 Act must request funding

according to the instructions provided in the LOCCs User guide and this

Notice.

2

III\. APPLICABILITY TO CHSP GRANTS NEWLY FUNDED FROM FY 1993-95:

The LOCCS/VRS method of payment must be used for all CHSP grantees newly

funded in Fiscal Years 1993 through 1995. CHSP grantees requesting

payment must use the instructions contained in this Notice and the LOCCS

Generic User Guide (see Appendix 2).

IV\. LOCCS ACCESS SECURITY FORMS:

A. GENERAL

The HUD State/Area Office and the HRS State/District Office must

designate a GTR/GTM to review and monitor the status of grants within

its jurisdiction (see Notice H-94-79, \"Start-up Procedures for the

Congregate Housing Services Program (CHSP)-FY 1994\"). In addition, the

GTR/GTM in the HUD State/Area Office(s) shall be responsible for data

entry into LOCCS/VRS which includes:

\- entering budget line items (BLI) annually or at such time as grants

are amended,

\- activation of edits, and/or

\- the review of grantee drawdown transactions.

The designated GTR/GTM must be authorized for LOCCS.

NOTE: The GTRs in the Amherst, Massachusetts (covers Connecticut),

Bismark, North Dakota and Hilo, Hawaii RHS State Offices will

NOT have access to LOCCS.

They must provide information to the GTRs in the HUD Hartford, Denver

and Honolulu Offices who are responsible for the input and retrieval of

information in LOCCS for the approved CHSP grants under RHS in the

States of Connecticut, North Dakota and Hawaii (see Paragraph VIII)

B. ACCESS TO LOCCS FOR HUD FIELD STAFF:

To access LOCCS, HUD Field Office staff must complete the HUD-27054-A

\"LOCCS Access Authorization Security Form for HUD Staff.\" According to

Instructions for the LOCCS Access Authorization Security Form for HUD

Staff, the User (GTR/GTM), the Authorizing Official (Director, Housing

Asset Management/Public Housing Management Division), and the Office of

Personnel (State/Area Office personnel officer) must all sign the HUD-

27054-A.

3

The LOCCS user and the Authorizing Official must also submit a Limited

Background Investigation (SF-85P) and a set of fingerprints (SF-87).

Once completed and signed, the HUD-27054-A must be sent to:

HUD Headquarters

Office of Information Policies and Systems (AISAO)

Attn: LOCCS Security Officer, Room 3184

451 7th Street, S.W.

Washington, DC 20410-3600.

After authorization has been granted by the LOCCS Security Officer, the

selected staff persons will be sent a sealed letter, to be opened by the

addressee only, which will authorize access and provide each staff

person with a password and a user ID.

Authorized users who do not access the system at least once within a

continuous six-month period will have their IDs terminated

automatically. Accordingly, users must access the system at least once

every six months to keep their IDs active.

Directors of Housing Management and Public Housing Management must

ensure that whenever a GTR/GTM is replaced, the newly designated

individuals are cleared for LOCCS/VRS on the CHSP expeditiously!

Otherwise, grantees may not be able to access their funds.

V. THE LOCCS/VRS PAYMENT SYSTEM:

In an effort to eliminate delays in processing payments, the CHSP has

elected to use a modified version of LOCCS/VRS called LOCCS/BLI to

disburse grant payment for all CHSP grants. Under LOCCS/BLI, the GTRs

will establish separate BLIs for each service category for which

assistance has been awarded.

Once funds have been reserved and obligated by an executed HUD-1044,

\"Grant Assistance Award\", the Grant Officer will send the GTR a copy
of

the executed grant agreement. The GTR will then enter the appropriate

amounts from the approved CHSP Budget into LOCCS/BLI on an annual basis.

In addition to allowing a GTR to review each request placed in

LOCCS/BLI, LOCCS has seven CHSP edits to monitor program requirements

and guard against excessive drawdowns. When an edit is activated, the

Grantee\'s request for funds is not paid automatically, and the Grantee

is instructed to contact the HUD State/Area Office. The edits used in

4

CHSP/LOCCS/BLI are listed below.

A. If a grantee requests funds which are more than the total amount

entered in the LOCCS/BLI system for that program year.

NOTE: The maximum amount drawn down in any one year is the

total amount entered into LOCCS/BLI for that year by the

GTR. This amount may not be exceeded unless the GTR

receives a conformed grant amendment from the Grant

Officer which increases the amount of the grant,

consistent with current procedures.

B. If a Grantee requests funds in any line item which is more than 100

percent of the amount available in that line item.

NOTE: In this situation, the GTR would need to discuss grant

activity with the grantee to determine if:

\(1\) the requested reimbursement level is accurate,

\(2\) the activities are still consistent with the

approved budget; and/or

\(3\) the sum of all cumulative line item changes is no

more than five percent (for non-profit

organizations) or 10 percent (State, Indian tribes

or units of general local government) of the total

HUD portion of the grant.

If so, the payment may be released by the GTR.

Otherwise, the requested reimbursement level means a

substantive change in the budget and requires a grant

amendment request, consistent with outstanding

procedures, before any reimbursement at the requested

level may be approved.

C. If the grantee attempts to draw-down more than 40% of the annual

approved amount in one request.

NOTE: In this situation, the GTR would need to discuss grant

activity with the grantee to determine if:

5

\(1\) the requested reimbursement level is accurate,

\(2\) the higher level of reimbursement is justified and

within the amount allowable for the year;

\(3\) the activities are still consistent with the

approved budget; and/or

\(4\) the sum of all cumulative line item changes (if

any) is no more than five percent (for non-profit

organizations) or 10 percent (State, Indian tribes

or local government) of the total HUD portion of

the grant.

If so, the payment may be released by the GTR.

D. If the SF-269, \"Financial Status Report\" (used to monitor CHSP

Program Budget on a semi-annual basis), is not submitted within 30

days after the end of the first semi-annual reporting period each

year.

NOTE: In this situation, the GTR would contact the grantee to

have the SF-269 submitted ASAP; with such agreement the

GTR may release the payment.

However, a pattern of not submitting the SF-269s may be

cause for future suspension, subject to current

procedures.

E. If the SF-269 is not submitted within 30 days after the end of the

last semi-annual reporting period each year.

NOTE 1: If the last SF-269 for the year is not submitted in a

timely manner, the GTR may not enter the next year\'s

amounts into LOCCS. Also, if there are still missing SF-

269s for any earlier reporting period, or the annual

report has not been submitted, the next year\'s budget

allotment may not be entered into LOCCS.

NOTE 2: As part of the review for new grants funded originally in

FY 1993, 1994, or 1995, the GTR must determine that the

amount of match noted in the SF-269 is consistent with

the percentage in the grant award. If it is NOT, the

budget for the next year MUST be amended by the GTR

6

to reduce the Federal share consistent with current

procedures, so that the required match ratio is

maintained.

This procedure does NOT apply to grantees funded originally

under the 1978 Act.

F. If the HUD-90006, \"Annual Report\", is not submitted within 30 days

after the end of the 2nd semi-annual reporting period each year.

NOTE : If the HUD-9OOO6 is not submitted in a timely manner,

the GTR may not enter the next year\'s amounts into LOCCS. THE

GTR must contact the grantee to obtain the annual report for

the grantee\'s prior program year.

G. If the annual budget or request for budget amendment is not

approved by the GTR, consistent with current procedures.

NOTE: The GTR should refer to Paragraph VI.D (2), following.

VI\. PROCESSING PAYMENTS:

A. ACCESSING LOCCS ON THE HUDNET LAN SYSTEM:

The GTR/GTM in each HUD State/Area Office must contact the local

Automated Technologies Administrator (ATA) to confirm the method to

access LOCCS via the a-based Novell Menu System for that State/Area

Office. Accessing LOCCS will vary from Field Office to Field Office

depending on the menu set-up and selection. However, regardless of the

menu selection needed to access LOCCS, the Field Office user must access

the UNYSIS environment and open LOCCS with the \$\$OPEN TIP2 command.

B. USERID AND PASSWORD:

After the GTR has successfully accessed the LOCCS Sign On Screen, the

GTR must enter the password and user ID assigned by the LOCCS Security

Officer. Once accepted, LOCCS will require the GTR to provide the four

character program area code. For the Congregate Housing Services

Program, the LOCCS program area code is \"CHSP\". LOCCS will then move

the user to the Program Area Menu. At this point the user will be at

the menu from which all of the review and data entry functions are

listed in the LOCCS/VRS program. For additional information, please

refer to the Generic User Guide.

7

NOTE: LOCCS requires each action to be followed by pressing the

Transmit or X-mit Key. This may vary, depending on the

keyboard from which the user is working.

For example, if the user is working from the High Net

keyboard, the carriage return serves as the Xmit function; if

the user is working, from the HUD Net keyboard, it is the \"+\"

sign. The user should check with the local ATA to locate the

Xmit function key on his/her specific keyboard.

C. GTR/GTM DATA INPUT:

1\. CHSP Grants Initially Funded in FY 1993-95

CHSP grants newly funded in FY 1993-95 and after are for five

years. For each newly awarded Grantee (FY 1993-95), the GTR

will receive back a conformed copy of the grant agreement from

the Grant Officer (see Notice H-94-14, \"Application

Submission, Review, Rating, Ranking, Selection and Grant

Processing Procedures for the CHSP for FY 1994.\" The GTR will

use information provided in these documents for annual data

input into LOCCS using the FO1 function as instructed below:

Using HUD-91180, \"Summary Budget, Applicant\", the GTR/GTM will

enter in LOCCS/BLI the annual approved amount of CHSP Funds

Requested for each Expense/Service in Column three (e.g., Case

Management, Meals, Personal Assistance, Housekeeping, Other

(specify) and Administration.)

On an annual basis for the remainder of the term of the grant,

HUD will request grantees to submit budget amendment requests,

if appropriate, or indicate that the budget amount in the

grant award is satisfactory, 60 days prior to the end of each

annual period (see Paragraph V, prior).

If a grantee does not need a budget amendment, the GTR will

enter into LOCCS the amount approved from the grant award in

that year\'s budget estimate.

o In addition to entering the line item amounts for the

year into LOCCS/BLI, the GTR must also enter the CHSP

funds which remain in the grant but are \"unavailable\" to

the grantee during that year, in line item 1080, using

the process following:

8

\- take the total amount for the five-year period from

the HUD-91179, \"Five bear Projection, Applicant\",

Line VII, Column 6.

\- subtract from the total the CHSP funds proposed for

the present year from the HUD-91180, line VII,

Column 3).

\- the amount remaining after the subtraction must be

entered into LOCCS/BLI, in line item 1080, as the

amount of CHSP funds \"unavailable\" to the grantee

during the budget year for which the GTR has just

entered BLIs into LOCCS.

This process will be repeated annually in accordance with

the above steps for years 2-5 of the grant. The

\"unavailable\" amount will decrease accordingly;

unavailable funds, theoretically, should be \"0\" after the

fifth year\'s budget is entered into LOCCS. Some funds,

however, may be available for carryover, upon the Grant

Officer\'s approval.

2\. CHSP Grantees Originally Funded in 1978

CHSP grants originally funded under the 1978 Act are extended

for one or more additional years at a time. For each extended

grantee, the GTR will receive back a conformed copy of the

amended grant agreement from the Grant Officer. The GTR will

use information provided in this document for data input in

LOCCS as instructed below:

Using the HUD-91180-B, \"Summary Budget, Grantees funded under

the 1978 Act\", the GTR will enter into LOCCS/BLI the annual

approved amount of CHSP Funds Requested for each Expense\]

Service in Column three (e.g., Case Management, Meals,

Personal Assistance, Housekeeping, Other (specify) and

Administration.)

This process is done at least annually, as long as there are

funds available, or the grant is amended with more funds.

NOTE: If more than one year is approved, the HUD-9118O-B

for the first year only shall be entered into

LOCCS. The second or any subsequent year must be

processed consistent with Paragraph VI. D(2)(b),

below.

9

D. SEMI-ANNUAL AND ANNUAL REPORTS:

1\. Semi-annual Reports

Grantees will submit semi-annual reports (SF-269) to the HUD

Field Office/RHS State Office within 30 days after the end of

each reporting period.

The semi-annual reporting periods under CHSP are October 1-

March 31 and April 1-September 30.

LOCCS/VRS will automatically generate reminder letters 45 days

prior to the appropriate due date of the semi-annual report to

the GTR/GTM.

Once the SF-269 is received in the HUD State/Area office/RHS

State office, the GTR must enter receipt of the report into\'

LOCCS/BLI using the MIO function, to ensure there are no

delays in payment of funds to Grantees.

The GTR/GTM must review the SF-269 within 10 workdays after

receipt. Grantees should be notified immediately of any

deficiencies found requiring correction or additional

documentation.

2\. Annual Reports

The Annual Report summarizes programmatic and budgetary

information for grantee operation during the preceding federal

fiscal year (October 1-September 30). Grantees will submit the

CHSP Annual Report (HUD-90006) to the HUD State/Area

Office/RHS State Office within 30 days after the end of the

year (no later than October 30).

LOCCS/VRS will automatically generate reminder letters 105

days prior to the appropriate date.

Once the HUD-90006 is received in the HUD State/Area

Office/RHS State Office, the GTR must enter receipt of the

report into LOCCS/VRS using the MIO function, to insure there

are no delays in payment of funds to grantees.

The GTR/GTM must review the HUD-90006 and advise the grantee

of any deficiencies. (See CHSP Handbok 4640.1 Rev-I for

processing instructions). If the HUD-90006 is not submitted

in a timely manner, the GTR/GTM may not enter the next year\'s

budget amounts into the LOCCS.

10

E. Annual Budget Submission

1\. Grantees Funded Under the Congregate Housinq Services Act Of

1978:

Grantees will submit the annual budget submission to the HUD

State/Area Office/RHS State Office 60 days before the end of

the first year of the grant and annually thereafter, subject

to an annual Notice.

LOCCS/VRS will automatically generate reminder letters 45 days

prior to the appropriate due date of the annual budget report

to the GTR.

The GTR must review the annual budget documents within 10

working days after receipt. Grantees must be notified

immediately of any deficiencies found requiring correction or

submission of additional documentation. Review and approval

instructions and actions will be stated in an annual Notice.

At the time the annual budget submission is approved by the

HUD State/Area office/RHS State office, the GTR must enter

approval of the budget into LOCCS/BLI using the MlO function.

2\. Grantees Funded Initially in FY 1993-95 or After:

Grantees will indicate to the field office 60 days in advance

of the end of the annual funding period whether or not the

budget approved in the grant agreement for that year must be

modified according to current procedures. Grantees will

either so indicate a change is not needed or submit a revised

budget, requesting an amendment to the grant agreement.

Upon indication that no change is needed, or upon approval of

a requested change through a signed bilateral amendment to the

grant, the amount for that year may be entered into LOCCS/BLI

by the GTR once the 2nd semi-annual SF-269 is received and

determined to be consistent with current requirements.

VII\. PROGRAM MONITORING AND ACTION MENUS:

Once a grant is established in LOCCS/VRS and the recipient begins to

requisition funds, it is the responsibility of the GTR to monitor the

requisition activity. Where LOCCS shows requisitions flagged for BUD

review, the field office will be responsible for determining whether the

voucher should be released for payment. The following selected menu

11

options are the most frequently used options available to the authorized

staff to query and act on outstanding vouchers:

A. OBTAIN A LISTING OF DRAWDOWN REQUESTS THAT HAVE FAILED PAYMENT

EDITS (Q10 SCREEN):

This option identifies vouchers which are suspended subject to

field office review prior to payment. From the Program Area Menu,

or any other screen with an Option prompt, type Q10 at the Option

prompt and hit the Xmit key. The system will display all drawdown

requests requiring field office review.

It is recommended that the GTR/GTM check the status report at least

twice weekly to ensure that vouchers awaiting field office review

are being evaluated and approved or rejected in a timely fashion.

B. DECIDE WHETHER TO APPROVE OR NOT APPROVE DRAWDOWN REQUESTS (V32

SCREEN):

Once the field office has reviewed the voucher request and

determined whether the voucher should be released for payment or

not, the authorized staff person may release or not approve the

voucher for payment using the V32 Screen. From the Q10 screen,

position the cursor next to the voucher the user wishes to either

approve or reject and hit the Xmit key. The system will

automatically transfer the user to the V32 screen where an \"A\" for

Accept or an \"R\" for Reject can be typed at the Option prompt.

NOTE: For reasons not to approve a voucher, and what to do,

refer to Paragraph V, prior.

C. CANCEL A VRS DRAWDOWN REQUEST AT THE GRANTEE\'S REQUEST (V31

SCREEN):

From the Program Area Menu, or from any other screen with an Option

prompt, type V31 at the Option prompt and hit the Xmit key. The

system will ask for a voucher number. Enter the voucher number and

hit the Xmit key to display the V31 screen with the voucher

information. Using the tab key move the cursor to \"Reason for

Cancel\" and type the reason for the cancellation. At the Option

prompt type \"C\" for Cancel and hit the Xmit key.

NOTE: Since any requisitions that are rejected under LOCCS are

automatically canceled, this option does not require

field office review of the drawdown request and should

12

only be used at the grantee\'s request.

D. RECORD RECEIPT OF REQUIRED REPORTS (M10 SCREEN):

This option is used to confirm receipt of required financial and

programmatic reports. Currently, the system will automatically

flag for field review all drawdown requests if required reports

have not been submitted. From the menu, or from any other screen

with an Option prompt, type M10 at the Option prompt and hit the

Xmit key. Enter the project number of the recipient for whom the

report(s) has/have been received and hit the Xmit key at the Xmit

prompt. LOCCS will display a summary of all outstanding documents

for the specified project. For those reports that have been

received, tab to the disposition field located to the left of the

document summary and type a \"Y\". Then, using the tab key move the

cursor to the option prompt, type \"C\" to Confirm and then hit the

Xmit key.

E. REVIEW PROJECT DETAIL (Q05 SCREEN):

This option allows field office staff to review detailed

information concerning the project requested, such as the Tax

Identification Number (TIN), amount authorized, and amount

disbursed. From the menu, or from any other screen with an Option

prompt, type Q05 at the Option prompt and hit the Xmit key.

VIII.CHSP GRANTS FUNDED UNDER RHS IN FY 1993-95:

CHSP applicants funded under the Amherst, Massachusetts RHS State Office

in FY 1993, and those funded under the Bismark and Hilo RHS State

Offices in FY 1994/95 and the GTRs/GTMs in the HUD Hartford, Denver and

Honolulu Offices will follow instructions provided in this Notice with

the following exceptions:

A. GTRs/GTMs in the HUD Hartford, Denver and Honolulu Offices are

responsible for all data entry into LOCCS for the FY 1993-95 RHS

grants. These may or may not be the same persons currently

assigned as GTRs on HUD CHSP grants.

The RHS GTRs must send a copy of the grant agreements and the HUD-

1044s to the HUD GTRs in order for LOCCS/BLI entries to be made.

13

All other management responsibilities on the RHS grants remain with

RKS.

B. The RHS grantees will submit semi-annual reports and the annual

memorandum on budget changes for review and approval to the RHS

State Offices as follows: The Amherst, Massachusetts RHS Office at

451 West Street, Amherst, Massachusetts 01002. The RHS contact(s)

are: Donald Colburn, Director, Rural Housing Programs (413) 253-

4333 and Paul Jeoffroy, Rural Housing Specialist (413) 253-4351;

The Hilo Hawaii RHS Office at the Federal Building, Room 311, 154

Waianuenue, Hilo, Hawaii 96720. The RHS contact is Abraham Kubo,

Rural Housing Chief (808) 933-3007; and, the Bismark Rural Housing

Services State Office in the Federal Building in Room 208, 220 East

Rosser, Bismark, North Dakota 58502. The RHS contact is Kathy

David (701) 250-4771.

The RHS GTRs will notify the GTRs in the Hartford, Denver and

Honolulu Offices that the SF-269s have been received in a timely

fashion and when the annual budget is approved (or lack of need

therefore is sent), so that the Hartford, Denver and Honolulu

offices GTRs can then make the appropriate entries into LOCCS/BLI.

The RHS GTRs will also send copies of the SF-269s and budget

documents to the HUD GTRs.

C. The RHS Grantees will send payment vouchers to the RHS State Office

GTRs. RHS State Office GTRs will review and sign (see signature

block) the new HUD-90198, \"Congregate Housing Services Program

(CHSP) Payment Voucher\" (see Attachment 1), before sending the

original to the Hartford, Denver and Honolulu GTR/GTM and filing a

copy. The HUD GTRs/GTMs will check the HUD-90198 against

information in LOCCS in the same manner as for a HUD grant, and

file the original from RHS as their record.

IX\. CHSP GRANTEES:

A. GENERAL:

This paragraph describes the manner in which grantees access the

LOCCS/BLI system and use the HUD-90198 (also see Attachment 1). All

grantees must submit security and banking forms to access their

grants under LOCCS/VRS (see the Generic User Guide).

14

B. USERID AND PASSWORD:

Grantees will make payment requests by touchtone telephone, based

on the funding information in LOCCS. Any user accessing CHSP

grants through LOCCS/BLI is required to have a valid USERID and Pas

sword. The USERID and Pas sword are assigned by HUD after the

grantee sends in a HUD-27054, \"LOCCS Voice Response Access

Authorization Form\".

C. PREPARING THE VOUCHER:

The HUD-90198 must be used by all Grantees as an official file

document of requests of payments. The HUD-90198 will indicate the

type and amount of funds requested BLI and the quarterly period in

which the funds are wanted.

Grantees may photocopy blank voucher forms as needed, or get

originals from field office stock. Instructions for the completion

of the voucher are included on the reverse side of the voucher.

CHSP LOCCS/VRS drawdowns are directed against specific funding

categories called Budget Line Items (BLIs) LOCCS associates a four-

digit number with each line item. The numbers and BLIs appear on

the payment voucher as follows:

1010 Case Management

1020 Meals

1030 Personal Assistance

1040 Housekeeping

1050 Transportation

1060 Other (Specify)

1070 Administration

These four-digit numbers are unique to the CHSP. Amounts should be

entered as whole dollars.

The Grantee may shift funds among BLIs up to a total of five

percent for non-profit organizations (two and one-half percent from

one or more BLIs and two and one-half percent to one or more BLIs)

to 10 percent for States, Indian tribes and units of general local

government (five percent from one or more BLIs and five percent to

one or more BLIs) without approval from HUD. Requests for change

above the ten percent limit or to add a line item require a

15

budget amendment and a new HUD-1044 (see Paragraph V, prior).

NOTE 1: Under the CHSP, Public and/or Indian Housing Agencies are

non-profit organizations; State Housing Finance Agencies

are considered State agencies.

NOTE 2: An original HUD-90198 must be sent to the GTR/GTM within

five days after each disbursement request. The grantee

must keep a copy of the voucher on file.

Grantees should NOT send copies of vouchers to HUD

Headquarters.

D. MAKING THE CALL:

The caller will first enter his USER ID and password, to verify

that he/she is authorized to draw down CHSP funds. Once the USER ID

and pas sword have been validated, the caller is given a menu

selection of the LOCCS program areas for which the caller is

authorized. LOCCS will ask the caller for the three digit Voucher

Number (for CHSP the number is 043). LOCCS will provide the

remaining 6 digits of the voucher number. The caller will write

the entire voucher number on the voucher form. The caller must

then reenter the entire 9-digit voucher number for verification.

This procedure also ensures that the vouchers numbers are unique.

LOCCS will then prompt the caller to enter the first 4-digit line

item number. LOCCS verifies that it is a valid number for the

grant type and for the program area. The line item\'s name is

spoken back to the caller; e.g., if the CHSP line item \"1010\" is

entered from a CHSP voucher, LOCCS will speak, \"ENTER THE AMOUNT OF

CASE MANAGEMENT FOLLOWED BY A POUND SIGN.\"

The caller will then enter the amount of funds to be drawn against

the Line Item, followed by a pound sign (#). Since LOCCS/VRS does

not know in advance the number of digits being entered, the caller

is asked to enter a pound sign (#) as the last input to indicate

they have completed entering digits.

For example, to request \$25,836.00, the caller would enter:

2 - 5 - 8 - 3 - 6 - \#

16

This process is repeated until the caller indicates that there are

no more line items for the given voucher by entering \"9999.\" LOCCS

will summarize the line item entries and their related dollar

amounts and provide the caller with a voucher total amount for

confirmation. The caller then has a final option to process or

cancel the request.

The requested payment amount is checked against the grant\'s

available balance in LOCCS to ensure that the request does not

exceed the grant\'s authorized funding limits. LOCCS will not allow

more than one draw per grant per day.

LOCCS uses payment sensitivity controls to ensure that payments are

appropriate and in alignment with CBSP program guidelines. These

controls are called threshold payment edits. Threshold edits on

BLIs are applied during budget generation and at VRS drawdown.

LOCCS will create Treasure payment tapes that evening, to be sent

to Treasury the next business day. The funds will be wired to the

grantee\'s bank account within 48 hours of approvable telephone

requests.

E. SEMI-ANNUAL AND ANNUAL REPORTS:

1\. Semi-annual Reports

Grantees must submit semi-annual reports (SF-269) to the HUD

State/Area Office no later than 30 days after the end of each

reporting period.

The semi-annual reporting periods under CHSP are October 1-

March 31 and April 1-September 30.

LOCCS/VRS will automatically generate reminder letters 45 days

prior to the appropriate due date of the semi-annual report to

the Grantee.

If a grantee is delinquent in submitting the SF-269,

reimbursement under LOCCS may be delayed or suspended.

NOTE: For grantees originally funded in FY 1993 through

1995, the 2nd semi-annual SF-269 will be reviewed

by the GTR to determine if the match collected is

consistent with the approved budget (see No. 2,

below). If not, the following year\'s Federal share

will be reduced by the GTR consistent with extant

procedures.

This procedure does not apply to grantees funded

originally under the 1978 Act.

17

2\. Annual Reports

Grantees must submit an annual report (HUD-90006) to the HUD

State/Area Office/RHD State Office concurrently with the

annual budget submission.

LOCCS/VRS will automatically generate reminder letters 105

days prior to the appropriate due date of the annual report to

the Grantee.

3\. Annual Review/Budget Submission

a\. Grantees Funded Under the 1978 Act

Grantees must submit an annual budget, or for such other

term as requested, an annual report and other documents

as appropriate, to the HUD State/Area Office at least 60

days before the end of the first year of the grant and

annually thereafter, subject to the annual Notice.

LOCCS/VRS will automatically generate reminder letters

105 days prior to the end of the grantee\'s annual budget

year.

b\. Grantees Funded Originally in FY 1993-95

Grantees must submit either a note that a budget

amendment is not required or a request for an amendment

to the grant covering the next year, and other documents

as requested to the Field Office, at least 60 days before

the end of the first year of the grant and annually

during the initial five years of the grant. The grantee

will submit the annual report together with the 2nd semi-

annual SF-269.

LOCCS/VRS will automatically generate reminder letters

105 days prior to the end of the grantee\'s annual review

period.

4\. Review Process

Grantees will be notified by the GTR within 10 workdays

of any deficiencies found requiring corrections or

submission of additional documentation.

F. VRS QUERIES WHICH CHSP GRANTEES MAY USE:

In addition to drawdown capability, LOCCS provides the following

query functions to grantees:

18

1\. Grant Query

LOCCS will give currently authorized, disbursed, and available

balance totals for the selected grant, along with general

grant status. A detailed breakdown by line item is available

if the caller wishes.

2\. Voucher Query

By entering a voucher number, the status of the voucher is

given. This includes when the voucher was called in, by whom,

and if the voucher has been paid, canceled, or is out for

review. A detailed breakdown by line item is available if the

caller wishes.

3\. Last Assigned VRS Grant Number

By specifying a Tax ID number, the last assigned VRS number

for the selected program area is given. This is useful if the

caller has not received the LOCCS generated letter with the

assigned VRS number, but wishes to drawdown funds.

G. ASSISTANCE WITH LOCCS/VRS:

Grantees should discuss any questions regarding LOCCS/BLI with

their GTR in the HUD State/Area Office or RHS State Office.

Grantees should NOT call HUD Headquarters directly.

HUD State/Area Office/RHS State Office staff should contact the

following Headquarters staff persons for assistance with LOCCS,

rather than a Grants Team member. The people to contact are:

\- Jacqueline D. Rooths - (202) 708-0614 (ext. 3765)

\- handles issues of user access and

security. NOTE: LOCCS program

access No. on the HUD-27054 is

\"CHSP\".

\- George Aiken - 708-7575 - handles problems of LOCCS screens.

\- Chris Davies - 708-0614 (ext. 3758) - handles system

policy issues; e.g.,

dollars not right,

distributing dollars

in BLIs.

19

HUD Headquarters Grants Team members are available to both HUD
State/Area

Office/RHS State office staff at (202) 708-0614. Grantees will be
referred

back to their GTR.

Assistant Secretary for Housing-

Federal Housing Commissioner

20