# Presentation: 290625

## U.S. Department of Housing and Urban

- A D V A N C E D    T E C H N O L O G Y    S Y S T E M S

**U.S. Department of Housing and Urban**
** ****Development (HUD)**
- Tenant Rental Assistance Certification System (TRACS)
** *****TRACS Security Deposits***** **
**March 3, 2005**

## Agenda

**Current Security Deposit Logic**
**Revised 4350.3 Handbook Security Deposit Changes**
**Security Deposits Amount**
**Revised Discrepancies**
**New Discrepancies**

## Current Security Deposit Logic

- Based on subsidy type.
- Does not differentiate among Section 8 programs.

## Revised 4350.3 Handbook Changes

- Differentiates among Sec 8 programs.
- Expects a specific security deposit amount based on subsidy type and/or program guideline id.
- Makes collecting a security deposit a prerequisite for special claims approval
- 	(Sec 8, PAC, PRAC).

## Amount collected for Sec 8 depends
on:

Program type

Date AHAP or HAP contract was signed. 

Amount of TTP

**on:**
- Program type
- Date AHAP or HAP contract was signed.
- Amount of TTP

**Security Deposit Amount**

##  Revised Discrepancies 

**CE131 **
- Transaction type other than MI
- 		(Sec 8, PAC, or PRAC)
- Submitted security deposit equals $0.0.
- “Security Deposit is Now Being Collected by TRACS.”
- Action Required = 3

**Notes:**
Two   of   the   current   discrepancies   have   been   revised.

CE131 
Will    now   be  generated   if   the   security   deposit   amount submitted   with   an:
	-  annual  recertification, or 
	-  interim certification 
               is    $0.	 

CE252
Will be generated for a: 
	-  Rent Supp
	-  RAP
	-  202 or 811 PRAC
	-  202 PAC
 if the security deposit amount submitted 

## Revised Discrepancies

**CE252 **
- Transaction type equals MI
- -	Subsidy type
- 		(202 PAC, 202/811 PRAC)
- -	Submitted amount does not equal the **greater** of TTP or $50.

## Revised Discrepancies

**CE252 **
- - “Security Deposit Should Equal the Greater of Total Tenant Payment or $50.”
- Action Required = 3

## New Discrepancies

**CE259**
- 	 _** ** Transaction type = MI
-  Subsidy type = Section 8
-  Program types
- 	 **a)** New Construction
- 			(with AHAP executed before 11/5/79)
- 	 **b)** New Construction FMHA
- 			 (RHS 515 with Section 8)

## New Discrepancies 

**CE259(cont)**
- 			  **c)** Substantial Rehab
- 				(with AHAP executed before 2/20/80)
- 			  **d)** State Agency
- 				(with AHAP executed before 2/29/80)

## New Discrepancies 

**CE259(cont)**
- 		-	Submitted amount does not equal **1 ****	****month’s TTP**.
- 		- “Security Deposit for this Section 8 	    	Program Should Equal One Month’s 	    	TTP.”
- 		-  Action Required = 3

## CE260
  Transaction type = MI 

  Subsidy type = Section 8
  Program types
		 a)  Property Disposition 
			(with sale of HUD owned property)
	   b) Section 202 
			(with Section 8 or PAC)

-   Transaction type = MI
-   Subsidy type = Section 8
-   Program types
- 		 **a)**  Property Disposition
- 			(with sale of HUD owned property)
- 	   **b)** Section 202
- 			(with Section 8 or PAC)

**New Discrepancies**

## CE260 (cont)

		c) State Agency 
	      (with AHAP executed on or after 2/29/80) 

		d) New Construction 
	     (with AHAP executed on or after 11/5/79)

	e)  Substantial Rehab
	      (with AHAP executed on or after 2/20/80)

- 		**c)** State Agency** **
- 	      (with AHAP executed on or after 2/29/80)
- 		**d)** New Construction
- 	     (with AHAP executed on or after 11/5/79)
- 	**e)**  Substantial Rehab
- 	      (with AHAP executed on or after 2/20/80)

**New Discrepancies**

## CE260 (cont)

	-	Submitted amount is not the greater of 	1month’s TTP or $50. 

	-	 “Security Deposit for this Sec 8 Program 	 Should Equal the Greater of TTP or $50.”

	-	Action Required = 3 

- 	-	Submitted amount is not the **greater** of 	1month’s TTP or $50.
- 	-	 “Security Deposit for this Sec 8 Program 	 Should Equal the Greater of TTP or $50.”
- 	-	Action Required = 3

**New Discrepancies**

## CE261      
Transaction type = MI

Subsidy type = Section 8

Program type 
		   Loan Management Set-Aside 

- Transaction type = MI
- Subsidy type = Section 8
- Program type
- 		   Loan Management Set-Aside

**New Discrepancies**

## CE261   
	-	Submitted amount is greater than 1 	month’s TTP.		

“Security Deposit for this Sec 8 Program May Not Exceed TTP.”

Action Required = 3

- 	-	Submitted amount is **greater** **than 1 ****	****month’s TTP**.
- “Security Deposit for this Sec 8 Program May Not Exceed TTP.”
- Action Required = 3

**New Discrepancies**

## Submission of a security deposit in  installments

Opt-Out provision for PAC and PRAC properties

**Opt-Out provision for PAC and PRAC properties**

**Features Requiring Tenant MAT Changes**

## Rent Supp, RAP, Sec 236, BMIR

	-	TRACS will accept the submitted 	security deposit amount.

	-	No discrepancy will be generated.

**	****-****	**TRACS will accept** **the s**ubmitted ****	****security deposit amount.**
**	****-****	****No discrepancy will be generated.**

**Other Subsidy Types**

## 

http://www.hud.gov/offices/hsg/mfh/trx/
trxdocs.cfm

**http://www.hud.gov/offices/hsg/mfh/trx/**
**trxdocs.cfm**

** ****TRACS Documents Page**

## The End

**TRACS Security Deposits**