Danielle Garcia HUD Jed Graef HDS Mary Ross RBD TRACS 203A January 31 2017 Opening Remarks Clarifications Received TRACS 203A Error Messages Meeting Date Agenda Opening Remarks Lanier Hylton ID: 1015790
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1. Lanier Hylton; HUDAlisa Costello; HUDDanielle Garcia; HUDJed Graef; HDSMary Ross; RBDTRACS 2.0.3.AJanuary 31, 2017
2. Opening RemarksClarifications ReceivedTRACS 203A Error MessagesMeeting DateAgenda
3. Opening RemarksLanier HyltonDepartment of Housing & Urban DevelopmentHeadquarters
4. Update & Review of ClarificationsSummary of Changes
5. Clarifies when LIHTC and RAD are combined, a tenant whose assistance is 0 or negative pays the lesser of applicable LIHTC rent or RAD rent (this is the normal rule when there is no assistance)Requested clarification from HUD on the mechanism for calculating TTP/AP in the case where LIHTC rent is the lesser valueTreated as a rent override situationChanges to Spec and MAT GuideRADNew Notice: H-2017-03, REV-3, PIH-2012-32 (HA): 1/12/2017
6. Answer: If the LIHTC rent is lower, we force the TR to equal the LIHTC Rent (Max Rent less UA) and adjust the TTP such that TTP – UA = TR as we do when forcing a PRAC tenant to operating rent for failure to recertifyHowever, since HUD will not pay subsidy in this situation (if the resulting subsidy is positive) we cap subsidy at the lesser of calculated assistance and 0In other words, if assistance calculates as positive, reduce it to 0If assistance calculates as negative, leave it aloneZero stays zeroChanges to Spec and MAT Guide
7. Changes to Spec and MAT GuideAssistance starts negative and ends negative Normal Calculations Force TR to LIHTC RentGross Rent600 600 TTP650 605TTP = TR + UAUA30 30 TR620TTP - UA 575LIHTC RentAssistance-50GR - TTP -5GR - TTP -5Cap at 0LIHTC Rent605 TTP is calculated to be in accord with TR Less UA575 Assistance changes from -50 to -5
8. Changes to Spec and MAT Guide Assistance starts negative and ends positive Normal Calculations Force TR to LIHTC RentGross Rent600 600 TTP650 550TTP = TR + UAUA30 30 TR620TTP - UA 520LIHTC RentAssistance-50GR - TTP 50GR - TTP 0Cap at 0LIHTC Rent550 TTP is calculated to be in accord with TRLess UA520 Assistance changes from -50 to 0
9. Changes the rent phase-in percentages3-year from 33, 66, 100 to 33, 50, 1005-year from 20, 40, 60, 80, 100 to 20, 25, 33, 50, 100Changes to Spec and MAT GuideRADNew Notice: H-2017-03, REV-3, PIH-2012-32 (HA): 1/12/2017
10. Requested clarification as to whether the Notice date controls the phase in or notNotice implies that rules applicable to a RAD contract depend on the Notice in effect at the time of the RAD closingChanges to Spec and MAT GuideRADNew Notice: H-2017-03, REV-3, PIH-2012-32 (HA): 1/12/2017
11. Answer: The phase-in percentages to use are those based on the notice in effect at RAD closingIf closing was prior to 1/12/17 then use the old percentages (33, 66, 100 or 20, 40, 60, 80, 100)If closing is on or after 1/12/17 then use the new onesChanges to Spec and MAT Guide
12. RAD—Corrections to ICsIs the Phase-In decision re-determined if the IC is corrected?Yes only if OA is correcting an original IC and not a corrected IC done to implement an AR or IR previously scheduled for the conversion dateIf there were a corrected IC done to implement a previously scheduled AR or IR for that date, it too might need to be corrected depending on the reason for the correction to the original IC but that IC is not involved in a decision concerning phase-inChanges to Spec and MAT Guide
13. RAD—Corrections to ICsWe will publish a new spreadsheet giving examples of phase-in determinations and cert correctionsChanges to Spec and MAT Guide
14. Typical CasesChanges to Spec and MAT Guide
15. Less Typical CasesChanges to Spec and MAT Guide
16. Very Rare CasesChanges to Spec and MAT Guide
17. Errors have been modifiedNew Errors
18. MAT Error 25 is applied to Social Security Numbers in the Member record and the MAT40, 65 and 70 records: if all 0s or 1s or 2s or 3s or 4s or 5s or 6s or 7s or 8s Message = “TRANSMISSION REJECTED: INVALID SSN SUBMITTED FOR A HOUSEHOLD MEMBER”New Errors
19. MAT Error 26 is applied to the Extremely Low Income Limit field (MAT10, Section 2, field 42): Message = “TRANSMISSION REJECTED: EXTREMELY LOW INCOME LIMIT NEEDED FOR SUBSIDY 1 or 6”New Errors
20. MAT Error 27. If any of the new ethnicity, and race sub-category fields are not blank AND the main category (Ethnicity, Race Asian, Race Native Hawaiian or Other Pacific Islander) is blank then trigger the error. Message = TRANSMISSION REJECTED: RACE/ETH. SUB-TYPE SUBMITTED WITHOUT RACE/ETH. CODE”New Errors
21. MAT Error A1: Applies to the Contract Number field in the TENHR and VCHHR. If blank or spaces and subsidy type is “1”, “6”, “7”, “8”, “9Message = TRANSMISSION REJECTED: CONTRACT NUMBER REQUIRED FOR SUBSIDY TYPE”Modified Errors
22. MAT Error 17: Applies to Owner DUNS Number in the TENHR and VCHHR records. If blank or spaces and subsidy type is “1”, “2”, “3”, “6”, “7”, “8”, “9Message = “TRANSMISSION REJECTED: DUNS NUMBER MUST NOT BE SPACE FILLED” Modified Errors
23. MAT Error 21: Applies to Parent Company DUNS Number in the TENHR and VCHHR records. If blank or spaces and subsidy type is “1”, “2”, “3”, “6”, “7”, “8”, “9” and Parent Company TIN number is populatedMessage =“TRANSMISSION REJECTED: PARENT DUNS NUMBER MUST NOT BE SPACE FILLED”Modified Errors
24. MAT Errors vs TRACS ErrorsCertification and Voucher Edits (Compliance)TRACS Errors
25. 999-99-0000 WorkaroundNo New EditNo Error
26. Hard edits on use of a T numbers when the SSN Exception is usedReducing the Fatal Error to a Discrepancy with an action code of 1 for multiple subsidyComplies with current HUD guidanceReduces risk of improper paymentStill Visiting
27. Action ItemsOutstanding IssuesNext StepNext Meeting – D.C. 2/7/2017 all day 2/8/2017 half dayNext Step (Lanier – in or out?)