Administrative Plan Changes

ATTENTION CMHA LANDLORDS

The Following Changes to CMHA’s Administrative Plan

Effective July 1, 2012,

Will Impact You 1.

1. To allow efficiencies and cost reductions in the administration of the HCV Program, beginning July 1, 2012, CMHA will no longer mail monthly HAP statements to owners. HAP statements/receipts can be obtained directly from the Landlord Partner Portal for each actively participating owner.
2. Owners will be able to access their I-1099 forms via the Landlord Partner Portal.
3. Non-active owners may request a copy of a HAP statement or I-1099 from CMHA for a processing fee.
4. Only one rent adjustment request will be processed in a 12-month period. Requests must be received from the owner within 120 to 60 days prior to the family’s annual recertification date. A copy must be provided to the family giving them a minimum 60-day notice. Any requested adjustment in the rent is subject to rent reasonableness requirements. If the rent assessment is lower than what the owner is currently receiving, CMHA will adjust the rent to the lower amount in accordance with HUD regulations. Rent adjustments are effective on the family’s annual recertification date. A family’s annual recertification date is available via CMHA’s Partner Portal.

The following provisions of the PROTECTING TENANTS AT FORECLOSURE ACT (PTFA) are now in effect:

If you are an owner purchasing a property in foreclosure with HCV tenants currently under lease in the property, your purchase of the property does not constitute other good cause for termination of the tenancy. As the new owner, you may terminate the tenancy effective on the date of transfer of the unit only if:

1. You will be occupying the unit as a primary residence; and
2. You have provided the tenant with a notice to vacate at least 90 days prior to the effective date of such notice.

Additionally:

In the case of any foreclosure on any federally-related mortgage loan (as that term is defined in section 3 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602)) or on any residential real property in which a recipient of assistance under this subsection resides, the immediate successor in interest in such property pursuant to the foreclosure shall assume such interest subject to the lease between the prior owner and the tenant and to the housing assistance payments contract between the prior owner and the public housing agency for the occupied unit, except that this provision and the provisions related to foreclosure in subparagraph (C) shall not affect any State or local law that provides longer time periods or other additional protections for tenants. Under these new statutory provisions, the immediate successor in interest, which is the party gaining ownership through a foreclosure sale, becomes subject to the HAP contract, as also revised by statute, and there must be “good cause” other than vacating the property prior to sale in order to terminate the existing tenancy.

Foreclosed properties in which Section 8 voucher recipients reside must comply with Sections 702 and 703 of the PTFA.