Paying HAP for Late Move-Out

April 23, 2009

Q If a resident gives a 30-day notice to move out at the end of the month, but does not actually move out until the middle of the following month, is the owner entitled to that month's housing assistance payment (HAP)? The resident's new unit was inspected and approved, and the new owner was issued the HAP on the first of the month, but the resident did not move in until the middle of the month.

Q If a resident gives a 30-day notice to move out at the end of the month, but does not actually move out until the middle of the following month, is the owner entitled to that month's housing assistance payment (HAP)? The resident's new unit was inspected and approved, and the new owner was issued the HAP on the first of the month, but the resident did not move in until the middle of the month.

A Because HUD prohibits duplicative subsidies, the new owner should not have received a HAP as long as the resident was still occupying the first unit. According to Telfer, vouchers should be issued based on current circumstances and, in the case of Section 8, processed prior to the month in which they are earned. Although the resident gave a 30-day move-out notice, a move-out Form 50059 should not have been processed until the resident actually moved. This delay would have prevented the new owner from receiving a HAP until the move-out from the previous site had been processed.

For more technical information, see the HUD Monthly Activity Transmission (MAT) User's Guide. If an owner enters a move-in date prior to the move-out date at another site, the TRACS system would produce error code MA003. If the old site had not moved the family out via a valid Form 50059, the new site should not have been able to get a HAP for the resident since TRACS would have identified a duplicative subsidy.

Insider Source

Cindy Telfer: Owner, CCTelfer & Associates, LLC; (734) 260-5002; cctelfer@aol.com.

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