Affordable Housing Compliance: Preparing for TRACS 202D

For many TRACS is a mystery; however it is a critical part of HUD (Housing and Urban Development) multifamily operations and is definitely worth paying attention to. Are you and your affordable housing property management solution ready for the upcoming TRACS 202D specification changes?

For a more in-depth look at TRACS 202D and what it means to affordable housing property managers, download the Industry Bulletin: Affordable Housing Preparedness for TRACS 202D Modification.

What is TRACS?

TRACS is a HUD acronym standing for Tenant Rental Assistance Certification System. It is an electronic system that owners/managers of HUD subsidized housing are required to use to send certifications and HAP (Housing Assistance Payment) vouchers to Contract Administrators and to HUD. TRACS validates and processes all records and returns status and error messages about the files that it receives.

What’s changing in 202D?

The most visible changes are the new and updated HUD forms, however the most important changes have to do with the HAP voucher. Currently, the electronic voucher sent to Contract Administrators and TRACS contains only the cover page along with records for special claims and miscellaneous accounting requests. In addition a signed paper or PDF copy of the full voucher must be sent to the Contract Administrator each month for review and to HUD if requested.  With 202D, the electronic HAP form has been enhanced to hold all voucher information including the billing detail and adjustments. As soon as HUD has verified that the 202D voucher changes are working properly, the requirement to submit a paper HAP will be dropped.  The voucher will become just like the certification.  A signed copy must be kept in the files but the electronic version will be the only thing that must be transmitted for compliance purposes.

Since Contract Administrators will have full electronic vouchers, their software will be able to automate the comparison of the site and HAPS enabling the contract administration staff to focus only on differences.  When the Contract Administrator has approved a voucher for payment, a full electronic final copy must be returned to the site and can be used in the voucher reconciliation process.  This will not happen for vouchers sent direct to HUD as TRACS does not generate or audit site vouchers in the same way that CAs do.

For a more in-depth look at all of the changes coming in 202D as well as links to preview the new TRACS forms, download the Industry Bulletin: Affordable Housing Preparedness for TRACS 202D Modification.

How will not being prepared impact you?

While there is no fine associated with not being 202D compliant by the end of the implementation transition period, there is a major consequence of not being on 202D by March 1 of next year—you will be unable to submit your April HAP vouchers and consequently will not be able to get paid.  Also, it is important to get ready for some new data collection requirements as well as additional options related to move-out and termination reasons.  Beginning soon we will initiate a series of blog posts alerting you to the new requirements so that you can hit the ground running.

Bostonpost’s Preparedness for TRACS 202D

With over 40 years of experience in the multifamily industry, MRI Software recognizes the importance of staying up to date with the ever changing real estate market, as well as the complex compliance requirements that affordable housing property managers must manage.  Thus, the Bostonpost Affordable Housing team has been working diligently to integrate these policy changes into our highly configurable solution. Jed Graef, MRI’s product manager for affordable compliance, chaired the certification sub-committee of the TRACS 202D working group and was responsible for creating all of the specification documents.

The Bostonpost development team began laying the foundation for 202D two years ago. In fact, version 9.1 of Property Manager contains many hidden features that support the impending 202D changes. We are continuing to work though the changes required by the 202D specification and will be providing detailed guidance on implementation when the time comes.

Bostonpost’s inclusion of the updated 202D regulations will play an important part in ensuring streamlined affordable housing compliance reporting. Bostonpost’s build-in compliance engine will also save its users from manually updating their rental criteria as the new 202D specifications will automatically integrate into the existing system, giving clients peace of mind.

As a result of these efforts, you can rest assured that Bostonpost will keep you compliant with a timely 202D version 9.2 release. For more information on MRI Bostonpost and its impressive capabilities, visit our website.