HUD Releases TRACS 202D Implementation Schedule

The Tenant Rental Assistance Certification System (TRACS) was designed by HUD to help improve financial controls over assisted housing programs by automating manual procedures and incorporating automated controls. It’s an electronic system that owners and managers of HUD-subsidized housing are required to use to send certifications and housing assistance payment (HAP) 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.

HUD depends on TRACS to collect and maintain accurate rental assistance data; automate and improve program management; reduce manual processes and paperwork; forecast budgets; and detect instances of subsidy fraud, waste, and abuse.

TRACS-Covered Sites

TRACS is used for these assisted housing programs:

• Section 236 Interest Reduction and Rental Assistance Payments;
• Section 8 New Construction/Substantial Rehabilitation Housing Assistance Payments;
• Section 8 Loan Management/Property Disposition Set-Aside Housing Assistance Payments;
• Section 221(d)(3) Below Market Interest Rate (BMIR) mortgage insurance;
• Rent Supplement Payments;
• Certain Section 202 programs; and
• Section 202/811 Project Rental Assistance Payments.

Reasons for Delay

The long-awaited TRACS 202D conversion was often delayed. In 2013, it was held up by delays in approving new and changed HUD forms by the Office of Management and Budget (OMB). In addition, the release of HUD Handbook 4350.3 REV-1, Change 4 in August 2013 forced changes to TRACS 202D as a result of foster children and adults being considered as full family members for income limit and deduction purposes. At the time, HUD was supposed to issue quick implementation guidance for the new Change 4 of Handbook 4350.3, but the government shutdown postponed those plans.

Now that OMB finalized its approval for the various HUD tenant forms—including the HUD 50059 (full certification), 50059-A (partial certification), and 27061-h (race and ethnicity)—and OMB has approved voucher forms that have been expired for two years, the conversion to TRACS 202D can continue. As such, on June 30, 2014, HUD’s Office of Multifamily Housing formally announced the TRACS 202D Release Implementation Schedule.

Timeline of Conversion Period

This is a major release that incorporates multiple changes to Form 50059s and vouchers required per occupancy regulations implemented since 2008. The conversion period will run from Aug. 1, 2014, to Jan. 31, 2015. And beginning Feb. 1, 2015, TRACS 202C transactions will be rejected. This update significantly affects your application, recertification, and vouchering process. Forms used to screen applicants and complete recertifications must be updated to gather new information. The final TRACS 202D specification documents have been posted to: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/trx/trxsum.