Lease-Up Process

(1) Voucher Issuance. HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 (a) Once final eligibility is determined, the THDA prints the voucher and the initial maximum rent burden estimate to issue to the applicant, which gives the applicant the authorization to search for a suitable unit. 1. The voucher shows the unit size for which the household qualifies. The unit size reflects the smallest number of bedrooms for which the family qualifies in order to comply with occupancy and HQS requirements. 2. As part of the initial and relocation briefing process, staff gives suggestions to the household on how to find a unit and refers them to TNHousingSearch.org. However, finding and selecting a unit is the family’s responsibility. (b) General Voucher Guidelines: 1. Vouchers are issued when contract authority is available either through a new allocation or a turnover of vouchers held by participating families. 2. Enough vouchers are issued to meet leasing schedules for all new allocations and to maintain an occupancy rate of at least ninety-eight percent (98%) of funds available under the Annual Contributions Contract with HUD over the twelve- month (12) period for which the contract applies (calendar year). 3. The THDA maintains a system of tracking the number of vouchers held by participating families and the number held by applicants searching for housing. 4. Any over-issuance for maintaining 98% or better occupancy is closely monitored so that over-leasing does not continue for a lengthy period of time. When over- leasing occurs, the issuance of vouchers ceases long enough to bring the number leased down to the authorized level. 5. The THDA may retract a voucher issued but not leased, if at any point in time it is determined that adequate funding is not available to provide ongoing assistance to the number of individuals issued vouchers but not leased in a unit. In this case, the affected individuals will be returned to the top of the waiting list with preference for first admission/issuance when funding is determined sufficient. 6. Regardless of the number of outstanding vouchers, the THDA issues a voucher if it is necessary to achieve the following: (i) Move an overcrowded participating family; or (ii) Move a participating family who is occupying unsafe housing if the owner refuses to make repairs. (c) Housing Choice Voucher Term. (24 C.F.R. 982.302; 982.303). The THDA follows the procedures outlined below when issuing vouchers, setting terms of vouchers, and assisting families in selecting units. 1. A voucher is issued for an initial term of sixty (60) days to allow the household time to search for a unit. The HCV software system will be utilized to print vouchers, and the voucher term will begin on the date the voucher is issued. 2. Suspension of Voucher Search Term. (i) Once a Request for Tenancy Approval (RTA) is received by the THDA, the voucher term is suspended until that RTA is either approved or denied. HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 (d) Suspension of Voucher Term for Medical Purposes. The voucher term may be suspended if a household member has a verifiable medical emergency or required medical procedure and the household requests a voucher suspension in writing, with appropriate documentation of the medical emergency or hospitalization prior to the voucher expiration, unless the head of household can verify that he or she was incapacitated and unable to contact the THDA during the voucher term. 1. The voucher will be suspended for the number of days the head of household or minor child was hospitalized or otherwise incapacitated. 2. Voucher suspensions are not granted for any other reason. (e) Disability Accommodation. If the household cannot locate a unit within the initial sixty- day (60) voucher term and the head of household or spouse requests an extension to locate accessible housing that will meet the needs of a disabled household member, first, an extension of up to sixty (60) additional days, up to a total of one hundred twenty-day (120) maximum term, will be granted, if the request is made prior to the expiration date of the voucher, unless the head of household can verify that he or she was incapacitated and unable to contact the THDA during the voucher term. 1. If the household does not find a unit within the 120 days, the THDA will consider a request for an extension beyond the 120 days when the family clearly illustrates that they actively searched for the 120 days and were unable to locate accessible housing within 120 days, but the extension may not exceed a total of 150 days. 2. If an applicant does not find a unit within any extension that is granted, the applicant will be denied admission and must reapply if they are still interested. (f) Where the Household May Lease Up. 1. A family must remain in the jurisdiction of the initial PHA that issued their voucher for twelve (12) months before they are eligible for portability if neither the head of household nor the spouse had a legal residence in the jurisdiction at the time the household applied for admission to the program (“residency rule”). 2. A family may lease up anywhere within the jurisdiction of the local THDA field office through which they applied. (2) Request for Tenancy Approval (RTA) (24 C.F.R. 982.305(b)). (a) Submission of the Request for Tenancy Approval (RTA) and Requisite Documents by the Household. All RTAs must be received on or before the 60th day of the voucher term, even if the first RTA is denied, unless there has been an extension offered or a reasonable accommodation is approved. It is the household’s responsibility to submit an approvable RTA to THDA within the specified voucher timeframe. Once a household finds a supposed suitable unit that is owned by an entity willing to participate in the HCV Program, the household must submit an RTA and a Substitute W-9 form, a Lead-Based Paint Disclosure, a blank copy of the lease, proof of ownership, and a Management Agent Agreement form from the owner to the THDA within the term of the voucher, or any extension, for the process to continue. 1. Request for Tenancy Approval, HUD Form 52517. The RTA provides the THDA with the information necessary to determine approval of a unit, including the names of the parties to the lease, the effective date of the lease, the address of HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 the unit, the utilities and appliances provided by the owner, which party is responsible for paying utilities, the amount of rent most recently charged for the unit, and the rent the owner is currently proposing. (i) The RTA must be signed by both parties, the applicant/participant and the owner/landlord. (ii) Only one RTA will be processed for a household at any given time. If the household submits a second RTA, the THDA will contact the household to determine which RTA the THDA should continue to process. If the household wants the THDA to consider the subsequent RTA, any other RTAs must be rescinded first. 2. Substitute W-9 form and Proof of Ownership. Applicants must assure that a Substitute W-9 form (with the owner’s Social Security or tax identification number and current residential or business address for mailing purposes) and a Proof of Ownership of the unit from the owner are submitted to the THDA. (i) Owners of single-family dwellings, duplexes, triplexes and mobile homes must submit proof of ownership of the property. If a person other than the owner manages a property, or an agent is present, a Management Agent Agreement form must be completed as well. (ii) Both the Substitute W-9 form and proof of ownership (and Management Agent Agreement form, if applicable) must be submitted before a HAP Contract may be executed. (b) Review of the RTA by the THDA. 1. Upon receipt of the RTA and the other requisite documents, the THDA will: (i) Review the RTA; (ii) Discuss any inconsistencies or omissions with the household and the owner; (iii) Verify that there are no conflicts of interest with regard to the ownership of the unit; (iv) Determine the appropriate utility allowance, gross rent, utility reimbursement/assistance, whether the household can afford the unit under the maximum initial rent burden rule (40% rule), and the reasonableness of the rent; and (v) Negotiate the rent amount with the owner if needed. 2. Utility Allowance (24 C.F.R. 982.153). The THDA is required to calculate a utility allowance for all counties in which the HCV Program is administered by the THDA, using HUD-approved methodology. The THDA then creates the Utility Allowance Schedule which shows the allocated allowance based on the county, type of unit (apartment, single-family home, or mobile home), and the unit size (number of bedrooms). The THDA must also review the allowances on an annual basis to determine if any adjustment, upwards or downwards, needs to be made. (i) The unit size is determined by counting the number of bedrooms, regardless of how the bedroom is utilized, such as a sewing room or study. HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 To be counted as a bedroom, the room must meet all of the Housing Quality Standards requirements for a bedroom (presence of a window, door for privacy, smoke detector located outside of the room, etc.). Other rooms used for sleeping purposes, such as a living room or den, are not to be included in determining unit size. The utility allowance will be based on the lesser of the actual voucher size issued and the actual size unit selected by the family. 3. Gross Rent. The Utility Allowance is added to the Contract Rent under the lease agreement to determine the Gross Rent for the unit. 4. Utility Reimbursement/Assistance Payments. (i) Reimbursement Payment. If the Utility Allowance is greater than the tenant’s Total Tenant Payment (TTP), a Utility Reimbursement is sent directly to the tenant. The reimbursement is equal to the amount of the Utility Allowance that exceeds the TTP. (ii) Assistance Payment. If the TTP is greater than the Utility Allowance, then the tenant pays a portion of the rent to the landlord. The tenant’s obligation is equal to the amount the TTP exceeds the Utility Allowance. (iii) When a household moves out of an assisted unit on a day other than the last day of a calendar month, the THDA will deduct the utility allowance payment (UAP) for the family. 5. Maximum Initial Rent Burden (24 C.F.R. 982.305(a)(5) and 982.508). A household is prohibited from paying more than forty (40) percent of their monthly adjusted income for rent when the family initially moves into a unit under the HCV program (and when a participant relocates to a new unit with continued assistance). (i) The household’s Maximum Initial rent Burden is initially calculated at the time the voucher is issued, but the household’s affordability will be reviewed when the RTA is submitted to ensure the proposed tenant rent is affordable. 6. Rental Subsidy Calculation. (i) The family’s maximum initial rent burden is calculated, which is 40% of the monthly adjusted income. (I) If the rent burden would exceed 40% of the monthly adjusted income, then the THDA will contact the owner by phone to see if the owner will reduce the rent so that the tenancy may be approved. (II) If the rent burden would exceed 40% of the monthly adjusted income and the owner will not will not reduce the rent, the RTA will be denied. (ii) The appropriate Payment Standard is determined. The appropriate Payment Standard is the lower of the following: (I) The Payment Standard for the family unit size; or (II) The Payment Standard for the unit rented by the family. HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 (iii) The total family contribution is calculated. (iv) The tenant rent to owner is calculated. 7. Rent Reasonableness (24 C.F.R. 982.507). In order to assure that the presence of the HCV Program does not cause rents to become inflated within any of the communities where the THDA administers the program, the THDA will not approve a lease until it is determined that the rent to owner is a reasonable rent. (i) The Housing Assistance Payment Contract, which is executed between the THDA and the owner regarding the subsidy payment, advises the owner that by accepting each monthly Housing Assistance Payment he is certifying that the rent to owner is not more than the rent the owner charges for comparable unassisted units on the premises. (ii) The rent reasonability test will be applied at admission and before any increase in the rent to the owner, at any relocation, and if there is a five percent (5%) decrease in the published Fair Market Rent in effect sixty (60) days before the contract anniversary for the unit size rented by the family as compared with the FMR in effect one year before the contract anniversary. (iii) Performing the Rent Reasonableness Test. The method applied to determine the rent reasonableness is dependent upon the type of unit. (I) Multi-family Complex Unit. I. Owners of complexes with four (4) or more units must provide rent information for three (3) comparable, unassisted units in the multi-family complex as part of the RTA and certify that the information contained within the RTA is accurate. If there are not at least 3 unassisted comparables, the owner must give information on any comparable, unassisted units they have, but for the analysis, the THDA will have to compare the requested rent to 3 other comparable units outside of the complex. II. The THDA may use the RTA Owner’s Certification section to document rent reasonableness if the rents proposed will not exceed rents charged for other similar unassisted units on the premises. (II) Low Income Housing Tax Credit (LIHTC) or HOME Project. If the unit under consideration is located within a LIHTC or HOME project, a rent reasonableness test is not required if the rent for the unit under consideration is equal to or less than the rent for other units within the complex leased by unassisted renters or the rent does not exceed the payment standards for the appropriate unit size. I. To determine if the rents charged are equal to or less than the rent for other units within the complex or within the payment standard, the “Owner’s Certification” of the RTA will be used. II. The payment standard is related to gross rent, the contract rent plus utilities. To determine rent reasonability, the HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 appropriate utility allowance should be deducted first from the gross rent to compare with the payment standard when conducting the rent reasonability test. (III) If the unit under consideration is not within a multi-family complex with four (4) or more units, the THDA will conduct a rent reasonableness test using the Rent Reasonableness Database by comparing at least three (3) comparable units within the same market area (county or cluster). (iv) Rent Reasonableness Database. The THDA contracted with a third party to develop a rent reasonableness database, which collects information on rents for unassisted units in all of the THDA’s counties of operation. The information is maintained within the TNHousingSearch.org database. (I) Where possible, the information includes: I. Data on the type of unit. II. Location of the unit. III. Age of unit. IV. Size of the unit, approximate square footage. V. Overall quality of the unit. VI. Number of bedrooms. VII. Amenities (bathrooms, dishwasher, air conditioning, etc.). VIII. Housing services and maintenance. IX. Utilities. (II) The presence or absence of these features will be considered when making rent approval determinations. (III) For each market area, the THDA will attempt to collect comparables for units: I. Leased within the past two (2) years; II. Of various sizes and types and in various neighborhoods; and III. Those higher and lower than the payment standard. (IV) The rent comparables are arranged by unit type and county and are stored electronically in the TNHousingSearch.org database. (V) The market area for the rent reasonableness test is neighborhoods within the county where the unit under consideration is located unless enough units of comparable type are not available in that county. HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 (VI) If a unit under consideration is located in a county where the THDA cannot locate three (3) comparable, similar units, the THDA will utilize a cluster method to locate comparable units in another similar market area. I. During a cluster search, TNHousingSearch.org creates “clusters,” which combine appropriate rental units in counties with common demographics to the target county, to project an acceptable range of rent. II. The cluster function will only be utilized when rented and available comps cannot be located in the TNHousingSearch.org database within the county where the unit under consideration is located. (VII) The data is updated on an ongoing basis and purged when it is more than twelve (12) months old. (VIII) A summary of the number of rent comparables available for each county (by bedroom size and unit type) is available as a report through the TNHousingSearch.org database to ensure that an adequate number of comparables is available for rent tests. (IX) Units with assistance through the LIHTC program or the HOME program may not be used to determine rent reasonableness for non- subsidized properties and will not be included in the rent comparable database. (v) Rent Reasonableness File Documentation. (I) If the RTA is used to document the rent is reasonable, a notation is made on the file checklist, and the RTA is retained in the tenant file for reference. (II) If the rent reasonableness database is used to document the rent is reasonable, the THDA will print a Rent Reasonableness Certification form from TNHousingSearch.org, which becomes part of the tenant file. I. The certification form shows that the approved rent is reasonable in relation to rents charged by other owners for comparable units in the same or a similar market area. The form lists the address and other pertinent information for the other three (3) comparable units. (c) Approval of the RTA by the THDA. The THDA will approve the RTA and schedule an inspection, usually within fifteen (15) days of the submission of the RTA, if: 1. All required documentation has been submitted; 2. The rent is reasonable; (i) If the rent is in excess of rents for comparable units, the owner has the option of lowering his rent or removing the unit from consideration. 3. The proposed lease complies with HUD and the THDA’s requirements; HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 4. The owner, unit, and family continue to be eligible; and 5. The owner is not related (parent, stepparent, child, stepchild, grandparent, sister or brother) to the HCV participant, unless approving the unit is necessary as a reasonable accommodation for families that include a member with disabilities. (3) Inspection of a Unit. If the RTA and other requisite documents are submitted within the initial 60-day term of the voucher: (a) Upon receipt of the RTA, the voucher is suspended to give the applicant time to have the unit pass inspection, but no further RTAs will be accepted after the 60th day of the voucher term, unless there is an extension or reasonable accommodation approved. (b) The THDA will schedule the Housing Quality Standards (HQS) inspection of the unit, within fifteen (15) days of submission of the RTA; and (c) In general, if the unit does not pass HQS after two inspections, the RTA will be cancelled for that particular unit, but the family may search for another unit if they are still within the first 60 days of the voucher term or any reasonable accommodation or other approved extension. For further instruction, see 0770-01-05-.23, Housing Quality Standards (HQS) – Initial. (d) If the unit is approved, final computations of Total Tenant Payment, Tenant Rent, Utility Reimbursement Payment and Housing Assistance Payments are completed and the Housing Assistance Payment (HAP) Contract is prepared for execution. (4) Owner and Applicant Household Execute the Owner’s Lease. (24 C.F.R. 982.308(b)(1)). Under the HCV Program, the tenant signs a lease with the owner, which defines the terms and conditions of their relationship. (a) The executed lease must be received by the THDA within fourteen (14) calendar days of the approval of the unit or assistance will be denied or terminated. (b) The THDA is not a party to the lease and does not sign it. (c) Copies of the lease and other documents will be furnished to the parties who signed them. (d) The tenant must have the legal capacity to enter into a lease under State and local law or have a conservator or guardian. (e) The owner must use the same standard lease form with a HCV participant that is used with non-assisted tenants. If the owner does not have a standard lease form, the THDA will refer the owner to online resources or the local library to search for a suitable lease document. 1. The Housing Assistance Payment (HAP) Contract between the THDA and the owner contains an owner certification that the lease is in a standard form used in the locality by the owner, and that the terms and conditions of the lease are consistent with state and local law. 2. The THDA must approve the lease as part of the Request for Tenancy Approval (RTA) process. HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 (f) Content of Lease & THDA Review. The THDA will review the lease and or addendums for the following requirements: 1. The name of the owner and tenant. 2. The address of the unit leased. 3. The contract rent of the unit. 4. The term of the lease, the initial term and any provisions for renewal. 5. The notice required to terminate the lease after the initial term. 6. Specifications about which utilities and appliances are to be supplied by the owner and which are to be supplied by the family. 7. The THDA staff also may review the lease to determine that it complies with state and local law and may decline to approve the lease if it does not comply. (g) Security Deposits. An owner may collect a reasonable security deposit from HCV tenants. The THDA does not impose any limit on the amount of security deposit that can be collected by an owner as long as the amount is comparable with open market practices, is not in excess of amounts charged to tenants of unassisted units, and complies with state law. (h) Initial Term. The term of the lease will begin on the date stated on the HUD Tenancy Addendum and continue until termination, but such term may not begin until the unit has passed the Housing Quality Standards. 1. The initial lease term must be for a period of 12 months, unless approving a lease for a shorter or longer term is determined to be prevailing market practice or will improve housing opportunities in the area and the initial lease must end on the last day of a month. For example, if a lease starts February 2nd, it will terminate January 31st of the following year. 2. The term of the lease and HAP Contract must be the same, but the HAP Contract may be executed anywhere within sixty (60) days of the effective date of the lease. 3. The lease term may not begin before the unit passes the HQS inspection since the HAP Contract may not be executed before this date. (i) Lease-Purchase Agreements. HUD does not specifically prohibit lease-purchase agreements (24 C.F.R. 982.317(a)), but approval of the unit, the lease, and the terms of the lease must meet normal program requirements, including Housing Quality Standards and rent reasonableness standards. 1. The full rental payment must be specified in the lease. 2. The tenant must not make, and the THDA will not pay, any extra payments above rent payment as calculated by the THDA for the family. 3. Unless the family is a participant in the Homeownership Voucher program, the HCV assistance terminates when the family takes title to the unit. HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 (j) Lease Revisions. The execution of a new lease and HAP contract is required for certain revisions to the lease. 1. A new lease and HAP contract are not required for changes in: (i) Family composition; or (ii) The amount of rent to owner. 2. If the change does not require the execution of a new lease or HAP contract, the owner and tenant may both initial changes in the original document or draft an amendment and an Amendment Notice must be attached to the lease and HAP contract. 3. A new lease and HAP contract must be executed if: (i) There are changes in tenant or owner-supplied utilities or appliances; (ii) The family moves to a new unit, including a unit in the same building or complex; or (iii) There is a change in the term of a lease. If the owner attaches a lease addendum to the lease that changes the term, a new HAP Contract must be executed. (5) Lease Addendums. All addenda, agreements and house rules must be signed by the owner and tenant and attached to the lease. A copy of the lease and all attachments is given to the tenant and owner. A copy is retained in the tenant file. (a) Required Lease Addendums. 1. The HAP C - HUD Tenancy Addendum. The HUD Tenancy Addendum (HUD- 52641A) is part C of the HAP contract that is executed between the THDA and the owner, but it must also be incorporated into the owner lease agreement between the owner and tenant as well. (i) This gives the tenant the right to enforce the provisions of the Tenancy Addendum against the owner. (ii) The terms of the HAP C Tenancy Addendum prevail over any other provision of the lease. 2. THDA Lease Addendum. The THDA Lease Addendum is also required with all owner leases as it ensures that all HUD-required items are present in the owner lease. (b) Owner Lease Addendums for Special Items. Owners and tenants may make special agreements by executing addendums to the owner lease for services, appliances (other than for a range or refrigerator), and other items provided: 1. The owner and tenant agree on the amount of charges covered under the special agreement and the charges are reasonable and not intended to substitute for a higher rent. Costs for seasonal items may be spread over twelve (12) months. 2. Any appliance, service, or other item that is routinely provided to unassisted tenants as part of the lease, such as an air conditioning unit, dishwasher, garage, HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 or anything permanently installed in the unit cannot be placed under a separate special agreement, but must be included in the lease. 3. If an appliance, service or other item is placed under a separate agreement, the tenant must have the option of not utilizing the services, appliances, or other item. 4. The THDA is not liable for unpaid charges for items covered by separate special agreements. 5. If the owner elects to offer the tenant an addendum to a lease, the THDA must receive a copy of the addendum at least sixty (60) days prior to the effective date of the addendum. 6. If an owner offers a lease addendum each year, which renews or extends the lease term, the family and the THDA must be given a copy of the addendum at least sixty (60) days prior to the effective date of the addendum and a new HAP contract must be executed. (6) The Owner and the THDA Execute HAP Contract. (24 C.F.R. 982.305(e)). The Housing Assistance Payment (HAP) Contract is a contract between the owner and the THDA, which defines the terms and conditions of the owner’s participation in the program and authorizes the payment of subsidy to the owner on behalf of the tenant. (a) The THDA may not make a housing assistance payment to the owner until the HAP contract has been executed. (b) When the lease approval process is complete, the owner and applicant household are notified. (c) Once the THDA receives the executed lease from the owner, the HAP Contract is prepared by determining the Total Tenant Payment, Tenant Rent, Utility Reimbursement (if any), and the Housing Assistance Payment. (d) The HAP Contract must be executed no more than sixty (60) calendar days from the beginning of the lease term or assistance will be denied or terminated as the THDA may not enter into a HAP contract for a lease that is dated more than 60 days prior to the HAP contract execution date. (e) If the HAP contract is executed within 60 calendar days of the beginning term of the lease, the THDA will retroactively pay a housing assistance payment to cover the time period between the beginning of the lease term and HAP contract execution. For example, if the beginning term of the lease is January 1, and the HAP contract is executed on February 15, the THDA will retroactively make housing assistance payments to cover the time period between January 1 and February 15. (f) The THDA will only execute a HAP Contract when: 1. The unit passes Housing Quality Standards; 2. There is an acceptable lease dated on or after the HQS inspection pass date; 3. Occupancy standards are met; and 4. The rent is certified as reasonable when compared to other unassisted units. HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 (g) The term of the contract stays in effect until one of the following occurs: 1. Termination by the owner; 2. Termination by the THDA; or 3. The tenant moves from the unit. (h) A copy of the signed contract is maintained in the tenant file, and a copy is given to the owner. (7) HAP Contract Execution for Zero HAP Families. A HAP contract may be entered into when the housing assistance payment is zero if the family’s housing assistance payment has been zero for less than six months (180 days). If the landlord refuses to enter into a HAP Contract for a zero amount, the family may decide to search for a new unit with continued assistance or to have their assistance terminated. (8) HAP Contract Execution for “Free Rent” Periods. If a household chooses a unit where the owner offers a “free rent” period, a HAP Contract may be executed with a zero housing assistance payment for the “free rent” period. (a) For example, if an owner offers a family a 2-month free-rent period with a lease beginning July 1st, the HAP contract and lease will be effective July 1st, but the housing assistance payment will be $0 for that free-rent period. (b) The THDA will determine the ending date of the free-rent period, and will execute an interim change effective the day following the ending date of the free-rent period. 1. Since interim changes must be processed at the beginning of the month, an adjustment may be necessary for the time period between the end of the free rent period and the beginning of the next month. 2. When the free rent period expires, a HAP Amendment will be mailed to the family and owner, which updates the HAP Contract with the new housing assistance payment and tenant rent payment. (9) HAP Contract Transfer/Assignment. (a) An owner may not transfer or assign a HAP Contract without the THDA’s prior consent. (b) If an owner requests an assignment or transfer of the HAP Contract due to a property sale, foreclosure, receivership, or death, the new owner must supply all information requested by the THDA and sign the THDA’s HAP Contract Transfer form within sixty (60) days of such request or the THDA will relocate the participant. The new owner may request to enter into a new lease and HAP contract after the initial lease term, as long as the change does not displace and/or otherwise adversely affect the assisted participant. Any requests for rent increases will be subject to the rent reasonableness test. (c) The payment may not be paid to the new owner until all appropriate transfer and ownership documentation is received by the THDA. (d) Sale of Property. When a property with a HCV occupant is sold, the THDA will require proof of ownership, typically a valid, registered deed of trust, W-9, and the HAP Contract Transfer form before the payment may be transferred to the new owner. HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 (e) Foreclosure. When a property with a HCV occupant is foreclosed on, the THDA will require documents from the bank or lender that show the date of the foreclosure. If the bank or lender wishes to have the payments transferred, a valid, registered deed of trust transferring ownership, a HAP Contract Transfer form signed by an authorized representative, and a W-9 form are required before the payment may be transferred to the new owner. (f) Death. When the owner of a property is deceased, the documents the THDA will require will vary based on the circumstances. 1. If an executor or administrator of the estate has been appointed, the THDA will require valid testamentary documentation indicating appointment of an executor or administrator of the estate, the court order for the probate of the estate, and the HAP Contract Transfer form must be signed by the executor or administrator of the estate. The existing W-9 may be used while the estate is in probate. 2. If the property is transferred after the owner’s death, the THDA will require a court order, or other legal instrument recognized under state law, which transfers ownership of the property, control of the property, or the rights to rent. The new owner must sign the HAP Contract Transfer form and W-9 form. Also see 0770- 01-05-.27(2)(d)3 regarding the death of the only remaining household member.