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HUD will be transitioning from TRACS 202D to 203A beginning on August 1, 2017 with full implementation by October 31, 2017.  If you have not transitioned by November 1, 2017, your TRACS files will no longer be accepted.

The largest change for TRACS 203A is the tracking of Repayment Agreements.  HUD has discovered that repayment agreement data transmitted to TRACS is often of poor quality and HUD is unable to fulfill its reporting requirements.  To assist with this transition, NHC voucher specialists will be reviewing all repayment agreements submitted, along with your July HAP submission, and providing you with a report of all active repayment agreements.   We will also be providing you with a worksheet to assist in your data gathering process.  You will be asked to verify this information with NHC before transitioning to TRACS 203A.  It is imperative that your first submission in 203A provides accurate repayment agreement baselines.  You should receive your repayment agreement baseline summary no later than July 15, 2017.

TRACS 203 Industry Specification Guide states “2.0.3.A: Repayment Agreements--With the initial implementation of TRACS version 2.0.3.A, OAs must transmit to HUD, the current status of ALL repayment agreements that have been recorded in TRACS when there is still a balance due and tenants are currently in residence. A record must also be transmitted for all active agreements for moved-out tenants when the former tenants are making payments.  This includes those Repayment Agreements with a Repayment Agreement Type of N(None).”

-For more information, please review the TRACS 203A Industry Specifications Documents.

A few interesting items:

·         There is no minimum amount for a repayment agreement.  In the event a tenant pays off an amount due      immediately, that must be included on the voucher.

·         When submitting under 203A, all records must be grouped together by ID

·         All self- managed repayment agreements must also be baselined.

Repayment agreement information must be verified with your NHC voucher specialist before submitting your first TRACS 203A files.  If you have questions when your software will be ready to transition, please contact them directly.

In the event you need to create a repayment agreement, please refer to Chapter 8-23 of the HUD 4350.3 Rev 1 Change 4 for more guidance.  When calculating the amount owed you must use the amount of subsidy HUD paid verses the amount of the subsidy HUD should have paid.  Please do not use total tenant payment and utility allowances as part of your calculation.

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