Voucher Processing

The Vouchers Department is responsible for the review, processing, and payment of monthly Housing Assistance Payment (HAP) vouchers submitted by owner/agents.  All voucher and tenant data is submitted through TRACS, and LOMOD works to ensure payments are accurate, timely, and compliant with HUD requirements while supporting owners through both initial setup and ongoing processing.

Key Responsibilities

• Review monthly HAP vouchers and tenant data submissions for accuracy and compliance
• Issue discrepancy notices and corrections
• Ensure timely HAP payments to owners
• Manage baseline setup for new or transitioning properties
• Review and process Special Claims

Monthly Voucher Processing

LOMOD works closely with owner/agents to ensure monthly vouchers are submitted and paid timely. An owner submits their monthly voucher and tenant data through TRACS via iMAX.

• HUD requires HAP Vouchers to be submitted by the 10th of each month; however, owner/agents may begin submitting vouchers and tenant files as early as the 1st
• LOMOD reviews voucher for discrepancies
• If issues exist, corrections are requested; if issues cannot be resolved, a discrepancy notice is issued
• Reconciled vouchers are approved and processed for payment

Timely and accurate submissions help prevent delays and ensure consistent HAP payments.

Who is this for?

• Owner/agents submitting monthly HAP vouchers
• Properties completing the baseline (startup) process
• Owners managing ongoing tenant data and subsidy payments

How to Get Started (Process Overview)

Initial Setup Requirements for Properties Transitioning to LOMOD (Baseline Process):

1. Submit required documentation, including:

• Executed rent schedules (current and prior)
• Unit listing with bedroom sizes (Rent Roll)
• Income limits (city or county)
• W-9 and direct deposit (ACH/1199) forms

2. Prepare and submit tenant baseline TRACS data
3. Submit prior vouchers for reconciliation
4. Coordinate with your assigned voucher specialist

This step ensures a smooth transition of voucher payments to LOMOD.

Ongoing Monthly Process:

1. Submit voucher and tenant data via TRACS/iMAX by the 1st (no later than the 10th)
2. Review and address any discrepancy notices
3. Resolve outstanding issues before the next cycle

Failure to correct discrepancies may result in repeated issues and potential findings.

Common Issues (Avoid Delays)

• Late voucher submission (after the 10th)
• Missing or incorrect tenant/TRACS data
• Failure to resolve prior discrepancies
• Missing active UEI or SAM registration
• Open or unresolved prior vouchers

Unresolved issues may carry over month-to-month and impact processing.

Special Claims Overview

HUD’s Special Claims process allows owners of Section 8 multifamily properties to request reimbursement for specific financial losses that occur during tenancy or unit turnover.  Owners may request reimbursement for certain financial losses, including:

• Vacancy Loss Claims (Regular Vacancy)
• Unpaid Rent Claims
• Tenant Damage Claims

Who is this for?

• Owner/agents experiencing vacancy loss
• Owner/agents experiencing unpaid rent claims and tenant damages

How to Get Started

• Complete the correct HUD forms
  • HUD‑52670‑A Part 2 – Schedule of Special Claims
  • HUD‑52671‑C – Regular Vacancies
  • HUD‑52671‑A – Unpaid Rent/Damages
• Follow HUD’s sample checklists and tools
  • Appendix 3B: Regular Vacancy Checklist
  • Appendix 3C: Vacancy Reconditioning Log
  • Appendix 5B: Unpaid Rent/Damages Checklist
  • Appendix 5C: Damage vs. Normal Wear and Tear
  • Appendix 5D: Life Expectancy Chart

Key Requirements

• Claims must be submitted within 180 days of unit availability
• Claims received after the deadline are automatically ineligible for review
• Complete documentation is required for all claims

Appeal Process

If a claim is denied or reduced:

• The owner/agent must appeal within 30 calendar days of the denial letter
• The appeal must include corrected or additional documentation addressing the specific reason for denial
• Appeals submitted after 30 days are automatically denied

Ownership, Management and Banking Changes

Updating ownership, management, and banking information ensures that HUD and LOMOD have accurate records for contract administration, authorized signors, and direct deposits. This process protects the integrity of HAP payments and prevents delays by confirming that all documentation aligns with HUD requirements and property records.

Benefit to Owners

• Ensures timely and accurate HAP deposits to the correct bank account
• Prevents payment interruptions caused by outdated or incomplete information
• Strengthens financial security by verifying authorized signors and ownership documentation
• Maintains compliance with HUD regulations and PBCA oversight

How to Get Started (Process Overview)

• Submit required documents, including the Assignment of HAP, HUD‑9839‑B, Form 1199A, voided check, 2530 or authorization letter, W‑9, SAM/UEI verification, and the LOMOD Questionnaire
• LOMOD reviews all documentation for accuracy, verifies signatures and banking details
• Once approved, LOMOD updates the property’s records and sends written confirmation
• If updates are pending near the HAP release date, owners may choose to release funds to the current account or hold funds until updates are finalized

Common Issues (Avoid Delays)

• Incomplete forms
• Missing documentation
• Non-responsive to document requests
• Open inquiries: Updates may take several months if the necessary documentation is not provided.

Delays in providing complete documentation may result in extended processing timelines.