All Special Claims requests must be submitted on the required forms, i.e. HUD 52670-A Part 2 and 52671-C, with authorized signatures and dates and with the proper documentation attached to justify the claims. The claims are reviewed for eligibility and accuracy according to HUD Handbook 4350.3, and the Special Claims Processing Guide. Payments of claims are not paid without pre-approval. One copy of each claim is required. KHC retains the original with the back up documentation for the files and a copy of form HUD 52670-A Part 2 is returned to the property with the approved/denied status of the claim. If adjustments have been made or the claim has been denied, form HUD 52671-C will be returned with a letter explaining reasons for the discrepancy. Claims must be submitted for payment within 90 days of approval/adjustment and it is filed with the corresponding HAP voucher. All claims are processed and returned to the property within 30 days as required. Only claims that are submitted within 180 days of the date the unit was ready for occupancy will be considered.
*A Sample Cost Listing for tenant charges has been drafted for your review.
Vacancy Claims:
The following documentation must accompany the vacancy claim:
Notice of intent to vacate to verify a 30-day notice, i.e. block 10 of claim form.
Copy of disposition of security deposit to verify charge backs if applicable.
Copy of advertisement/billing during the vacancy period for claims 30 days or more and copy of the master waiting list log.
Note: Vacated units where the move-in is a unit transfer or a tenant transfers to the same size unit are not approved. An exception would be verified medical reasons or family composition change. Reason for adjustment or denial of a claim is addressed on the claim form and by letter.
Note: The owner is not entitled to vacancy payments for the period following occupancy by a police officer or security personnel. HHB 4350.3, Chapter 9-14, Paragraph A2.
Tenant Damages & Unpaid Rent Claims:
The eligibility criteria and documentation is more extensive for tenant damages and unpaid rent claims. The owner is eligible for these claims if:
- The property has provided evidence of owner's attempts to collect the amounts due from the tenant and provides evidence that it was sent to a collection agency.
- Amounts were not collected from either the tenant or other sources
- State and local law would permit such amounts to be deducted from the tenant’s security deposit.
Damage claim payments will be made for the actual cost of the repair work. Only claims with complete documentation and a breakdown of the cost of repairs will be considered. Complete documentation is defined below:
- Move-in inspection report completed and signed by the tenant and management documenting the condition of the unit at initial occupancy.
- Any interim inspection and documentation of management action.
- Inspection report on any prior damage claims charged to the tenant and a record of payments made if any unpaid damage claims are requested.
- Move-out inspection report, which must detail the damages. Detailed itemization of the actual cost of repairing the damages must include invoices for materials, removal of abandoned personal items, labor costs and replaced items with date of prior replacement. Replaced items will be paid at a prorated rate.
- Verification of the ready for occupancy date (ie: reconditioning log, maintenance log, etc.)
- Damages do not include normal wear and tear, routine cleaning and turnover. This consists of (but isn't limited to) rug shampooing, washing walls and windows and cleaning appliances. Excessive cleaning must be documented by detailed explanation on the move-out inspection as to the nature of cleaning to be considered for payment. Routine cleaning and turnover may also include the replacement of light bulbs, doorstops and tips, drip pans and ice trays, re-keying locks, repairing nail holes, etc. Attorney fees and unpaid utility bills are not considered for payment.
Unpaid Rent claims must be supported by a copy of the tenant’s rent record showing the rent due and payable and that all collection efforts were pursued.
After payment of tenant damages and/or unpaid rent by KHC, any subsequent amount collected from the tenant through collection efforts should be refunded to KHC on the next voucher.
To assist the owner/agent in preparing special claims for submission, KHC has a detailed disposition of security deposit form and a special claims documentation checklist available. Also available is a property claim step by step processing guide.