The CA Quarterly Review (Summer 2021)



From the Desk of Joyce O’Shea Acting Contract Administrator for Northern California

Dear Owners/Agents and Colleagues,

Welcome to another edition of the CAHI Quarterly Review Newsletter. Wow, Summer is here. Every change in season feels like turning another page, as we move forward with vaccination and re-opening efforts. I remain hopeful that I will get to meet some of you in person one day!

With Summer also in mind, we cannot ignore the historic heatwave and extreme drought affecting our western states. The U.S Department of Housing and Urban Development Multifamily West Region Office recently sent out a reminder for all Multi-family properties to check and update their Disaster Management Plans. This is also the perfect time for Owners and Agents to update contact information in iREMS in the event of emergencies.

I also would like to take this opportunity to welcome Owner and Agents that are new to CAHI. Since October 1, 2004, CAHI has served as the PBCA for Northern California. Several contracts, previously administered by HUD, or by the Traditional Contract Administrators, have been recently assigned to CAHI. Currently, CAHI serves over 560+ properties and administers Project-Based Section 8 contracts for over 14,000+ assisted units. Our amazing staff continues to be available to answer any questions you may have, and to ensure a smooth transition for your properties.

CAHI, in continued partnership with CGI, remain committed to sharing helpful information to our Owners and Agents, as we receive relevant updates on the federal, state, and local levels.

I sincerely hope you enjoy latest edition of our newsletter.

Joyce O’Shea
Acting Contract Administrator for Northern California

palm trees


Procedures in the Event of Resident Displacement and/or Property Damage

HUD has acquired a great amount of knowledge and best practices over the past several years on how to efficiently respond to a Presidentially Declared Disaster (PDD). As a result HUD has developed guidance that covers the many different aspects of servicing multifamily properties that were damaged or vacated as a result of a PDD. This guidance also applies to all HUD insured/HUD assisted properties in situations where the Hub Director determines that an emergency exists.

To remind you of the procedures and tools available for owners and residents impacted by natural disasters, HUD has developed the Multifamily Housing Guidance for Disaster Recovery website. The information found here will make post-recovery efforts go more smoothly if an event occurs that impacts your residents and/or your property.

For your convenience, Chapter 38: Multifamily Emergency/Disaster Guidance, from HUD Handbook 4350.1 includes procedures to provide HUD staff, Owners, Management Agents, and communities with the tools that they need to react to emergency situations. HUD encourages you to review this material before an event occurs.

Following an event that impacts residents and/or properties, HUD has reporting obligations based on information staff obtains from Owners and Management Agents of HUD insured and/or assisted properties. Owners and Management Agents are obligated to always immediately report physical damage to a property interior or exterior that has resulted from a fire, flood, wind, severe cold, or other natural disaster or weather event. It is most convenient for all parties if Owners and Agents proactively report to HUD. Owners are encouraged to complete and forward damage assessments to HUD. Please use the forms as follows:

  • For a FEMA Declared Emergency or Disaster: Preliminary Disaster Assessment (Appendix A-3 of Chapter 38 of Handbook 4350.1.)
  • For an Event not declared by FEMA: Basic Damage Assessment

Please forward the appropriate Assessment Form within 24 hours of the damage. Either form should be legibly handwritten and emailed to:

To find your assigned Account Executive, please go to the following website:

Updated reports should be submitted as additional information is available concerning resident displacement or regarding the level/amount of damage sustained. While the Department is not a payee on an insurance loss draft for a property with an insured mortgage, HUD must still be notified of the event and any damage sustained to the property.

Owners/agents are responsible for:

  • Developing an emergency relocation plan to relocate residents prior to the storm especially at 202/811 Elderly or Disabled Properties and nursing homes;
  • Developing a pre-disaster checklist that is shared with tenants in case of a disaster;
  • Ensuring that the property and records are secured and that residents’ possessions and valuables are secured and protected to the greatest extent possible.
  • Contacting FEMA for on-going guidance and instruct residents to register with FEMA through 1- 800-621-FEMA (3362), or
  • Applying for assistance with FEMA, Small Business Administration, Housing Finance Agency and others; 
  • Contacting the local HUD office following a disaster;
  • Providing a status report for the residents and property condition;
  • Ensuring that residents provide EMERGENCY contact numbers;
  • Determining the extent of damage, security needs, resident property protection needs, etc.
  • Contacting the property’s insurance provider to apply for property and business interruption claims; 
  • Maintaining inventory of all residents, property, phone numbers, mailing address, and emails; 
  • Determining which residents have been displaced due to unit damage or a failure of a major building system such as the electrical system, etc.; and 
  • Tracking each displaced resident’s temporary location and maintain contact information for each displaced resident, particularly if the property will likely have units off-line for more than 30 days.

Owners should not evict tenants from their unit in order to make hurricane related repairs. The Department encourages you to revisit the instructions provided in Chapter 38 of Handbook 4350.1 for related Emergency/ Disaster Guidance. Other Important Contact Information:

  • Federal Emergency Management Agency (FEMA) 1-800-621-3362 –
  • American Red Cross - 1 800 RED CROSS (1-800-733-2767)
  • HUD's housing discrimination hotline: 800-669-9777 (Voice), 800-927-9275 (TTY).


Pandemic Income Sources

The CARES Act identified different types of unemployment compensation and the COVID-19 FAQ identifies which are to be included or excluded from annual income calculations.

The CARES Act contains the following three types of unemployment compensation:

  • Section 2102: Pandemic Unemployment Assistance (PUA). This is an unemployment benefit for individuals who are self-employed, seeking part-time employment, or whom otherwise would not qualify for regular unemployment insurance (UI). HUD has determined that PUA benefits must be included as annual income.
  • Section 2104: Federal Pandemic Unemployment Compensation (FPUC) program. This program provides eligible individuals who are collecting certain UI benefits, including regular unemployment compensation to receive an additional $600 in federal benefits per week for weeks of unemployment ending on or before July 31, 2020. HUD has determined that FPUC benefits meet the definition of temporary income and must NOT be included in annual income.
  • Section 2107: Pandemic Emergency Unemployment Compensation (PEUC) program. This program provides an extension to regular unemployment insurance benefits for eligible individuals, allowing them to receive up to 13 weeks of additional benefits (this extends UI from 26 weeks to 39 weeks in total). HUD has determined that PEUC benefits must be included in annual income.

HUD also notes that regular payments of unemployment insurance (issued by the state) are treated as annual income according to existing HUD policy.

The Economic Impact Payment (which is technically an advance payment of a tax credit that may be claimed on a tax return) provided by the CARES Act is not to be included in calculations of tenant income. This would also include the Advance Payment of the Child Tax Credit if a family chooses to receive them.

flowersAs noted in the HUD 4350.3 Chapter 5, 5-6 Q.4 lump sum payments caused by delays in processing periodic payments for unemployment or welfare assistance are included as income.

HUD currently has not made any final determinations regarding income inclusion or exclusion for the Paycheck Protection Program or any Emergency Rent Relief Programs.

Additional information can be found within the HUD Multifamily COVID-19 FAQ document. Residents can also find helpful information navigating the pandemic within the COVID-19 Guidance for Residents document released by HUD on June 3, 2021.

Top Reasons that Special Claim Submissions are Denied

Top Reasons that Special Claim Submissions are Denied:

1) The Claim is received after 180 days from the unit ready date.
The unit ready date is the day after all work is complete in the unit and it is ready to be rented. Claims must be received within 180 days of this date.
2) Security Deposit Disposition Letter:

  • Calculations on the Security Deposit Disposition letter are incorrect and the incorrect amount is being returned/charged to the tenant.
  • MO date on the letter does not match the MO date of the certifications received.
  • The security deposit should first be applied towards unpaid rent, tenant damages and other charges and then to the vacancy claim for the remaining amount to be forfeited. Charging the tenant for the security deposit on the Security Deposit Disposition Notice and not applying the deposit collected toward any charges is overcharging the tenant and will result in a denial.

3) MO/MI Certifications not viewable in TRACS:
When a tenant is terminated, a MO certification must be transmitted to TRACS. If the MO effective date is not within 15 months from the effective date of the last AR processed, a TRACS Multi-Family Move Out Request Form is needed.

4) Security Deposit Collected:

  • The Security Deposit collected does not match the TTP amount (or met the rules in effect at the time the deposit was collected) of the signed MI certification received and no explanation was provided to justify the discrepancy.
  • For transfer out tenants, evidence that the security deposit was returned to the tenant (Security Deposit Disposition Letter) or was transferred to the new unit must be submitted.

5) Issues with the MI HUD 50059:

  • The MI 50059 for the MO tenant was not submitted and an adequate explanation was not provided as to why it could not be provided.
  • MI 50059 was not signed by tenant/OA.

6) Waiting Lists/Marketing efforts:

  • Skipped tenants must have a comment to support why they have been skipped over.
  • The waiting list does not list applicant status or contact dates for applicants supporting that wait list was being worked for claims over 60 days.
  • MI tenant was not listed on the waiting list provided.
  • Advertisements provided do not:

    - List the date in which they were published;
    - Support that marketing took place during the vacancy period;
    - List the Fair Housing Logo/Motto/Slogan.

7) HUD forms 52671-C, 52670-A Part 2, 52671-A: Not signed and/or dated. 8) Unpaid Rent/Damages:  Missing documentation to support that the matter was turned over to collections.  Missing evidence that the security deposit was sent certified mail.

Housing Notice H 2021-02

On June 30, 2021, HUD released Housing Notice H 2021-02: Guidelines for Certain HUD Approvals Regarding Properties Encumbered by HUD-Held Mark-to-Market Program Debt and Portfolio Reengineering Demonstration Program Debt.

1. This Notice:

  • replaces Housing Notice 2012-10, “Guidelines for Assumption, Subordination, or Assignment of Mark-to-Market (M2M) Loans in Transfer of Physical Assets (TPA) and Refinance Transactions” in its entirety;
  • provides new instructions for the acquisition and/or refinancing of projects which have been through a M2M debt restructuring or a Demo Program restructuring (collectively, “Post M2M”) and are encumbered by HUD-held debt.

2. Section 3 of this Notice replaces Appendix C of the Mark-to-Market Operating Procedures Guide regarding transfers of assets to qualified nonprofits.

3. This Notice does not apply to transactions where the Post M2M debt will be repaid in full, although other HUD requirements

Except as otherwise specified, for the remainder of this Notice, the term “M2M” shall be used to mean either M2M or the Demo Program, and the term “Note” shall be used to mean an MRN, CRN, or Demo Note.

This Notice is effective immediately for all Requests or applicable transactions initiated after June 30, 2021

This Notice includes the following Sections:

Section 1: Provides definitions for terms used in this Notice.

Section 2: Describes the processing requirements applicable to the activities covered by this Notice and governs any request to assume and/or subordinate M2M debt and to waive the due on sale or refinance clause contained in the loan documents that evidence and secure M2M debt.

Section 3: Governs any request made by a “Qualified Purchaser” (defined below) to receive certain types of debt relief with respect to an MRN or CRN. Section 3 does not apply to Demo Notes.

Section 4: Governs certain requests for a term extension of a Note.

Section 5: Governs any request for approval of a proposal under Section 8(bb)(1) of the United States Housing Act of 1937 for HUD to transfer the budget authority remaining on a project-based Section 8 Housing Assistance Payments (HAP) Contract at the time of its termination to another HAP Contract in cases where either the project from which budget authority is transferred (Project A) or the project to which it is transferred (Project B) is subject to a Full M2M Renewal Contract (defined below).

This Notice streamlines and revises pre-existing guidance related to the refinance, assumption, subordination, assignment, forgiveness, or modification of Notes. This Notice reduces processing requirements not warranted by the benefits and provides transparency regarding processing of requests not addressed in the prior guidance. Among the key provisions and changes are to:

  • Streamline HUD review of the first mortgage debt to focus on maximizing Project cash flow, protecting long-term viability of the Project, and evaluating the impact on future valuation of the Project for the remaining term of the M2M Use Agreement.
  • Emphasize preservation of the affordable housing resource as a core criterion for granting waivers of the due on sale or refinance clause.
  • Replace the emphasis on “Strategic Communities” with an emphasis on preservation of affordable housing, as documented by meeting projected capital needs, as the basis for granting incentives within the Notice.
  • Consolidate into this Notice the subjects covered in Appendix C of the Mark-to-Market
  • Operating Procedures Guide and provide more detailed guidance regarding review of proposed Qualified Nonprofit Purchasers.
  • Establish guidance on processing Notes that are in default to maximize coordination among HUD offices.
  • Establish guidance on processing a request for approval of a proposal under Section 8(bb)(1) of the United States Housing Act of 1937 for HUD to transfer the budget authority remaining on a project-based Section 8 HAP Contract at Project A at the time of its termination to another contract (i.e., at Project B) when either project is subject to a Full M2M Renewal Contract.

If you have questions regarding this Notice, please contact Kara Williams-Kief by email at , or contact the Account Executive assigned to the Project at the Multifamily Regional Center.

CDC Eviction Moratorium

The Centers for Disease Control and Prevention (CDC) have extended the eviction moratorium for one final month. The moratorium was scheduled to expire on June 30, 2021 and is now extended through July 31, 2021. The Biden Administration announced a number of steps to keep people in their homes by protecting renters who are still experiencing difficulties from the pandemic and its economic fallout. You can read the revised order and the White House Fact sheet for additional information.

COVID-19 Resources

A new section has been added to the CAHI website under 'Hot Topics' called COVID-19 Resources. HUD and California resources dealing with the pandemic and pandemic relief will be posted here. This page will be continuously updated with the lasted COVID-19 resources so please check this page for the latest information. Click here to visit the COVID-19 resources page.

Below is a summary of recent posts and resources to help tenants and property owners navigate through this pandemic.

HUD Resource Page for Renters
For HUD’s COVID-19 resource page for renters, please click here.
CAHI Member Spotlight

dogCharles Young – State Manager for CAHI/CGI

How long have you been with CGI?
I have been with CAHI/CGI for 17 year as of July 12 .

What was your background prior to joining CGI?
I had a pretty varied background prior to joining CGI. Out of college, I worked for an economics and litigation consulting firm, then spent about 4 years working in advertising and marketing. Then just before CGI, I was a Management Analyst at the Oakland Housing Authority. There I helped manage grant programs and worked with service providers who offered job training, home buying support, and other social services to housing authority residents.

What are your hobbies? Things you enjoy doing after you leave the office?
I enjoy going to the gym, which is something new for me over the last 5 months. I enjoy spending time with my family and I also enjoy going to the Casino.

What brings you the most satisfaction in your day to day tasks?
The outstanding co-workers I have here at CAHI/CGI. Our staff here do an amazing job juggling dozens of tasks in various stages of completion; all with different deadlines. They support owners and agents in getting their HAP payments timely, their contract rents properly adjusted, fielding tenant complaints/concerns and resolving compliance issues via MORs. There’s also an amazing team of people behind the scenes, that owners and agents don’t often see, such as our members working in Finance, Training and Compliance, and Business Operations; they all help to ensure we can provide the best service possible to HUD, tenants, owners and agents. That our work helps owners and agents ultimately provide safe and decent housing to eligible families in need provides me with great satisfaction.

What is the best piece of advice that you could provide to an owner/agent?
When you get a 6 month reminder notice for a renewal or rent adjustment, and you need to do a utility allowance baseline, get started as soon as possible on the baseline. The UA baselines always seem to take longer than anticipated and often times delay the otherwise timely completion of these processes!

If you are not already receiving this publication via e-mail or if you have ideas, suggestions or questions for future publications, we’d like to hear from you. Send an email to

All Residents of HUD Subsidized Properties

California Affordable Housing Initiatives (CAHI) is the HUD Contract Administrator and is responsible for responding to resident concerns. CAHI Call Center has a team of Customer Relation Specialist (CRS) that will receive, investigate and document concerns such as, but not limited to the following:

  • Questions or concerns regarding work order follow-up.
  • Questions regarding the calculation of your rent.
  • Address health & safety and HUD Handbook 4350.3 concerns.

Call Center Purpose

  • Call Center aids in ensuring HUDs mission of providing Decent, Safe and Sanitary Housing.
  • Serves as a neutral third party to residents, owners and the public.
  • Assists with clarifying HUD Occupancy Handbook 4350.3 requirements.

Call Center Contact Information and Business Hours
   Hours of Operation: Monday-Friday, 8:00am to 5:00pm
   Contact Numbers: 800-982-5221 fax: 614-985-1502 (leave message after hours)
   Written Summaries: 8760 Orion Place, Suite 110, Columbus, Ohio 43240

Concerns can be submitted by the following:

  • Phone
  • Fax
  • Mail
  • Email
  • Voicemail
  • FOIA- Freedom of Information Act request must be submitted directly to HUD

Required Information to open an inquiry

  • Property name Caller’s name (anonymous calls accepted)
  • Caller’s telephone number with area code
  • Caller’s address including apartment number
  • A brief, detailed description of the caller’s concern(s)