Question: If the utility Allowance remains the same does the tenant have to sign the computerized 50059?
Answer:
Some gross rent adjustments do not impact the tenant portion of the rent. This occurs when either there is no utility allowance at the property or the utility allowance remains unchanged yet contract rent is adjusted. In either scenario, when the owner generates HUD Form 50059As along with updates to previously completed full certifications with subsequent effective dates, tenant signatures on these certifications are not required.
Different rules apply in instances where the tenant portion of the rent does change. In the latter scenario, when the utility allowance changes, both the owner and household must sign the resulting certifications. However, the household has 60 days to sign the certification(s). In the interim, the tenant data containing the owner signature, can be transmitted via iMAX, with an extenuating circumstance code (TRACS 202D Specification, Section 2,24.4).
More About 50059 Regulations and other questions:
If you are interested in finding out more about the 50059 and how it applies to your property ownership, or if you have other questions regarding HUD compliance, reach out to the DeSilva Housing Group today. We are a training and consulting firm that specializes in HUD compliance for property owners and managers in the affordable housing industry. We offer valuable resources to keep your property compliant and protect your investment.
