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The Owner must reimburse HUD for all overpayments of assistance where such overpayments were due to the owner's error or the owner's failure to follow HUD's procedures.
The owner may reimburse HUD for these overpayments in one lump sum. However, if immediate repayment in full would jeopardize the financial condition of the property, HUD/Project Based Contract Administrator (PBCA) may permit the owner to remit repayments over a period of time.
All repayments must be submitted through TRACS as a reduction of the Housing Assistance Payment (HAP) Voucher.
The Owner is not required to reimburse HUD immediately for overpayments of assistance where the overpayment was caused by the tenant's submission of incorrect information. Tenant repayments are required as tenants repay in accordance with an agreed-upon repayment plan.
The HUD Handbook 4350.3 REV-1, CHG 4, Chapter 8, 8-20, outlines the tenant's obligation to repay due to overpayment of housing assistance payments. Once the amount the tenant owes is determined, the owner/management agent (O/A) is required to reimburse HUD.
All repayments must be submitted through TRACS as a reduction of the Housing Assistance Payment (HAP) Vouchers.
Tenants can repay amounts due:
1. In a lump sum payment; or
2. By entering into a repayment agreement with the O/A; or
3. A combination of options 1 and 2 above
The tenant and O/A must both agree on the terms of the repayment agreement. The tenant can consult with HUD’s Housing Counseling Agency in their area to assist them in working with the O/A to reach agreeable terms for the repayment agreement.
**These transactions are no longer submitted as OARQ miscellaneous accounting request**
Refer to the latest HUD Notice, Tenant Repayment of Unreported or Underreported Income – Section IX. C.