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The purpose of a Management and Occupancy Review (MOR) is to verify compliance of the property with the terms of the Housing Assistance Payments Contract and Regulatory Agreement. Owner compliance will also be verified regarding civil rights regulations, including Title VI, Title VII, the Americans with Disabilities Act, and Section 504 of the Rehabilitation Act of 1973. The MOR will be conducted annually and in accordance with HUD Handbooks 4350.1 and 4350.3 REV-1.


MAM is required to perform the MORs under a pre-approved schedule. About 30 to 60, but not less than 14 days prior to the MOR, MAM will contact the property owner/agent to schedule the date and time for the review and follow-up with a letter confirming the date and time. The owner/agent is responsible for providing proper notice to residents advising them that their unit may be chosen for inspection.


Before the actual inspection, compliance will be reviewed to determine property status by referring to information that can be obtained from outside sources. This would include the latest REAC inspection, complaints and inquiries from residents and other sources, contract renewal status, and prior MORs.


The on-site Management and Occupancy Review begins with an interview with the owner/agent to review the completed Management Review Questionnaire (HUD-9834) and determine whether existing policy conditions and procedures are acceptable and if corrective action is needed. The following will be discussed and reviewed, if applicable, but not limited to:

  • Waiting List

  • Rent Schedule (HUD-92458)

  • Rent Roll

  • Sample Lease with Attachments

  • House Rules

  • Pet Rules/Agreement and Pet Deposit Policies

  • Lead Based Paint Certifications

  • Energy Conservation Plan

  • Income Targeting Monitoring System for 40% Extremely Low Income leasing requirements

  • Resident Handbook

  • Tenant Selection Plan

  • Application for Tenancy


The physical inspection will include a general inspection of buildings and grounds including, but not limited to:

  • Areas cited for exigent health and safety items noted in the latest REAC inspection to ensure problems have  been remedied.

  • Random sample of other units that have REAC issues

  • Selection of at least two vacant resident units


A random audit of resident files will be conducted to verify HUD compliance regarding, but not limited to:

  • Resident eligibility and selection

  • Income and assets

  • Third party verification of resident income and assets

  • Household characteristics

  • Adherence to income limit guidelines

  • Lease and lease addendums

  • Security Deposits

  • Certification and recertification of family eligibility

  • Initial notice of next recertification

  • Citizenship documentation

  • 9887/9887A Consent Form

  • Lead Based Paint Addendum

  • Social Security Number verification/documentation

  • 50059

  • Disposal of assets

  • Move-out procedures

  • Application rejection files


 A close-out meeting will be conducted upon the completion of the review to discuss the results and any preliminary findings and concerns identified.


Within 30 days of the review, a written report that provides a rating, outlines findings and corrective actions needed, will be sent to the owner/agent. If the property is rated below satisfactory, a copy is sent to the Multifamily HUB or Program Center. An owner response is needed within 30 days from the date of the report outlining corrective action taken. Once it is determined that the owner has responded and taken all corrective action, MAM will notify the owner with a close-out letter.


If a response is not provided addressing all open findings within the requested time period, HUD may initiate an adverse action in the Active Partners Performance System (APPS) against all principals of the ownership entity, as well as the management agent, indicating nonperformance under the business agreement. Such an action may restrict them from entering into any new business with HUD. Additionally, HUD may also impose other sanctions including, but not limited to, abatement and/or termination of the HAP contract, requirement to change management agent, and/or denial of any request for a withdrawal from escrow accounts.

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