|
Happy New Year.
As we begin the new year, we would like to share important updates regarding several Cincinnati Metropolitan Housing Authority processes.
CMHA has been notified by the Internal Revenue Service (IRS) of errors in the setup of owner and property manager records within our system, which have resulted in inaccurate 1099 forms. To address this issue, a current, signed W-9 is now required for every unit that goes under contract with the program. The information provided on the W-9 will be matched with IRS Tax Identification Number (TIN) records to verify accuracy. CMHA will not execute a contract for any unit until a current W-9 is received and the tax ID information has been successfully validated.
For owners who use property management companies to receive Housing Assistance Payments (HAP), the W-9 must reflect the tax ID of the entity receiving the payments. CMHA will establish one landlord code per entity for 1099 reporting purposes. Landlord codes will no longer be created based on property ownership; instead, they will be established based on the party receiving payment under their tax ID number. If you are a management company for multiple property owners, you will be set up with one landlord code for your tax id number since you are the entity receiving the payments from CMHA. This change is effective immediately.
Unfortunately, CMHA has no discretion in this matter, as this change is required by the IRS to prevent penalties associated with issuing inaccurate 1099 forms. Owners and property management companies must complete the W-9 using the same tax ID information used when filing taxes with the IRS.
In addition, owners must sign and return HAP Contracts within 30 days of receipt to avoid cancellation of the Request for Tenancy Approval (RTA). If an RTA is cancelled, a new submission will be required. Please note that a passed inspection is valid for 30 days; therefore, timely return of contracts—along with a copy of the residential lease agreement—is necessary to avoid the need for a new inspection.
Before submitting your lease agreement, please ensure the following information is accurate and complete:
- The contract rent amount
- The full unit address, including apartment number if applicable
- The effective date of the lease agreement and lease term (HUD requires a minimum lease term of 12 months)
- A detailed description of utilities paid by the tenant and those paid by the owner, this must match the information listed on the RTA
- Signatures of both the owner/property manager and the head of household
- The HAP Contract must be signed and dated by the owner within 60 days of the contract effective date
- The tenant must be provided a copy of HUD’s Tenancy Addendum, which must also be incorporated into the lease agreement
Please contact CMHA if you have any questions about these required changes. We will schedule an informational session to discuss these changes.
Also in effect, inspection appointments are now being sent via email only. All results are being posted on the landlord portal. CMHA has stopped sending inspection letters by U.S. Mail.
Thank you for your cooperation as changes are implemented.
| 
