Are You Ready for TRACS 203A (HUD Multi Family Programs)?

The integrity of rental assistance submissions relies entirely on compliance with the Tenant Rental Assistance Certification System (TRACS). TRACS is the essential HUD computer system designed to improve program management and financial control over the Office of Multifamily Housing Programs’ (MFH) rental assistance programs by automating compliance processes.

For owners and agents, this system is the backbone of subsidy collection, and preparing for the upcoming TRACS 203A update, which is to be implemented with the Housing Opportunity Through Modernization Act (HOTMA), delayed until January 1, 2026, as of this posting, is non-negotiable for maintaining financial stability and compliance.

The Role of Monthly Activity Transmission (MAT) Data

At the heart of TRACS are the MAT data records. Owners and agents must transmit this data monthly. MAT records correspond to various HUD forms and specific certification actions:

• MAT10: Corresponds to HUD form HUD-50059 (Tenant Certification).
• MAT30: Corresponds to forms HUD-52670 and 52670-A (Voucher Requests).
• Other MAT records (MAT40, MAT70, etc.): Correspond to specific actions, like move-outs, terminations, unit transfers, or gross rent changes, which are submitted on the voucher.

All tenant certifications and voucher payment requests are subjected to rigorous electronic edits to ensure accuracy and compliance with HUD Handbook 4350.3.

Understanding and Maintaining Your Compliance Percentage

Each month, HUD compares the requested voucher payment against the tenant data in TRACS to determine the project’s compliance percentage.

The compliance percentage is the ratio of active certifications to the regular units billed. While TRACS currently allows a 90% active tenant count to forward the voucher to the Treasury for payment, 100 percent compliance should always be the goal.

Even if one’s voucher is being paid, errors may still exist in their TRACS database. A review is essential because these hidden discrepancies could surface and cause major issues later.

Preparing for the TRACS 203A Implementation

The current version of TRACS is 202D. Once HUD officially implements HOTMA, the new version, TRACS 203A, will be released. This transition is the ideal time—or rather, a mandatory time—to clean up data.

A thorough review of one’s current compliance percentage is highly recommended before 203A is implemented. Owners and agents will want to compare the data in the TRACS system against the data in their property management software and make necessary corrections now to ensure a smooth transition.

Step-by-Step: Leveraging the TRACS Certification Query

The most effective way to audit current data is by running a TRACS Certification Query.

1. Login: Use the HUD Secure Systems website  and log in with your Web Access Secure System ID (WASS ID).
2. Run Query: View a TRACS Certification Query. This query lists all current certifications in TRACS under the Housing Assistance Payments (HAP) contract.
3. Identify Status: The report is used to identify which certifications are missing or incorrect and serves as a reminder for submitting pending annual recertifications to maintain compliance.
4. Review Active Tenants: Once you have printed the report (make sure to select the “Browser option” and adjust margins to fit all columns), compare the Active Tenants (listed in blue on the report) with the list of tenants on your current voucher.
5. Address Discrepancies:
   • If a tenant is missing from the list or is not listed as an Active Tenant (blue), you may need to submit (or re-send) the missing certification to TRACS.
   • If a current tenant is not listed in blue, click on their name to view the certification history and identify any underlying TRACS errors that are preventing the tenant from being considered active.
6. Final Reconciliation: While reviewing, double-check that the tenant rent, subsidy rent, and utility allowances on the TRACS query report match exactly what is listed on your current voucher.

Owners and management agents must be well trained in understanding the new HOTMA requirements as they relate to maintaining compliance in affordable housing. MLCM offers consulting services and training regarding various affordable housing programs. For more information on these services, don’t hesitate to contact us.

The information presented in this article is intended solely for informational purposes and should not be construed as consulting advice from M&L Compliance Management LLC.

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