Property Disposition (PD) Regular Vacancy Claims

The submission requirements and checklist for a Property Disposition (PD) Regular Vacancy claim are nearly identical to those used for a standard Section 8 Regular Vacancy special claim. Owners and agents must follow the same documentation standards, timelines, and completeness checks outlined in HUD’s special claims guidance. From a processing standpoint, the PBCA treats the intake and review steps nearly the same, ensuring consistency and familiarity for staff who routinely handle both PD and non‑PD vacancy claims.

The primary difference between a PD Regular Vacancy claim and a standard Section 8 Regular Vacancy claim lies in how the claim amount is calculated. PD claims rely on the concepts of Month One and Month Two, and these two months are defined entirely by three dates: the Move‑Out Date, the Ready Date, and the Move‑In Date. The interaction of these dates determines whether the owner is eligible for a Month One payment, a Month Two payment, both months, or neither.

Month One always begins on the tenant’s Move‑Out Date and runs through the last day of that calendar month. Whether any Month One claim can be paid depends solely on when the unit becomes ready for occupancy. If the unit is not made ready during Month One, no Month One payment can be approved regardless of how early in the month the move‑out occurred. This reflects HUD’s requirement that vacancy assistance can only be paid for days when the unit was actually available and ready to offer to an eligible family.

Month Two follows the same structure but applies to the month immediately after Month One. For Month Two to be payable, the unit must become ready for occupancy no later than the last day of that second month. Once that condition is met, the Move‑In Date determines the number of eligible Month Two days. The day‑count method depends on whether the move‑in occurs during Month Two or after Month Two, and whether the unit became ready in Month One or Month Two. In addition to these timing rules, the Month Two claim amount is capped by HUD and cannot exceed 80% of the daily contract rent multiplied by the number of eligible Month Two vacancy days. This ensures that the second‑month portion of the claim is limited to HUD’s maximum allowable subsidy level, even when extended vacancies occur.

Together, the Move‑Out Date, Ready Date, and Move‑In Date govern all calculation rules in a PD Regular Vacancy claim. While the submission process resembles a standard Section 8 vacancy claim, the PD calculation method is unique, and accurate claim determination depends on understanding how these three dates define Month One and Month Two eligibility.

Key Definitions

Move-Out (MO) Date

  • The date the tenant physically vacates the unit and returns possession to the owner/agent.
    • Establishes the starting point for all PD Regular Vacancy calculations.
    • Determines which calendar month is considered Month One.
    • Month Two is the month immediately following the Month One Move Out month.
    • The assistance and contract rent values used in calculation must be those in effect on the MO date.
    • No vacancy days may be counted before the MO date.
    • Should be supported by documentation such as:
      • Move-out inspection records
      • Key return documentation
      • Written notice or tenant file documentation

Ready Date (Unit Ready for Occupancy Date)

  • The date the unit is fully prepared, cleaned, repaired, and ready for immediate occupancy.
    • The Ready Date must be the day after all turnover work is completed.
    • The unit cannot be marked “ready” on the same day work was performed.
    • The Ready Date determines Month One and Month Two eligibility.
      • If not ready during Month One → Month One claim = $0.
      • If not ready by the end of Month Two → Month Two claim = $0.
    • Must be verifiable using:
      • Work orders
      • Reconditioning logs
      • Maintenance or contractor completion records
    • HUD expects this date to reflect when the unit could have legitimately been offered to an eligible family.

Move-In (MI) Date (Re-Rental Date)

  • The date the new family takes possession of the unit and their HUD-50059 becomes effective.
    • This is the date keys are given and occupancy begins.
    • The MI date marks the end of the vacancy period.
    • The MI date is essential in determining Month Two day counts.
      • If MI is in Month One → no Month Two claim.
      • If MI is in Month Two and the unit was ready in Month One → Month Two days = MI day − 1.
      • If MI is in Month Two and the unit was ready in Month Two → Month Two days = actual days vacant (MI − Ready Date).
      • If MI occurs after Month Two:
        • If the unit was ready in Month One → Month Two days = all days in Month Two.
        • If the unit was ready in Month Two → Month Two days = Ready Date through the end of Month Two.
    • MI date must match the executed and processed HUD-50059.
    • The MI date can never occur before the Ready Date.

Scenarios Illustrating PD Vacancy Day Counting Rules

Below are six scenarios, each structured identically for clear comparison. In all scenarios, the MO date is January 12 and use the same daily rates:

  • January: Month = 31 days

  • Daily Assistance Payment: 337 ÷ 31 = 10.87

  • February: Month = 28 days (non-leap year)
  • Daily Contract Rent: 591 ÷ 28 = 21.11 (per HUD guidance, 80% of the contract month can be used.)

Scenario 1 — Ready Date in Month One & MI also in Month One

  • MO Date: January 12
  • Ready Date: January 17
  • MI Date: January 31
  • Daily Assistance Payment: 10.87 (337 ÷ 31 = 10.87)
  • Daily Contract Rent: 591 ÷ 28 = 21.11
  • Month One Eligible? Yes – ready in Month One
  • Month Two Eligible? No – MI in Month One
  • Month One Claim: Days = Jan 17–30 → 14 days × 10.87 = 152
  • Month Two Claim: $0

Scenario 2 — Ready in Month One & MI in Month Two

  • MO Date: January 12
  • Ready Date: January 17
  • MI Date: February 3
  • Daily Assistance Payment: 10.87 (337 ÷ 31 = 10.87)
  • Daily Contract Rent: 21.11 (591 ÷ 28 = 21.11)
  • Month One Eligible? Yes – ready in Month One
  • Month Two Eligible? Yes – MI in Month Two
  • Month One Claim: Days = Jan 17–31 → 15 days × 10.87 = 163
  • Month Two Claim: Days = Feb 1–2 → 2 days × 21.11 = 42.22 × 0.8 = 34

Scenario 3 — Ready Date in Month One & MI after Month Two

  • MO Date: January 12
  • Ready Date: January 17
  • MI Date: March 5
  • Daily Assistance Payment: 10.87 (337 ÷ 31 = 10.87)
  • Daily Contract Rent: 21.11 (591 ÷ 28 = 21.11)
  • Month One Eligible? Yes – ready in Month One
  • Month Two Eligible? Yes – MI after Month Two
  • Month One Claim: Days = Jan 17–31 → 15 days × 10.87 = 163
  • Month Two Claim: Days = Feb 1–28 → 28 days × 21.11 = 591.08 × 0.8 = 473

Scenario 4 — Ready Date in Month Two & MI in Month Two

  • MO Date: January 12
  • Ready Date: February 2
  • MI Date: February 7
  • Daily Assistance Payment: 10.87 (337 ÷ 31 = 10.87)
  • Daily Contract Rent: 21.11 (591 ÷ 28 = 21.11)
  • Month One Eligible? No – not ready in Month One
  • Month Two Eligible? Yes – ready and MI in Month Two
  • Month One Claim: $0
  • Month Two Claim: Days = Feb 2–6 → 5 days × 21.11 = 105.55 × 0.8 = 84

Scenario 5 — Ready Date in Month Two & MI after Month Two

  • MO Date: January 12
  • Ready Date: February 10
  • MI Date: March 15
  • Daily Assistance Payment: 10.87 (337 ÷ 31 = 10.87)
  • Daily Contract Rent: 21.11 (591 ÷ 28 = 21.11)
  • Month One Eligible? No – not ready in Month One
  • Month Two Eligible? Yes – ready in Month Two
  • Month One Claim: $0
  • Month Two Claim: Days = Feb 10–28 → 19 days × 21.11 = 401.09 × 0.8 = 321

Scenario 6 — Ready Date after Month Two

  • MO Date: January 12
  • Ready Date: March 5
  • MI Date: March 20
  • Daily Assistance Payment: 10.87 (337 ÷ 31 = 10.87)
  • Daily Contract Rent: 21.11 (591 ÷ 28 = 21.11)
  • Month One Eligible? No – not ready in Month One
  • Month Two Eligible? No – ready occurs after Month Two
  • Month One Claim: $0
  • Month Two Claim: $0

Key Takeaways

The most important takeaway from the PD Regular Vacancy process is that, although the submission steps mirror the standard Section 8 vacancy claim, the actual calculation of the claim is entirely driven by how the Move‑Out Date, Ready Date, and Move‑In Date interact.

The Move‑Out Date establishes the structure of the claim period, defining the beginning of Month One and anchoring all rent values used in the claim.

The Ready Date serves as the gatekeeper for both months: the unit must be ready during Month One to qualify for a Month One payment, and it must be ready no later than the last day of Month Two to qualify for any Month Two payment.

The Move-In Date determines how many eligible vacancy days fall within each month, with specific PD rules governing how days are counted depending on whether the move‑in occurs during Month One, Month Two, or after Month Two.

Additionally, Month One is always based on the assistance rate, and Month Two is always based on the daily contract rent, but the Month Two amount is limited further by HUD’s cap of 80% of contract rent.

Taken together, these principles emphasize that PD Regular Vacancy claims are not merely about submitting documentation—they are about accurately interpreting how these three dates define each month’s eligibility, day count, and payment limits.