payments

Direct Deposit

In an effort to provide monthly payments in a timely manner and to prevent fraudulent activity, effective January 1, 2010, it is mandatory that all Housing Assistance Payments be made via direct deposit. 

When does the owner get paid?

Payments for rent are made after LHA and the owner sign a contract.  LHA issues direct deposit checks approximately four (4) times a month.

The payment begins when the following four (5) steps are completed:
The unit passes inspection.
The tenant occupies the unit.
The Housing Specialist mails a HAP Contract to the owner.
The owner provides LHA with a lease signed by the owner and tenant with all the required information
The owner signs the HAP Contract.

LHA requests contracts and leases be provided by the owner within 10 days of notification.

Any contract signed later than 60 days of the start date is voided.

What portion of the rent does the tenant pay?

The tenant pays typically 27% of their income towards their portion of rent but there is an allowance for utilities based on the Utility Schedule.  If the tenant’s unit is over the LHA “Target Rent”, the tenant will be responsible for more than 27% of their income towards rent.  LHA will notify the owner and the tenant of their portion of rent prior to the signing of the HAP contract.

How often does the tenant’s portion of rent change?

Typically the tenant’s rent changes only once a year after their annual re-examination.  The tenant’s portion of rent will be changed when:
The household members change
Income decreases
Expenses (deductions) increase
At annual re-examination.

Can the owner change the contract rent?

After the initial 12 month lease term the contract rent can be changed after the tenant and LHA are provided with a 60 day notice of the rent increase and LHA has approved that the new rent amount meets the rent reasonableness test.

Note: Year to year leases require a 60 day notice to the tenant and LHA prior to the end of the lease term.

Can the owner change the tenant’s portion of rent?

No, the owner can not increase the tenant’s portion of rent.  It will always be determined by LHA.

 

PAYMENTS PAGE TWO