payments - page two

How does an owner/manager handle extra payments or agreements?

All extra payment agreements must be submitted in writing for prior approval by LHA.  If the tenant wants to rent a detached garage and it is not included in the rent, this is an extra payment.  If this procedure is not followed, the payment will be treated as an illegal side-payment and you may be required to reimburse the tenant for any rent overpayments.  Owners may not collect additional payments for a unit, amenities, or enter into side agreements to pay for items covered under the lease contract.  LHA may report program abuse either to the appropriate office of the Regional Inspector General for investigation or to local or state prosecutors.

W-9

The Internal Revenue Service (IRS) requires that property owners provide LHA with their Taxpayer Identification Number or Social Security Number (W-9 form) and a signed certification of accuracy.  Owners must complete the W-9 form provided and submit it with HAP Contracts.  LHA cannot process contracts for payment without a completed form.  At the end of each year, LHA completes a 1099 and submits it to the IRS with a copy to each owner. 

Ownership and address changes

To ensure continuity in rent payments, owners must notify LHA of changes in the ownership of property for which they are receiving a Housing Assistance Payment.  The current owner must sign a contract assignment form transferring the rights and obligation of the HAP Contract to the new owner.

LHA must always receive a signed WRITTEN notice of an owner’s change of mailing address or a change in management company.  Owners may use the Owner Change of Address form.

When Housing Assistance Payments may STOP!

Abatement means that the owner will not receive payment from the Housing Authority for the days that the unit was not in compliance with Housing Quality Standards (HQS).  The Housing Authority requires five (5) working days advance notice to schedule the recheck inspection.  Remember, the tenant is not responsible for the Housing Authority’s portion of rent during the abatement period.

HAP Contract will terminate automatically under the following situations:

      A new lease is signed.
Changes in the terms of the lease for example: Current lease states 11-01-09 to 10-31-10.
            A new lease is signed the next year without notification to LHA with new dates of 11-01-10 to 10-31-11.
Tenant moves to a different unit even within the same apartment complex without notifying LHA.
Tenant no longer resides in the unit even if personal possessions are left in the unit.
Changes of who is responsible for utilities or appliances.
If the unit does not meet HQS requirements.

Payments stop when the Contract terminates.  If Housing Assistance Payments are made in error after the HAP Contract terminates then LHA may recoup the erroneous payments made to the owner.       

Owners should notify LHA 60 days prior to entering into a new lease with the tenant after the initial 12 month lease is completed to allow time for LHA to inspect the unit, determine rent reasonableness, obtain a copy of the lease, and sign new contracts.