Housing Voucher Programs - Policy and Procedures Manual

Chapter XI Sections

1. Payee Registrations
2. Proof of Property Ownership
3. Change in Individual Ownership
4. Change in Management Company
5. Foreclosures/Forfeitures of Property
6. No Receipt of HAP
7. HAP Benefit Reduced by MAIN
8. Late Fees
   1. Landlord/MSHDA Late Fees
   2. Procedure to Request a Late Fee from MSHDA (MSHDA 70)
   3. Approval/Denial Procedure
   4. Payment Procedure
9. Owner Disapproval and Restriction
10. Applicable Forms List

Chapter XI: Landlord Issues

Section H: Late Fees

1. Landlord/MSHDA Late Fees

• MSHDA must pay (approved) late payments out of its administrative fees.
• The HAP Contract (HUD 52641) identifies that the landlord is entitled (under certain circumstances) to a MSHDA-paid late fee.
• MSHDA established a maximum late fee amount of $25 in accordance with generally accepted practices in the Michigan housing market.
• The MSHDA-paid late fee amount equals the tenant late fee amount identified in the Lease or $25, whichever is less.
• For the initial Contract period, MSHDA must pay the HAP no later than 60 days after the Contract effective date; unless the landlord causes the delay.
• Subsequent MSHDA payments must be generated by Treasury (versus mailed or received) on or before the fifth (5th) business day of the month.
• MSHDA payments are not considered late if:
  1. They were generated by Treasury (versus mailed or received) before the fifth (5th) business day of the month; or
  2. The delay occurs due to factors beyond MSHDA’s control (i.e. Elite computer problems, MAIN problems, incorrect Post Office delivery); or
  3. The delay occurs due to the landlord’s breach of the Contract (i.e. overpayment recovery, HQS abatement, cancellation); or
  4. The Landlord does not charge (and collect) a late fee (identified in the executed Lease) to assisted or unassisted residents for late tenant rent payments.

2. Procedure to Request a Late Fee from MSHDA (MSHDA 70)

• The landlord must make a written or verbal late fee request to the HA within 30 days of the late MSHDA payment date.
• The HA completes the complete and return by date (14 days) and Part A (MSHDA use only section) of the Landlord Late Fee Request Form, and mails the form to the Landlord.
• On the form, the Landlord identifies the applicable tenant and late month.
• The landlord certifies that the late fees apply to, and are collected from, assisted or unassisted residents when the tenant rent portion is late.
• The landlord must return the completed MSHDA 70 form to the HA by the 14-day deadline.

3. Approval/Denial Procedure

• Upon receipt of the MSHDA 70, the HA reviews the lease to verify a tenant late fee provision exists.
• If the request is acceptable, the HA completes Section B of the form and forwards all copies of the form to the assigned RM within five (5) days.
• The RS completes Part C of the form and forwards all copies of the form to the assigned MSHDA staff member for processing of the landlord’s payment within seven (7) business days.
• If the request is denied, the RM forwards a copy of the MSHDA 70 (with Part C highlighted) to the landlord providing written verification of the denial and informs the HA of the denial via e-mail.
• The RS will monitor the frequency and reasons for approved late fee requests. Repeated late approval requests for unacceptable reasons will require further investigation by the RS.

4. Payment Procedure

• The assigned MSHDA staff member processes a manual adjustment within seven (7) business days and identifies the payment as administrative fees account code (070-910-007) on the adjustment.
• The assigned MSHDA staff member completes Part D of the request form and sends one copy to the resident file and one copy back to the HA to confirm that the payment voucher has been processed.
• The landlord can normally expect to receive the late fee payment within seven (7) business days of the payment check request date.