Housing Voucher Programs - Policy and Procedures Manual

Chapter XXVIII Sections

1. Tenant Repayment Agreement Parameters
2. Calculating a Tenant Repayment
3. Establishing a Tenant Repayment Agreement
4. Tracking Executed Tenant Repayment Agreements
5. Tenant Repayment Agreements in Arrears
6. Tenant with Repayment Agreements and Portability Rights
7. Applicable Forms Listing

Chapter XXVIII: Processing Tenant Repayment Agreements

Effective: October 2007

Introduction

This policy explains procedures for processing Tenant Repayment Agreements (MSHDA 103 or 103 EIV) with a tenant who has incurred a debt while an active tenant on the Housing Choice Voucher (HCV) program and will clarify when a tenant Repayment Agreement may be renegotiated. An active tenant is defined as an individual/family currently participating (receiving a rental subsidy) in the HCV Program. An inactive tenant is defined as an individual/family not participating (not receiving a rental subsidy) in the HCV Program.

If an active tenant cannot afford to pay back a debt in full and is income eligible for HCV assistance, the MSHDA Housing Agent (HA) or a MSHDA staff member is encouraged to consider executing a Repayment Agreement with the program participant versus terminating the family’s rental assistance. Tenants unwilling to repay MSHDA or keep their Repayment Agreements current will have further violated their program responsibilities and must be canceled from the Housing Choice Voucher (HCV) program. The HA must provide notice of the opportunity for an Informal Hearing when a Repayment Agreement is offered because termination or denial of assistance will result if the participant refuses to sign the Agreement.

If an inactive tenant cannot afford to pay back a debt in full, the MSHDA staff member can consider executing a Repayment Agreement versus sending the debt to collections.

Section A: Tenant Repayment Agreement Parameters

The MSHDA staff member or HA has full responsibility to negotiate Tenant Repayment Agreements for active tenants when appropriate.

The MSHDA staff member or HA can deny or terminate assistance at any time for a tenant's failure to comply with the terms of a Tenant Repayment Agreement (MSHDA 103 or 103 EIV). See Chapter XV, Terminations.

In order to assure program consistency, the following Tenant Repayment Agreement (MSHDA 103/103 EIV) guidelines have been established and must be adhered to:

1. Establish a repayment using a minimum $25 monthly payment.
2. Generally use a 24-month term for repayment unless this term will result in a payment that causes financial hardship.
3. If a 24-month term creates a financial hardship, negotiate a reasonable payment using a maximum of 60 months or contact the MSHDA Resource Specialist(RS) or Fraud Recovery Coordinator for assistance. Example: It was discovered during an annual re-examination that Tenant A owes $3,504 in back rent subsidy due to under-reporting income. The MSHDA 103 was calculated for 24 payments of $146. This payment would result in a hardship on the tenant who said he could only pay $85 per month. The MSHDA 103 was then executed for 42 months: 41 months at $85 and $19 the final month (month 42). In rare cases, a repayment period of longer than 60 months may be negotiated.
4. The repayment plan must start on a date 30-60 days in the future. Example: If you send the Repayment greement to the tenant on August 22, 2007, the repayment plan should not start prior to October 1, 2007.

When a program participant executes a Repayment Agreement and submits their initial payment, the participant alleviates the need to pay off a past due or delinquent account in full. Repayment Agreements require a participant to send monthly payments in order to meet their program responsibilities.