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

Section E: Tenant Repayment Agreements in Arrears

When a tenant is in arrears with their Repayment Agreement payments, it is the responsibility of the assigned MSHDA staff person to determine if the arrearage is cause for Repayment Agreement renegotiation. If the participant cannot afford to comply with their current MSHDA 103/103EIV, the repayment terms may be renegotiated to maintain lease up and to stress repayment obligation.

Renegotiation guidelines for Repayment Agreements include the following:

1. A tenant may renegotiate a MSHDA 103/103 EIV only once.
2. A tenant requesting a second renegotiation must immediately pay the current delinquency and maintain the current repayment or be terminated.
3. A tenant can pay half of the arrearage on a repayment that is 60 days or less delinquent. This action will stop the termination process, but the tenant remains 30 days in arrears.
4. A tenant 61 days or more delinquent must immediately pay the lesser of 50% of the total arrearage or 25% of the entire debt before renegotiating the Repayment Agreement.
5. After the terms of a repayment have been renegotiated, the HA must execute a new MSHDA 103. Write “Revised (and the date)” at the top of the MSHDA 103. Forward the original of the revised Agreement to the assigned MSHDA staff person and a copy to the tenant. Place a copy in the tenant file.

The HA must offer applicants/participants an Informal Review/Hearing to contest an outstanding debt when refusal to pay a debt can result in denial or termination of assistance. If the applicant/participant requests an Informal Review/Hearing, in writing within ten calendar days, the MSHDA staff person must:

1. Forward an Informal Review/Hearing Request (MSHDA 97) to the participant,
2. If a completed MSHDA 97 is received by the MSHDA staff person within ten calendar days, the staff member immediately notifies the RS that an Informal Review/Hearing has been requested and subsequently forwards the request to RS for processing.

Refer to Chapter XXVI, Informal Reviews, Mediations, Informal Hearings.

Referral to Collection Agency: If MSHDA has not collected the debt within six months from the date of the initial Overpayment Notice, MSHDA forwards the file to the Michigan Department of Treasury for collection.