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  • pg 1
									 DISASTER HOUSING
ASSISTANCE PROGRAM
       (DHAP)

   Landlord Briefing



                       1
         GENERAL OVERVIEW

• HUD has assumed responsibility for rental
  payments for families affected by
  Hurricanes Katrina and Rita.
• The new Disaster Housing Assistance
  Program (DHAP) is provided through local
  housing authorities.


                                              2
          GENERAL OVERVIEW
• FEMA, through CLC, will continue rent
  payments through 10/31/07
• HUD, through local housing authorities, will
  begin making payments 11/1/07
• The Emergency Housing Assistance
  Corporation (EHAC), a unit of the Arlington
  Housing Authority, will manage the DHAP
  program in Arlington and surrounding areas
                                                 3
    DISASTER HOUSING ASSISTANCE
              PROGRAM
         GENERAL OVERVIEW
• DHAP is designed as a 16-month program
• DHAP’s goal is to return families to self
  sufficiency
• Families will be provided with case
  management to assist their transition
• DHAP terminates 2/28/09
                                              4
           FAMILY ELIGIBILITY
•   FEMA determines eligibility

•   Affected families can verify or request
    eligibility by calling FEMA at 1-800-362-
    FEMA

•   Appeals regarding eligibility will be
    referred to FEMA, they are not addressed
    by the EHAC                              5
  HOW THE PROGRAM WORKS

                  EHAC




   Participant               Landlord


In the program, there are three bi-party
contracts
                                           6
       3 BI-PARTY CONTRACTS

1. The EHAC provides a DHAP Voucher to
   the participant.

2. The participant and landlord execute a
   lease (or continue their existing lease) and
   also sign a lease addendum.

3. The EHAC and the landlord execute the
   Disaster Rent Subsidy Contract.
                                              7
     PARTICIPANT CATEGORIES

• In-place participants – those who choose to
  remain in their current unit
• Relocating participants – those who choose
  to relocate at the start of DHAP assistance
• New participants – those who were not
  previously FEMA receiving rental
  assistance, but are now determined eligible
  by FEMA
                                            8
         IN-PLACE TENANTS

If landlord and tenant agree to continue to
rent under the existing lease, the parties
need to:
– Execute a DHAP lease addendum
– Execute Disaster Rent Subsidy Contract
– Permit a dwelling unit inspection


                                              9
     REQUIRED DOCUMENTS

• Copy of deed of trust
• Completed/signed W-9 tax form
• Completed Owner/Management
  Information form
• Completed Property Information form
• Direct Deposit Authorization form


                                        10
     REQUIRED DOCUMENTS

• Executed Lease

• Lease addendum

• Disaster Rent Subsidy Contract




                                   11
           IN-PLACE RENT

Rent is the Lesser of:
– Current Lease amount
           OR
– Greater of:
   • Fair market rent
   • Payment standard
   • Amount currently being received from FEMA


                                                 12
           EXAMPLE
       RENT BEFORE DHAP

• Lease amount              $800

• Rent paid by CLC / FEMA   $775

• Portion paid by family     $25



                                   13
                EXAMPLE
             IN-PLACE RENT
Lesser of:
  – Lease amount                          $800
             OR
  – Greater of:
     • Fair market rent                   $750
     • Payment standard                   $760
     • Amount currently being
       received from FEMA                 $775
     (Family contribution continues to be $25)
                                                 14
 RELOCATING or NEW TENANTS

If landlord and tenant do not agree to
continue lease arrangement:
– Tenant may locate a new unit
– EHAC conducts HQS inspection
– EHAC determines rent reasonableness
– Execute Lease and Lease Addendum
– Execute Disaster Rent Subsidy Contract
                                           15
     REQUIRED DOCUMENTS
Same as for In-Place Tenants
• Copy of deed of trust
• Completed/signed W-9 tax form
• Completed Owner/Management
  Information form
• Completed Property Information form
• Direct Deposit Authorization form

                                        16
     REQUIRED DOCUMENTS

• Lease

• Lease addendum

• Disaster Rent Subsidy Contract




                                   17
    New or Relocating Tenant
         Rent Amount
Rent amount is lesser of:
– Lease amount
           OR
– Greater of:
   • Fair market rent
   • Payment standard



                               18
              Example 1
          New Rental Contract
Rent = Lesser of:
  – Lease amount                $700
             OR
  – Greater of:
     • Fair market rent         $750
     • Payment standard         $760




                                       19
              Example 2
          New Rental Contract
• Rent = Lesser of:
  – Lease amount                        $800
             OR
  – Greater of:
     • Fair market rent                 $750
     • Payment standard                 $760

     (Family rent contribution = $40)

                                               20
      RENT REASONABLENESS

 EHAC is required to determine that rents
 meet the rent reasonableness test in the
 following cases:
• For rent charged to tenants relocating at the
  beginning of, or during DHAP assistance
• For new participants in DHAP
• For increases in rent for units leased in the
  DHAP program
                                              21
      RENT REASONABLENESS

  The rent charged for the unit must not
  exceed rent charged for:
• comparable units in the private unassisted
  market; and
• comparable unassisted units on the
  premises


                                               22
          RENTAL PAYMENTS

• Payments are made to landlords via direct
  deposit.

• Direct deposit forms are provided for your
  use.




                                               23
 INCREMENTAL RENT TRANSITION

• Beginning 3/1/08, families will be required
  to pay at least $50 toward their rent

• The tenant rent is in addition to any existing
  family share already being paid




                                                24
 INCREMENTAL RENT TRANSITION

• Tenant rent is $50 on March 1, 2008.

• Tenant rent increases by $50 each month.

• EHAC will reduce monthly rent subsidy by
  the tenant’s incremental rent.

• Total rent to landlord does not change.
                                             25
INCREMENTAL RENT TRANSITION

Example:

 Rent paid by EHAC 11/07-2/08   $800
 Rent paid by tenant 3/08        $50
 Rent paid by EHAC 3/08         $750
 Rent paid by tenant 4/08       $100
 Rent paid by EHAC 4/08         $700



                                       26
 INCREMENTAL RENT TRANSITION

• The Family may request an exception to
  incremental rent transition policy on basis of
  an economic hardship.

• Economic hardship waivers require review
  and approval by EHAC.



                                              27
     OWNER RESPONSIBILITIES

• Execute and comply with the terms of the
  Disaster Rent Subsidy Contract
• Execute a lease with Tenant
• Execute lease addendum with Tenant
• Beginning 3/1/08, owner collects a portion
  of rent from the Tenant


                                               28
     OWNER RESPONSIBILITIES
             (cont.)
• Provide EHAC advanced notice of any
  changes in rent - at least 30 days before
  change
• Notify EHAC of pending eviction, lease
  termination or abandonment by Tenant
• Maintain unit in safe, decent condition


                                              29
      FAMILY RESPONSIBILITIES

The tenant is responsible to:
• Supplying information required by HUD
• Abide by the Owner’s lease
• Notifying EHAC before moving out
• Participating in case management services
• Pay their share of rent timely
• Abide by Family Obligations
                                              30
       EHAC RESPONSIBILITIES

• Inspect units to ensure the assisted unit is
  safe, decent and sanitary
• For relocating/ new tenants, ensure that the
  contract rent is reasonable in comparison to
  other similar rental units in the area
• Comply with all applicable HUD and FEMA
  rules and regulations

                                                 31
DISASTER RENT SUBSIDY CONTRACT

 DHAP Housing Assistance terminates if any of
 the following occurs:
  – Lease is terminated by owner or tenant,

  – EHAC terminates assistance due to family
    violation of family obligations, or

  – Family unlawfully vacates unit


                                                32
DISASTER RENT SUBSIDY CONTRACT


     Housing Assistance automatically
     terminates as of 2/28/09, or at
     such time that subsidy paid on
     behalf of family equals zero,
     whichever comes first



                                        33
        SUBSEQUENT MOVES


• A family may move with continued DHAP
  assistance within existing jurisdiction

• Family may also make one move outside of
  initial jurisdiction



                                            34
Questions?




             35

								
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