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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