Account Collection Schedule

							Operating Supplement #42
12/8/97 - Rev. 4/98
                  LUCAS METROPOLITAN HOUSING AUTHORITY
                    ACTIVE ACCOUNT COLLECTION POLICY

SUMMARY
As residents are housed in conventional rental units with the LMHA,
charges are incurred for rent, as well as other miscellaneous costs
resulting from their residency with LMHA.

Payments made for current rent and other current charges are subject to
the following schedule:

1)    Payments are due on the first day of the month for which rent is
being paid (i.e.: rent payment for the month of May is due on May 1st).

2)    Residents are allowed a five (5) day grace period before late fees
are assessed and the account is considered delinquent. Payments
received or postmarked on or before the fifth of the month will be
considered timely and no penalties would be assessed.

3)    Payments received on and after the 6th day of the month are
reviewed for postmark and drop box date consideration. After all timely
payments are posted to active accounts, late fees are assessed and all
other payments are processed. Payments received after the grace period
are subject to acceptance by the Property Management Staff and/or Staff
Attorney.

In the event that the resident fails to pay a balance due the LMHA in a
timely manner, as described, the LMHA will take one or more of the
following steps in an effort to collect the unpaid delinquent charges:

1)    Enter into an active account repayment agreement, as an addendum
to the resident’s lease, allowing the resident to remain in occupancy as
long as the repayment agreement is not in default, and there or no other
lease violations.

2)    Proceed with lease termination eviction proceedings for non-
payment, taking the resident to court, if necessary, utilizing any legal
means available to collect all money due the LMHA.

3)    Enter into a vacated account repayment agreement.

4)    Assign the account to a collection agency.

Active Account Payment Policy
During tenancy, monthly statements of charges assessed through the 25th
of each month; including rent, late fees, maintenance charges, etc., are
produced and mailed to every resident in the LMHA’s conventional rental
housing developments on the first business day following the 25th of the
month. These charges are due and payable on the first of the month
following the statement date (see Exhibit 1 - Statement of Current
Charge), with a five day grace period before assessing late fees or
other penalties.
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Page two

Residents shall pay their rent   and other charges by delivering a check
or money order made payable to   the LMHA for the full amount due, along
with the rent receipt from the   statement above, enclosed in the pre-
addressed return envelope with   the monthly rent statement (see Exhibit
2), on or before the 5th day of the month for which they are being
billed, by one of the following means:

1)    U.S. Mail with correct postage affixed to the envelope to:

                  Lucas Metropolitan Housing Authority
                               P.O. Box 477
                          Toledo, OH 43697-0477

2)    Hand deliver to:

                  Lucas Metropolitan Housing Authority
                           435 Nebraska Avenue
                             Toledo, OH 43602

                               to either:

      a)    the drop box located behind the building
      b)    the receptionist inside the front entrance

3)    Hand deliver to the management office of the housing complex in
which the resident is currently housed.

Non-payment of Rent
Residents who fail to remit payment on or before the grace period of the
fifth of the month, are subject to collection proceedings, as follows:

* 14 day notice - payment in full or LMHA active account repayment
agreement (see below) in force within 14 days
* Lease termination proceedings - payment in full before court date
* Legal action taken to collect debt - full payment or vacated account
repayment agreement may be offered (see Vacated Account Collection
Policy - Operating Supplement #43 and Eviction Procedures - Operating
Supplement #1)

Active Account Repayment Agreement
In the event of a hardship case, the LMHA may enter into an active
account repayment agreement, as an addendum to the resident’s lease,
allowing the resident to remain in occupancy as long as the repayment
agreement is not in default, and there are no other lease violations
(see Exhibit 3). This optional allowance will be made only once in any
twelve-month period. The resident must prove hardship as the reason for
the delinquency, and must be in compliance with all other lease terms
and house rules to be eligible for this option.



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Page three

A repayment agreement must be completed by the resident’s property
management office, signed by the resident, and then approved by either
the Director of Property Management or the Property Manager before such
an agreement takes affect. If a repayment agreement is in effect, the
resident’s payment for this agreement is due and payable on the same
terms as the regular monthly rent payment, and will be reflected on the
monthly statement.

Default of Active Resident Repayment Agreement
Should the resident default on the terms of the repayment agreement, or
violate any other terms of the lease agreement, lease termination
proceedings may begin. An opportunity to remedy the default would be
offered before taking any further action, however; if payment is not
made, the following progressive steps will be taken, if the acceptable
remedy listed does not occur:

       Action                              Remedy
1.   14 day notice                   Payment in full only
2.   Lease termination proceedings   Payment in full only
3.   Legal action                    Payment in full only

Lease Termination Proceedings due to Non-payment
Should a resident default on his lease agreement through non-payment of
rent and/or other charges, the LMHA will initiate lease termination
proceedings and take the resident to court, if necessary, utilizing any
legal means available to collect the debt, in the following manner:

a. Should the resident maintain housing with the LMHA, the resident
would be required to make payment in full of all delinquent charges, or
the resident may be offered a repayment agreement to satisfy the debt.

b. Should the resident lose housing, the resident may be offered an
opportunity to enter into a repayment agreement by the Staff Attorney.
This can be a voluntary or court ordered repayment plan. Should a
repayment agreement be reached in this way, only the LMHA Staff Attorney
or Director of Property Management can approve the terms of the
agreement.

Should the resident violate the terms of the repayment agreement, the
debt will be turned over to the Staff Attorney and/or a collection
agency for further efforts.

Staff Responsibilities
The initial responsibility for collecting payments due from residents is
held by their property management office. The resident receives a
monthly rent statement showing an indebtedness to the LMHA for tenancy
in a rental unit. Should the resident fail to pay on his account, the
property management staff is made aware of this by periodic reports
generated by the computerized tenant accounting system.


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Page four

The property management staff is responsible for:

--    notifying the accounts receivable accountant of any special
      billing requirements for a resident
--    issuing 14 day notices to delinquent
--    establishing and generating active account repayment agreements
      with delinquent residents
--    entering “flags” in the computer system to prevent unwanted credit
      postings to delinquent resident accounts
--    initiating lease termination proceedings for delinquent residents
--    processing move-out statements to initiate the final statement of
      account
--    forwarding resident files to Staff Attorney for follow-up where
      resident vacates without notice with an account balance in excess
      of $500

Where the property management office is successful in making a repayment
agreement with delinquent resident, one of the administrative staff
consisting of the Property Manager, Director of Property Management, the
Deputy or Executive Director, is accountable for authorizing and
approving the repayment agreement in the computer system. This
responsibility includes forwarding the information to the accounts
receivable accountant, with the initial down payment for processing.

All payments are processed by the accounts receivable accountant for
application to the active resident’s account through the computerized
tenant accounting system. Each month, residents are mailed a rent
statement, showing the current balance due and listing all current
charges which have been posted to the account, since the previous
statement. Rent charges, late fees, and other ordinary charges are
automatically generated by the computer system on a given date and time,
per a monthly schedule. The accounts receivable accountant is
responsible for processing of all payments, and other miscellaneous
charges and credits to active resident accounts, as follows:

--    processing timely payments within one day of receipt for all
      residents
--    posting/processing all cash received on all accounts
--    posting/processing all bankruptcy write offs
--    processing all transactions affecting residents’ account balances
--    responding to inquiries regarding resident account balances
--    updating special billing addresses for active resident accounts

Should the property management office be unable to collect from a
resident for an indebtedness to the LMHA, the housing authority’s staff
attorney will become involved. The staff attorney will process court
actions against delinquent residents in an effort to collect the debt.




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The Staff Attorney is accountable for:

--    filing delinquent cases in court
--    obtaining legal judgment for lease termination of delinquent
      residents
--    establishing repayment agreements for delinquent vacating
      residents
--    utilizing all legal means to collect a debt from a delinquent
      resident prior to placing with a collection agency
--    reviewing/processing delinquent resident bankruptcy notices