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Landlord Information
The Need for Affordable Housing in Bloomington
Currently, the Housing Choice Voucher Program serves approximately 1,300 families a month. With the help of the Bloomington rental community, we will continue to reach our goal of providing safe, decent and affordable housing to Monroe County families!
Benefits of Participating in the Housing Choice Voucher Program:
- You may use your own lease
- You get free advertising for your available properties
- Free annual inspections of your unit(s)
- You will be providing affordable housing to Monroe County families
Responsibilities of the Housing Authority, Owner, and Tenants
The HCVP depends on a cooperative relationship between the housing authority, assisted family and owner / property manager. The program is designed to maintain the regular owner and tenant relationship. Our main purpose is to subsidize families' rents; all other aspects of the lease agreement must be resolved between the landlord and the tenant. The following summarizes the responsibilities of each party.
The Housing Authority's Responsibilities:
- Reviews all applicants to determine families' eligibility for the program.
- Explain the rules of the program to families and property owners/managers.
- Issue vouchers to families.
- Inspect the assisted units for compliance with housing quality standards.
- Approve the unit, owner and lease.
- Make housing assistance payments to the owner in a timely manner.
- Re-examine the family's income and composition annually and adjust the rent and process changes in rent portions when income or family composition changes.
- Ensure owners and families comply with the program rules.
- Provide prompt, professional service to owners and tenant families.
The Owner's Responsibilites:
- Thoroughly screens and interviews families who seek to rent from them.
- Maintains the property by making necessary repairs in a timely manner.
- Collects application fees, security deposits and tenant's monthly rent portion.
- Manages the property and enforces the lease.
- Comply with the terms of the Housing Assistance Payment (HAP) Contract and HUD Tenancy Addendum. (Links to view the HAP Contract and Tenancy Addendum can be found at the bottom of the page.)
- Comply with all fair housing laws and not discriminate against any family.
- Notify the housing authority if a tenant vacates the unit and return the housing assistance payments received after a family vacates a unit.
- Notify the housing authority of any owner change immediately so payment to the new landlord will not be delayed.
- Return overpayments of HAP to the BHA promptly.
The Family's Responsibilites:
- Provide the housing authority with complete and accurate information pertaining to the family income and composition.
- Report changes in income and family composition that happens throughout the year.
- Locate a suitable unit and pay security deposit and application fee to the owner.
- Attend scheduled appointments and return documents on time.
- Maintains the property and repairs any damages beyond normal wear and tear.
- Comply with the terms of the lease.
- Pay their portion of rent on time to the owner.
- Comply with all family obligations under the Housing Choice Voucher Program.
Steps to Participate in the Program
1. Finding a Tenant -- Eligible families are issued assistance and will approach you via ads you have put in the paper or rent signs placed in yards. You can also list your available property with the housing authority by completing a standard rental listing form. Listing your property does not obligate you to rent to families with vouchers; it simply provides you the opportunity to advertise to them.
2. Determining Rent Amount -- The rent requested must be comparable to similar, unassisted units in the area of the rental property. A rent reasonableness study will be conducted to determine if the requested rent is reasonable as compared to an unassisted unit when considering the location, quality, size, type, age, amenities, housing services, maintenance and utilities to be provided.
3. Approving a Tenant -- Upon receiving calls from assisted families, you are encouraged to screen them on the basis of the family's tenancy history. The families are responsible for paying application fees and deposits. The Housing Authority of the City of Bloomington's admission of a family to participate in the program is not a representation by BHA about the family's expected behavior or the family's suitability for tenancy.
4. Agreement to Enter Lease -- Once you have selected a person or family, you will need to complete the owner briefing with the BHA Housing Choice Voucher Program case manager. At this briefing we will discuss the following with the owner: The Request for Tenancy Approval, The Amenity Sheet, W9 Form, Tax ID Form, Lease Requirement Form and Lead Based Paint Form. Upon completion of the forms, the case manager of the family will determine if the unit is affordable for the family.
5. Affordability -- If the family is moving into a new unit, they may not pay more than 40 percent of their adjusted monthly income toward rent and utilities.
6. Initial Inspection of the Unit -- If the unit meets the affordability of the family a Housing Quality Standards inspection will be requested. The inspection should be completed within fifteen days after receipt of the completed RTA. An HQS inspector will contact the owner by phone to schedule the inspection. All utilities must be connected and the unit must be vacant before an initial inspection can be conducted. The requested rent amount must be reasonable as compared to other similar unassisted units in the area. The housing authority must approve all rents requested. See the HQS Checklist for more details about the inspection.
7. Signing the HAP and lease -- After the unit passes an HQS inspection and the rent amount is approved, the rent portions will be calculated and the Housing Assistance Payment contract will be prepared. It will take an average of five to 10 days after the unit passes inspection to prepare this paperwork. A notice will be sent to the owner and tenant. The notice will indicate the approved rent amount, effective date, the family's rent portion and the housing assistance payment amount. Housing Assistance Payments will not begin until the Housing Assistance Payment Contract is signed and a signed lease is received. See Lease Requirements for more information on approved leases. All HAP contracts begin the first day of the month.
Lease Requirements
The following defines the lease requirements under the HCV Program:
The lease between tenant and owner must be in a standard form used by the owner and generally used for other unassisted tenants in the premises or locality.
The terms and conditions of the lease must be consistent with State and local law.
The lease must specify utilities and appliances supplied by the owner and utilities and appliance supplied by the family.
The lease must include the HUD required tenancy addendum. (The housing authority will provide.) The terms of the tenancy addendum prevail over any other provisions of the lease.
The rent requested must be reasonable as compared to similar unassisted units and approved by the housing authority.
Security Deposits cannot be greater than one month rent.
In order to use your own lease, the lease effective date and approved rent amount must match the Housing Assistance Payment Contract. Please bring a copy of the signed lease with you when you come in to sign the HAP Contract and Tenancy Addendum.
8. Receiving the Housing Assistance Payment -- The effective date of the first housing assistance payment must start the first day of the month following the date the unit passes inspection and the tenant moves into the unit. The tenant is responsible for any rents due prior to the contract effective date. Payments are mailed the first week of the month. The BHA pays HAP by direct deposit into the owner's bank only.
9. Other Information Required From Owner/Manager -- In order to ensure we are paying the legal owner of any property, we must verify proof of ownership by means of a Recorded Deed. If a professional management firm represents the owner, we require a fully executed management agreement verifying this arrangement. We also need a Tax ID number or Social Security number for tax purposes. No housing assistance payment will be made prior to our receiving these important documents.
10. Adjustments to Family's Rent Portion -- During the term of the lease, if the family has a change in income or family composition they are required to report it within 10 days of occurrence. Rent portions will be adjusted according to the family's adjusted income. A Rent Change Notice will be mailed to the family and owner to reflect any changes in rent portions.
11. Annual Review of Family Income and Composition -- Federal regulations require housing authorities to review a family's income and composition annually. The rent portions will be re-calculated and a Rent Change Notice will be mailed to the owner and family.
12. Annual Housing Quality Standards Inspections and Complaint Inspections -- The housing authority is required to inspect the unit annually. The housing authority may also perform a complaint inspection if it is determined an owner or tenant is not maintaining the unit. Any deficiencies will be noted and a notice mailed indicating a repair deadline. The owner or property manager is required to repair any failed items within 30 days or 24 hours for life-threatening or emergency deficiencies. The family is responsible for any tenant-caused damages beyond normal wear and tear.
13. If the Family Vacates the Unit Before the End of the Lease Term --The property owner or manager must notify the housing authority if the family moves out of the unit before the end of the lease term. Housing Assistance Payments can only be made while the family lives in the unit. Families who leave the unit without notifying the housing authority or owner may be terminated from the Housing Choice Voucher Program.
14. Procedures to Complete an Owner/Management Change -- The current owner/manager needs to provide a letter requesting the housing authority's consent to re-assign the HAP contract to the new owner/management company. The new owner must provide a letter agreeing to comply with the HAP contract and complete a W-9 and Tax ID form in order for us to transfer payments.
To view the HAP Contract click here to be taken directly to HUD's web site. To view the HUD Tenancy Addendum click here to be taken directly to HUD's web site.
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