Collection Losses Write-Off Policy

COLLECTION LOSSES WRITE-OFF POLICY

When a tenant moves out and terminates his/her lease leaving an unpaid balance owing to the Housing Authority after all debits and credits have been entered to his/her account (charges for damages and other items, credits for unearned rent, security deposit), the Executive Director, or his/her designated representative, will:

1) Mail the tenant a letter requesting payment of the amount owed, and

2) Take such other action deemed appropriate in attempting to collect the

debt owed the Housing Authority.

If the Housing Authority receives no response from the previous tenant after taking the above action, the Executive Director will, at the next Regular scheduled meeting, present the case to the Board of Commissioners for approval as an uncollectible account and request it be a Write-Off to Collection Losses.

The Executive Director will review the Tenant Accounts Receivable (a/c 1122) prior to the meeting of Board of Commissioners in the sixth (6th) month of the Fiscal Year and the month prior to the end of the Fiscal Year. He/she will present to the Board of Commissioners for approval as Write-Off to Collection Losses the following:

1) All vacated tenants’ accounts that show a balance owed and no agreement was reached for payment

2) All vacated tenants’ accounts that show a balance owed and a previous

agreement was reached but was broken.

Tenant Accounts Receivable from vacated tenants will not, except in very unusual cases, be carried over into a new Fiscal Year.

The Executive Director will maintain a record of all accounts written off to Collection Losses. The information shall include:

1) tenant name and account number

2) address

3) date lease was terminated

4) itemized list of all charges

5) total amount owed

6) amount written off to Collection Losses with Resolution Number and date of meeting in which resolution was passed.

A previous tenant who has not cleared his/her account and who has had amounts charged off to Collection Losses, may make application for housing, but will not be declared eligible until the amount written off has been paid in full. The Board of Commissioners will then review the applicant’s current status and determine his/her eligibility for housing.

Collections of Rents and Other Charges that have been written-off to Collection Losses will be handled in accordance with instructions in the HUD Accounting Guide.