North Carolina Transitions to
Community Living Initiative (TCLI)
Housing Assistance Payment (HAP)
Agreement
This Housing Assistance Payment (HAP) Agreement (“Agreement”) is entered into between
______(LME/MCO)
______(Owner/Landlord)
The purpose of this Agreement is to assist the Tenant identified below to lease a decent, safe, and sanitary dwelling Unit from the Owner. ______(LME/MCO) is authorized to execute this Agreement and will make Housing Assistance Payments (HAP) to the Owner on behalf of the Tenant in accordance with this Agreement. This Agreement is conditioned upon a valid Lease between Owner and Tenant (the “Lease”) that complies with applicable federal and North Carolina law. The executed Lease between the Owner and Tenant shall be attached as an Addendum and made part of this Agreement.
1. Unit, Tenant and Household
This agreement applies only to the Tenant and Unit designated in this section:
Unit ______
(Property name and apartment number, or street address, city, state, zip code)
Tenant Name ______
(Name of Tenant/Leaseholder)
The Unit was constructed in ______(Year) Before 1978: ☐ (or) During or After 1978: ☐
(Lead based paint certification is required for housing built prior to 1978).
Household Members: The following persons may reside in the Unit.
(Please list names below)
______
______
______
______
Other persons may not be added to the household without prior written approval by the Owner and the LME/MCO.
2. Terms of the Agreement
The initial lease between the Tenant and Owner begins on ______and ends on ______.
This Agreement shall begin on the first day of the initial lease term or ______, whichever is later, and shall continue until terminated per the terms set forth within this Contract.
The Owner is responsible for providing the LME/MCO with a copy of the executed Lease within five (5) business days of execution of the Lease by the Tenant and Owner.
This Agreement terminates automatically upon the occurrence of any of the following:
a) The Lease is terminated by the Owner or the Tenant;
b) The program assistance for the Tenant is terminated by the LME/MCO;
c) The LME/MCO determines that available funding under the Transitions to Community Living Voucher (TCLV) is not sufficient to provide continued assistance for the Tenant;
d) The Tenant moves from the Unit;
e) The death of a single member household, including single member households with a live-in-aide.
3. Security Deposit, Contract Rent, Tenant Rent, and Housing Assistance Payment
The total Security Deposit for the Unit is $ and shall be paid by the LME/MCO within five (5) business days of receipt of the signed Lease.
The initial Contract Rent (the total monthly rent paid to Owner during the term of this Agreement) is
$ per month. During the initial Lease term, the Owner may not raise the rent. The Owner may submit a request for a Contract Rent increase in writing at least 60 days prior to the end of the initial or a subsequent lease term. The LME/MCO will review the request and notify the Owner of a decision within 30 days of the request. Contract Rent increase requests are considered based on Transition to Community Living Voucher Program guidelines which include a review of market rents for similar units in the geographic area.
The Tenant Rent (the portion of the Contract Rent payable by the Tenant) shall be $ ______per month. The Tenant Rent amount is determined by the LME/MCO. The amount of the Tenant Rent is subject to change during the term of this Agreement at the sole discretion of the LME/MCO and will be effective as of the date stated in the notification by the LME/MCO to the Tenant and Owner.
The Housing Assistance Payment (HAP) (the portion of the Contract Rent payable by the LME/MCO) shall be $ ______per month. The HAP is equal to the difference between the Contract Rent and the Tenant Rent. The HAP amount shall be determined by the LME/MCO and any change will be effective as of the date stated in the notification to the Tenant and Owner. The LME/MCO is only responsible for paying the Housing Assistance Payment and is not responsible for paying the Tenant rent or any end of lease fees incurred by the Tenant.
4. Utilities and Appliances
Check below to identify which party will be responsible for paying/supplying the following essential utilities/appliances:
Electricity to the Unit is the responsibility of Owner ☐ or Tenant ☐
Gas to the Unit is the responsibility of ______Owner ☐ Tenant ☐ or N/A ☐
Water/Sewer to the Unit is the responsibility of Owner ☐ or Tenant ☐
(other) is the responsibility of Owner ☐ Tenant ☐ or N/A ☐
Refrigerator in the Unit is furnished by ______Owner ☐ or Tenant ☐
Stove in the Unit is furnished by ______Owner ☐ or Tenant ☐
Trash Collection is furnished by ______Owner ☐ or Tenant ☐
5. Maintenance, Operations and Inspections
The Owner agrees to maintain and operate the Unit and related facilities to insure the provision of decent, safe, and sanitary housing in compliance with HUD Housing Quality Standards (HQS).
The LME/MCO shall have the right to inspect the Unit and related facilities prior to Tenant occupancy and periodically during the term of tenancy as determined by the LME/MCO. These inspections will generally be annual inspections conducted within a 12-month period and special inspections at the request of the Tenant or the Owner. The LME/MCO agrees to give prior notice to the Tenant and the Owner of the intent to inspect the premises unless it is reported that a life-threatening situation exists requiring a rapid response. The LME/MCO will notify the Owner of any defects noted in an inspection and provide the Owner with the opportunity to correct.
If the Owner fails to maintain the Unit in accordance with HUD HQS or materially violates this Agreement, the LME/MCO may exercise any of the following remedies including, but not limited to, recovery of overpayments, suspension of Housing Assistance Payments (HAP), abatement or reduction of HAP, termination of HAP, and termination of the Agreement. The LME/MCO may not exercise such remedies against the Owner due to a HQS breach for which the Tenant is responsible, or if the Owner provides written notice to the LME/MCO with documentation that the Tenant refuses to give access to make the required repairs. The LME/MCO will not make HAP payments if the Unit does not meet HQS, unless the Owner corrects the defect within the period specified by the LME/MCO and the correction is verified by the LME/MCO. HQS violations that are life threatening (no heat, water, hot water, or electricity) must be corrected within no more than 24 hours. The Owner will not receive retroactive payments for the period of time for which the Unit was under abatement for non-compliance with HUD HQS.
6. Obligations of the Owner
· The Owner agrees to accept Housing Assistance Payments from the LME/MCO, appropriately pro-rated, only for the period of time in which the Tenant resides in the Unit.
· The Owner agrees to promptly notify the LME/MCO within five (5) days in writing if/when the Tenant vacates the Unit.
· The Owner agrees to promptly notify the LME/MCO within ten (10) days in writing of the sale or transfer of the property including contact information for the new owner/responsible party.
· The Owner agrees to not accept any funds received, but not entitled to, as a result of the sale or transfer of the property.
· The Owner agrees to return to the LME/MCO (within thirty (30) days of receipt) any overpayments made by the LME/MCO as a result of the sale or transfer of the property.
· The Owner must comply with federal laws prohibiting discrimination against any person because of race, color, religion, sex, national origin, age, familial status, or disability. The Owner agrees to consider any forthcoming reasonable accommodation or modification requests from the Tenant in accordance with the Fair Housing Act and Americans with Disabilities Act.
· The Owner is to make timely repairs to the Unit in response to Tenant’s notification of maintenance needed in order to keep the Unit in a decent, safe, and sanitary condition.
7. Monthly Payment to Owner
The Owner will furnish the LME/MCO with a completed W-9 form, direct deposit forms, and other documentation as a condition precedent to receiving payment from the LME/MCO.
The LME/MCO will pay the Housing Assistance Payment to the Owner on behalf of the Tenant at the beginning of each month in which the payment is due. Payments will be made by the LME/MCO in an agreed upon manner with the Owner.
In the event the LME/MCO overpays the Owner and determines the Owner is not entitled to such payment for whatever reason, the LME/MCO may deduct the amount of the overpayment from any amounts due to the Owner. If no further payments are due the Owner, the LME/MCO shall invoice the Owner for the amount of the overpayment. The Owner agrees to be responsible for reimbursing any overpayment to the LME/MCO.
8. Adjustment and Termination
The LME/MCO will periodically evaluate the Tenant’s program eligibility and ability to pay rent. The LME/MCO from time to time will make adjustments to the Tenant Rent and Housing Assistance Payment not to exceed the Contract Rent. The Owner and the Tenant shall be given written notice by the LME/MCO of any adjustments or termination within five (5) business days of the determination of such adjustment or termination regarding the Tenant’s eligibility and ability to pay rent. Upon termination notification by the LME/MCO, the Tenant shall have up to 30 days to vacate the Unit and relocate.
Adjustments may include termination of assistance if the Tenant’s income is deemed to be adequate to pay the Contract Rent. Termination of this Agreement shall not constitute a breach of the Lease between the Owner and the Tenant.
The Owner may not assign this contract to a new Owner without the prior written consent of the LME/MCO.
9. Termination of Tenancy
The Owner shall not terminate the tenancy of the Tenant except for:
a) Serious or repeated violation of the terms and conditions of the Lease;
b) Violation of Federal, State or local laws which impose obligations on the Tenant in connection with the occupancy and use of the Unit and surrounding premises;
c) Other good cause.
The Owner may evict the Tenant from the Unit only by instituting summary ejectment proceedings in court. The Owner must notify the LME/MCO in writing of the commencement of procedures for termination of tenancy at the same time that the Owner sends notice of same to the Tenant under North Carolina Law. The notice to the LME/MCO may be given by furnishing to the LME/MCO a copy of the notice to the Tenant.
10. Overview of Risk Mitigation – Special Claims Available to the Owner
To support Owners, several tools are available that reduce their financial risk. Once the Tenant has permanently vacated the Unit and the security deposit has been settled, the Owner, if necessary, may file a special claim with the LME/MCO to recover out of pocket expenses that exceed the security deposit, or otherwise paid by the Tenant. The LME/MCO reviews submitted claims for approval and payment processing.
NOTE: Only one special claim submission per tenancy can be filed by an Owner, whether the submission covers one item/event or multiple items/events, and claims may only be filed for costs incurred, not anticipated.
The types of Special Claims are as follows:
A. Reimbursement for Unpaid Property Damage Caused by Tenant
When the Tenant permanently vacates the Unit and there are damages that do not exceed the deductible for an insurance claim, as determined by the Owner, the Owner may file a claim, subject to the approval of the LME/MCO to be reimbursed for documented damages caused by the Tenant, minus normal wear and tear, minus the paid security deposit at a rate of 75% of the claim total, not to exceed $2500. The Owner must have a policy of conducting unit inspections at least annually and must notify the LME/MCO promptly of any damages noted during the periodic Unit inspection to provide an opportunity for remediation.
Owners submit a claim by sending a completed TCLV Special Claims Requisition form to the LME/MCO with the following required supporting documents:
· Copies of invoices supporting the Requisition form;
· Copy of most recent Owner Unit inspection report;
· Copy of insurance policy;
· Copy of annual Unit inspection;
· Security deposit disposition/settlement.
B. Reimbursement in the Event of an Insurance Claim Due to Damage Caused by Tenant
If a Tenant causes damages that result in the Owner filing an insurance claim, the Owner is encouraged to establish a payment plan with the Tenant subject to the agreement of the Tenant, to recover the unpaid balance, but the monthly payment may not exceed $50. When the Tenant permanently vacates the Unit and if there is a remaining unpaid balance, the Owner may file a claim, subject to the approval of the LME/MCO, to be reimbursed for the outstanding balance, minus the security deposit, minus the total of any payments made by the Tenant. The rate of reimbursement is 100% of the total unreimbursed portion of the insurance claim (deductible, disallowed costs), not to exceed $3000.