Operating Supplement #31

Rev. 11/04

RENT/OTHER CHARGES COLLECTION PROCEDURE

  1. As rental payments are received at site offices, the envelope -- either return envelope provided with the rent statement, or an EDP envelope prepared by the site office staff are to be date stamped with the exact date received.
  2. After verifying the amount received is accurate and the account is not locked, the payment is then recorded on a log of payments kept monthly at each site location. This log should be maintained for a period of 12 months.
  3. All payments are to be processed daily.
  4. In the event payments are not received in the correct amount, they are to be personally returned to the resident within one business day of receipt, or by means of the Firm Mailing Book For Accountable Mail kept by each management office. Efforts for personal delivery must be initiated prior to utilizing the Firm Mailing Book For Accountable Mail. A copy of the cover letter, check or money order, and payment stub are to be retained on the left hand side of the management office folder.

Payments received that cannot be processed timely are to be forwarded to the Central Office to the attention of the Accounting Supervisor, to be held in the safe. A photocopy of the check or money order should be held in the management office folder for future processing.

Payments are not to be kept inside files, file cabinets or desk drawers, or other unsecured areas. Staff are to exhibit good judgment in handling of all payments to protect the bonding capacities.

To ensure a maximum PHAS score in the Financial Sub-Indicator, the following monthly schedule is to be followed:

1st Week

Rent and other charges collection period – personal contact by phone/in person

Follow-up on the release of any escrowed dollars

Follow-up on accounts where small balance letters were sent the previous month to ensure

payment in full

All payments received must be processed for posting within one business day and before

late fees posted

2nd Week

Assemble 14 day notices for distribution once accounting has posted late charges

Begin tracking process of late payers (3 occurrences per calendar year permitted)

Distribute 14 day notices

3rd Week

Conduct 14 day notice conferences

Complete pending interims before books close

Process issuance of miscellaneous charges or credits before books close

Complete review of pending maintenance charges (2 X month)

All payments received are processed for posting before books close

Utility allowance offset form signed to counteract maintenance and any other miscellaneous charge

delinquencies (to be in accounting offices prior to books closing)

4th Week

Books close

Non payment evictions and 30 day notices assembled and processed (same month of violation)

Send out small balance letters

Daily

Meet with resident once made aware of pending retro charges (30 + days before hitting the books)

Work order charge letters are sent to the resident(s) as work orders are received

Under no circumstances are monies to be held in the management office beyond one business day

Legal cases are updated as necessary