Owner Update “Question of The Month”

Q: TMHA has “abated” my Housing Assistance Payment (HAP) payment because of inspection issues. Why?

A.  Abating a HAP payment is obviously an issue of great concern to owners. Nobody wants that HAP payment reduced. However, TMHA is required to follow the regulations about HAP abatements for the owner’s failure to repair HQS (Housing Quality Standards) items. In addition, HUD has recently made HQS inspections compliance a “hot topic” in their audits.

Here’s how this goes: An inspection is done – generally an annual inspection – on a unit that is under HAP contract. If the inspector finds fail items – he generally does – he will give a “must be repaired by” date, which is generally 30 days out from the inspection, and will so notify both the tenant and the owner by letter.

An exception to the 30-day repair time is a case where the fail item is “life threatening” and must be repaired in 24 hours. Think a furnace going out in the dead of winter or lack of water to a unit.

So the owner has the inspection repair date, and the clock starts ticking. If the unit is not repaired and scheduled for re-inspection within the allotted time, the unit falls into non-compliance for HQS. In the case that the owner cannot repair the failed items within the allotted time for legitimate reasons such as issues involving hiring repair contractors or backordered parts, the owner CAN request an extension of time to get the repairs done. This request should be made to the TMHA inspector by calling 330-308-8099, extension 206.

If TMHA has to abate the HAP payment, here is how it is calculated: the abate period is figured FROM the beginning of the month following the required re-inspection date (or approved extension date) TO the date when the unit actually was re-inspected and passed.

EXAMPLE: Tenant John Doe’s unit owned by Harry Smith had a “must be repaired by” date of October 15, 2006. The re-inspection finally occurred on November 7, 2006, and the fail items were correctly and completely repaired, and the unit passed 11/7/06. At the beginning of November when the monthly HAP checks were printed, the check for John Doe’s unit issued to Harry Smith was “HELD” meaning it was not sent out because the unit was in HQS non-compliance at that time. TMHA is required to suspend payments on a non-compliance unit.

After the unit passed inspection on November 7, the abatement period was calculated as being 6 days (Nov. 1 – Nov. 6). The full amount of the HAP check for November was then divided by 30 days to get the daily HAP. This amount was then multiplied by 6 abated days, and the abated amount was deducted from the November check, which was then sent to Harry Smith.

Paying attention to the repair dates on units, and seeking reasonable extensions of time to make repairs are ways owners can manage the abatement issue. It should also be noted that an owner CANNOT require the tenant to cover HAP abated under the HAP Contract.





The Tuscarawas Metropolitan Housing Authority office will observe the following holidays in the months of December and January and will be closed for business these days:
December 13th, 2006 - At 11:45 a.m. for Board & Staff Holiday Luncheon
December 25th, 2006 - Christmas Day
January 1st, 2007 - New Year’s Day
January 15th, 2007 - Martin Luther King Jr. Day


 

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