Owner Update “Question of The Month”

Tuscarawas MHA will soon be switching to direct deposit of all HAP checks to owners. Following is a Q and A about the switch.

Q: How will this change affect the payment of the Housing Assistance Payment(s) (HAP)?

A:Several reasons. Owners have requested this service for some years now. The move in the banking industry to more commonly accepted practices of electronic transactions has made the switch easier to do. Direct deposit ensures there are no lost or misplaced checks.

Another primary reason is cost. The recent rise in postage along with the other administrative costs has made direct deposit a cost effective option.

Q: Why is TMHA making this switch?

A:Several reasons. Owners have requested this service for some years now. The move in the banking industry to more commonly accepted practices of electronic transactions has made the switch easier to do. Direct deposit ensures there are no lost or misplaced checks.

Another primary reason is cost. The recent rise in postage along with the other administrative costs has made direct deposit a cost effective option.

Q: Under direct deposit, when will owners get their money?

A: Direct deposit is immediate. As soon the transfer is made, the deposit is posted to the owner’s account. Now, TMHA typically sends out HAP checks on the first of the month, and owners receive them as soon as the postal service delivers them.

Funds to pay HAP to owners is transferred to TMHA by direct deposit from HUD typically on the first day of each month. Under the direct deposit scenario, TMHA will check to make sure the monthly HUD transfer has been made, and then will deposit funds to owners. This should happen by the first or second day of each month.

Q:How will an owner know the check “detail,” the information that states who the check is for and in what amount.

A:Detail information is not forwarded with the direct deposit. All the owner will see is the amount deposited. TMHA will solve this problem by purchasing software called HAPCheck, which is a centralized, secure, web-based system for producing on-line statements for owners. HAPCheck provides 24/7 access, and search options going back 18 months. Also, TMHA staff will be available to answer questions about the amount of any payment.

Q:How soon will direct deposit happen?

A: TMHA is still putting the protocols in place with Chase Bank. When that is completed the system will be phased in over the next several months.

Q:What must owners do to implement direct deposit.

A: Owners will have to complete a Direct Deposit Authorization form giving payee information. Owners will then give this form to their financial institution to complete the section which provides information on the account to which the direct deposit will be made. TMHA will send the Direct Deposit Authorization form to each owner in a separate mailing in the next month or two.

Q:What about the Owner Update newsletter?

A: Since TMHA will not be sending out checks, the Owner Update will not be sent with them. TMHA now posts the Owner Update to the TMHA website at www.tuscarawasmha.org. Or an owner can call and request that the newsletter be faxed to them.

MOLD CONTAMINATION TRAINING OFFERED

Farsight Management is holding a 1-day training on the health effects of mold, and the conditions that contribute to mold growth. The training will cover operation and maintenance procedures that address mold issues in rental housing. The training is scheduled for July 11th, 2007 from 8:00 a.m. to 5:00 p.m. at Stark Metropolitan Housing Authority at 400 E. Tuscarawas St. in Canton, Ohio. Cost is $70. Please contact Farsight Management at (330) 602-8338 for information and a registration form.

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