Owner Update “Question of The Month”

Q: Below are some Q & A’s about the Direct Deposit system TMHA is converting to for the payment of HAP (Housing Assistance Payments).

Q: What is “direct deposit”?
A:A. It is the electronic transfer of a payment from a company or organization into a checking or savings account – think wire transfer.

Q:Why did TMHA decide to convert to direct deposit?
A:Three main reasons: security, convenience for both TMHA & Owners, and cost. Sending large numbers of paper checks occasionally created issues with lost or stolen checks, creating re-issue problems for both the Owner and TMHA. The rising cost of postage has made the cost of electronic check transfer more affordable. TMHA has had a number of Owners request direct deposit for security and convenience.

Q:As an Owner, I am uneasy about giving out my account number for the transfer. Does TMHA have to have it?
A:TMHA must have the routing and account numbers in order to set up the transaction between the Originator (TMHA) and the Receiver (You the Owner). Routing and account numbers are not private anyway, since they appear on every paper check a person writes. Having those numbers does not in itself give a third party access to funds.

Q:Exactly how does the electronic transfer work?
A:Funds are transferred via the Automated Clearing House (ACH), which is the name of the electronic network for financial transactions in the United States. The system has rules and regulations established by The Electronic Payments Assn. and the Federal Reserve.

TMHA is the “originator” and the Owner is the “receiver.” Once an Owner has given us the information on the account designated to receive the money, TMHA sets up the Owner as a Receiver in our database software. When a payment is made, the software prepares the payment in a batch file formatted according to the requirements of the ACH system. TMHA personnel handling the payment then complete the secure bank log on that uses both passwords and a secure ID changing token number to initiate the transfer. The transfer is validated and then released to the Receiver’s account.

Q: How will I know that the payment has been received?
A:If on-line banking is used, the Owner will see that the transfer is “pending” and then usually the next day “available” for use. If on-line is not used, the owner’s bank is generally accommodating in checking the owner’s account to see if a transfer has come in to an account.

Q: How will I know what tenant the transfer is for?
A:The transfer will show strictly the amount of money coming into the Owner’s account. In order to provide Owners with this detail, TMHA has subscribed to an online service for that purpose called HAPCheck. To access, go to www.hapcheck.com, and use the Log In boxes. Enter your Tax ID (SSN or EIN) as the User Name AND Password. Once you have logged in the first time, you will be prompted to enter a new password, WHICH WILL BE THE ONE NEEDED AT FUTURE LOG INS. In addition to the website, TMHA will answer your questions about HAP payment as we always have.

Q:Q. What if I haven’t signed up yet?
A:TMHA plans to send another authorization form to set up the direct deposit. Owners will be given another opportunity to complete the form. In the short term, TMHA will continue to issue paper checks until all owners can convert to direct deposit.

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