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Rent & Recertification

Participants pay approximately 30 percent of their adjusted income directly to the landlord. Prior to the execution of the Housing Assistance Payment contract with the landlord, the field agent will notify the landlord of the tenant’s rental obligation. MDOC subsidizes the balance of the rent. Note: SET-ASIDE AGREEMENTS ARE A VIOLATION. 
  

MDOC may authorize participants to make additional payments to the landlord for additional services or amenities, such as parking spaces or appliances (other than range and refrigerator), however, any side payment agreement between the participant and landlord, for items not included in the lease, must be made in writing, and pre-approved by the field agency.

If a tenant violates a lease agreement, the landlord must treat that tenant as they would any non-subsidized tenant. The only difference in the eviction process is that the landlord must simultaneously send copies of all legal notices to the MDOC. The eviction process must adhere to rules as spelled out in the Montana Landlord Tenant Act.

Lease Information [24 CFR 982.308(d)]
The assisted dwelling lease must contain, at a minimum, all of the required information as listed below:

• The names of the owner and the tenant:
• The unit rented (address, apartment number, and any other information needed to identify the contract unit)
• The term of the lease (initial term and any provisions for renewal)
• The amount of the monthly rent to owner
• A specification of what utilities and appliances are to be supplied by the owner, and what utilities and appliances are to be supplied by the family

Term of Assisted Tenancy
  • The initial term of the assisted dwelling lease must be for at least one year [24 CFR 982.309].
  • The initial lease term is also stated in the HAP contract.
  • The HUD program regulations permit MDOC to approve a shorter initial lease term if certain conditions are met.

Security Deposit [24 CFR 982.313 (a) and (b)]
The owner may collect a security deposit from the tenant. MDOC may prohibit security deposits in excess of private market practice, or in excess of amounts charged by the owner to unassisted tenants.

CHANGES IN LEASE OR RENT [24 CFR 982.308]
 If the tenant and the owner agree to any changes in the lease, such changes must be in writing, and the owner must immediately give the local field agency a copy of such changes. The lease, including any changes, must remain in accordance with the requirements. Generally, MDOC approval of tenancy and execution of a new HAP contract are not required for changes in the lease. However, under certain circumstances, voucher assistance in the unit shall not be continued until MDOC has approved a new tenancy in accordance with program requirements and has executed a new HAP contract with the owner.

These circumstances include:

• Changes in lease requirements governing tenant or owner responsibilities for utilities or
• appliances
• Changes in lease provisions governing the term of the lease
• The family moves to a new unit, even if the unit is in the same building or complex

In these cases, if the HCV assistance is to continue, the family must submit a new Request for Tenancy Approval (RTA) along with a new dwelling lease containing the altered terms. A new tenancy must then be approved.
Where the owner is changing the amount of rent, the owner must notify the field agency of any changes in the amount of the rent to owner at least 60 days before any such changes go into effect [24 CFR 982.308(g)(4)]. MDOC will agree to such an increase only if the amount of the rent to owner is considered reasonable.  If the requested rent is not found to be reasonable, the owner must either reduce the requested rent increase, or give the family notice in accordance with the terms of the lease.
No rent increase is permitted during the initial term of the lease [24 CFR 982.309(a)(3)].

 

TERMINATIONS AND EVICTIONS

If a participant tenant family accepts a “Notice to Pay Rent or Quit” as an eviction, and moved based on the notice, MDOC will not reissue the voucher.

Tenants may terminate the Leave after the completion of one year. If after completion of one year of the Lease and Tenant wishes to terminate the Lease, the Tenant must give the Owner at least thirty (30) days written notice but not more than sixty (60) days prior to vacating the unit. A copy of this notice must be sent to the field agency.

Owners are required to report tenant vacancies to local field agents promptly to prevent excess payments.

Owner Termination of Lease
During the term of the lease, the owner may not terminate the tenancy expect on the following grounds:

(1) Serious or repeated violation of the terms and conditions of the lease;
(2) Violations of federal, state, or local law that imposes obligations on the tenant in connection with the occupancy or use of the premises; or
(3) Other Good Cause.

The family is not responsible for payment of the portion of the rent to owner covered by the HAP contract.  Failure to pay the housing assistance payment to the owner is not a violation of the lease between the tenant and the owner. During the term of the lease, the owner may not terminate the tenancy of the family for non-payment of the MDOC housing assistance payment.

Any of the following types of criminal activity by the tenant, any member of the household, a guest or other person under the tenant’s control shall be cause for termination of tenancy:

(1) Any criminal activity that threatens the health, safely or right of peaceful employment of:
(a) The premises by other residents; or
(b) Their residences by persons residing in the immediate vicinity of the premises; or
(c) Any drug related criminal activity on or near the premises.

Owner Notice – Notice of grounds
The owner must give the tenant a written notice that specifies the grounds for termination of tenancy. The notice must be given at or before commencement of an eviction action.

Eviction Notice

A notice to vacate, or a complaint or other official pleading used under state or local law to commence an eviction action. The owner must give MDOC, through the local field agent, a copy of any owner eviction notice to the tenant.

“Other Good Cause” for termination of tenancy by the owner may include, but is not limited to any of the following examples:

(1) Failure by the Family to accept the offer of a new lease or revision;
(2) A Family history or disturbance of neighbors or destruction of property, or of living or housekeeping habits resulting in damage to the unit or premises;
(3) The owner’s desire to use the unit for personal or family use, or for a purpose other than a residential rental unit; or
(4) A business or economic reason for termination of the tenancy (such as sale of the property, renovation of the unit, desire to lease the unit to a higher rental) (90 day notice is required).

COLLECTING OVERPAYMENT AMOUNTS OWED TO MDOC

MDOC will contact the Owner by mail and request repayment.
1. If the owner does not repay and continues in Section 8 with other tenants, MDOC will automatically reduce payments due to the owner for other tenants in the amount due to the program until the debt is satisfied.
2. If the owner does not arrange repayment within 30 days, and does not continue in the program, MDOC will request the State Auditor attach any state warrant issued to the owner to satisfy the debt.