Payments

Payments

Once a HAP contract is executed, the PHA will begin processing payment to the owner. Keep in mind that before an initial HAP contract can be executed:

  1. A completed RTA must be submitted 
  2. The proposed owner must be approved
  3. The RTA must be approved 
  4. The proposed unit must pass an Initial Housing Quality Standard Inspection.
  5. The contract rent must be determined as reasonable (determined during the inspection process).
  6. The PHA must verify that utilities are on and appliances are operable (if this information is unavailable at the time of inspection).
  7. Contracts, leases and addendums must be executed by all parties (owner, tenant and PHA) prior to, but no later than the effective date of said documents.

Owners can sometimes experience a delay receiving their first Housing Assistance Payment from the agency. Depending on the effective date of the Housing Assistance Payment (HAP) Contract, payment many be delayed due to a monthly sequence. When this occurs, the owner will receive a lump-sum payment, retro-active to the effective contract date.

Prorated Payments

If the HAP Contract does not start on the 1st of the month, that month’s payment will be prorated by the number of days in that month that the unit is under contract.

Payments to Owner During the Term of the HAP Contract

During the term of the HAP Contract, the Municipality of Trujillo Alto Housing Authority will make monthly Housing Assistance Payments to the owner, on behalf of the household, at the beginning of each month. Housing Assistance Payments will only be paid to the owner while the household is residing in the assisted unit during the term of the HAP Contract. The PHA will not pay a HAP to the owner for any moth after the month when the family moves out. Unless the owner has complied with all provisions of the HAP Contract, the owner does not have the right to receive housing assistance payments under the HAP Contract.  

No payments will be made to the owner, neither at the initial entering of the contract, nor at the renewal of the contract if:

  • the unit has not passed a HQS Inspection
  • a valid signed contract is isn’t on file
  • an approved lease is isn’t on file
  • the owner has NOT complied with the terms of the HAP Contract
  • the tenant has NOT complied with their Obligations as a Section 8 Participant.

Late Payments to Owner

The agency is NOT obligated to pay any late payment penalty, such as a late fee, if the delay is due to circumstances beyond the PHA’s control or due to any breach of the HAP Contract, including of any of the following:

  • recovery of overpayments
  • suspension of housing assistance payments
  • abatement or reduction of housing assistance payments
  • termination of housing assistance payments
  • termination of the contract

Payment Processing

Typically, PHAs processes payments two times per month:

  • Between the 1st and the 5th of the month
  • On or near the 15th of the month

The Housing Authority has a mandatory direct deposit policy. Statements of the direct deposit will be provided via email. Please be sure to keep this information up-to-date with the agency at all times. 

Excess Payments to Owner

In the event the owner receives payments in excess of the amount specified in the HAP contract, the owner must immediately return these excess payments to the Housing Authority.