Woonsocket Housing Authority, RI Article XVIII Owner or Family Debts to WHA

Editor's Note: See 24 CFR 982.552.

§ 26-165 Introduction.

A. This article describes the WHA's policies for the recovery of monies which have been overpaid for families and to owners. It describes the methods that will be utilized for collection of monies and the guidelines for different types of debts. It is the WHA's policy to meet the informational needs of owners and families and to communicate the program rules in order to avoid owner and family debts. Before a debt is assessed against a family or owner, the file must contain documentation to support the WHA's claim that the debt is owed. The file must further contain written documentation of the method of calculation, in a clear format for review by the owner, the family or other interested parties.

B. When families or owners owe money to the WHA, the WHA will make every effort to collect it. The WHA will use a variety of collection tools to recover debts, including, but not limited to:

(1) Requests for lump-sum payments.

(2) Payment agreements.

(3) Abatements.

§ 26-166 Payment agreement for families. [24 CFR 982.552(c)(v-vii)]

A. A payment agreement, as used in this article, is a document entered into between the WHA and a person who owes a debt to the WHA. It is similar to a promissory note, but contains more details regarding the nature of the debt, the terms of payment, any special provisions of the agreement, and the remedies available to the WHA upon default of the agreement.

B. The WHA will prescribe the terms of the payment agreement, including determining whether to enter into a payment agreement with the family based on the circumstances surrounding the debt to the WHA.

C. There are some circumstances in which the WHA will not enter into a payment agreement. They are:

(1) If the family already has a payment agreement in place.

(2) If the WHA determines that the debt amount is larger than can be paid back by the family in a reasonable amount of time.

D. The WHA will use a sliding scale system to determine the monthly payment.

§ 26-167 Debts owed for claims. [24 CFR 792.103, 982.552(c)(v-vii)]

If a family owes money to the WHA for claims paid to an owner: The WHA may enter into a payment agreement.

A. Late payments.

(1) If the family's payment agreement is in arrears, and the family has not contacted or made arrangements with the WHA, the WHA will:

(a) Require the family to pay the balance in full.

(b) Terminate the housing assistance.

(2) If the family requests a move to another unit and has a payment agreement in place for the payment of an owner claim and the payment agreement is not in arrears:

(a) The family may be permitted to move.

(b) The family may be required to pay the balance in full prior to the issuance of a voucher.

(3) If the family requests a move to another unit and is in arrears on a payment agreement for the payment of an owner claim, the family will be required to pay the balance in full or be terminated from the program.

§ 26-168 Debts due to misrepresentations; nonreporting of information. [24 CFR 982.163]

HUD's definition of program fraud and abuse is a single act or pattern of actions that: constitutes false statement, omission, or concealment of a substantive fact; made with intent to deceive or mislead; and that results in payment of Section 8 program funds in violation of Section 8 program requirements.

A. Family error/late reporting. Families who owe money to the WHA due to the family's failure to report increases in income will be required to repay in accordance with the guidelines in the payment agreement section, § 26-166, of this article.

B. Program fraud.

(1) Families who owe money to the WHA due to program fraud will be required to repay in accordance with the guidelines in the payment agreement section of this article.

(2) If a family owes an amount which equals or exceeds $5,000 as a result of program fraud, the case will be referred to the Inspector General. Where appropriate, the WHA will refer the case for criminal prosecution.

C. Payment procedures for program fraud. The amount of the monthly payment will be determined in accordance with the family's current income.

§ 26-169 Debts due to minimum rent temporary hardship.

(Reserved)

§ 26-170 Guidelines for payment agreements. [24 CFR 982.552(c)(v-vii)]

A. Payment agreements will be executed between the WHA and a co-head of household.

B. The payment agreement must be executed by the Housing Choice Voucher Department.

C. Payments may only be made by money order or cashier's check.

D. A payment agreement will be considered to be in default when it is in arrears for 60 calendar days.

E. Monthly payments may be decreased in cases of family hardship and, if requested with reasonable notice from the family, verification of the hardship, and the approval of the Housing Choice Voucher Program Coordinator.

F. No move will be approved until the debt is paid in full unless the move is the result of the following causes and the payment agreement is current:

(1) Family size exceeds the HQS maximum occupancy standards.

(2) The HAP contract is terminated due to owner noncompliance or opt-out.

(3) A natural disaster.

G. Additional monies owed. If the family already has a payment agreement in place and incurs an additional debt to the WHA, the WHA will not enter into more than one payment agreement with the family.

§ 26-171 Owner debts to WHA. [24 CFR 982.453(b)]

A. If the WHA determines that the owner has retained housing assistance or claim payments the owner is not entitled to, the WHA may reclaim the amounts from future housing assistance or claim payments owed the owner for any units under contract.

B. If future housing assistance or claim payments are insufficient to reclaim the amounts owed, the WHA will require the owner to pay the amount in full within 60 days.

§ 26-172 Writing off debts.

[Amended 5-19-2011 by Res. No. 1086]

Debts will be written off if:

A. The debtor's whereabouts are unknown, the debt is more than 12 months old, and there have been no payments in the past 12 months.

B. The debtor is deceased.

C. The debtor is confined to an institution indefinitely or for more than one year.