Initiative. Subsidized Housing. 7 Steps for Success for Real Estate Professionals & Landlords

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1 Subsidized Housing Initiative 7 Steps for Success for Real Estate Professionals & Landlords We're able to get Landlords up to 30% more than their asking rent price with our pre-screened candidates with Section 8 Vouchers! 1

2 Key terms Tenant pre-screen is an online questionnaire with uniquely crafted pre-screening questions for subsidized housing recipients. P.U.S.S.H. Preapproved Underwritten Standard for Subsidized Housing Recipients is a service that scores subsidized housing recipients based on their responses to uniquely crafted prescreening questions with scores ranging from 300 to 850. Learn more at 2

3 Programs and payments HAP - Housing Assistance Programs are federally or locally funded and subsidize up to 100% of the rent for low-income families, the elderly and persons with disabilities. In other words, the federal or local government is responsible for making the majority of the rent payment. Tenants typically pay up to 30% of their monthly income! Larry Smith is a veteran and receives $ per month from SSI. The rental is listed for $2,548 per month. Mr. Smith MAY be responsible for as much as 30% of the $ or up to $ per month. $2, HAP Payment $ Tenant Portion $2, Total Payment Remember it s up to 30% of the tenant s income and not the requested rental amount. 3

4 Payment standard Click on the following link to view DC Housing Authority s payment standard - The rents are broken down based upon subdivision and bedroom size. Many HAPs line up with DCHAs payment standard, but some do not. The rents on the link above are not guaranteed with all HAPs. 4

5 Required documents Leaseup docs Lease-up Package Receipt/Checklist Request for Tenancy Approval Property Owner/Agent Info Form Authorization for Direct Deposit W-9 forms Lead based paint notice executed HCVP HQS move-in inspection checklist for landlords Owner docs Voided check Recorded deed Owner/landlord identification Basic business license Certificate of occupancy (only if it's a multi-family - condos excluded) Standard lease (optional) 5

6 Lease-up process Factors affecting turnaround time for move-in PASS results on HQS-Housing Quality Standards inspection on the initial inspection EMERGENCY status for Tenant candidate Time of the month that leasing package is submitted Summary of the Lease-up process 1. Submit signed tenant acceptance letter with completed lease-up package 2. Coordinate initial HQS inspection and 2nd HQS re-inspection if required 3. Schedule lease signing with tenant and housing agency after passing HQS inspection 6

7 Step 1: Establish tenant pre-selection criteria We establish with Realtors AND Owners the conditions for Pre-approval from the beginning! Preapproval does not automatically imply tenant acceptance. 7

8 Step 2: Select prescreened tenant The following steps will take place once your rental unit has been selected by a preapproved tenant candidate P.U.S.S.H. score review 2. Rental application with background check 3. Discussion / decision on results summary from P.U.S.S.H. score and background check 8

9 Step 3: Sign tenant acceptance letter The tenant acceptance letter is a summary of lease terms. Many tenants receive assistance with their 1st month s rent and security deposit from agencies such as Catholic Charities. The signed tenant approval letter is required to start the application process and it is a very important document! 9

10 Step 4: Submit lease-up package Complete and submit the Lease-up Package / Checklist to the housing agency. We will send this package to you for electronic signatures once you provide us with the names and addresses for the Realtor and Owner. 10

11 Step 5: Obtain letter of intent for security deposit The letter of intent is the Housing Agency s response to the signed tenant acceptance letter. It affirms the precise Housing Agency with the contact person in order to follow through for the security deposit and 1st month s rent if required. The letter of intent affirms that you will receive your security deposit and 1st month s rent - it s your payment voucher so don t lose it! EXCEPTION: Tenant is paying security deposit the traditional way and provides proof of funds. 11

12 Step 6: Pass HQS inspection Top 10 Reasons for Failing HQS Inspections 1. Reverse polarity on electrical circuits 2. Ungrounded 3 prong electrical outlets 3. Exposed electrical wires 4. Non functional GFCI outlets 5. Short or missing pressure relief valve extension tube (on water heater) 6. Deteriorated interior & exterior paint 7. Non-functioning smoke detectors 8. No locks on ground level windows 9. Bathroom ventilation (no working window or fan) 10. Inaccessible areas in a unit (e.g. utility closet, bathroom) 12

13 Step 7: Sign lease / HAP contract What is a HAP Contract? It is HUD s Housing Assistance Payment Contract. It is a 3-way agreement between the Public Housing Provider OR Housing Agency, the Owner and the Tenant. 13

14 Deposit and 1st month s rent AFTER move-in Subsidized housing recipients may move in without paying the deposit and first month s rent... Explanation Prorated rent / 1st month s rent is paid by Housing Agency within days Security deposit is paid through the ERAP-Emergency Rental Assistance Program within days after lease-up (be sure to provide tenant acceptance notification and to obtain the letter of intent from the very beginning) You can opt to wait until everything goes through perfectly and forgo 1-3 month s rent. The tenant may opt to continue shopping and you may end up starting from scratch. 14

15 (888) UM.com 1629 K Street, NW Suite 300, Washingto n, DC DC s Premiere Tenant Placement and Subsidized Housing Experts Contact Us Today (202) ext M St, SE Washington, DC 20003