Rent Arrears�

Training by:  Vanessa K. Adegbite, vadegbite@legalaid.org

                     Sara Amri, samri@legal-aid.org

For:               Housing Court Answers

Date:             January 11, 2022, 2:00-3:00 PM

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 ©  The Legal Aid Society, January 2022

VAdegbite@legal-aid.org

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VAdegbite@legal-aid.org

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VAdegbite@legal-aid.org

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Why are we here?

• Under what circumstances would an application for a rent arrears grant be necessary?
• How do you determine if you, your tenant or your client is eligible for a rent arrears grant?
• How does HRA categorize arrears?
• Tips and tricks for preparing applications and getting rent arrears grant approvals
• Other ways to get the arrears

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What is a rent arrears grant?

• A grant, loan or combination of the two from the Human Resource Administration or better known as "HRA" to pay rent arrears to avoid eviction in emergency situations.

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• What is an emergency?
• Pending nonpayment proceedings
• Pending holdover proceedings
• Post-eviction

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• Does HRA ever pay without a lawsuit?
• Yes, but they prefer a rent demand.
• They will pay without for a sympathetic case

 WHO is eligible?

• Must show future ability to pay the rent
• This usually means having the same amount of net cash after paying the rent  as a household in receipt of Cash Assistance (1-$183; 2-$291; 3-$389, 4-$501)
• Must use all available resources to pay arrears
• Should have at least the current month’s rent
• Arrears must be reasonable
• Will need to explain how tenant fell behind and why it is reasonable and/or why it will not recur
• Plan for getting to a zero balance
• Sympathetic facts

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Procedure and Lingo

1. Clients without ongoing Cash Assistance (CA)
• Client must interface with HRA to apply and get a case number. They must submit a full application for CA and check off that there is an emergency need for back rent.
• Advocate should submit letter in support to RAU email boxes
• Commonly called a “one shot deal”

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• Clients receiving ongoing CA
• Client or advocate can make emergency request using their case number
• Advocate should submit letter in support to RAU email boxes
• Commonly called “rent arrears grant”

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Getting Started

• Generally, applications are processed at the HRA Job Centers.
• If there is an emergency, the application can be started at:
• The court houses, at some homebased sites, and at the entry points to the shelter system
• The process is then completed at the job center
• Homebound exception
• Everyone over 18 should be at the interview
• HRA is supposed to process the application within 30 days.

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Applying During the Pandemic

During the pandemic applications are processed 4 ways:

1. Preferred and Fastest: Via Access HRA Mobile app and Document Upload app or on the Access HRA Website –client fills out a CA application and checks off that back rent is needed; client will get a confirmation number up front; or
2. By visiting 1 of the 7 open Welfare/Job Centers and submitting lots of documents; or
3. By requesting a paper application via the HRA Infoline at 718-557-1399 and then filling it out and mailing lots of documents; or
4. Through homebound visit for clients who have disabilities or impairments and cannot submit an application on their own. They should call HRA Infoline at 718-577-1399 and explain their circumstances. They should be routed to a callback for Center 90 (Reasonable Accommodation Requested/Home Visit Needed Center) and should be put on a waiting list to contact the client. Note: workers are calling from cellphones from their homes so it will not say HRA. Additionally, workers are not often going to the client’s home so getting documents to HRA will require getting copies.

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HRA Should Call the Client Back in 2 Business Days

• A worker should be calling the client back to review their application.
• If the client does not get a call back within 2 business days call the Rescheduling Unit at 212-835- 7304
• Advocate should send an email to HRA to notify them of the failure 
• Then deal with the Regionals office for the borough.
• Contact RAU for Help: RAUADVOCATESCASES@hra.nyc.gov
• Request a fair hearing and do an advocates inquiry.  Do not wait a month.

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Documents for Opening a CA/One Shot Case

• Identity (i.e. birth certificates, social security number, State id)
• Residence (i.e. letter from a landlord, lease, deed, court papers)
• Family composition (i.e. birth certificates, school records of school age children, immunizations records of young children)
• Rent payment or cost of shelter (i.e. rent bills, breakdown, court papers)
• Income from any source (i.e. UIB, SSD/I, work, short term disability, SNAP)
• Savings or other resources (i.e. tax return especially January-May, all bank accounts including Christmas accounts, real estate, etc.)
• Lawful residence in the US if applicant is not a citizen (i.e. passport, resident card, deferred status, etc.). 18 NYCRR §351.1(b)(ii); Eligibility Factors and Suggested Documentation Guide.

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Documents Concerning Rent Arrears

• Proof the client may remain in the apartment for at least a year after arrears are paid:
• If apartment is unregulated, can demonstrate through lease, stipulation, or other written agreement with the landlord.
• If apartment is rent regulated, a one year lease/agreement is not required but not all workers understand housing law and may need explanation about client’s right to a renewal lease.
• Proof of landlord ownership such as a deed or water bill available on ACRIS (https://a836-acris.nyc.gov/CP/)
• Housing Court Papers: rent demand, petition, breakdown, stipulation, or court order
• Advocacy letter demonstrating why THIS apartment should be saved for THIS family if arrears are high. Remember to show ties to the community.
• Proof of that client has at least 1 month of rent saved to demonstrate future ability to pay the rent.

Future Ability to Pay

• Most important aspect of any successful application.

• Must demonstrate that you have sufficient income in your household to pay the monthly rent going forward.

• If you cannot show future ability to pay your rent there is no entity that will give you the rent arrears, because you will be right back in arrears before they can issue the checks for back rent.

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How to Show Future Ability to Pay

• Total household income from all members is sufficient to pay rent and basic expenses.

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– Pay stubs, SSI Award Letters, CA case information

– Household has at least the same net cash as a recipient household

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• Tenant has a subsidy that when combined with income is sufficient to pay the rent.

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– Letter showing Section 8 and tenant share of the rent

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• Tenant has a third party who willing and able to commit to paying a portion of the rent

– If you are applying for FHEPS/CITYFHEPS you cannot have a third party but

you can have roommates.

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Client Contribution

• Client must provide at least one month’s rent.
• Before COVID, HRA would try to get your client to come up with some rent arrears money from their income, tax return, friends and relatives, HomeBase (government funds administered by a not-for-profit, or a charity). They are still doing this with high arrears cases.
• Are the funds from a true charity or government monies?
• The larger the arrears, the more HRA and others will want from client.
• In advocacy letter explain: your client has already made some large payments to the landlord that was from friends or relatives or that charities have been contacted.

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Practice Tip – When to apply?

• Delay: Consider delaying the application to give the applicant a chance to show future ability, for example by depositing the rent with their attorney or advocate at the beginning of the month with money order dated the first of the month.

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• Timing: when to apply
• Early: If made early in the month, before or shortly after the client’s income has been received, advise client to put the rent for the month of application in a money order.
• Late: If made late in the month, and the applicant has no money saved that can be applied to pay that month’s rent, it is best to wait until the beginning of the next month to apply so that the applicant can put that month’s rent in a money order to demonstrate ability to pay the rent.

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All Available Resources

• All resources must be used before HRA will pay the balance. For example:
• Earned Income Tax Credit (EITC): will deny applicants who used their refunds for non-essential purposes while accruing or failing to pay down rent arrears.
• Christmas, Holiday Club or other savings accounts: HRA will run a bank match to see if your client has had an open bank account.
• If the applicant owns their apartment, generally a lien will be required to repay arrears if and when the property is sold. The client is sent to the lien unit, if it is not a low income coop.

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Role of the Advocate

• It is extremely helpful if you can help a tenant to assemble an organized, complete, persuasive packet and provide a cover letter setting out the

best facts of their case in a logical way.

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• It is essential to follow up regularly with HRA, Homebase or the charity to ensure that the application does not fall through the cracks.

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• Thoroughly prepare and support our client through all stages

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• Troubleshoot problems that arise

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WHAT ABOUT PRIOR ONE SHOTS?

• Get a printout for the last five years to see if your client has received prior rent arrears grants.
• If your client has received rent arrears grants for the past two or three years in a row, HRA is going to want the rent sent directly to the landlord to ensure future ability.
• Sometimes the landlord will provide a routing number so a bank payment can be paid. Sometimes you may have to help your client go to the bank to set up a check payment each month for a small fee.

Advocacy Letter

• The advocate should prepare:
1. Cover letter explaining circumstances
• Explain all criteria that makes the client eligible
• Address any recent one shots
2. Packet containing all of the relevant documents, including proof of client contribution
• This packet should be provided to the client by mail or e-mail during COVID to submit with their application.
• The advocate should submit it separately to the Rental Assistance Unit to fast track the application.

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At the Interview

• Generally, an “application” caseworker at the center would complete the application with your client if there is no open CA case at the center. Now, the client should receive a call from HRA to go over the application and the caseworker will sign the application for your client.
• Remember: Your client is entitled to an interpreter and/or reasonable accommodations.
• A homebound person can be seen at home. Call HRA Infoline at 718-557-1399 to request a homebound visit for a person who needs accommodation because your client cannot complete an application on her own. The call will be routed to center 90 where your client should be put on a waiting list for a home visit if they are not sick with COVID-19.

Duty to Assist

• If the documentation is not available at the time of the the interview or call, the applicant will be asked to submit a list of follow-up documents.  
• The agency has a duty to assist the client if they do not have all the documents by conducting searches in available databases or through collateral contacts.
• Generally HRA will give a list of preferred documents and alternative documents.

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Reasonable Accommodations

• If a person needs accommodations, including a homebound visit, they can contact the Office of Constituent Services (OSC):
• Phone: 212-331-4650
• Fax: 212-331-4685
• Email: constiutentaffairs@hra.nyc.gov
• Mail: HRA OCS, 150 Greenwich Street, 35^th Fl, New York, NY 10007

Practice Tip (not applicable during COVID)

Warn your client that they will probably be at the welfare center for many hours.

• If there are school children in home make arrangements, if possible, to have someone pick up the kids at the end of the school day.
• Avoid Mondays, the first day of the month and the last day of the month when applying as these days tend to be the busiest.
• Best time to go is at 8:30 AM Tuesday-Friday (except after a holiday).

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Preparing the Client for the Interview

• Going to the center is not a pleasant experience and the new callback procedure is not substantially better.
• Prepare your client to discuss:
• Why there are arrears and
• Why there is now sufficient income in the home to pay the current month of rent and all future rent
• Note: if there is not a clear showing of less income for the period of arrears and more income now, HRA will question why they should pay. Help client explain how they fell behind (medical bills, other unusual costs etc) and why it will not happen again.

Advocate Interfaces with RAU

If you have a two attorney stipulation from court, there is a new fast tract e-mail to get an approval once the application is approvable:

2Attorneycasesettlement@hra.nyc.gov

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All other correspondence goes through:

RAUADVOCATESCASES@hra.nyc.gov

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New printout request for a “housing report” : losuprintouts@hra.nyc.gov provide name, client number, period

Who processes the application?

• 2013 policy addressing which shelter related requests are handled by job center and which handled centrally (“downtown”)
• Three units:
• Case Management Unit (CMU) in job center
• Homeless Diversion Unit (HDU) in job center
• Rental Assistance Unit (RAU) centralized

Bureau of Eligibility Verification (BEV)

• In normal times, the client may be sent to a BEV interview to investigate for other income or resources and that the landlord is really owed the money. HRA used to send all “one shot” applications but they are no longer doing so.
• During COVID, BEV interviews are suspended.
• If referred, questioning is done by one or two BEV workers.
• Preparation is very important and client must bring all the documentation with them and the advocacy letter (again).
• The workers will want to see a lease. If none, client will need other documentation to show there is a tenancy (court papers, rent registration, rent bill, etc.)

Note: The workers know about fraud but often not about welfare eligibility and are known to make bizarre statements.

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BEV Home Visit Suspended During COVID-19

BEV might schedule a second appointment for a home visit one to

three weeks after the first BEV appointment.

• If there is a deadline you client must ask for the first available date. Housing court cases are supposed to get priority.
• Client must be home on the date of the home visit. If not, the application will be denied and will almost always have to start over.

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Conditional Approvals

• RAU can issue a conditional approval before BEV appointment but will rarely do so.
• Under the Social Services regulations these appointment “must not delay an eligibility determination process beyond the timeframes established by the Social Services Law.” 18 NYCRR Sec. 351.4

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Job Center Chain of Command

1. Applications Worker/Case Worker & Homeless Diversion Unit (HDU) Worker

2. Supervisor

3. Office Manager

4. Deputy Director

5. Director

a. Administrative Assistant (AA) to the Director

6. Deputy Regional Manager

7. Regional Manager

a. Administrative Assistant to the Regional Manager

NOTE: IF THE STAFF DOES NOT GET BACK TO YOU IN 1-3 DAYS, GO DIRECTLY TO THE REGIONAL STAFF AS PER THE DEPUTY COMMISIONER

Homelessness Prevention Administration (HPA)

1. RAU worker at Central
2. RAU supervisor at Central
3. Ranti Makinde Director of RAU
4. John Foyah Deputy Director of RAU
5. Assistant Deputy Commissioner Pamela Ross

a. Elena Cabrera, Executive AA to Ross and Gomez

8. Deputy Commissioner Greg Gomez
9. Chief Homelessness Prevention Officer Bruce Jordan

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What if the application is denied?

• Send reconsideration packet that addresses all the points in the denial with supporting documentation.

Reconsiderations best within 25 days; after 30 days they will make client reapply. Thus important to bug RAU within 15 days for a decision.

• Work on resolving weaknesses.

• Submit a new application when circumstances have

changed.

• Best to avoid fair hearings about rent but do fair hearings about regular welfare issues (budgets, sanctions, etc. ) if can’t resolve through advocacy.

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What if the application is approved?

• Make sure that the approval includes all of the arrears you requested. If not, try to persuade the RAU unit to reconsider the whole amount.

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• Contact the Central Rent Processing Unit (CRPU) to have them hold the checks for pick up. If you do not, they will send the checks directly to the landlord. You want the checks to discontinue the case in a stipulation. During COVID most checks are mailed to the LL

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• Checks may be picked up by landlord or tenant’s representative. Rarely will allow tenant--maybe with written authorization from landlord. During COVID only open a few days of the week.

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What if CRPU sends the checks directly?

• Make sure to find out where the checks went.
• Pre-COVID, they were often sent by certified mail.  During COVID, most checks are sent by regular mail to the landlord unless it is an emergency case.
• Sometimes they mail the checks to the wrong landlord or address and sometimes the checks get cashed. Request an updated printout to see when the checks were issued and where they were mailed.

Most of the Arrears are a Loan

• It is very important to explain to your client that money from HRA for back rent is usually a loan above what the household size would receive if they were on CA.
• There are two shelter allowance schedules for households:
1. Households with minor children (under 18 or under 19 and still in high school or it’s full time equivalent)
2. All other households without minor children: singles, couples, adult families, etc.
• Two unrelated households living together can each obtain back rent if on the lease.

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Families with Children-CA Monthly Chart

Households w/o Minor Children-CA/m

Types of Rent Arrears Grants

    Types of “Rent Arrears” for grants�

Practice Tip

• For clients with ongoing benefits, try to identify CA errors to reduce the amount sought in the application
• Have any checks gone stale?
• Was the full shelter issued everything month?
• Was your client’s shelter improperly budgeted?
• Did HRA issue full applicant arrears when the case opened?
• If these situations apply, you can advocate with the center to get checks issued or re-issued to the landlord

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Other Circumstances

Relocation Assistance in the Community

• ½ a month’s broker fee
• Security deposit voucher
• Moving truck-3 estimates from licensed movers
• Storage fees-3 estimates from licensed storage facility
• First month’s rent (maybe)

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Other Sources for Grants

• Government programs for ongoing rental assistance
• FHEPS (Family Homelessness and Eviction Prevention Supplement)
• CityFHEPS
• Foster Care Rent Subsidy
• HIV/AIDS Subsidy (HASA)
• Other government sources:
• HomeBase
• COVID Rent Relief Extension Program (applications accepted Monday, Feb. 1)
• Charities

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FAMILY HOMELESSNESS AND EVICTION PREVENTION SUPPLEMENT (FHEPS)

• Eligibility: Families w/ a minor child in the home where at least one person receives CA
• Shelter allowance + subsidy = FHEPS. 
• Generally will pay $9000 in arrears with exceptions for special circumstances to $12,000. During COVID, they are paying more.
• Cannot add HomeBase funds on top
• Get application in at $9000 and it will be tolled for 6 months
• With high arrears they like charity money and client money

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CityFHEPS – Eligibility in the Community

• Eligibility:
• Veteran is a member of the household;
• Apartment is rent controlled;
• APS services or a community guardianship has been granted; or,
• Member of the household was in DHS shelter.
• Household income under 200% FPL first year.
• Required Documents:
• a recently signed W-9 tax form (within 30 days of submission)
• an updated breakdown of the arrears
• a recently signed stipulation or court order
• LL Statement of understanding 
• Tenant Statement of understanding 
• A one-year lease if the rent is not the legal rent in a regulated apartment and meets the levels for the household and income shares.  

Major Comparison-Income and Family Comp

FHEPS

1.  There must be at least 1 person in receipt of CA.

   a.  Subsidy tied to receipt of CA.

   b.  Other Household (HH) Members with income outside of CA must pay 30% of their gross income.

2.  There must be a minor child living with an adult (usually a parent or other relative).

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CITYFHEPS

1. The household (hh)  must have income at or below 200% of Federal Poverty Line (FPL) the first year and 80% of Area Median Income ("AMI") the second and subsequent years.

a.  Members of HH must pay 30% of their gross income or shelter allowance.

b.  Subsidy not tied to CA but attached for delivery purposes. Need not be eligible for regular CA case.

2.  The hh could be single, couple, adult family or family with minor.

CityFHEPS - Application

• Applications for CityFHEPS are initiated by the community HomeBase locations
• Advocates should help secure the appointment and follow up with HomeBase to ensure the application is being processed
• Contact HomeBase over the phone during COVID
• HomeBase then forwards the application to HRA for final approval
• HomeBase must conduct inspection (during COVID it is done virtually)
• CITYFHEPS application process is more involved and includes HRA check of 5 different data bases for violations before approval, i.e. HPD and DOB

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CITYFHEPS: During Covid-19 Virtual Walk Through of Unit 

• There is a 12 page apartment review checklist and APS or HomeBase must complete the checklist and take pictures of the common arears of the building and the apartment, SRO or room for a stay or move case.
• (During Covid, the tenant does this with her phone or new landlord does it with his phone.)
• All repairs must be made if the apartment has even small repairs: electrical outlet cover, crack in a small windowpane, etc.  Then a second inspection is done.

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FHEPS & City FHEPS-Subsidies & Shares

FHEPS

• Maximum subsidy is the same for family size if all receiving CA.
• Where members have outside income they pay 30% of their gross OR their pro rata share of the rent whichever is less.
• Must be an apartment or house.
• Historically, subsidies tied to 1 year RGB leases and set each October. 

** New law recently passed which provides for an immediate increase of the subsidy FMR at 100% of FMR and we expect an announcement soon. 

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CITYFHEPS

• Maximum subsidy is the same for family size if all receiving CA.
• Where members have outside income they pay 30% of their gross.
• Where no children, subsidy can cover a room or SRO.

**As of Dec 2021, CityFHEPS rent levels have been increased to NYCHA Section 8 FMR levels, which is on average 108% of FMR and has utility deductions. 

Moves in the Community are Different

FHEPS A and B

• First month of rent is paid fully.
• Rent supplement issued for next 3 months.
• ½ month of Broker’s fee
• Security Voucher
• No hold
• No incentive/signing bonus

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CITYFHEPS Rule 10-10

• First month of rent is paid fully.
• Supplement issued for next 3 months (New: used to offer 11 month option).  
• Security Voucher
• 15% of Year’s Rent for Broker
• $4200 signing bonus
• Unit hold paid if  HRA delay

Modifications, Recertifications, Restorations and Renewals

FHEPS

1.There is no annual recertification.  CA must remain open and youngest child must be minor. 

2.HH must modify w/in 3 months of a change.

3.Can restore subsidy w/in 1 year w/o lawsuit.

4.5 year time limit w/ good cause extension but ….

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CITYFHEPS

1. There is an annual recertification.

2. Subsidy set for 1 year-can modify if rent stabilized or lost income.

3. Subsidy can be restored for good cause for longer than 1 year.

4. As of Dec. 2021, the 5- year time limit for CityFHEPS subsidy has been taken away  

Foster Care Rent Subsidy

• Subsidy to keep children out of foster care or to get out of foster care
• Child in the community must be receiving preventative services and has housing need
• Cumbersome, slow process
• $10,800 for arrears and subsidy ($300 x 36)
• Can reduce subsidy months and use $1800 towards arrears
• Rent caps on apartments but exceptions made

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HIV/AIDS Subsidy (HASA) by HRA

• Subsidy for person with AIDS or HIV virus (need not be ill) that is administered through HASA
• HASA has their own RAU-like process for arrears or ongoing subsidy above regular subsidy
• Must be eligible or in receipt of SSI/SSD
• $480 for first person in household
• $380 for each additional person in household
• 30% contribution from SSI or other income
• HASA may approve more on top of that depending on rent and household size

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HomeBase Arrears

• Program run by Department of Homeless Services ("DHS") with contracts at not-for-profits called HomeBase; call 311 or online
• Receives funding to divert mostly families from shelter system
• Must go to HRA first
• $1000-$2000 but very strict on:
• future ability and
• zero balance
• In May and June may pay higher amounts
• No payback required, no recoupment
• Will not help every year

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Emergency Rental Assistance Program (ERAP)

• The program stopped accepting new applications in November. HOWEVER, a preliminary injunction was recently issued requiring OTDA to reopen the ERAP portal and begin accepting new applications within 3 business days of the issuance of the order. Unless the State appeals the order, the ERAP portal is expected to reopen for new applications Tuesday, January 11.
• If a household applied for ERAP they must obtain an approval or denial of their application before HRA will approve or deny a request for a one shot or rent arrears for a balance that is due.  The approval or denial should be attached to the application.
• HRA will check to see if there is a pending application.*  

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•  HRA will not process any arrears if there  is a  provisional approval where the State has determined the tenant is eligible but is missing documentation from the landlord.  The ERAP law gives those tenants some protection.

Charities

• Emergency Rent Coalition
• Created so you or your client can do one stop charity shopping through Housing Court Answers Hotline (they prefer advocates calling)
• 212-962-4795
• Use when client has been denied HRA grant/loan or when HRA will not pay the entire arrears
• Each charity has its own forms and process. ERC has one form.
• Most charities give under $1,000
• Project Parachute for households where no one has a qualifying immigration status. Apply through HomeBase.

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Charities - continued

Non-exhaustive list of charities:

• Coalition for the Homeless
• Part of the Solution (POTS)
• The Bridge Fund (for working or formerly working New Yorkers)
• Community Service Society
• Catholic Charities
• The Met Council
• New York Times Fund
• FEMA/EFSP

**Some schools and religious organizations also maintain a fund to assist with rental arrears

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