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Wednesday, November 4, 2009

Q&A: If a client receives a security deposit with HPRP funds, who receives the security deposit if the client moves out? The program or the client?

The decision should be made with guidance from lead agency and/or program level.

From HUD is giving grantees the discretion to determine how to handle security deposits. The grantee may recover the security deposit, in which case it must be treated as program income. Alternately, the grantee may allow the household to keep the deposit and use it towards their next unit. Finally, the landlord or property management company may keep a portion of the deposit if it is needed to pay for costs incurred by the tenant such as damages to the unit.

Sample agreement:

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