PHAs in the Voluntary Vendor Payment Program must offer cash assistance tenants a payment plan for past-due rent. Tenants pay a small amount each month, depending on how much they earn. As long as they make their payments, they cannot be evicted for owing the money. No money is taken from the tenant’s public assistance to pay for past-due rent
DHS does not help make plans for paying past-due rent. The tenant must work with the PHA to come up with a plan that is reasonable and affordable.
The monthly payment on the past-due rent should normally be no more than 10 percent of what the tenant gets in monthly public assistance after the monthly rent is taken out. If the tenant and the PHA agree, it can be more if a larger payment will help the tenant pay off the amount owed within a year. However, if the monthly payment would be more than 50 percent of what the tenant gets in monthly public assistance after the monthly rent is taken out, the PHAs may refuse to agree to a payment plan and may refuse to participate in the Voluntary Vendor Payment Program.
The PHA does not have to accept a plan if the past-due rent cannot be paid off in one year. However, the PHA can choose to make the payment period longer than one year
The tenant can ask for a grievance hearing if:
The tenant does not think they can make the monthly payment.
The PHA refuses to agree to a payment plan.
Revised October 18, 2024, replacing July 30, 2013