New York Codes, Rules and Regulations
Title 9 - EXECUTIVE DEPARTMENT
Subtitle S - Division of Housing and Community Renewal
Chapter III - Low Rent Housing
Subchapter C - Management Manual For Housing Authorities
Part 1627 - Occupancy
Subpart 1627-5 - Rent Determination And Collection
Section 1627-5.2 - Rent collection
Universal Citation: 9 NY Comp Codes Rules and Regs § 1627-5.2
Current through Register Vol. 47, No. 12, March 26, 2025
(a) Tenants in occupancy.
(1) Payment of rent
promptly by tenants can be made a matter of habit. This fact should be
emphasized at all times, and most strongly in the case of new tenants. Thus, at
time of prospective tenant's interview, managers should stress emphatically
that rent is payable on first day of month and that late payment will not be
tolerated. Tenants who allege inability to pay rent because of financial
difficulties should be referred to the bureau of welfare or other social agency
during first month of delinquency rather than granting a delay in payment, so
that no problem in paying back rent develops.
(2) In the event that rent payment is not
made properly, a three-day notice should be served as soon as the authority
deems advisable, but not later than the 10th of the month. At expiration of
three-day period, summary proceedings should be initiated without delay. Under
supervision of counsel, precept and petition can be prepared by the manager or
a member of his staff. Counsel for the authority should continue to prosecute
proceeding unless full payment from tenant has been received within prescribed
time.
(3) Tenant may be charged for
service and filing fees in connection with such proceedings, as well as any
court costs authorized under the law. Where rules and regulations do not
clearly set forth this fact, they should be revised to include such
provision.
(4) It is the
responsibility of the manager to see that proceedings are diligently followed,
up to point of eviction if necessary, and that counsel pursues collection of
any judgment rendered by the court. The responsibility of the manager by no
means ends when the account is turned over to counsel. He should keep in
frequent contact with him.
(5) All
tenants owing retroactive surcharges should be personally interviewed by the
manager and a schedule for monthly amortization of indebtedness agreed upon. A
memorandum of such agreement should be signed by the tenant, in which it is
stipulated that the amount to be paid monthly is to be considered additional
rent.
(6) It is the policy of the
division that tenants should be billed currently for surcharges.
(b) Vacated tenants. Where a tenant has vacated, whether voluntarily or involuntarily, it is still the responsibility of the manager and counsel to locate such tenant and to collect all sums due the authority. In achieving this end, consideration should be given to utilizing the services of a credit bureau to locate a vacated tenant, ascertain his current employment and discover available assets, if any. Judgments should be secured, and garnishee placed if indicated.
(c) Write-offs of uncollectible accounts.
(1) Every effort should be made by manager
and counsel to locate the tenant, discover his available assets and collect the
indebtedness, before recommending a vacated tenant's accounts receivable as a
collection loss write-off.
(2)
Where collection efforts on the part of the authority and counsel have not been
successful, division approval to turn over uncollected accounts to a collection
agency may be obtained on request. The agreement between the authority and the
collection agency must be approved by the division.
(3) Where all efforts as outlined above prove
to be unsuccessful and account appears to be uncollectible, write-off should be
handled as follows:
(i) Accounts receivable
up to $100 may be written off at discretion of project manager.
(ii) Accounts receivable from $100 up to $300
may be written off by resolution of authority acting upon recommendation of
counsel.
(iii) Accounts receivable
from $300 to $500 may be written off with the approval of the management bureau
of the division upon resolution of authority acting upon recommendation of
housing authority counsel.
(iv)
Accounts receivable in excess of $500 may be written off only after approval by
the legal bureau of the division. Requests for such approval must be supported
by the following:
(a) Form HM 56 "Uncollected
Account Write-off Approval" must be completely filled out with all requested
information shown.
(b) Specific
collection efforts must be detailed. The efforts of the manager and the counsel
should be shown. Dates of letters sent and nature of mailing (e.g., return
receipt requested) should be included. Efforts at personal contact, information
from employer or other sources should be listed, with a negative indication
shown, if such efforts were not made or were unavailing.
(c) If judgment was not obtained, give
reason.
(d) If judgment was
obtained but no garnishee made, give reason.
(e) A clear, concise statement indicating the
basis on which it was concluded that the account was uncollectible.
(f) A signed copy of the recommendations of
housing authority counsel based on his efforts to collect, specifying such
efforts to collect, specifying such efforts.
(g) A statement as to whether the account was
turned over to a collection attorney or agency approved by the division. If so,
include their report.
(h) Attach
copy of authority's resolution requesting write-off approval. Said resolution
should be duly executed by an authorized member of the authority.
(v) Except for cases of fraud and
misrepresentation, counsel to an authority may be permitted to compromise and
settle all accounts of vacated tenants turned over to him regardless of the
amount involved when such compromise and settlement are of an urgent nature and
are approved by the chairman of the authority or in his absence, the vice
chairman. The division must be advised of such settlements in cases where
indebtedness exceeded $500.
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