HAP Landlord Information Booklet - Homeless Dublin...HAP Landlord Information Booklet l Tax Relief -...
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HAP Landlord Informaon Booklet Housing Assistance Payment (HAP) Landlord Informaon Booklet Your quesons answered www.hap.ie
Transcript of HAP Landlord Information Booklet - Homeless Dublin...HAP Landlord Information Booklet l Tax Relief -...
HAP Landlord Information Booklet
Housing Assistance Payment (HAP)
Landlord Information BookletYour questions answered
www.hap.ie
HAP Landlord Information Booklet
Table of Contents
About this booklet
1 What is Housing Assistance Payment (HAP)?
2 WhatarethebenefitsofHAPforme?
3 How does HAP work?
4 WhatarethetermsandconditionsofHAP?
5 Are there limits on HAP payments?
6 Who pays the rental deposit?
7 Who is the ‘landlord’ – me or the local authority?
8 Can HAP payments be suspended or stopped?
9 HowdoesthechangeoverfromRentSupplementtoHAP payments work?
10 WherecanIfindmoreinformation?
About this booklet
This booklet aims to answer questions that you, as a landlord (or an agent actingonbehalfofalandlord),mighthaveabouttheHousingAssistancePayment (HAP) scheme.
HAP Landlord Information Booklet
What is Housing Assistance Payment (HAP)?HousingAssistancePayment(HAP)isaformofsocialhousingsupportprovidedbyalllocalauthorities.HAPreplacesRentSupplementforthosewithalong-termhousingneedwhoqualifyforsocialhousingsupport.UnderHAP,localauthoritiesprovidehousingassistanceforhouseholdswithalong-termhousingneed,includingmanylong-termRentSupplementrecipients.
HAPprovidesamoreintegratedsystemofhousingsupportsandallowshouseholdsthatfindfull-timeworktoremaininthescheme.
UnderHAP,localauthoritieswillmakepaymentsonbehalfoftenantsdirectlytolandlordsforrent.HAPrecipientswillberesponsibleforfindingtheirownaccommodation in the private rented sector.
What are the benefits of HAP for me?
l Direct payment – you will be paid electronically on the last Wednesday of each month.ThispaymentcoverstheoccupationofthepropertybytheHAPtenantforthatcalendarmonth.Thepaymentissubjectto terms and conditions including rent limits and that the HAP tenant pays a rent contribution to the local authority.
l Consistency of payment–theHAPpaymenttoyouwillnotchangeifyour tenant’s income changes.
l Low administration – you don’t need to collect rent or make requests forpaymentfromyourHAPtenant.
l Easy banking – all payments are made electronically.
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Housing Assistance Payment (HAP)Landlord Information Booklet
Your questions answered
HAP Landlord Information Booklet
l Tax Relief -Since1January2016,landlordswhorenttotenantsinreceiptofsocialhousingsupportssuchasHAPmayavailofincreasedtaxrelief.Thisallowspropertyownerstoclaim100%ontheirmortgageinterest,asanexpenseagainstrentalincome.Toqualifyforthistaxrelief,youmustundertaketomaketheaccommodationavailabletoqualifyingtenantsforatleastthreeyears,andtheundertakingmustberegisteredwiththeResidentialTenanciesBoard(RTB).
How will HAP work? LocalauthoritiesmakeHAPpaymentsforhouseholdswithalong-termhousingneeddirectlytoyou.Thefollowingpointsoutlinehowthisworks.
1) AnapplicantwhoiseligibleforHAPfindsasuitablepropertyintheprivaterentalsector.Aspartoftheirapplicationprocess,you,thelandlordoftheproperty,mustsendcertaininformationtothelocalauthority.YoucanreturnPartBoftheHAPapplicationformwiththerelevantinformationdirectlytothe local authority.
Thisinformationwillinclude:
l Thetotalamountofthemonthlyrent
l Proofofownership/entitlementtoactaslandlordofthepropertywiththelandlords name and property address in oneofthefollowingformsasfollows:
a) Titledeedorsimilarlegalinstrumentprovingownershipoftheproperty, b) evidenceofcurrentregistrationwiththeResidentialTenanciesBoard
(RTB), c) evidenceofcurrentpaidbuildingsinsurancepolicy/schedule, d) evidenceofpaymentofLocalPropertyTax(LPT),or e) mortgage statement dated within the last 12 months.
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l Headerfromabankstatement,withthelandlord/agentnameandaddresstoprovethatthenamedperson/companynominatedtoreceiveHAPpaymentsistheaccountholderforthebankdetailsprovided.
l Anundertakingregardingtheproperty’scompliancewithstandardsforrental accommodation
l Anundertakingregardingyourtaxcompliance
l Landlord’sPPSNorTaxReferenceNumber
TheundertakingsreferredtoabovearesetoutinSectionBoftheHAPapplicationformandin“Part4.WhatarethetermsandconditionsofHAP?”below.
2) When the application is approved, the local authority will start making HAPpaymentsonthelastWednesdayofeachmonthdirectlyintoyourbankaccountsubjecttothescheme’sconditions.YoushouldnotethattheearliestdatefromwhichalocalauthoritywillmakeHAPpaymentstoyouisthedatetheyreceiveacompleteandvalidHAPapplicationformfromtheapplicantandyouaslandlord.Ifanapplicantmovesintoapropertybeforethisdate,theywillbeliableforanyrentdue.YouareadvisedtoreturnacompletedSectionBoftheHAPapplicationformtothelocalauthorityassoonaspossibleafteragreeingatenancy.
3) Yourtenant’slocalauthoritydecideswhatlevelofdifferentialrenttheywillbechargedandwhatlevelofHAPpaymentwillbemadetoyouaslandlordontheirbehalf.
4) AlllocalauthoritiesusetheservicesoftheHAPSharedServicesCentre,which is based in Limerick, to make HAP rental payments to landlords. The HAPSharedServicesCentre,alsocollectsalldifferentialrentsfromHAPtenants. For this reason, HAP payments will be made to your account in thenameof“HAPSharedServicesCentre”or“LimerickCityandCountyCouncil”.
HAP Landlord Information Booklet
5) TheHAPSharedServicesCentrewillmakeHAPpaymentselectronicallytoyouraccount,onbehalfofyourtenant,onthelastWednesdayofeachmonth.ThiscoverstheperiodofoccupationofthepropertybytheHAPtenantforthatcalendarmonth.
6) SimilartotheRentSupplementscheme,therearelimitsregardingthemaximumpaymentfordifferenthouseholdtypesindifferentareas.
7) Aswithothertenancies,theResidentialTenanciesAct2004(RTA)(asamended) governs the relationship between you and your tenant. This meansthatyouhavetoregisterthetenancywiththeResidentialTenanciesBoard(RTB).FurtherinformationisavailableontheRTBwebsitewww.rtb.ie.
LocalauthoritieswillsendliststotheRTBofalllandlordsreceivingHAPpayments.ThisletstheRTBcheckthatalltenancieswhereHAPisbeingpaid have been registered.
8) Youdon’thaveacontractwiththelocalauthority.ThelocalauthoritymakespaymentsonbehalfoftheHAPtenant.
What are the terms and conditions of HAP?
1) Compliance with rental accommodation standards.
HAP properties, like other rental properties, must comply with rental accommodationstandards.Yourlocalauthoritycangiveyouinformationaboutthesestandards,or,visittheHousingSectionoftheDepartmentofHousing,Planning, Community and Local Government’s website www.housing.gov.ie .
Aspartofatenant’sapplication,you,aslandlord,mustself-certifythattheproperty meets the required standards. The local authority will inspect the property to make sure it meets the standards. They will arrange this within eight monthsofthefirstHAPpayment.
2) Taxcompliance.
ToreceiveHAPpayments,youmustbetaxcompliant.You’llbeaskedtocertify
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thatyouaretaxcompliantaspartofthetenant’sHAPapplication.Youmustproduceevidenceoftaxcompliancebeforepaymentstoyoutotal€10,000.Formoreinformationontaxcompliance,pleasegotowww.revenue.ie
3) HAP Tenant compliance.
YourHAPtenantshavetopayaweeklyrentalcontributiontothelocalauthorityinline6withthelocalauthority’sdifferentialrentscheme.ThiscontributionmustbepaidbythemsothattheyremaineligibleforHAP,andsothatyoucan,therefore,continuetoreceiveHAPpayments.
Are there limits on HAP payments?Yes.UnderHAPlegislation,theMinisterforHousing,Planning,CommunityandLocalGovernmentsetslimitsforHAPpaymentsbasedonthenumberofpeopleinahouseholdandtherentalmarketinthelocality.Youcangetmoreinformationonthelimitsthatapplytoyourproperty,whichmayvarydependingonthesizeofthetenant’shousehold,fromyourlocalauthority.
Who pays the rental deposit?
Thetenantpaystherentaldeposit.UnderHAP,thelocalauthoritydoes notpaythedeposit.Insomecases,tenantswhoqualifyforHAPmightalsobeeligibleforanassistancefromtheDepartmentofSocialProtection.Thispaymentmayassistwithpayingadeposit,subjecttoapprovalbytheDepartmentofSocialProtection.
Who is the ‘landlord’ – me or the local authority?
The ‘landlord and tenant’ relationship is between you and the HAP tenant. The tenancywillbegovernedbythetermsoftheResidentialTenanciesAct2004(as amended). This means that the HAP tenant is your tenant and is not a tenantofthelocalauthority.
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Can HAP payments be suspended or stopped?
Yes.HAPpaymentswillstopwheneitheryouoryourtenantendthetenancyforanyofthenormalreasonsprovidedforbytheResidentialTenanciesAct2004 (as amended).
Localauthoritiescanalsosuspendorstoppaymentsforotherreasons.Someexamplesaregivenbelow:
Example 1 – Your Tenant’s Weekly Rent Contribution is not paid AlocalauthoritymaysuspendorstopHAPpaymentsiftheHAPtenantfailstomaketherequiredweeklyrentcontributiontothelocalauthority.Ifthishappens,thetenantisresponsibleforpayingthefullrentthemselves.Toreducetheriskofthishappening,HAPrecipientswillgenerallyberequiredtoset up automatic electronic payment arrangements.
Example 2 – Rental Accommodation Standards HAPpaymentsmayalsobestoppediftheinspectionofthepropertyshowsthattheaccommodationdoesnotmeettherequirementsforrentalpropertiesandthatyouhavefailedtobringituptostandard.
Example 3 – No Evidence of Tax Compliance Paymentsmaybestoppedifyouhavenotprovidedevidenceoftaxcompliancetothelocalauthoritybeforepaymentstoyoutotal€10,000.
Asafirststep,theHAPpaymentsmaybesuspendedratherthanstoppedinordertogiveyoutimetosortoutanydifficulties.Ifthesedifficultiesareresolved,paymentsresume;ifnot,paymentsmaybestoppedcompletely.
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How does the changeover from Rent Supplement to HAP payments work?
LocalauthoritiesworkwiththeDepartmentofSocialProtectiontochangetenantsoverfromRentSupplementtoHAPpayments.TenantswhohavebeenreceivingRentSupplementforasignificantperiodoftimeandwhohavequalifiedforsocialhousingsupportwillbeswitchedtoHAPonaphasedbasis.
IfyourtenantisreceivingRentSupplement,theymightcontactyouaboutchangingtoHAP.Weexpectthatthesechangeovertenantswillstayintheirexistingaccommodationwhereverpossible.Whenyouagreetoaccepthousingassistancepayments,thechangeoverwilltakeplaceonanagreeddate.Afterthat date, the local authority will make HAP payments directly to your bank accountonthelastWednesdayofeachmonth.ThiscoverstheoccupationofthepropertybytheHAPrecipientforthatcalendarmonth.Bothyouandyourtenantwillbewrittentoatthispointtoclearlyexplaintheprocess.
RentSupplementwillcontinuetobepaidbytheDepartmentofSocialProtectiontotenantswhodon’tqualifyforsocialhousingsupport–forexample,someonewholosesincomethroughtemporaryunemployment.Whentheyreturntowork,thereisnolongeraneedforsupport.
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HAP Landlord Information Booklet WherecanIfindmoreinformationonHAP?
ContacttheHousingSectionofyourlocalauthority.
ForfurtherinformationaboutHAP,visitwww.hap.ieor
TheDepartmentofHousing,Planning,CommunityandLocalGovernmentwebsite:www.housing.gov.ie
orCitizen’sInformationwebsite:www.citizensinformation.ie
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