Management Handbook Form Instruction’s

RA- 8hr AGREEMENT TO PAY SECURITY DEPOSIT

(USDA Rental Assistance & HUD Section 8 Properties ONLY)

It is Management’s policy to collect the FULL amount of Security Deposit at move-in. However, for persons eligible for USDA Rental Assistance or HUD Section 8 Rental assistance an exception to this policy can be made to prevent an income hardship to the household – when requested by the applicant/resident. This form will be used to make arrangements to receive the full deposit in a timely manner. [See also USDA-RD 3560 Handbook, and the HUD Occupancy Handbook 4350.3 REV-1, Change 2.]

Please complete the form as follows:

1.  Complete the first paragraph of the form as indicated.

2.  Complete the second paragraph of the form as follows:

a.  Enter the required “down” payment amount (30% of adjusted monthly income from line 24b on the USDA-RD 3560-8 Tenant Certification form or line 50 on the HUD-50059 form. The “Down Payment” must be paid at move-in NO EXCEPTIONS! (Remember NOT to exceed the security deposit amounts listed on the “Security Deposit Table” per unit size.)

b.  Enter the “1st payment date”. This date should be as soon after move-in as possible. Consideration should be given to households moving in towards the end of the month to allow them time to acquire the necessary monthly payment amount agreed upon.

c.  Next enter the “monthly payment amount”. USDA-RD requirements state that the Resident must make monthly installments of $15 OR that amount needed to pay off the balance within 3 months whichever is greater. This applies to HUD assisted residents as well. It is also acceptable for a resident to pay off their Security Deposit balance in less than three months if they choose.

3.  Carefully read and review the “Security Deposit Agreement Policy” written on the form with the resident(s). It is imperative that they understand their obligation.

4.  Make sure that the Resident(s) sign and date the Agreement.

5.  The original copy of this form should be attached to the Rental Agreement and a copy of the original form should be given to the Resident(s).

The Security Deposit Agreement would be in default when ONE (1) payment is delinquent.

PAYMENT DATES WILL NOT BE CHANGED and NO FUTURE AGREEMENTS WILL BE MADE.

Failure of the Resident(s) to abide by this Agreement will result in one or more of the following actions:

1.  The TOTAL outstanding Security Deposit balance may become due and payable in FULL.

2.  Resident rental payments received AFTER this three-month period may be applied FIRST to the outstanding Security Deposit balance. Any money leftover (not applied to Security) would then be applied to the actual rental charge.

Property Managers must get approval from their Property Supervisor BEFORE enacting 1 and/or 2 above in regard to the Resident’s failure to abide by this Agreement.

Security Deposit Agreement (7/07) Page 1 of 1 RA-8hr