Michigan State Housing Development Authority
MSHDA is making available $2,000,000 in administrative fees for damage claim payments to landlords due to damages caused by program participants that are identified upon move-out. The availability period for this funding is November 1, 2020 to December 31, 2021 and only applies to tenant move-out dates during this time. MSHDA reserves the right to end the availability of the payments if the amount of funds allocated for this purpose are exhausted prior to the specified end date, regardless of the pending status of additional claims. There will be no administrative appeal available regarding these claims to MSHDA. NOTE: Rental units covered under a MSHDA PBV HAP contract are eligible for damage claim payments.
The minimum amount an owner can request in damage claims is $300. The maximum amount an owner can request in damage claims is the lesser of $3,000 or the total amount of damages. In either instance, the owner must deduct the amount retained from the tenant's security deposit and any amount reimbursed by insurance or other sources to arrive at the eligible claim amount. In submitting a claim, the owner certifies:
Only items that have been damaged above "normal wear and tear" will be considered. Damage claims cannot be filed by the owner when a tenant is transferring from one unit to another due to tenant preference.
Charges for household furnishings, tools, cleaning fees, late fees, court costs, lawyer fees and advertising will not be considered. Supplies such as paint and paint brushes will be considered; however, only for the purpose of repairing damages to the unit, not common areas and/or other units. If the amount claimed is excessive, MSHDA may request additional documentation and/or information from the owner prior to approving the claim.
In addition, MSHDA is unable to consider any damage caused by an animal or pet. No monies will be paid for damage from pets. If the owner wishes to allow a pet, a separate agreement, signed and dated by both parties, is suggested. The owner may wish to collect an additional pet deposit to cover any possible damages.
All damage claim documents must be uploaded into a secure folder for MSHDA's review and determination. Before a secure folder can be created, the owner must send an email of interest to MSHDA-RAHS-DC@michigan.gov that provides the following preliminary information:
Once MSHDA confirms the preliminary information in its Housing Choice Voucher (HCV) system, the owner will be provided a link to create the secure folder for the damage claim submission.
Once the secure folder is created, the owner must upload the information below for review and determination. The information must be submitted within 90 calendar days of the MSHDA Housing Assistance Payment (HAP) Contract termination effective date. MSHDA will make a determination on the eligibility of the funds within ten (10) business days of receipt of all required documents.