Federal Emergency Rental Assistance Program (ERAP) - Direct Payment to Tenant Policy
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Federal Emergency Rental Assistance Program (ERAP)
Direct Payment to Tenant Policy
June 25, 2021
Last Updated: 6/24/2021
6/28/2021
ENGAGEMENT BEST PRACTICES
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2. Questions
• We will be monitoring the Teams Chat for questions
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ask your question once the moderator calls on you
6/28/2021
THIS CALL IS BEING RECORDED 6/28/2021
WELCOME 6/28/2021
MEET YOUR FACILITATORS
Amy Mullen Jeremy Jacobson Tanya Raymond Natalie Goodman
TRAINING SUPPORT
Claire Marcus Berkley Jenkins
6/28/2021
Welcome, Goals, & Objectives
Our Journey 10 mins
Today Direct Payment to Tenant Policy Overview
90 MINUTES
Direct Payment to Tenant Criteria
40 mins
Termination of ERAP Benefits
Direct Payment to Tenant Documents
Case Studies 15 mins
Policy Reminders, Next Steps, & Resources 5 mins
Questions 20 mins
6/28/2021
TRAINING OBJECTIVE
Purpose Review the new ERAP direct payment to tenant
guidance and provide an understanding of the criteria,
process, and roll out
Goal Provide RAA staff with guidance to understand the direct
payment to tenant process
6/28/2021
DIRECT PAYMENT TO TENANT POLICY OVERVIEW 6/28/2021
DIRECT PAYMENT TO TENANT OVERVIEW
Starting on June 28, 2021, RAAs may use ERAP to pay tenants directly for rental
payments that would otherwise be paid directly to the landlord
(arrears, stipends, security deposits, etc.)
Arrears payments to tenants are limited to a maximum of $15,000
In situations where tenant arrears exceed $15,000, the landlord must agree to accept payment from the
RAA for ERAP to cover 100% of arrears
There is no dollar cap on direct tenant payments for other costs (stipends, first/last month’s rent, or
security deposits) that would normally be paid to the landlord
Eligibility criteria still needs to be met in order to direct payments to tenants
6/28/2021DIRECT PAYMENT TO TENANT OVERVIEW (CONT’D)
As with all ERAP benefits
Stipends are capped at the Stipend commitments Stipend payments are
amount equal to the cannot exceed three months scheduled for each month
monthly contract rent without reapplication or due (not paid in a lump
recertification sum)
ERAP eligibility requirements still must be met:
(80% AMI, COVID Impact, Risk of Homelessness/Housing Instability, Currently Renting or Moving to a New Rental,
18 Month Limit)
6/28/2021RENTAL ASSISTANCE PROCESSING (RAP) CENTER ROLE
The Rental Assistance Processing (RAP) Center will not process any direct payments
to tenants
Instead, the RAP Center will send the client file back to the RAA if a tenant has been
determined eligible for ERAP, but their landlord is refusing assistance or has not responded
to outreach within designated timeframes (details outlined later in training)
6/28/2021IMPLEMENTING NEW FEDERAL REQUIREMENT
BACKGROUND ON UNRESPONSIVE LANDLORDS
• 15,640 applications processed statewide during month of April.
– 32% were approved
– 5% were denied formally, withDIRECT PAYMENT TO TENANT CRITERIA 6/28/2021
CRITERIA OVERVIEW
ATTEMPT TO PAY LANDLORD ENGAGE IN FACE-TO-FACE MEETING
Tenant payment can only be issued if the landlord is Need to meet (virtually or in-person) with the tenant
non-responsive or confirms that they choose not to before funds can be issued in order to verify their
participate. identity and clearly explain the rules to them.
VERIFY THAT PAYMENTS HAVEN'T SIGN TERMS OF FUNDING
ALREADY BEEN MADE AGREEMENT LETTER
Need to confirm in HAPPY that months of rent being RAA must require the tenant to sign letter (provided
requested haven't previously been paid to the tenant by DHCD) outlining program
or landlord. requirements/expectations and payment details.
CONDUCT PUBLIC RECORDS CHECK TRANSMIT TERMS OF FUNDING
Confirm that the landlord listed on the tenant AGREEMENT LETTER
application is actually the owner of the property. RAA must transmit the signed letter to both the
tenant and landlord.
03/11/2021 DRAFT FOR POLICY AND PROGRAM DEVELOPMENT 14ATTEMPT TO PAY LANDLORD
RAAs and RAP Center MUST attempt to pay the landlord first in ALL cases
Per U.S. Treasury guidance, tenant payment must be made when the landlord is:
• Non-responsive after 7 days to a letter sent via certified US postal mail with return receipt requested
• Non-responsive to 3 phone, email, or text messaging attempts over 5 days
• OR when landlord confirms in writing that they choose not to participate
§ Outreach best practices:
• At least one outreach by telephone, followed by subsequent text messages or emails
• If the tenant does not have email or cell phone contact information for the landlord, or if the landlord’s voicemail
is full, then the RAA must contact the landlord via letter by certified mail
6/28/2021ATTEMPT TO PAY LANDLORD (CONT’D)
All contact attempts MUST be documented in the client file
For phone calls For texts
All phone call attempts should be documented in the Upload a screenshot of the text/replies and
client file showing that the attempt was made and the attach in the client file
outcome of the call
If no screenshot available, add a note similar to
Phone attempt (3) – Called Insert the following: Text Attempt (#) sent to Insert
Owner/Landlord Name on Insert Date at Insert Owner/Landlord Name on Insert
Phone Number – (Outcome – either No Date with following text: (RAA to add text)
answer, No answer left voicemail,Voicemail
full, Landlord not available, Spoke with landlord, etc.)
For emails For letters sent via certified mail
Save or upload a copy of all email Scan a copy of the letter and attach in the client
attempts/replies and attach in the client file
file
Upload any landlord responses either confirming
or refusing direct payment
6/28/2021ATTEMPT TO PAY LANDLORD (CONT’D)
All emails or letters to the landlord requesting Property Owner documentation or
participation must include the following language (RAAs must add this language to any
existing Property Owner Packets by Monday, June 28):
“You should be aware that refusal of emergency rental assistance may, under some
circumstances, violate Chapter 151B of the Mass. General Laws, which prohibits discrimination
against a tenant receiving housing subsidies.
In addition, if you, as landlord, do not respond to this communication by [DATE] or refuse to accept
this emergency rental assistance, then our agency may issue a payment directly to the tenant.Any
payment to the tenant for arrears shall not exceed $15,000.”
Text messages must include this language:
“Refusing to accept rental assistance may be a violation of Massachusetts law that
prohibits discrimination. If you do not respond by [DATE], assistance may be paid to the tenant
directly.”
6/28/2021VERIFY THAT PAYMENTS HAVEN'T ALREADY BEEN MADE
Prior to processing the payments, RAA’s must look in HAPPY for both the Tenant and
Landlord listed in the application/contact file and review the amount of assistance,
property address and unit, and months of assistance applied for to make sure payments
haven't already been made or scheduled
Because of the risk of fraud/nonpayment, it’s especially important to do this step
before paying a tenant
If payment has already been made for the same month(s) requested, do not proceed
with payment
6/28/2021CONDUCT PUBLIC RECORDS CHECK
Confirm that the landlord listed on the tenant application is actually the owner of the
property by checking at least one of the following:
1 masslandrecords.com
2 County Registry of Deeds
3 Local assessor's website
If… Then…
RAA must attempt to reach out to the owner identified in the public
Someone else is listed as the owner
records check
Tenant found to have listed a completely false owner Tenant not eligible to receive payment and denied for suspected fraud
Tenant listed an owner's broker, family member, or other
RAA must attempt to contact actual owner
representative of the owner who is nonresponsive
RAA has alternate information for owner from prior payment to
RAA must attempt outreach using that contact information
that owner
6/28/2021QUESTIONS 6/28/2021
ENGAGE IN FACE-TO-FACE MEETING
RAA must engage in face-to-face meeting (either virtual or in-person) with the tenant before funds can
be issued to them
RAA to verify identity by checking the person applying against a photo ID
• Such as, but not limited to, a driver's license or passport
• If tenant is unable to produce photo ID in a reasonable timeframe, RAA managers may approve waivers to accept
alternate documentation
• If a waiver is approved, RAAs must document reason for accepting alternate documentation (auditing purposes)
§ RAA to review Terms of Funding Agreement and confirm tenant understanding that:
• They may face civil or criminal penalties if they do not use funds for paying rent to the landlord as intended
• They must collect and retain a receipt or some other documentation to show they have become current on rent
• They must repay rent if landlord does not accept it
Need for face-to-face meeting can be waived by RAA (at manager's discretion) as part of a reasonable accommodation
or based on the applicant’s technology or transit needs. In this situation, a phone meeting is required.
6/28/2021ENGAGE IN FACE-TO-FACE MEETING (CONT’D)
Outreach Best Practices
Initial outreach should be via phone, followed by text/email with an explanation of the purpose of the
meeting
Confirm preferred format for interview
In-person
Web Conference (Zoom, Skype, Teams, etc.)
FaceTime
Other
Confirm that tenant wants to move forward with the interview
6/28/2021ENGAGE IN FACE-TO-FACE MEETING (CONT’D)
Interview Guidance
Start by reviewing key application info to confirm that it is correct (update as needed)
o Personal ID info o Rent amount
o Renter info o Arrears
o Landlord info o Stipends requested
Review the applicant's photo ID
Go through Terms of Funding Agreement item by item
o Stress that they must give payment to landlord within 30 days of signing agreement
o Stress that they must collect a receipt
6/28/2021SIGN TERMS OF FUNDING AGREEMENT LETTER
RAA must require the tenant to sign a Terms of Funding Agreement letter as provided by
DHCD
� If interview is in person, tenant should sign a copy in person
� If interview is virtual, send tenant a copy to be returned in 7 days (payment cannot be issued until
returned)
The Terms of Funding Agreement letter outlines program requirements and expectations,
namely:
� Payment must be returned to the RAA if the landlord doesn't accept it
� Payment must be returned to the RAA if the tenant fails to pay the landlord within 30 days of signing
agreement
� Tenants may not use the funds to pay other costs, even if those costs are also housing-related
§ The Terms of Funding Agreement letter also includes:
� The amount of the payment
� The address of the unit it is paying for
� The intended use of the payment (i.e., arrears, stipends)
6/28/2021TRANSMIT TERMS OF FUNDING AGREEMENT LETTER
RAA must transmit by email or US mail the signed Terms of Funding Agreement letter
to both the tenant and the landlord (so that the landlord will anticipate the rent payment is
pending)
Landlords must provide official written receipts to the tenants once they receive
payment (and retain copies of these receipts)
The letter will inform the landlord that they may notify the RAA if the tenant does not
make the payment within 30 days of signing the agreement
6/28/2021TERMINATION OF ERAP BENEFITS 6/28/2021
TERMINATION OF ERAP BENEFITS
If the landlord contacts the RAA and says the tenant did not make a payment, the
RAA will send a termination of assistance letter to both parties explaining that:
Payment was made to tenant, but due to dispute over whether landlord was paid, all ERAP will be
terminated
Termination can be avoided if, within 7 days, tenant returns payment to RAA, or proof of payment is
provided
If rent remains unpaid, the landlord has the right to evict for nonpayment
Tenant retains the right to an administrative review at the RAA
DHCD will review cases where violations occur and determine whether to refer the matter for
criminal prosecution or civil penalties
6/28/2021TERMINATION OF ERAP BENEFITS
Dispute Process
If landlord contacts RAA claiming tenant has not made a rent payment, check client file to see
if 30 days have gone by since agreement was signed
o If under 30 days, discuss with landlord that tenant has 30 days, and to call back on [date]
if they have still not received a payment
o If over 30 days, explain to landlord that a termination of benefits letter will be issued to
both parties, and the tenant has 7 days to return funds or provide proof of payment
After validating that a violation has occurred, RAAs must:
o Stop all planned future payments/stipends to the tenant
o Terminate eligibility for future ERAP recertifications/applications
o Contact the DHCD Fraud Hotline: dhcdhotline@massmail.state.ma.us or 617-573-1100
6/28/2021DIRECT PAYMENT TO TENANT DOCUMENTS 6/28/2021
TERMS OF FUNDING AGREEMENT LETTER
The purpose of the agreement
letter is to formalize the
agreement with the tenant,
and outline the terms
and expectations
The letter includes:
RAA Information
Tenant Information
Landlord Information
Payment Details
Terms of the Agreement
Sample Receipt
6/28/2021PAYMENT RECEIPT SAMPLE & TERMINATION LETTER
Payment Receipt Sample Termination Letter
Sample receipt of payment that should be sent
with every Terms of Funding Agreement Letter
Receipt of payment may be requested through the
dispute process
6/28/2021HAPPY PAYMENT ENTRY
HAPPY will allow users to make a payment
directly to the “Tenant” contact instead of the
“Owner” or “Vendor” contact
When scheduling transaction, select “Tenant” as
payee instead of “Owner”
From there, lock in transactions following
normal process
Molly Butman will work with HAPPY Super
User group to demonstrate how to run reports
based on “Contact Type”
6/28/2021CASE STUDIES 6/28/2021
CASE STUDY 1
Scenario: I have a client named Lucas Garcia. He lives in an apartment in Worcester with his
wife and children. He has fallen behind on his rent due to being unemployed for 6 months during
the pandemic. Lucas applied for rental assistance and provided all of the documentation that I
requested from him, but his landlord has been unwilling to participate which has prevented me
from providing him and his family with funds.Therefore, in order to provide Lucas with a direct
payment, I have:
Called Lucas’s landlord and left a voicemail, then sent two follow-up emails over the course of
a week, documenting each of those contact attempts in his client file
Lucas Garcia Verified in HAPPY that no payments have been made to Lucas for the months of arrears he’s
requesting
Confirmed on Masslandrecords.com that the landlord listed on Lucas’s application is in fact
the owner of that property (they are)
“I fell into arrears after losing Did a Zoom call with Lucas in order to confirm his identity and explain the terms of
my job due to COVID. I providing him with a direct payment
submitted all of my Had Lucas sign the Terms of Funding Acceptance letter
documentation for rental Sent copies of the signed letter to both Lucas and his landlord
assistance, but my landlord
refused to participate.”
03/11/2021 DRAFT FOR POLICY AND PROGRAM DEVELOPMENT 34WORKING TOGETHER ACTIVITY - MENTI LIVE POLL (ANONYMOUS)
• Can Lucas receive a direct benefit?
• Why or why not?
How to Participate
1. Go to Menti.com on your smartphone or computer browser.
2. Enter the code 7314 9837 into the field shown to the right
03/11/2021 DRAFT FOR POLICY AND PROGRAM DEVELOPMENT 35CASE STUDY 2
Scenario: I have a client named Jane Davis who lives in an apartment in Springfield. She has
fallen behind on her rent due to being laid off from her job during COVID. She has
accumulated $8,000 of arrears and has applied for rental assistance. She has provided all of
the necessary documentation on her end, but her landlord has been unresponsive.
Therefore, in order to provide Jane with a direct payment, I have:
Called the landlord to leave a voicemail but the inbox was full. Therefore, I sent a text
message and two emails over a 5-day period, documenting each of these attempts in
the client file.
Verified in HAPPY that no payments have been made to Jane for the months of arrears
Jane Davis she’s requesting
Searched the Hampden County Registry of Deeds to confirm that the landlord listed
on Jane’s application is in fact the owner of that property
HOWEVER, the name listed on the deed is different than the landlord listed on the
“I can't get rental assistance application
because my landlord has been
unresponsive, and I have no
other way to pay off my
arrears."
03/11/2021 DRAFT FOR POLICY AND PROGRAM DEVELOPMENT 36WORKING TOGETHER ACTIVITY - MENTI LIVE POLL (ANONYMOUS)
What should I do first?
How to Participate
1. Go to Menti.com on your smartphone or computer browser.
2. Enter the code 7314 9837 into the field shown to the right
03/11/2021 DRAFT FOR POLICY AND PROGRAM DEVELOPMENT 37CASE STUDY 3
Scenario: I have a client named Steve Malone who lives in Boston. He has 10 months’
worth of arrears and has stated a COVID impact on his application. He has provided the
necessary documentation, but his landlord has been unresponsive. Therefore, in order to
provide a direct payment, I have:
Attempted to the pay the landlord
Verified in HAPPY that payments haven’t already been made
Conducted a public records check
Engaged in a face-to-face meeting
Gotten the tenants signature on the Terms of Funding Acceptance letter and
transmitted it to the tenant and landlord
Steve Malone HOWEVER, a month later I received a call from the landlord stating that they never
received the payment from the tenant
03/11/2021 DRAFT FOR POLICY AND PROGRAM DEVELOPMENT 38WORKING TOGETHER ACTIVITY - MENTI LIVE POLL (ANONYMOUS)
What should I do first?
How to Participate
1. Go to Menti.com on your smartphone or computer browser.
2. Enter the code 7314 9837 into the field shown to the right
03/11/2021 DRAFT FOR POLICY AND PROGRAM DEVELOPMENT 3918-MONTH POLICY REMINDER 6/28/2021
ERAP 1 & ERAP 2
As of June 4, 2021, ERAP has a second funding source that allows
households to receive up to 18 months in assistance (rather than 12 or 15)
ERAP 1 & ERAP 2
ERAP 1 (“existing ERAP”): The benefit cap is a maximum of 12 months’ worth of
assistance, including both arrearage payments and any forward stipend, with an additional 3
months of assistance available for those households with continued risk of housing
instability.
ERAP 2 (“new/expanded ERAP”): The benefit cap is a maximum of 18 months’ worth
of assistance between full or partial arrearage payments and any forward stipends. Forward
stipends can be awarded in three (3) month increments for those households with continued
risk of housing instability.
06/04/2021 41ERAP 2 BENEFIT LIMIT
The benefit cap for ERAP 2 is a maximum of 18 months’ worth of assistance between full
or partial arrearage payments and any forward stipends.
Forward stipends can be awarded in 3-month increments for households with a continued
risk of housing instability.
For any given month, households still may not receive more than the equivalent of its
monthly contract rent amount.
Households that have previously received ERAP 1 can receive ERAP 2 if the total combined
between ERAP 1 and ERAP 2 does not exceed 18 months total between arrears and stipends
06/04/2021 42RESOURCES & NEXT STEPS 6/28/2021
ADDITIONAL LEARNING OPPORTUNITIES
Office Hours
Join weekly Office Hours next week to hear a recap of this policy and an open Q&A session
July 2 | 1:00 PM – 2:00PM
ERAP Direct Payment to Tenant Policy
Please read and become familiar with the new ERAP Direct Payment to Tenants policy, which can be found on the
RAA Resource Portal.
RAA Readiness
Your designated DHCD Point of Contact continues to be a resource to assist with this and other policy changes.
6/28/2021RESOURCES
RAA Resource Portal
Central resource to provide RAA staff with key updates,
1 training and learning opportunities, and helpful information to
support programs
2 Direct Payment to Tenant Checklist & Overview Reference
Guide
Further Questions
3 Contact the RAA support inbox (dhcdraaraft@mass.gov) as a
point of escalations for questions. A member of the RAA
Support Team will respond.
6/28/2021QUESTIONS 6/28/2021
THANK YOU!
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