Title
To Amend the Security Deposit Policy for Public Housing and Affordable Housing Properties
Memorandum
The Ann Arbor Housing Commission charges a security deposit under state landlord/tenant laws as well as under public housing regulations. State statute allows landlords to charge up to 1.5 times the monthly rent as a security deposit. The AAHC properties that are no longer public housing fall under the state statute. Public housing falls under both the state statute as well as HUD regulations for public housing.
HUD regulations state that at the option of the AAHC, the lease may require security deposits. The amount of the security deposit cannot exceed one month's rent or a reasonable fixed amount as determined by the AAHC. The AAHC may allow for gradual accumulation of the security deposit by the family, or the family may be required to pay the security deposit in full prior to occupancy. HUD allows interest earned on security deposits to be refunded to the tenant after vacating the unit, or used for tenant services or activities.
The state of Michigan requires any interest earned on security deposits to be refunded to the tenant when they vacate the unit. The AAHC deposits all security deposits into a non-interest bearing account to avoid tracking such small amounts of interest.
The board adopted the following public housing policy in 2015 at the request of AAHC staff,
Current Public Housing Policy
Residents must pay a security deposit to the PHA at the time of admission unless waived by the Executive Director. The amount of the security deposit will be the greater of the family's total tenant payment at the time of move-in, or $100 for a 1 bedroom apartment, $200 for a 2-bedroom apartment, $300 for a 3-bedroom apartment, $400 for a 4-bedroom apartment or $500 for a 5-bedroom apartment, and it must be paid in full prior to occupancy.
The PHA will hold the security deposit for the period the family occupies the unit. The PHA will not use the security...
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