HAP Landlord Informaon Booklet Housing Assistance Payment (HAP) Landlord Informaon Booklet Your quesons answered www.hap.ie
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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HAP Landlord Information Booklet
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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HAP Landlord Information Booklet
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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HAP Landlord Information Booklet
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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HAP Landlord Information Booklet
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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