Leasing Process

The following outlines the process an HCV participant must follow to obtain a lease.

The HCV participant must locate a landlord willing to participate with the program. The landlord must screen the family, conduct reference, and background checks, and determine whether the family is suitable to rent their unit.

Once a participant finds a unit, and the landlord agrees to rent the unit to the participant, the landlord and participant must complete a Request for Tenancy Approval and other necessary documents. These forms must then be returned to LHC to start the leasing process.

LHC has five business days to determine if the participant is income eligible for the unit. Eligibility is determined based on the participant’s current household composition, current household income, eligible deductions and expenses, along with the gross rent of the unit.

The formula used in determining the Total Tenant Payment is the highest of the following, rounded to the nearest dollar:

  1. 30 percent of the monthly adjusted income. (Monthly Adjusted Income is annual income less deductions allowed by the regulations);

  2. 10 percent of monthly income;

  3. welfare rent, if applicable; or

  4. a $25 minimum rent or higher amount (up to $50) set by an HA.

If the participant is income eligible for the unit and the rent is reasonable an inspection will be scheduled. If not, the landlord and the family are notified and the family must find another unit.

Housing Quality Standards

HUD requires assisted units to meet certain Housing Quality Standards. These standards can be reviewed at:

HUD Housing Quality Standards

In order to receive a Housing Assistance Payment Contract, the unit must: be income eligible for the family, be determined rent reasonable, pass a HQS inspection, and a one year lease agreement must be provided. LHC will then issue a Housing Assistance Payment Contract which must be signed by the landlord, and returned within 60 days of the effective date.

The first Housing Assistance Payment check is normally issued 30-60 days after the effective date of the contract. After the first Housing Assistance payment direct deposit is made, payments will be made on the 1st of each month thereafter, as long as the participant and landlord remain compliant with the program regulations.