This tab is where household accounting activity related repayment agreements with the tenant is recorded and stored. A Repayment Agreement is an agreement between a tenant and a property management company and/or property owner to help the tenant pay off a large receivable balance with a payment plan. In Property Manager this is called a Promissory Note. It can be used for different types of tenant receivables including Rent, damages, etc, regardless of funding program.
This tab is divided into four sections - Open Items, Remaining Balance, Scheduled Items, and Event History. There are two types of Promissory Notes:
Notes Receivable - this is when balances are transferred from the Receivables Tab into a Note Receivable with a Repayment Agreement.
For example, the tenant owes $1,000 for a damage charge. This open item can be transferred to the Promissory Note tab so that it will bill out $50 a month until it has been paid off.
You can also create an Irregular Repayment Schedule. In this case you will need to set the date and amount of each payment to be made.
Notes Payable - these are created when the money being collected from the tenant then has to be sent back to the agency.
The best example for this is when a household has under reported their income and received more subsidy than they were entitled to and the money is then due back to the agency.
When the certification is rebuilt with the corrected income, positive Rent Receivable Open Items are created for each month impacted and negative Subsidy Open Items are created for the amounts due back to the agency.
Both of the rent and subsidy open items are then transferred into a Note Payable from the Subsidy Tab.
When the subsidy involves a HAP:
The 'Convert Subsidy to Promissory Note' task will create an OARQ miscellaneous adjustment for the full amount of the subsidy adjustments that are being converted to a promissory note. On the HAP, the subsidy adjustments will be shown in the adjustments section, and the offsetting OARQ will be shown with the miscellaneous accounting adjustments.
When the tenant later makes a payment on a billed Note Payable - Net Subsidy open item, an OARQ miscellaneous adjustment will be created for inclusion in the next HAP.
When receiving payments against a Note Payable Promissory Note (Accounting Detail > Payments) that creates an OARQ to be included on a HAP, the amount applied to the Promissory Note can only be in whole dollars. Amounts on HAP requests are rounded to whole dollars, so if the amount applied to the Note Payable and the created OARQ aren’t in whole dollars, you can’t receive the payment against the HAP.
If you have the "Apply Credits and Unapplied Payments" nightly cycle running on your database and you have an unapplied payment that includes pennies, a whole dollar amount will be applied against the Promissory Note and the pennies will be left as unapplied.
When a tenant makes a payment, the GL Offset to the payment is generally a Subsidy Payable account (if to paid to agency by check) or a Subsidy Receivable account (If to be netted with the next subsidy payment or included on the next HAP).
When a monthly amount is defined as being retained by the community/management company in the Convert Subsidy Due to Promissory Note) task, in addition to the Promissory Note schedule you will see a “Unrecovered Cost Balance” schedule that will be reduced as you receive tenant payments and retain a portion of that payment.
On the Promissory Notes tab, in the Open Item(s) area, you can review the following information about open balances that are current due to or from the tenant. For each open item, information is listed in the following columns:
▪ Apt. Nbr.—Displays the apartment number.
▪ Charge Type—Displays the charge type description.
▪ Due Date—Displays the date on which the open item is due.
▪ Orig. Amount—Displays the original amount of the open item.
▪ Amt. Due—Displays the current amount due of the open item.
In the Remaining Balance area, you can review the household's remaining balance, which is the total amount due from the household's promissory notes. For each item with a balance remaining, information is listed in the following columns:
▪ Apt. Nbr.—Displays the apartment number.
▪ Charge Type—Displays the charge type description.
▪ Amount—Displays the remaining balance amount.
▪ Community—Displays the community name.
In the Scheduled Item(s) area, you can review the items that were created by completing the Transfer Receivables to Promissory Note or Convert Subsidy Due to Promissory Note tasks. For each scheduled item, information is listed in the following columns:
▪ Charge Type—Displays the charge type description.
▪ Status—Displays the status of the repayment agreement.
▪ Apt. Nbr.—Displays the apartment number.
▪ Start Date—Displays the start date of the agreement.
▪ Mature Date—Displays the date on which the agreement matures.
▪ Next Date—Displays the date of the household's next payment.
▪ Initial Pmt—Displays the amount of the household's initial payment.
▪ Payment Amt—Displays the household's payment amount.
▪ Total Amt—Displays the total amount due on the promissory note.
▪ Unbilled Balance—Displays the
▪ Frequency—Displays the frequency of the household's payment. If the frequency is set to Special, you can click the Special link to view details about the schedule.
Note
When a household who either moves out of a unit or transfers to another unit, any existing Promissory Notes will continue to bill in relation to the old unit.
In the Event History area, you can review information about all of the billing, billing corrections, payments, and adjustments for the household. For more information about the information in the Event History area, click here.