Security Deposit Methods - define at what amount security deposits are created when a household moves into a unit which is part of the selected Community/Funding Program Group.

• Method -

• • <None> - no security deposit is created at move in.  If a security deposit is needed for a household, it will need to be added manually from Household Detail > Accounting > Deposits.

  • Basic Rent - security deposit is set to Basic Rent on move-in.  Basic Rent is defined as the minimum rent a tenant must pay under a HUD-subsidized housing program such as Section 236.  For example, depending on the income level and number of dependents, an elderly person with a low-to-moderate income level living in a HUD 236 subsidized-rent apartment may be required to pay rent equal to at least 30% of income.

  • Tenant Portion - security deposit amount is set to the total tenant portion as calculated on move-in.

  • Tenant Gross Rent (including UA) - the security deposit amount will equal the gross rent for a unit plus the utility allowance.

  • First & Last Months Market Rent - the security deposit amount will equal 2 month's rent at the Market Rent (the rent HUD authorizes the owner to collect from families ineligible for assistance) for the unit

  • Fixed Amount - enter a fixed amount for the security deposit.  This amount will be used to create the security deposits for all move-ins into the community/funding program group

  • Greater of One Month's Total Tenant Portion or Fixed Amount - The security deposit will be calculated as the greater of the Total Tenant Portion or a fixed amount.  For example, if the fixed amount is set to $50, then as long as the Total Tenant Portion is greater than $50, the security deposit will be that amount.  If the Total Tenant Portion is less than $50, then the security deposit will be set to $50.

  • Fixed Rate by Bedroom Size - enter a fixed amount for the security deposit for each unit class.  After selecting this security deposit method, navigate to the task Maintain Unit Classes on the Community Detail > Facilities tab to enter the fixed amount for each unit class.  These amounts will be used to create the security deposits for all move-ins into each of the unit classes in the community/funding program group.

  • One-Half Tenant Gross Rent - security deposit is calculated at one-half of the gross rent for the unit (total unit rent).  For example, if the gross rent for a unit is $1,000, then the security deposit will be calculated at $500 (1,000 * .5).

  • One and One-Half Tenant Gross Rent - security deposit is calculated at one and one-half of the gross rent for the unit (total unit rent).  For example, if the gross rent for a unit is $1,000, then the security deposit will be calculated at $1,500 ($1,000 + (1,000 * .5)).

  • One-Half Tenant Portion - security deposit is calculated at one-half of the tenant portion only.  For example, if the gross rent for a unit is $1,000 and the tenant portion is calculated to be $700, then the security deposit will be calculated at $350 (700 * .5).

  • One and One-Half Tenant Portion - security deposit is calculated at one and one-half of the tenant portion only.  For example, if the gross rent for a unit is $1,000 and the tenant portion is calculated to be $700, then the security deposit will be calculated at $1,050 ($700 + (700 * .5)).

  • Greater of Basic Rent or Total Tenant Contribution - the security deposit at move in will be either the greater of Basic Rent (minimum rent a tenant must pay under a HUD-subsidized housing program such as Section 236) or the Total Tenant Contribution (without UA).

  • Lesser of Basic Rent or Fixed Amount - This method allows you to cap the security deposit at a fixed amount.  As long as Basic Rent (The minimum rent a tenant must pay under a HUD-subsidized housing program such as Section 236.) is smaller than the fixed amount, the security deposit will be set to Basic Rent on move-in.

  • Greater of Minimum Fixed Amount or Total Tenant Portion but not greater than Maximum Fixed Amount - the security deposit will be calculated as the greater of the Total Tenant Portion or a fixed maximum amount, but no less than a fixed minimum amount .  For example, if the fixed maximum amount is set to $1,000 and the fixed minimum amount is set to $50, then as long as the Total Tenant Portion is greater than $50 and less than $1,000, the security deposit will be the Total Tenant Portion.  If the Total Tenant Portion is less than $50, then the security deposit will be set to $50; and if the Total Tenant Portion is greater than $1,000, then the security deposit will be $1,000.

  • Greater of Tenant Payment or Fixed Amount - the security deposit will be calculated as the greater of the Tenant Payment or a fixed amount.  The Tenant Payment amount does not include the Utility Allowance (UA).  For example, if the fixed amount is set to $50, then as long as the Tenant Payment is greater than $50, the security deposit will be that amount.  If the Tenant Payment is less than $50, then the security deposit will be set to $50.

• Round -

• • If selected to round, the security deposit will round to the nearest whole dollar (0.49 = 0.00, 0.50 = 1.00).

  • If not selected, the security deposit will be setup with pennies.

• Transfer Method - defines how a security deposit will be handled on a Unit Transfer

• • Transfer Existing Deposit - the security deposit will be transferred to the new "In" unit upon transfer with no change in the amount of the security deposit and its balance on hand.

  • Charge New Deposit - the security deposit will be based on a new amount calculated for the "In" unit.

  • • With this method the security deposit of the "Old" unit will still transfer to the "In" unit, but the total amount of the security deposit of the "In" unit could change.

    • If the "Out" unit security deposit is less than the "In" unit security deposit, the entire balance on hand will transfer with an additional amount due on the "In" unit.

    • If the "Out" unit security deposit is more than the "In" unit security deposit, only the amount of the new "In" unit security deposit will transfer.  Leaving the excess on the "Old" to be refunded.

    • If you wish to refund the "Out" unit security deposit instead of applying it to the "In" unit security deposit, just reverse the Apply Credits task from the Deposit tab of the household.  That will put the balance on hand back onto the "Old" unit.

• Override full month amount with voucher amount - When selected, the security deposit will calculate as the voucher tenant portion plus UA.

• Refund Days - The number of days entered here determines the “Due By Date” shown on the Occupancy and Compliance Detail > Manage Vacancies tab in the Move-Out Accounting To-Do List Activity.

• • If left as NULL, the value used will be set to the rule for the state in which the community is located.

  • If there is no state rule, the number of Refund Days will be set to 23.

  • The number of Refund Days can be set to any number of days less than or equal to the state rule.  If you enter an number greater than the state rule, you will receive message stating that the number of days cannot be greater than the state limit.

  • • If a HUD Funding Program is involved, the maximum due date will be calculated at the lesser of the state regulation or 30 days, which HUD dictates.