Frequently Asked Questions
Conversion of Emergency Sheltering Apartments to Financial Rental Assistance
Release Date: February 27, 2006
Release Number: FNF-06-003
FEMA is reimbursing through emergency sheltering funds approximately 60,000 apartments that were leased by State or local governments or an authority acting on their behalf in 32 different states.
How do States and localities know to transition these evacuees to FEMA housing assistance?
States were notified by FEMA Regional offices or Joint Field Offices who were provided a disaster guidance memo on January 20. They were specifically notified that they should not terminate emergency sheltering leases being reimbursed by FEMA before being contacted by FEMA as it is our intention to convert all eligible leases over to FEMA’s Housing Assistance Program (longer-term rental assistance) and set up a direct payment system to the apartment owners.
A communication has been sent directly to the public assistance recipients (states, locals and partners) to let them know that if we have not made the conversions in their jurisdiction by March 1 through our direct payment agent, to pay for March rent and they will be reimbursed for another month through emergency sheltering funds.
How are you in touch with these evacuees and communicating to them about this program?
The States are providing FEMA with detailed lists of the apartments, condos and homes in which they have placed hurricane evacuees for whom they are currently billing FEMA. These lists are being used by FEMA and our payment agent to be in direct communication with evacuees by correspondence and telephone.
This conversion of lease payment requires that a lease be established directly between the landlord and the hurricane evacuee residing in the apartment. However, evacuees will not need to take action until they have been contacted by FEMA at which time they will be determined to be eligible or ineligible to transition to FEMA’s temporary housing program. If they have not called to register with FEMA, they should do so immediately to be processed for eligibility.
If eligible, they will be converted and rent payments will be made by FEMA through our payment agent directly to the apartment owner. If ineligible, an evacuee will receive notice 30 days in advance of apartment subsidy termination.
Additionally, FEMA – through our payment agent – will be in direct contact with the apartment landlord keeping them apprised of the status of the eligibility of the tenant.
Who is eligible and who is ineligible for this temporary housing assistance from FEMA?
This Housing Assistance program provides for rental assistance to underinsured or uninsured Hurricane Rita or Katrina evacuees whose primary residence – whether a renter or a homeowner – was made uninhabitable by the disaster. The rental assistance is available for up to 18 months from the date the disaster was declared.
How will they know they are ineligible?
Letters will be sent to the applicants informing them that they are not eligible and that they have 30 days to make alternative payment arrangements with the landlord unless they were informed by their landlord of an earlier lease termination date. They will also be told to use this time to contact FEMA for additional referrals to other federal or state agencies or voluntary organizations to help with unmet needs; assistance with apartment locator services; or to secure other arrangements. .
Where will FEMA refer the evacuees?
FEMA will refer applicants who are determined to be ineligible to other Federal and State agencies, voluntary organizations; apartment locator services, and their existing landlords (to determine if alternate payment arrangements can me made).
Some leases entered into by the state or local will end prior to 18 months after the disaster. Does that mean FEMA will extend all leases to either March 2007 or later for Rita evacuees? Do they have to be recertified along the way?
After the conversion, the leases are between the landlord and evacuee.
As part of FEMA’s rental assistance, a disaster victim must continually – often in three month increments – demonstrate their ongoing need for housing assistance and demonstrate they are putting a longer term plan into place to become self-sufficient with their housing needs. The same is true for those remaining in these apartments.
Their apartment lease will be sustained to the date it was originally leased to by the state or local entity – assuming the evacuee maintains eligibility by demonstrating a continuing need for assistance and working toward self-sufficiency. They will not just automatically be extended to a full 18 months after the disaster, and any extensions would be worked out between the landlord and evacuee.
Do they get to stay in the apartment if they appeal the ineligibility decision while they await appeal?
Landlords will be notified that the tenant has been determined to be ineligible for continued FEMA assistance. Although the applicant has appealed, FEMA will only continue to subsidize their apartment stay for 30 days from their ineligibility notification, unless they have been notified by their landlord that the lease is terminating earlier. Applicants will be told to use this time to arrange their own rent payments with the landlord; to contact FEMA for additional referrals to other Federal, State, or local agencies or voluntary organizations to help with unmet needs; and to seek assistance with apartment locator services.
What about utilities – is FEMA covering those as well?
FEMA’s temporary housing program does not cover the expense of utilities that are not already included in the Fair Market Rent price. However, President Bush has submitted a legislative proposal to Congress to provide FEMA with the authority to continue to cover utility costs that were previously being paid for by the city or state authority who leased in the evacuee. This is being done in a good faith effort to maintain the commitment made to the evacuee and to provide additional time to transition those utility payments eventually to the apartment occupant.
Does this mean FEMA becomes the landlord?
No, the lease would be between the landlord and the applicant. FEMA’s payment agent would administer a direct payment to the landlord on behalf of the applicant. The traditional landlord-tenant relationship will remain.
Who is FEMA’s payment agent?
Corporate Lodging Consultants, Inc. is being used nationwide for consistency and efficiency in working with landlords across many states. However, FEMA is also currently in talks with the City of Houston’s Joint Housing Task Force that is currently managing the relationship with landlords for more than 35,000 apartments. It is possible that the Task Force will in this case be in a better position to use the existing system in place and act as the payment agent for Houston and its large number of apartments, as opposed to using CLC.
Was that a competitively bid contract?
The General Services Administration (GSA) has an existing blanket purchase agreement with Corporate Lodging Consultants, Inc. that was competitively bid. A FEMA task order has been issued under this existing BPA with CLC to manage the direct payment system for FEMA.
How is this direct payment system going to work?
As FEMA’s payment agent, Corporate Lodging Consultants enters into a payment contract or agreement with the landlord of an apartment unit occupied by a FEMA-assisted applicant. FEMA determines initial and continued eligibility of the applicant. Upon direction from FEMA, Corporate Lodging Consultants makes direct payments to the landlord on behalf of FEMA and the applicant.
Does this count against the statutory limit of financial assistance for an applicant?
Yes. Each rental payment made on behalf of an applicant is automatically deducted from the maximum amount of financial assistance available to them by law, just as it is for those applicants who receive rental assistance directly from FEMA. The maximum amount of financial assistance is $26,200.
What if a person runs out of eligible rental assistance?
Individuals who continue to be eligible for temporary housing assistance but exceed the statutory limit of financial assistance may still have help available to them. FEMA may provide them direct housing assistance in which case their rent continues to be paid by FEMA directly to their landlord. Applicants must however demonstrate a continuing need for temporary housing assistance and also show that they are aggressively pursuing their own long term housing.
How is FEMA enforcing fair housing practices among these apartments who will now be direct billing them? There have been surveys conducted saying evacuees are being treated unfairly when applying at apartments?
The evacuees FEMA will be direct billed for in these conversion leases are already in apartment leases and thus living in the apartments. However, those working on behalf of FEMA would report any inappropriate practices noticed to the appropriate housing and local enforcement authorities.
What about these apartments being refurbished in New Orleans? FEMA has said they will place evacuees in them. Is it through this program?
We will use Corporate Lodging Consultants, Inc. as our agent for arranging an agreement with landlords regarding the uses of these apartments. These units will be occupied by applicants moving out of short-term housing and interim shelter such as homes of family or friends, cruise ships and hotels and motels. The arrangement with landlords is intended to make these apartments available for a specified period of time.
What about people who are currently not on a direct payment system and instead are periodically receiving rental assistance checks from FEMA to use to rent apartments – can they switch to the direct payment system?
There is no need for applicants who are receiving rental assistance directly from FEMA to alter their existing arrangements with their landlords. At such time that applicants receiving rental assistance from FEMA exceed the maximum amount of financial assistance ($26,200) available by law but still have a housing need, FEMA may begin paying their rent directly to landlords. Applicants would have to demonstrate a continuing need and also show that they are aggressively pursuing long term housing of their own.
Last Modified: Friday, 24-Mar-2006 11:09:45