Ending Homelessness THROUGH
Landlord Risk Mitigation
The FM Coalition to End Homelessness launched a Landlord Risk Mitigation Fund (LRMF) in 2014 to encourage landlords to rent to people experiencing homelessness. The fund is a chance for people with housing barriers to having access to stable housing. Landlords and property managers who agree to rent to people in the program can recoup up to $3,000 in funds lost due to unpaid rent or excessive damage to units. The program is a formal partnership between landlords, service providers, and persons with barriers to housing. The applications come with agency recommendations and the prospective tenant's partner with a support services provider. The support service provider acts as a communication bridge between landlord and tenant. Landlords who opt into the fund are covered for physical and operational costs of up to $3,000 for up to two years. If problems occur there is an opportunity for free mediation services through the local Community Action Agencies.
The FM Coalition's Landlord Risk Mitigation Fund Advisory Board makes all acceptance and denial decisions. Participation requirements are listed below.
HOW TO APPLY FOR THE LANDLORD RISK MITIGATION FUND
The service provider agency must be a current member of the FM Coalition.
The service provider or case manager determines if a participant would be a good fit for the program.
The service provider must complete the Application Form & Agreement form.
The participant must agree to receive on-going housing case management by the service provider for the duration of being a fund participant.
The service provider must agree to provide up to two years of housing case management.
The service provider must email the application to the Coalition noting LRMF application in the SUBJECT line.
Upon approval of the application by the LRMF Advisory Committee, the service provider will receive a certificate of acceptance that includes the tenant’s name, the start date of the certificate (good for 90 days and eligible for renewal if housing isn’t secured by that time), and listing special requirements of the advisory committee, if any.
The participant and service provider must locate a landlord or property manager willing to rent to the participant within the rules of the LRMF Program.
The service provider or participant must provide the landlord with a copy of the certificate and will provide the landlord's contact information to the Coalition.
CONSUMER (TENANT) LEASING PROCESS
Once the participant has signed a lease agreement, the tenant or service provider must notify the Coalition of successful rental and the landlord’s information by submitting a copy of the lease, Check-in Inspection Form, photographs of the pre-existing damages to the unit, and a signed copy of the Landlord Program Agreement to the Coalition within 15 days of tenants move-in.
The service provider must provide on-going housing case management for the time the tenant is in the program (up to two years). See Housing Case Management Expectations below.
The Coalition staff will track who is enrolled in the program, claims made against the fund, and participation of landlords/property managers.
HOUSING SUPPORTIVE SERVICES EXPECTATIONS
The service provider must agree to follow the tenant for the length of time that the tenant is enrolled in the LRMF program (up to two years). (Enrollment in the fund can be discontinued by the tenant at any time but this MUST be conveyed to the service provider and the coalition).
The service provider must agree to help the participant find housing; explaining the program and its benefits and referring the landlord to the website or refer them to the Coalition if more information is needed.
The service provider must agree to complete the check-in inventory with the tenant and take photographs of existing damage.
Reports are due at the end of each quarter (March 31, June 30, September 30, December 31). If needed, service providers may use this site to submit additional "interim" info in-between quarterly reports.
LANDLORD EXPECTATIONS
The landlord must sign a lease with the tenant and provide a copy of the lease to the tenant, the service provider, and the FM Coalition Program Administrator.
The landlord must make and keep a copy of the tenant's LRMF certificate.
The landlord must notify the service provider if the tenant defaults on lease or damages the property in excess of the damage deposit and file a claim within 30 days.
DEFINITIONS
Participant/Tenant:Participants are individuals who apply to participate in the program. The participant or tenant is considered the Head of Household. A tenant is that individual once they have been approved and housed through the LRMF program.
Program Administrator: Coalition staff member who is advised by the Program Manager and the administer of the Landlord Risk Mitigation Fund program.
Program Manager: The Program Manager is the Executive Director of the Coalition.
Landlord: A property manager or owner who rents an apartment or unit to a tenant.
Service Provider: A human service professional or case manager responsible for coordinating the overall care delivered to an individual client or a group of clients, based on the client's health or human services issues, needs, and interests.
Advisory Board: The Advisory Board is made up of elected and qualified individuals who review all applications and make recommendations and decisions about program participation, as well as determine the amount of a claim to be paid.
Claim: A claim is made by the landlord to be reviewed by the Landlord Risk Mitigation Fund Advisory Board. The claim document will accompany receipts of damage to the unit and photographs (if applicable), financial loss due to non-payment, or court costs (up to $500). The total claim cost may not exceed $3,000. The advisory board will determine the reimbursement amount.
Frequently Asked Questions
FAQs For Landlords and Property Managers
Q: If the landlord has a concern about a tenant’s rent payment, behavior, lease agreement, or any other issue, who should the landlord talk to first?
A: The landlord should first contact the tenant directly and explain the issue, thus resolving the concern. If the landlord is unable to reach a resolution, he or she should contact the tenant’s supportive service provider to further discuss the issue. The supportive service provider will then work with the landlord and the tenant is trying to find a solution to the problem.
Q: If mediation is needed between a landlord and a tenant, what steps does the landlord need to take?
A: The landlord should first contact the tenant’s supportive service provider. The supportive service provider will connect with the tenant and the landlord to assist in finding the root of the problem and aid in resolving any issues. If the concerns are still apparent and the supportive service provider is unable to help with resolution, please contact the FM Coalition by Email or call 701-936-7171 and we can help set up the use of free mediation services through partner services.
Q: Once a landlord accepts a participant of the program, are they placed on any public lists?
A: No, all information regarding the rental agency and landlord is held confidential.
If a landlord is interested in renting to another LRMF participant, please contact the Coalition by calling 701-936-7171.
Q: In what circumstances does a landlord receive reimbursement from the fund?
A: The landlord only receives reimbursement (up to $3000) from the fund if a tenant violates the lease by abandoning the unit or causing damage above and beyond the damage deposit within their first two years of residency. The landlord first pursues recompense from the tenant (with help of the supportive service provider) and then applies to the fund for reimbursement. Damages and infestations must be documented. The fund will NOT cover late rent payments while the tenant is still residing in the unit. It will only reimburse a maximum of two late rent payments if the tenant is evicted or if the tenant abandons the unit. Any late rent issues should be addressed with the supportive service provider as soon as possible. Please visit the Coalition website at fmhomless.org for a complete description of the program policies and procedures.
Q: What types of services do the supportive service workers (SSW) provide?
A: The SSW is responsible for assisting the tenant/household with check-in to ensure the tenant has the necessary information needed for housing success. The SSW must complete monthly visits with the tenant/household but can provide as many visits as needed. These visits may include assistance in budgeting and finance, cooking, cleaning, apartment etiquette, or any other life skills needed to be a successful renter. The SSW is also responsible for checking in with the landlord at least quarterly to ensure the renting process is running smoothly. The SSW agrees to follow the tenant/household for the length of time the tenant is enrolled in the LRMF program (up to two years).
FAQs for Support Services and Participants
Q: Are the tenants responsible for directly contacting the landlord or does the FM Coalition find a landlord and then connect landlord and tenant?
A: At this time, the potential tenant is responsible for locating a landlord with the support and assistance of the service provider. The Coalition director is willing to speak with potential landlords if needed. As the program grows, we hope to be able to help provide matches.
Q: Are homeless individuals with criminal backgrounds and felonies eligible for this program?
A: Yes. Length of time since incarceration is requested on the application form.
Q: After two years does the service provider still work with the tenant?
A: That would be negotiated between the service provider and the tenant. The fund is only available for two years.
Q: How frequently does the tenant have to meet with their service provider?
A: That depends on how long the tenant has been housed and how they are managing that housing. For the first three to six months, weekly or monthly site visits are expected. The Tenant is expected to comply with the site visit scheduled they plan with the service provider.
Q: Once one fills out an application where are the applications sent to be reviewed?
A: They are sent to the Coalition. The applications are processed and
forwarded to the advisory committee for a decision. The process usually takes about a week.
Q: Does the Coalition already have a list of landlords that are willing to participate in this program?
A: No. We do not supply names of landlords, nor do we divulge names of tenants. As the program becomes more established, we hope to be able to help match tenants and landlords.
Q: Do you have to be staying at a shelter to obtain an agency recommendation in the application process?
A: No, you have to have a willing service provider, be in need of new housing and be at risk of homelessness without the support of the program. (You cannot apply for a unit you have already leased.)
Q: Are expectations of landlords and tenants going to be unison across all participants in this program?
A: No, each is a case-by-case agreement.
Q: Once a landlord agrees to participate are they put on a lenient landlord list?
A: No, that information is held confidential.
Q: Does the landlord have a say in who their tenant is?
A: Yes, the landlord always has the right to refuse to rent to someone. However, if the landlord agrees to participate in the program, they are agreeing to waive some of their rules (e.g., no past evictions or no past felonies) FOR THE ENROLLED HOUSEHOLD ONLY. They are also agreeing to pursue mediation and case management intervention before moving to evict if there are issues other than abandonment of the unit. NOTE: The tenant household should be asked to keep their participation in the program confidential as well.
Q: How does the landlord receive the money from the Coalition? Do they receive $1,500 in a check all at once each year?
A: The landlord only receives money from the fund if a tenant violates by lease by abandoning the unit or causing damage above and beyond the damage deposit. The landlord first purses recompense from the tenant (with the help of the service provider) and then applies to the fund for reimbursement, not to exceed $3,000. Damages and insect infestations must be documented.
Q: Who is more likely to be accepted into this program first? Is there an order of preference?
A: Applications are processed as they are received until such time as that becomes unwieldy, at which time applications would be processed based on VISPDAT scores (vulnerability).
Q: Can the service provider utilize two Landlord Risk Fund programs at one time?
A: While other Landlord Risk Mitigation Fund programs are modeled after the Coalitions, only one is needed for a tenant to obtain housing.
Q: What does it mean when the program is “at capacity?”
A: This means that the funding is at capacity to continue to serve those who have been accepted into the program based on funding streams. If this is to happen, the Advisory Board will review when the program will be accepting more applications. The service providers and agencies will be made aware of any changes by the Coalition.
