In the 2019 Legislative Session, HOM, Inc., worked together with the Arizona Multihousing Association and attorneys from the residential property management sector to support the passage of HB2358 – landlord tenant; partial payment; assistance.  HB2358 addresses a Superior Court decision that informed Arizona landlords that if they received a housing assistance payment on behalf of a tenant with a Housing Choice Voucher absent a written contemporaneous agreement, the landlord waived their right to terminate a rental agreement for any breach by the tenant.

Essentially, the decision said that housing assistance payments were to be considered “partial payments” as defined in the Arizona Residential Landlord & Tenant Act in 33-1371.  This decision caused landlords to reconsider their participation not only in the Housing Choice Voucher program, but also the housing programs operated by HOM, Inc.

Following the passage of HB2358, the law is now clear that housing assistance payments from HOM, Inc., are NOT considered partial payments.

Guidance from the Arizona Multihousing Association

Following is the guidance that the Arizona Multihousing Association provided to its members on the new law.  We appreciate their calling us out, specifically, as an example of a provider of housing assistance payments that are not considered partial payments under the law.  If you have any questions about this new law, please do not hesitate to contact me for additional assistance.

Provisions

Specifies that acceptance of a housing assistance payment by a landlord does not constitute an acceptance of partial payment of rent or waive the landlord’s right to terminate a rental agreement for any breach by the tenant.

• Defines housing assistance payment to include any payment made to a landlord pursuant to a separate written rental assistance or subsidy contract by a:
  • government agency;
  • public housing authority;
  • third party on behalf of a government agency, public housing authority; or
  • for-profit entity.
    • Examples include (but are not limited to): A city or county public housing authority providing “Housing Choice Vouchers” or “Section 8” vouchers or a for-profit entity such as HOM, Inc., providing Rapid Rehousing or Permanent Supportive Housing vouchers.
• A housing assistance payment does not include any payment made by a:
  • faith-based organization;
  • community action agency program; or
  • non-profit entity.
  • Acceptance of a partial payment of rent or any housing subsidy from a faith-based organization, community action agency or non-profit entity (absent of a contemporaneous written agreement) will waive the landlord’s right to terminate a rental agreement for any previous breach of the rental agreement by the tenant.
  • If a landlord wishes to accept a partial payment of rent or any housing subsidy from a faith-based organization, community action agency or non-profit entity and not waive their right to terminate the rental agreement, then the landlord and tenant must enter into a contemporaneous written agreement at the time that the partial payment of rent or housing subsidy is made.

Additional Information

Landlords should be aware that their rights under the Arizona Landlord Tenant Act may be limited for certain types of third-party payments made by certain entities including, faith-based organizations, community action agency programs and non-profit entities. AMA members are encouraged to seek guidance from their individual legal counsel.