During the Covid-19 emergency, the HAP Debt Management Process (DMP) was suspended from March 2020 and partially re-commenced in October 2020. This meant non-payment of differential rent by a tenant during that time did not affect payments to HAP landlords. Tenants were, however, expected to continue to pay their rent with supports available for those financially impacted by Covid.
Tenants that incurred arrears during the Covid-19 emergency were given additional time to engage with the HAP Debt Management Unit to clear their arrears, as well as access to payment plans as a specific Covid measure. The standard debt management process was reinstated from 6 September 2021.
In March 2023, additional measures were agreed in order to ease the impact of the end of the winter emergency period, including to amend the HAP scheme to guarantee payment to landlords where the tenant defaults on payment of differential rent.
Since 1 May 2023 when a HAP tenant defaults on their differential rent payment to the local authority they have been offered the option of a payment plan to assist them in maintaining their tenancy and allow the HAP payment to the landlord to continue.
Tenants in the HAP scheme are required to sign a rent contribution agreement to pay a weekly rental contribution to the relevant local authority, in line with the local authority’s differential rent scheme. As set out in the rent contribution agreement, this weekly rental contribution must be paid by them so that they remain eligible for the HAP scheme.
If the tenant defaults on payment of differential rent or the payment plan, under the Landlord Payment Guarantee, the HAP payment to the landlord is guaranteed for a maximum of 12 months or less if the tenancy ends. The Landlord Guarantee will only be applicable to tenancies reaching suspension stage of the HAP debt management process from the 1 May 2023.
