Loss Mitigation Trust Fund Established

Advocacy News,

Loss Mitigation Trust Fund Account Established to Compensate Landlords for Damage.

The legislature recently passed a Supplemental Budget which includes a $125,000 Loss Mitigation Trust Account. The account is accessible to landlords for damages caused to private market rate apartments by housing choice voucher holders up to $5,000. The property must be located in a jurisdiction that prohibits denial of tenancy based on source of income and requires the landlord to obtain a judgment in the county where the property is located prior to receiving funds.

Reimbursement is allowed for the following: (1) property damage caused by the housing choice voucher tenant and other damage caused as a result of the tenancy and (2) unpaid rent. Unfortunately the Supplemental Budget provisions do not permit recovery of attorney fees through the fund, but this does not prohibit a landlord from seeking a judgment for attorney fees.

For more information, please contact WMFHA at (425) 656-9077 or brett@wmfha.org.