Seattle Updates MFTE Holding Deposits Process
The Seattle Office of Housing has updated their requirements for “holding deposits” for MFTE units after receiving feedback from housing providers.
As of April 2021, MFTE communities were only able to collect a holding deposit of $100 for MFTE units upon application. In addition, they were required to refund this holding deposit should the applicant cancel at any time, which meant that the property could only deposit the application fees and not the holding deposit. This created a redundant process that required providers to accept one personal check/money order/cashier’s check for the holding deposit and one personal check/money order/cashier’s check for the application fees.
As of May 1st, 2023, MFTE Housing providers have two options:
- Option A: Collect a holding deposit of $99 or less at the time of application, which is non-refundable should the applicant be non-responsive or cancel their application. This means that providers are able to hold applicants accountable for MFTE applications and that they can accept one form of payment, instead of two and that these funds can be immediately deposited.
- Option B: Collect a holding deposit of $100 or more at the time of application, which is fully refundable regardless of a non-responsive applicant or if the applicant cancels their application. If a provider chooses this option, they must continue to adhere to the current process.
This is only an announcement to make you aware of this change, please contact your counsel or theSeattle Office of Housing prior to making any chnages to your current process.