Security Deposits & Fees

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Security Deposits

The Section 8 Program does not regulate security deposits. Landlords may charge Section 8 tenants the same amount of security deposit that is charged to non-Section 8 tenants. This means if a landlord normally charges all tenants $200.00 for a security deposit, a Section 8 tenant will be required to pay the same amount. The only restrictions on the security deposit are that a landlord can not charge a Section 8 tenant more than what they can charge non-Section 8 tenants.

The security deposit must be administered in accordance with Arizona State Law, (Arizona Residential Landlord & Tenant Act, Arizona Revised Statutes, Title 33, Chapter 10 and Title 12, Chapter 8, Article 4).

Upon termination of the Lease Agreement, the deposit is to be refunded or applied to any damages or rent delinquency in accordance with State Law (Residential Landlord and Tenant Act, Article 2, Section 33-1321) and the Tenancy Addendum (Section 12).

Late Fees

Tenants will be responsible for the payment of late fees if the Landlord charges late fees for their non-Section 8 tenants also.

Landlords charging late fees must provide all tenants with a copy of their written policy regarding late fees. Housing Services must be subject to late fees also if the Housing Assistance Payment is delayed due to circumstances within the Housing Authority's control.

Tempe Housing Services will not pay late fees on payments that are late due to paperwork being delayed by tenants and/or landlords, mail delivery problems or City of Tempe accounts payable system problems. These items are not within our control. Delays in payments caused by Tempe Housing Services processing errors are within our control and will be subject to the late fees.

Tempe Housing Services housing assistance payments for the first of the month begin to be processed approximately the 20th day of the previous month; (i.e. the cut-off date for December lst payments is November 20th). Any contracts executed after the 20th of the month will not receive the housing assistance payments on the first day of the month. Payments for those contracts will be processed and paid within 30 days from the Contract execution date, (usually by the 2nd week of the month). Keep in mind that a Contract is not fully executed until the landlord signs it and Tempe Housing Services signs it.

Once a landlord is entered in the payment system, all future checks should be received by the first day of the month. Payments for the first of the month are mailed from the City of Tempe approximately on the last working Friday of the current month.

Note: Periodically there are situations where tenants have lost their source of income late in the month. Because their portion of the rent is calculated on their income, the Housing Services will make all possible attempts to process rent adjustments reported by the 20th day of the month so that the tenant's portion of the rent will be decreased for the first of the month.

In these instances, a notification will be sent advising the landlord that a partial housing assistance payment is being made by the lst day of the month due to the tenant's decreased income. The tenant will be paying the new decreased tenant rent on the first day of the month. The balance of the new increased housing assistance payment will then be paid in approximately two weeks. These types of situations also will be subject to the late fees from Tempe Housing Services.