Overview

Policy

Shelter Payments [GA 281]

The Director of the Agency (or his/her designee) may set rules and regulations for the implementation of vendor payments. Upon receipt of a statement from the landlord, on a form(s) prescribed by the Agency, the shelter payment, up to the maximum GA grant, may be paid by the Agency directly to the landlord on behalf of the recipient. At no time shall payment of aid for shelter exceed the actual cost of shelter. The cost of shelter includes the cost for rental or mortgage payments, property taxes, insurance, and utilities (gas, electricity, water, garbage, sewage, basic telephone).

Requirement

All payments for housing assistance must be paid directly to the property owner/manager/agent/landlord, provided that it has been verified, in writing, that the tenant-landlord relationship exists. Only the personal needs portion of the grant is to be issued directly to the client.

Exceptions:

If the GA client is:

The home owner and paying his/her own mortgage and tax payments
A homeless recipient paying for emergency shelter.
Residing in a Drug Rehabilitation Facility.
Residing in a Mental Rehabilitation Facility.
Residing in a Residential Care Homes.
Residing in a Homeless Mentally Ill Facility.

Tax Reporting

The payments for housing assistance issued to a landlord are reported to the IRS and FTB. The Agency reports amounts of $600.00 or more paid per year. Each January, the fiscal department provides this information the landlord and to the IRS/FTB for tax reporting purposes, The information is issued via the IRS form 1099.

Landlord Provider File

All Vendor/Landlords are defined as providers in CalSAWS. The landlord information is maintained by the CST, at the GA office.

The following information is required in order for the CST to enter a vendor/landlord to CalSAWS:

Landlord's Name,
Social Security Number/Tax Identification Number (SSN/TIN), and
Location of Payment Address.

Exception: If the landlord refuses to provide a TIN or SSN, the CST may enter the vendor/landlord without the SSN or TIN.

Applicable Forms

The following forms are used for setting up vendor information and processing landlord payments: