VHA removing $25,000 in uncollectible debts

Published 11:26 am Wednesday, September 19, 2012

The Vicksburg Housing Authority is removing $25,000 in uncollectible accounts from its books.

The VHA Board of Commissioners Tuesday voted to move the unpaid debts to the housing authority’s collection-lost expense account an accounting move to make the authority’s books provide a more accurate financial picture.

The uncollectible accounts are past due rents and court fees the VHA has been unable to collect from former tenants who have been evicted or left owing rent.

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Executive Director Ben Washington said the collection-lost expense account is set up to estimate the projected loss in unpaid rent for a fiscal year. He said uncollected debts are moved annually to the account.

“This does not mean that we’re going to stop trying to collect these debts,” Washington said. “We will continue to pursue them.”

He said the uncollected amounts moved Tuesday were unpaid rents from fiscal 2011-12. He said the past due amounts average about $400, but the housing authority has a $1,500 debt on the books and another past due figure of $1,200.

Those two amounts, he said, include court fees paid by VHA to file for evictions and then for judgments in Warren County Justice Court.

Tenants living in VHA developments pay a $150 deposit, and rent is based on their income. The average rent, Washington said, is about $125 a month, but some rents can run as high as $300 a month.

“Rent is due by the seventh of the month,” he said. “If it’s not paid by then, a $25 late fee is added. If the rent is not paid by the 25th, we file for eviction in justice court.”

He said the tenant remains in the home until the court grants the eviction, but the rent remains owed. After eviction, the VHA files for a judgment against the tenant to collect the rent and court costs. The housing authority then can use the deposit to cover all or part of the debt, or garnish the former tenant’s wages until the debt is paid.

Washington said VHA will work with tenants to pay off the rent in arrears.

“I had two people call me today,” he said Tuesday. “We were able to work with them to pay off the debt. We do try to work out an arrangement.”

In other action, the board:

• Approved paying the August bills.

• Approved Washington’s report.

• Approved an agreement with Grace Christian Counseling Center to begin a counseling program at the housing authority.

• Approved the disposal of damaged and unrepairable appliances.

• Approved an agreement with Warren-Washington-Issaquena-Sharkey Community Action Agency to carry out and inform housing authority residents of the organization’s low income energy assistance program.

• Accepted the 2012 employee classification and compensation study by Decision Inc., providing the job description and performance and evaluation process for employees.