Worcester Housing Authority revokes rent-security policy

WORCESTER — The Worcester Housing Authority Board of Commissioners has rescinded its policy of two upfront prepayments from lease signees, according to the public housing agency.

The change went into effect Saturday, according to the Worcester Housing Authority news release.

State law entitles landlords to collect a security deposit equal to one month’s rent, the first month’s rent and the last month’s rent at lease signing. The Worcester Housing Authority will no longer collect last month's rent and security deposit, only requiring tenants to pay the first month's rent.

The Worcester Housing Authority is not alone among Massachusetts' largest housing agencies to not collect a security deposit and last month's rent. A spokesperson for the Boston Housing Authority said Wednesday that the agency does not collect them for public housing.

The Worcester Housing Authority news release states the following:

The Board of Commissioners acted on a recommendation from CEO Alex Corrales.

Corrales noted the impact the two prepayments have on tenants as well as administrative costs and burdens for the agency associated with them.

The associated burdens included approximately $88,000 a year in associated processing and managing of the deposit accounts, which the agency reported was greater than the roughly $82,000 in average deposits collected annually.

Monitoring the monthly interest for each security and last month's rent deposit often involved time-consuming tasks; an error could lead to the agency being responsible for triple damages and the process had a negative impact on rent collection and vacancy turnaround time due to a delay in move-ins.

“This just makes sense,” Joseph P. Carlson, chair of the Board of Commissioners, said. “We are well aware of the financial challenges facing so many people, with inflation increasing the cost of food, gas and other necessities. With all that, we feel the policy as currently constituted served to place an undue burden on prospective tenants, and actually discouraged or prevented them from accepting a unit.”

Corrales also said tenants found it difficult to pay triple the cost before the move-in date in addition to the cost of moving. Applications for assistance can delay move-in. “The policy has created additional stress and burdens for tenants, and has strained our resources as well,” Corrales said. “I appreciate and thank the board for rescinding this policy and giving some relief to our tenants. This will help us lease up available units more quickly, and that is particularly important at a time when so many people need a place to live.”

This article originally appeared on Telegram & Gazette: Worcester Housing Authority revokes rent-security policy