MRVP Security Deposit Assistance

The Executive Office of Housing and Livable Communities (EOHLC) understands that upfront leasing costs makes it hard for many Massachusetts Rental Voucher Program (MRVP) participants to lease units. EOHLC has also seen that mitigating upfront leasing costs in can boost voucher utilization rates. Given current program resources and the continued need for MRVP participants to secure housing, effective September 1, 2023, EOHLC is launching the MRVP Security Deposit Program. Eligible households with a mobile or project-based MRVP voucher will be eligible for one-time security deposit assistance.

Participant Eligibility

A participant is eligible for one-time MRVP Security Deposit Program as long as a participant:

• Is in good standing with an Administering Agency (AA), meaning able to have a voucher issued to them either initially or at relocation;
• Is eligible to move to a new unit; and
• Has not received one-time security deposit assistance through the MRVP Security Deposit Program before during their household’s participation in MRVP.

Unit Eligibility

A household may only receive security deposit assistance when they are moving into a new unit with either a mobile or project-based voucher. The new unit must first be approved by the AA. The new property owner must also request a security deposit on the MRVP Security Deposit Program Award Letter and Request Form (attached). No security deposits may be requested after a participant has moved into a unit or for any tenancies that began prior to September 1, 2023.

Cap on Security Deposit Assistance

A household may only receive security deposit assistance through the MRVP Security Deposit Program one time during the household’s participation in MRVP. Even if there is a new head of household or a break-up in the household, security deposit assistance may only be received once.

Furthermore, as required by the Massachusetts Security Deposit Law, M.G.L. c.186 sec. 15B, the security deposit cannot exceed one month’s approved contract rent for the unit. Note that the final approved contract rent may be different than the security deposit amount requested on the MRVP Security Deposit Program Award Letter and Request Form.

Duplicate Security Deposit Payments

The AA, the participant, and the property owner all bear some responsibility for avoiding duplicate security deposit payments (meaning more than one party making payment for the same security deposit).

AA staff should communicate with the participant prior to lease-up to determine how the participant would like to cover the security deposit. For example, the participant must decide if they want to:

• pay the security deposit themselves;
• have it covered by the MRVP Security Deposit Program; or
• have it covered by some other assistance program like RAFT.

The participant is expected to disclose whether they have applied for funding through another assistance program, like RAFT, and withdraw their request for other funding if their preference is for the MRVP Security Deposit Program to cover the deposit.

If the property owner does receive two or more payments for the same security deposit, they are expected to repay the duplicative payment(s) to the appropriate payee.

Transfers

If the participant’s MRVP voucher is transferred to another AA, the receiving AA will be responsible for paying the security deposit.

Security Deposit Request and Payment Process

Property owners may request a security deposit for a new unit by completing the MRVP Security Deposit Program Award Letter and Request Form below. Property owners cannot request security deposits after the participant’s lease begins.

The AA shall review the unit for approval per standard MRVP regulations and policies. Once the unit and contract rent have been approved, the AA will:
1. Verify that the requested security deposit does not exceed one month’s approved contract rent. If the requested security deposit amount is too high, the AA must reduce the security deposit to equal one month’s approved contract rent.
2. Either add the security amount to the initial tenant rent share letter OR send a separate letter to the participant and property owner confirming payment of the security deposit and amount.
3. Pay the security deposit with the first subsidy payment. Remember that subsidy payments cannot be made until the AA has received a copy of the signed lease and MRVP Voucher Payment Contract.