Section 8 Landlords: How to Claim Late Payment Penalties from HACLA

Many landlords participating in the Section 8 Housing Choice Voucher Program are unaware that they may be entitled to late payment penalties if their first Housing Assistance Payment (HAP) is delayed. Under federal guidelines, specifically HUD Form 52641—the Housing Assistance Payments Contract—landlords have the right to collect late penalties from the public housing authority (PHA) if the initial HAP is not paid within a timely manner.

Let’s break it down: once a Request for Tenancy Approval (RFTA/RTA) has been submitted, the unit has passed inspection, and the contract is executed, then the tenancy officially begins. According to Part B of the HAP contract, Section 7(a)(3), ‘If housing assistance payments are not paid promptly when due after the first two calendar months of the HAP contract term, the PHA shall pay the owner penalties’. Late penalties must be legal in your jurisdiction and customary in your business practice and the amount is included on the lease.

In simpler terms, if your contract started on April 17, 2025, the PHA has until June 17, 2025 to issue that first HAP. If the payment is not received by then, you may request a late penalty—just as you would from a tenant who pays rent late under a private lease agreement. This applies for each month that the HAP becomes more than 2 calendar months old.

How to Request Late Penalties 

If you’re a landlord that recently rented your vacant unit to a Section 8 family and suspect your first payment was delayed beyond 2 calendar months (60 days), follow these steps: 

1. Collect Your Information: You’ll need the tenant’s name, property address, lease start date, and the date the first payment was received. 

2. Email the Caseworker: Contact the tenant’s assigned housing authority representative. Politely request late penalties under Part B of Section 7(a)(3) of the HAP contract. Keep all correspondence in writing. 

1. Be Prepared to Follow Up: Housing authorities are busy. Persistence and professionalism go a long way. 

Unfortunately, many landlords leave these funds unclaimed, either because they’re unaware of the rule or too overwhelmed with other property management tasks. This rule is a crucial protection for landlords who are often burdened by delays that are outside their control. It’s also a provision that many owners either forget or simply don’t know exists. The local statute of limitations may apply. 

On March 17, 2025, the Housing Authority of the City of Los Angeles (HACLA) transitioned from their legacy software system to YARDI, a newer housing management platform. They were scheduled to go live on April 1, 2025, but the transition did not go as planned. As of May 2025, HACLA is still working to resolve agency-wide IT issues, as all data was not captured during the migration to YARDI. As a direct result, processing RFTA, and HAP payments were delayed—affecting hundreds of landlords throughout Los Angeles. If your recent lease-up was held up in this transition, you are not alone—and you may be entitled to penalties. 

Late HAP payments can create serious cash flow issues for landlords, especially those with mortgages, maintenance obligations, or multiple units. Fortunately, HUD’s policy offers late penalties as a remedy. Remember, the rules are on your side—but you must take action to benefit from them.

If you’re having issues collecting late payment penalties, you can schedule a 15 minute consultation to review your case!