LYNN — The Lynn Housing Authority & Neighborhood Development (LHAND) voted on a new policy at the most recent board of commissioners meeting that will crack down on tenant fraud.
In the past six to eight months, LHAND received a notice from the Executive Office of Housing and Livable Communities (EOHLC) that it is planning an intentional phasing out of repayment agreements, LHAND Member Carly McClain said.
“A repayment agreement is entered into when there is a discrepancy between what a tenant reports and what they are actually earning in terms of their wages,” McClain said. “Their rent share is determined based upon the amount of wages they are receiving, where they shouldn’t be spending more than 30% of their household income toward their rent.”
If a discrepancy is found, the owner with debt is required to pay the overdue money within 30 days; otherwise, the Public Housing Authority (PHA) will reduce future housing assistance payments (HAP) by the amount owed until it is paid, according to the LHAND Housing Choice Voucher Administrative Plan, last updated in January 2025.
The plan also states that if the owner does not repay the debt, the PHA can ban the owner from any future participation in the program. In this case, it is the Section 8 housing program where issues have been identified by LHAND.
What has been happening in Lynn has been the failure to report increases in wages, which would change the amount of money given to the household for rent payment aid, McClain said.
This has consequentially led LHAND to mirror and update their administrative plan in accordance with the state of Massachusetts, “where a repayment agreement will no longer be offered when our agency believes that the household has committed fraud,” McClain added.
The amount of fraud is “egregious,” according to McClain, with 10, 20, to $30,000 being withheld from annual income reports.
An issue that has been discussed in tenants’ income discrepancies is whether it was a mistake or error on behalf of staff or people aiding in income paperwork like a home aide.
“Clearly, the majority, the vast majority, just about all, is unreported income, and it’s fraud,” Charles Gaeta, the LHAND Executive Director, said. “If someone there makes a mistake or the staff makes a mistake, like someone used bad information, there is some leeway there, but it’s getting a little bit out of hand, and I do think that we need to do something to address it with our Section 8 mobile program.”
In the event of a staff error, McClain revealed that there will be waivers around reasonable accommodations, including disability related matters that have resulted in overpayment by LHAND, that will keep the tenant from being penalized.
With hopes of following in the footsteps of Boston and Chelsea’s housing authorities, McClain shared that the amount of fraud that has been occurring drains the already limited resources.
“We rely on our tenants to be honest and provide us with their information, and that’s how we’re able to make our programs work for all people,” McClain added. “When our tenants stop being honest with us, and we’re paying more than we should, it just means that it comes out of another family’s pocket.”
McClain added that all current mobile program’s existing contracts are going to be reviewed by November 2026, making the household income current by January 1, 2027, resulting in no longer giving repayment agreements after November to anyone new who has been withholding income increases.
It is required under the current LHAND regulations that if there are any changes in household income, they need to notify the authority immediately, so that their next month’s rent properly reflects their current need, McClain said.
“The changes don’t go into effect immediately. So, let’s say you lose your job on the second day of the month, you know, your rent doesn’t change retroactively; we still wait until the end of the month to recalculate,” McClain said. “The tenant has plenty of time to let us know what they are meant to be paying; the landlord receives the same notice.”
Gaeta added that with the board’s approval of adopting this new policy to combat fraud and overpayments, LHAND should update their Section 8 administrative plan and send it out to tenants.
When it comes to tenants paying 100% of the overdue debt associated with their income, McClain added that it is not RAFT eligible.
Residential Assistance for Families in Transition (RAFT) is a Massachusetts-funded program that provides up to $7,000 per year, which could go toward rent, utility, moving, or mortgage costs, so the family in need can reside in their current home or move to a new one, according to the Massachusetts website.
“Fraud is not RAFT eligible,” McClain said.
