RAFT UPDATE – MARCH 13, 2025
WARNING REGARDING THE ACCEPTANCE OF PARTIAL RAFT PAYMENTS
By now, almost all property managers are familiar with the RAFT program which can provide up to $7,000 each year in rental assistance for residents facing eviction for non-payment of rent. While this program has been very successful in assisting income-qualified residents in avoiding evictions for non-payment of rent, recent changes to the RAFT agreement have raised serious concerns when the RAFT payment will not pay the full balance. Specifically, the current RAFT agreement which owners are required to accept online provides that, by accepting payment from RAFT, the landlord agrees to terminate their eviction case if it is based, even in part, on the amount RAFT is paying. This provision has recently been interpreted by at least one court as requiring a landlord to dismiss their pending eviction case if they accept RAFT funds, even if the RAFT funds do not cure the balance. While in the past, RAFT had agreed that the landlord and tenant were required to enter into an agreement on how the balance would be paid, the foregoing provision could be interpreted to require the landlord to dismiss their pending case, even though the resident did not pay the full balance. As such, in cases where RAFT does not pay the full balance, we would strongly recommend that owners either refuse to accept the RAFT funds or confirm in writing with RAFT that they do not agree to this provision requiring them to dismiss their case. Alternatively, be aware that accepting these partial payments from RAFT could result in the dismissal of your eviction case and the requirement that you serve a new notice to quit and start the case again.
The foregoing update is intended for informational purposes only and should not be considered or relied upon as legal advice. Please feel free to contact our office if you have specific questions or if you require legal assistance.
Caitlin P. Milone Jeffrey C. Turk