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Hubbard County HRA probes $67,000 in tenant delinquencies, approves 5% rent increase for two unit types
Summary
The Hubbard County HRA reviewed delinquent rent tallies at Meadowview and Meadows Edge, discussed collections and small-claims options, and voted to raise 2- and 3-bedroom rents 5% for 2026 while leaving 1-bedroom rents unchanged.
The Hubbard County HRA on Sept. 1 reviewed roughly $40,000 in delinquent rent at Meadowview and about $27,000 at Meadows Edge, discussed collection strategies and write-offs, and voted to raise 2-bedroom and 3-bedroom rents by 5% for 2026 while keeping the 1-bedroom rate unchanged.
HRA staff member Mary told the board the delinquent totals reflect back rent, evictions that are pending court dates, tenant notices that extend occupancy and rent accrual, and abandoned units. "Tenants are given 15 days to pay rent," Mary said, explaining the 15-day notice and how amounts grow while an eviction or tenant notice is pending. She added that the HRA uses a third-party collection vendor, "Negotiem," to pursue outstanding balances and that the agency sometimes refers accounts to collections, then to small-claims court if collections fail.
Why it matters: the board oversees several publicly held and market-rate housing properties and carries the financial responsibility when units run persistent deficits. The HRA’s ability to recover delinquent rents affects property cash flow, the agency’s budget planning for 2026 and whether reserves are needed from the general fund.
Board members pressed staff for more performance data on Negotiem and for a formal process on escalation. One board member recommended escalating unpaid accounts to small-claims court when the collection firm reports no success; another suggested staff bring a periodic collections report for board review. Mary said the HRA will present monthly lists of accounts proposed for collections or small-claims action so the board can track results and decide on write-offs later. On accounting treatment she said the HRA maintains an allowance for doubtful accounts so receivables remain on the books while the allowance offsets the financial impact until accounts are resolved.
The board also discussed vacancies at Meadowview and Meadows Edge. Mary said the properties lost a large share of tenants over the past year — including tenants who left without notice or who were deported — and that many prospective applicants are denied for credit scores below 600 or criminal-background criteria. Staff compared current rents to HUD fair-market rents, noting some unit types were above and some below the FMRs for the area, and recommended further analysis before broad rent changes.
Board action: a motion to increase 2-bedroom and 3-bedroom rents by 5% for 2026 (leaving the 1-bedroom rate unchanged) passed by voice vote. The motion gave staff authority to notify tenants in time for budget scheduling and tenant notice deadlines. No roll-call tally was recorded in the transcript; the motion carried on an affirmative voice vote.
Other operational details discussed: staff said the building-wide internet service at Meadowview costs about $770 a month and suggested keeping the building subscription as a collection leverage (disconnect internet for nonpayment). Mary described the HRA’s intent to monitor collection-vendor success rates and, if necessary, pursue small-claims filings either by in-house staff or local counsel to secure judgments that improve long-term recoveries.
Board next steps include monthly reports on accounts sent to collections, documentation of the Negotiem success rate and policy on escalation to small claims, and completion of a rent-setting analysis to finalize the 2026 budget.
