Section 8 Landlord Questions

One common misconception about the role of the Housing Authority is that the HA
is responsible for the tenant’s actions under the lease. The role of the Housing
Authority is to administer the Section 8 Program which includes determining a
family’s eligibility for the program conducting annual property inspections, and
other administrative functions of the program.

Although we make every effort to counsel tenants on their behavior and take
action to terminate a tenant’s program participation for repeated lease
violations, we have no authority or ability to enforce the lease provisions when
a tenant does not comply with the terms of the lease. The Housing Authority is
not a party to the lease and consequently has no property management enforcement abilities.

For these reasons, we strongly recommend that you screen your prospective
tenants carefully to ensure that your property investment has been placed in the
possession of a tenant who will take proper care of your unit.

We also request that you communicate to us when you have lease violation
issues with a tenant and provide a copy of any lease violation notices to us
that you give to your Section 8 tenants. By providing the Housing Authority with
this information, action can be taken to terminate a program participant who
repeatedly fails to follow the program rules.

It is the landlord’s responsibility to screen the family. The Housing Authority
does not screen a family other than to determine if the family’s income allows
them to participate in the Section 8 Program. Landlords should use the same
criteria to screen families participating in the Section 8 program as they would
any other prospective tenant. The same rejection criteria should also be
applied.

In addition to the screening criteria you use for all other potential
tenants, the Housing Authority can also provide you with the following
information about program participants:

      1. A participant’s current address as shown in the Housing Authority records;

      2. The name and address, if known, of the landlord at the participants

        current and prior address;

      3. Claim and damage payments made by the Housing Authority on behalf of

        participants; and the reason, if known, for any evictions.

Each Request for Tenancy Approval Form (the form submitted to request a unit
inspection) has a “Tenant Release Form” attached to it. Upon the Housing
Authority’s receipt of this form, the Housing Authority will provide the
landlord with the information listed above.

If, after screening the family, the landlord is interested in renting to the
Section 8 Participant, the Section 8 Program Participant and landlord will
complete and sign a “Request for Tenancy Approval” form indicating the date the
unit is available for rent, the rent desired, and who pays for what utilities.
That form is then brought to the Housing Authority to arrange for a unit
inspection.

Yes. In 1998 HUD revised the regulations which limits circumstances under which
a property owner can rent his unit to a relative under the Section 8 Program.
The Housing Authority can permit such leasing only if it is determined that the
leasing of a relative’s unit would accommodate a person with disabilities.

For instance, if a property owner had a rental unit close to his/her property
which was handicapped accessible in order to provide attendant assistance to a
disabled family member, the Housing Authority could allow leasing to a relative.
The relationship which HUD defines as a relative is the parent (including
stepparents), child, grandparent, grandchild, sister, or brother of the Section
8 Voucher holder or any of his/her family members.

Upon receipt of the Request for Tenancy Approval, the Housing Authority will
review the rent and tenant’s income to ensure the tenant’s rent portion is
within the 40% tenant rent portion limitation required by HUD regulations. If
the rent calculation is verified as O.K. to process, an appointment will be made
with the landlord to inspect the unit. Housing Authority staff usually try to
schedule the inspection within 3-5 working days.

When the appointment for the inspection is scheduled, the unit is assumed to
be ready for occupancy. The Housing Authority inspector is required to verify
the that the unit meets
Housing Quality Standards (HQS). These are HUD established standards
designed to insure that units on which rent subsidies are paid are decent, safe
and sanitary. To view the HQS requirements, visit our
HQS
page. In addition to inspecting for HQS compliance, the inspector may
also note items needing repair that are not required but recommended for
preventative maintenance.

To assist you in preparing your unit for inspection, a “Required Repair
Checklist” is attached to the Request for Tenancy Approval Form. This checklist
shows the items that most commonly fail the HQS inspection. You are encouraged
to use this checklist in reviewing your property before the Housing Authority
inspector inspects your property.

If there is an HQS violation, the Housing Authority is prohibited from
executing a Housing Assistance Payments Contract until the required repair is
completed and the unit has been re-inspected. No payment can be made for any
days preceding the confirmation of repair completion.

The Housing Authority inspector will also determine what utilities the tenant
is required to pay, e.g. gas, electricity, water, garbage etc. The tenant will
receive a credit, also known as a Utility Allowance, towards their portion of
rent based upon the utilities for which they are responsible. These allowances
are developed by the Housing Authority and estimate what a typical tenant’s
utility costs will be. The Housing Authority inspector will also confirm with
the landlord what utilities they will pay for and this will be reflected in the
lease and contract.

NOTE: If you are unsure how much you should request for rent, we recommend
that you contact local property management companies and seek guidance on
current rents for a specific area.

There is no limit so long as the rent request is not higher than other units
renting in the same neighborhood on the open market. A Housing Authority staff
person will review the rent the owner is requesting to determine if it appears
to be a fair rent based on rents for comparable units. The Housing Authority is
required by program regulation to certify that the rent being paid is not
greater than rent being charged for comparable non-Section 8 assisted units.
This is to insure that tax dollars are not being used to inflate rents in the
private rental market.

Rent comparability is determined by comparing the Section 8 unit to other
similar units. The comparability process is somewhat like an appraisal. The
staff person will consider the subject unit’s size, location, quality and age of
amenities (e.g. carpet, dishwasher, appliances, etc.). Also considered is the
unit’s interior condition and the exterior amenities and appearance of the
building. These are then compared with other like units and the rents are
evaluated.

Under the Housing Choice Voucher Program guidelines, there are two tests
which must be made. The first test is conducted when the Request for Tenancy
Approval is submitted. The calculation of whether the tenant’s rent portion is
less than 40% of their monthly income is completed. If it is determined that the
tenant’s rent will be less than 40% of their income, then the rent
reasonableness test is conducted during or after the actual inspection of the
rental unit.

The security deposit is no longer capped by HUD. Owners may collect a security
deposit from tenants provided the following two criteria are met:

    1. The security deposit may not be in excess of amounts charged by the owner

      to unassisted tenants.

    2. The security deposit required does not violate state or local law.

Subject to state and local law, and in accordance with the lease, the owner
may use the security deposit, including any interest on the deposit, as
reimbursement for any moneys owed by the tenant.

There are five factors which affect a tenant’s rent under the Housing Choice
Voucher Program. What must be known prior to determining the tenant’s rent is
the following:

    1. 30% of the tenant’s monthly adjusted income

    2. 40% of the tenant’s monthly adjusted income (under the program guidelines,

      the tenant’s rent portion cannot exceed this amount)

    3. The Housing Authority’s “Payment Standard” for the bedroom size the family

      qualifies for

    4. The Rent the Owner is asking

    5. The Utility Allowance figure (a Utility Allowance is a HUD required

      allowance which must be deducted from the tenant’s rent portion for

      tenant-paid utilities.)

Under the Housing Choice Voucher Program the rent which can be approved is
based upon two factors. The first factor is whether the rent requested is
comparable to other units renting on the open-market in that neighborhood.

The second factor is the tenant rent portion limitation. Under the Housing
Choice Voucher Program, the family is allowed to pay up to 40% of their monthly
adjusted income towards the “gross rent”. The Gross Rent is the rent the owner
is asking plus the Utility Allowance adjustment. The amount of the Utility
Allowance is dependent upon what utilities the tenant pays. The tenant pays the
difference between the Housing Authority’s maximum subsidy and the rent to the
owner.

After the unit has been inspected and approved and the rent agreed upon, a
Housing Assistance Payments Contract (HAP Contract) will be prepared. This is
the document between the Authority and the landlord that explains the
responsibilities of each under the program rules. The Contract will also
indicate how much rent the tenant will pay (the Tenant Rent to Owner or TRO) and
how much will be paid by the Housing Authority (the Housing Assistance Payment
or HAP). These two amounts combined are the total Contract Rent the landlord
will receive for the unit.

You will receive in the mail a completed HAP Contract for your signature.
Along with the HAP Contract for signature will be a “check-off” list of items
needed such as your Social Security Number, Address information, and a request
for you to provide the Housing Authority with a copy of the signed lease between
yourself and the tenant. Under the Housing Choice Voucher Program, the Housing
Authority Lease is no longer required. A standard lease which you use for
open-market rentals should be used listing any additional terms and conditions
agreed upon between yourself and the tenant. The Lease effective date should
coincide with the date of the HAP Contract.

Before any rent payment can be made, the Housing Authority must have all the
signed paperwork, HAP Contract and lease returned to the office for processing.
Once the paperwork is received, the Housing Authority will process the file to
the Finance Department for payment and send the landlord a copy of the signed
HAP Contract. The landlord can usually expect payment within two weeks from the
date the Housing Authority receives all of the signed paperwork. After the
initial payment, the landlord will begin to receive checks approximately the
first of each month.

Please note that the tenant is not responsible for the HAP. The owner cannot
terminate tenancy because the HAP has not been paid by the Housing Authority. If
for some reason you do not receive a check in the mail please contact the
Section 8 Department as soon as possible to resolve the situation.

The process to execute a contract can take some time and there may be issues
which will arise, e.g., required repairs, disagreement over the rent, etc.,
which result in a HAP Contract not being executed. This could mean the landlord
would have a tenant in possession who will not be receiving housing assistance.

To avoid such a situation, it is advisable to postpone the tenant’s move-in
date until the unit has passed inspection and the rent has been agreed upon. If
the landlord wants to allow the tenant to move in, the landlord should collect
at least a minimum security deposit and enter into a conventional rental
agreement which can remain in place until the Section 8 contract is executed.
This way the landlord and the tenant will have a legally enforceable agreement
in the event a Section 8 contract is not entered into on the unit.

This is an Internal Revenue Service (IRS) requirement for any person or entity
that received rent payments in excess of $600.00 per year. It is critical that
the tax identification number that is provided match the name of the owner of
the property. The IRS has advised us that if the name and tax identification
number do not match, the Housing Authority may be required to withhold 30% of
the check amount to insure proper payment of taxes.

The lease you sign with a Section 8 participant should be a standard lease you
use for any other rental units you own or manage on the open-market. The terms
of the lease must be in accordance with state and local law and any additional
terms or conditional changes need to be provided to the Housing Authority as
they occur. All household members must be listed on the lease and any changes
must be approved by both the Housing Authority and the Owner.

Under the Housing Choice Voucher Program, a Housing Authority can approve a
lease with less than a one year term if it improves a tenant’s housing
opportunities and is the prevailing local market practice.

A few months before the one year anniversary of the contract, you and the tenant
will be contacted by the Housing Authority regarding continuation of the lease
and contract, and, on what terms. (Note: If you do not hear from your Housing
Authority representative within 30 days of the anniversary date, it is important
that you contact the representative to discuss whether you wish to continue or
terminate the tenancy.)

If both you and the tenant plan to continue the tenancy, an inspection of the
property will be scheduled. The Authority’s representative will contact you and
advise you of any items needing repair and/or items recommended for repair and
indicate a date by which the repairs must be completed. If the items are not
considered to be emergency repairs, the time given landlords is 21 days.

The Authority’s representative will also meet with the head of household to
review family income and composition to insure they are still eligible to remain
in the program and are housed in an appropriately sized unit. The tenant’s
portion of the rent will also be recalculated at that time to determine if a
change is warranted.

Upon completion of an annual inspection, the landlord and tenant will be
notified in writing of the results. If the unit fails inspection, the landlord
is required to complete the repairs within the time specified in the notice. If
the landlord has a good reason for needing a time extension to complete the
repair, the landlord would need to call the Housing Representative and discuss
the problem. The representative will try to accommodate the landlord’s request
to the extent possible. If the items identified represent a health or safety
problem, an extension will probably not be granted to prevent any possible
injuries to the tenant family and to reduce the landlord’s liability.

The inspector will send a follow-up inspection notice to the tenant
indicating when a second inspection will be conducted to confirm repair of HQS
fail items. If a landlord fails to complete all required repairs by the time
specified and the Housing Authority has not been notified of the landlord’s need
for an extension, the Housing Authority will stop paying its portion of the rent
to the owner. This is known as abatement and is allowed under the HAP Contract.
Rent amounts which are abated will not be released even if the landlord
ultimately completes the repair. The rent abatement would begin on the day of
the follow-up inspection and continue until either the unit passed a third
inspection or the contract termination date.

No. With regulatory changes which went into effect 10/2/95 , owners are no
longer responsible for HQS violations caused by tenants. Tenants who fail to pay
for utilities for which they are responsible, who fail to supply and maintain
appliances for which the owner is not required to supply under the lease, or who
(or whose guests) cause damage to the unit beyond normal wear and tear will now
be considered to have breached family obligations under the Section 8 program
and will face termination by the Housing Authority.

If the repairs are not completed, the Housing Authority would not abate rent
under these circumstances but would be required to terminate the contract if the
unit was not brought up to HQS standards.

The tenant must give the owner and the Housing Authority proper notice that the
tenant wishes to move. After the initial term of the lease (i.e., month to
month, year to year) the tenant may terminate the lease at any time provided
that the tenant give the landlord written notice of his/her intention to move in
accordance with the lease.

The lease may not require the tenant to give more than 60 calendar days
notice. If the tenant wants to move within the first year of his/her lease, then
the tenant and the landlord must both agree to terminate the lease.

In all cases, the tenant must also advise the Housing Authority that the
tenant will be terminating the lease. If a tenant does not give the owner and
the Housing Authority proper notice then the tenant will be considered to be in
violation of the Section 8 family obligations and will face possible termination
from the Section 8 program.

The landlord can issue a proper notice to vacate at the end of the initial term
of the lease or at the end of any successive term (i.e. month to month, year to
year). The landlord can issue notice to terminate during the lease term for
lease violations or other good cause.

Landlords are strongly encouraged to document tenant violations and to
provide the tenant and the Housing Authority with written warnings or notices of
the violations whenever possible.

A copy of the notice of termination must be sent to the Housing Authority. If
the tenant does not vacate within the time set forth in the termination notice,
the eviction action which follows is just like any other eviction action.

If the Section 8 tenant is evicted, the Housing Authority will pay through
the end of the month in which the tenant was evicted.

The definition of other good cause includes:

Not accepting an offer of a new lease or revision; a family history of
disturbance to neighbors, destruction of property, or living or housekeeping
habits which result in damage to the unit or premises; the owner desires to use
the unit for a purpose other than a residential rental unit; a business or
economic reason such as sale of the property or renovation.

The first of the month rent checks are mailed on the last working day of the
prior month. For example, October rent checks are mailed on September 30, if
that is last working day of the month. You need to allow adequate time for the
U.S. Post Office to deliver the check.

Generally speaking, a check may be reported as lost 10 working days after the
date of the mailing. If this time period has passed and you have still not
received your check, then call the Finance Department to request a stop payment
and a replacement check.

If the landlord is expecting a check for other than the first of the month
rent, contact your Housing Authority representative to find out whether the
request for payment has been processed. There may be problems such as incomplete
required repairs or incomplete tenant verifications which are holding up the
check. If there is no such problem and the check still does not appear, the
landlord should call Finance and report it as lost.

The Housing
Authority’s Finance Department will send you a notice indicating the amount
that may need to be repaid. Housing Assistance pro-rated based upon the move
out date.

Regulations revised in 1998 changed the process for rent adjustments. After the
initial lease term (i.e., year to year, month to month, etc.) an owner can
request a rent adjustment. The Housing Authority will conduct a rent
comparability study to assess what current market rents are in the area for
like-units.

If it is determined that a rent adjustment is warranted, the Authority will
make the proper adjustment so long as the owner has provided a minimum 60-days’s
notice to the tenant.

HOWEVER, If it is determined that the rent currently being paid exceeds
market units, HUD requires Housing Authorities to lower the rent to reflect the
actual rents in the market. For this reason, it is important that if you are
requesting a rent adjustment you ensure that the request is based on an upward
increase in the rental market.

It is possible that amendments may occur during the year because of changes in
the tenant’s rent and or family composition. The tenant’s rent portion is
generally based on 30% of the family’s adjusted gross income. If they have
increases or decreases in income or changes in family composition, this may
result in a change in their rent portion. If that is the case, a contract
amendment will be sent to the owner showing the changes in the tenant’s portion
of the rent and the Housing Authority’s’s payment.

If the change in family composition does not warrant a change in the unit
size (number of bedrooms) needed, but involves the addition of another family
member, the tenant is required to contact the landlord and the Housing Authority
in order to secure approval for adding the person to the household. A landlord
can then add the person to the lease as another member of the household.

If you have moved or simply want the check sent to a different address you must
notify the Housing Authority in writing of your request. The Post Office does
not forward Housing Authority checks even if you have notified them of an
address change.

If you have sold property for which there is an active Section 8 contract, you
should notify the Housing Authority and provide the purchaser’s contact
information as soon as possible. Section 8 department staff will place a hold on
the Housing Assistance Payment and send the new property owner information on
how to transfer the contract into their name.

If you have purchased property for which there is an active Section 8
contract, you should notify the Housing Authority as soon as possible. Section 8
department staff will send you a form which substitutes you as the owner and
landlord under the current lease and contract and will request a copy of either
the Grant Deed or Closing Statement to verify the ownership of the property.
When these forms are returned to the Housing Authority any payments due to the
new property owner will be released and the new property owner will begin
receiving the regular monthly Housing Assistance Payments.

The following link is information on how to address tenancy when a unit is under
foreclosure.

Click here for the packet

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