Section 8 Basics for Landlords and Tenants – Part 2
Section 8 Basics – Part 2
This article continues the discussion provided in “Section 8 Basics – Part 1.”
Annual quality inspections are also required for continuation in the voucher program. The landlord and the participant family receive written notification of the scheduled inspection date. The participant family is required by the local housing agency to be present during the annual inspection. It is considered a violation of the family’s obligations under the housing subsidy program if the family fails to keep a scheduled inspection appointment. If the housing agency was not properly notified of the need to reschedule an appointment, the agency could terminate the family from the subsidy program.
The participant family can for reasons of health and safety request an inspection of the rental unit during the lease term to ensure the unit still meets the Housing Quality Standards.
Termination of the voucher program participation can occur at the end of the lease agreement term or as family eligibility changes occur. Per local housing rules and regulations the participant family is required to give 30 days prior notification of the intent to move from the current rental unit. If this advance notice requirement is not given, the participant family is in violation of the lease agreement terms and also with the family obligations of the housing voucher program.
If the participant family fails to pay their portion of the rental amount in a timely manner per their lease agreement, the family is in violation of the lease terms. This failure to comply with terms and conditions of the lease and housing program requirements may jeopardize current and future assistance for rental housing voucher subsidies.
The participant family per their lease agreement and voucher program obligations must maintain the rental property in good condition to provide decent, safe, and sanitary living conditions. Damage to the rental unit such as torn window screens, wall damage, broken doors, ceiling damage, etc. are not normal wear and tear items and are the responsibility of the participant family to repair and restore to good condition. If damage violations are found during quality inspection visits, the local housing agency will determine proper course of action and liability for damage repair.
The lease agreement with the landlord and the documentation submitted for program eligibility and approval must list all residents of the rental unit. The participant family is responsible to notify the local housing agency of any and all changes to family household status, composition, etc. Failure to include all adult family members on the lease agreement is a violation of terms of the lease agreement. This could result in action being taken against the participant family or a termination of housing assistance.
Serious violations of the lease agreement may lead to eviction proceedings against the participant family. While the housing agency provides the rental subsidy for the family, the agency is not responsible for the family’s behavior. Non-compliance of lease terms and conditions may necessitate landlord actions to correct deficiencies. The landlord in any action taken to remedy a situation would be advised to send copies of any tenant correspondence, notices, summons, etc. to the appropriate contact in the local housing agency. The housing agency must be kept informed of any issues regarding family compliance to rules, regulations, and lease terms.
The local PHA has no legal authority to act for either the landlord or tenant in remedy actions. The agency does not have the authority or the ability to remove a tenant. The landlord selected the tenant per the landlord’s selection criteria, policies, and procedures. The landlord must be the party to take action if the situation must be remedied with an eviction proceeding. Eviction is the only legal remedy to remove a tenant who is non-compliant with the terms of the lease agreement and refuses to leave the rental property on a voluntary basis.
At the end of the lease, the landlord may renew the lease for a new one year term or offer a lease for a different specified time period. The participant family is required to give appropriate, timely written notice to the landlord and the housing agency if they choose to vacant the rental unit after the initial lease term expires.
If the participant family chooses to remain in the rental unit under the new lease terms, the family is recertified for program eligibility and the rental unit will again be inspected for housing quality standards. The landlord may at a date sixty days prior to the renewal date submit a written request to the local housing agency for an annual adjustment to the rental amount. The housing agency must approve any change in the rental amount before a change can become effective.
Section 8 has both advantages and disadvantages for a landlord. The main theoretical advantage is that the government guarantees the rent. However, in practice there are many ways in which this can become untrue. For example, if the tenant originally qualifies for 100 percent subsidy and a couple of months later the tenant qualifies for only 20 percent subsidy due to a change in financial circumstances (e.g., found a job), the landlord must depend upon the tenant for 80 percent. Furthermore, rent increases are limited and require permission of the housing agency and if the fair market rent (FMR) goes down, the rent the landlord receives is reduced. There are circumstances where the landlord may not receive payments for certain periods of time.
You also have the same problems regarding unpaid rent and damages that you have with any other tenant because the government is not responsible for the tenant’s share of rent or what the tenant does to your property. In fact, you are less likely to collect for unpaid rent and damages beyond the amount of the security deposit than for non-Section 8 tenants because the typical Section 8 tenant has less to go after.
The most basic disadvantage of the program is that the government gets more control of your business. There is an initial inspection, annual inspections, and inspections if the tenant complains about something. Section 8 standards are sometimes higher than habitability laws and/or what the landlord must usually do in order to attract good tenants for the particular property.
If the tenant must be evicted it is the landlord’s problem and there will be little or no help from the agency that administers Section 8. In fact, they may terminate payments upon commencement of the eviction.
Before signing up for the program, you should read the manual and other documents for the program and be sure that you understand both the advantages and disadvantages of being in the program. You should also contact the PHA for your area to determine if (1) there is funding for new vouchers, (2) there are any local program specifics, and (3) they offer landlord briefing seminars.
There are several documents that the landlord should read thoroughly, they are:
- Voucher form issued to the eligible family,
- Request for Tenancy Approval,
- Tenancy Addendum,
- Housing Assistance Payments Contract, and
- Inspection Form Housing Choice Voucher Program.
It is important that the landlord understand the program before getting involved with Section 8 and, if he does, be sure to select tenants using the same screening and selection standards as would be utilized for an applicant who is not Section 8, only taking into account that Section 8 will initially be paying part of the rent.