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Section 8
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Foreword
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Ive been asked to write
this foreword because I am a landlord and I own ten
properties consisting of 32 units. Of these 32 units,
I rent 14 of the units to Section 8 tenants. I began
renting to Section 8 tenants five years ago. During
this time period, Ive only had to evict one tenant.
What appeals to me most
is the fact that I get paid by the third of each month.
I get Section 8 payments in the mail on the third and
my tenants know I will be at their door on the first
to collect their share. Their motivation to pay is that
they know that if they are evicted they will lose Section
8.
Section 8 does inspect
the property before the tenants move in and once a year
thereafter. I usually have to make some minor repairs,
but considering that I get paid on time, with little
effort, these minor repairs are of no consequence.
If you own properties
in middle-low to low income areas, you might want to
investigate the Section 8 program. The menu you are
now reading will give you most of the information you
need to get you started. However, I also advise you
to visit your local Section 8 office.
Lets face it - doing
business with Section 8 is just good
business.
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Introduction
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The Section 8 program
is the federal governments major program for assisting
very low-income families, the elderly, and people with
disabilities in affording decent, safe, and sanitary
housing in the private market. Since housing assistance
is provided on behalf of the family or individual, participants
are able to find their own housing, including single
family homes, apartments, and townhouses. The participants
can choose any housing that meets the requirements of
the program, and, is not limited to units located in
subsidized housing projects.
Section 8 is administered
in your area by your public housing agency (PHA). The
PHA receives federal funds from HUD to administer Section
8. Once someone has been approved for Section 8, it
is their responsibility to find suitable housing where
the Landlord agrees to rent under the programs guidelines.
The units must meet minimum standards of health and
safety, as determined by the PHA inspector. A housing
subsidy is paid to the landlord directly by the PHA
on behalf of the participating person or family. The
person or family then pays the difference between the
actual rent charged by the Landlord.
Note: The Landlord
never gets involved in the process of establishing eligibility
of tenants. This has already been determined before
they call you.
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Frequently Asked Questions From Landlords About
The Section 8 Program
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- How can I list my property through Section
8?
You can list your property for free by contacting
your local housing agency, which will take down
information on the property and who the contact
person is. Once you have listed the property, the
information will be provided to any Voucher holder
looking for a property of that particular size and
price. After a certain period, the housing agency
may purge the property from its list. However, you
are encouraged to notify the housing agency when
the property has been rented so that you do not
continue receiving calls.
- How much rent can I expect from my property?
You determine the asking price for the unit. However,
the rent must be reasonable compared to other units
of similar location, quality, size, type, and age.
If the rent is not reasonable to similar units,
you may be asked to lower it to accommodate the
tenant interested in moving into the property. Should
you rent your property through Section 8, rent increases
must also be reasonable in relation to comparable
units, the payment standard in the jurisdiction,
and what portion of the rent the tenant can afford
to pay.
- How much can I ask for a security deposit?
You can ask for as much is allowable under local
law, typically one-months rent. However, you cannot
legally ask more in security deposit from a Section
8 applicant than you would ask of any other applicant.
Once you have collected a security deposit, you
will have to place the money in an interest-bearing
account. Please consult local guidelines for more
details.
- How is the breakdown in rent calculated?
The housing agency will pay a check to the landlord
for the difference between the jurisdictions payment
standard and tenants total payment. The tenant
would pay the difference between the total rent
and the voucher amount (which would be paid by the
housing agency). Both the tenant and the housing
agency would pay their portions of the rent to you
at the beginning of every month. A delay in the
housing agencys payment may be expected when the
tenant first moves into the unit. However, a prorated
rent can be paid on a mid-month move. Please contact
the housing agency for more details on when exactly
you will receive payment.
- Can I refuse to rent to an individual?
You have the right to select the tenant you want
for your unit using whatever criteria you determine.
However, you must not discriminate against an individual
because of race, color, religion, sex, national
origin, age, familial status, or disability. In
some jurisdictions, you cannot refuse to rent to
someone just because he or she has Section 8 (called
course of income).
- Who pays for damages to the property during
occupancy?
Damages beyond the normal wear and tear and are
tenant-related can be paid for by the tenant. You
should have a standard practice listed in the lease
as to how damages will be paid for by the tenant.
After the tenant moves out, you may take compensation
for damages beyond the normal wear and tear from
the tenants security deposit.
- What if I have problems with the tenant?
If you have repeated problems with the tenant, you
have the right to enforce your lease and take the
necessary actions against the tenant. Whenever you
do start proceedings against a client, you must
follow local regulations. Should you send the tenant
any correspondence, such as a warning letter or
a notice to vacate, please send a copy to the local
housing agency. In some cases, the housing agency
may take action against the tenant to terminate
the assistance prior to the eviction.
- What is the housing agency inspector looking
for in the inspection?
Before a tenant can move into your property, the
housing agency has to inspect the unit by the housing
agency. The inspector is looking for minimum Housing
Quality Standards (called HQS) to ensure that the
unit is in livable condition. If it is not, you
may be asked to make some repairs to the unit prior
to the client moving in. The housing agency cannot
pay on the unit until it passes inspection.
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Housing Inspection Quality List
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- There cannot be any chipping or peeling paint
anywhere on the inside of the unit.
- There cannot be any chipping of peeling paint
five feet and under on the exterior of the unit.
- Cooking stove must be clean and in working order.
(Either the tenant or the owner must provide)
- Refrigerator must be clean and in working. (Either
the tenant or the owner must provide.)
- There must be an installed heating system that
works.
- There must be hot and cold running water in the
bathroom.
- There must be hot and cold running water in the
kitchen.
- There must be a shower or bathtub that works.
- There must be a flush toilet that works and does
not leak.
- Bathrooms must have either a window to the outside
OR an exhaust fan.
- There must not be any plumbing leaks.
- There must not be any plugged drains. (Check for
slow drains.)
- All ground floor windows must have attached locks
and exterior doors must have locks including working
deadbolts.
- All electrical outlets must have cover plates
and be in good condition.
- There must not be any missing, broken, or cracked
windows.
- The roof must not leak. (Check the ceiling for
stains.)
- The hot water heater tank MUST have a temperature
pressure relief valve with a downward discharge
pipe made of galvanized
- steel or copper tubing that is 3 feet long (NO
PVC). An earthquake strap is required for all hot
water heaters.
- There must be GFI outlets around all sinks.
- The floor covering cannot be torn or have holes
than can cause someone to trip.
- If there are stairs and railings, they must be
secure.
- Working smoke detectors are required in every
unit and on every level.
- The contract rent must be reasonable, based on
the rent of comparable units in the neighborhood.
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In Every Section 8 Lease Agreement, The Landlord
Is Responsible For.
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- Performing all management and rental functions,
including resident screening.
- Maintaining the unit in accordance with the HUD
Housing Quality Standards.
- Complying with equal opportunity requirements
and all fair housing laws applicable to the property.
- Furnishing all information required under the
Housing Assistance Payment contract.
- Paying for utilities included in the lease.
- Collecting the following from each Section 8 assisted
family:
- Any necessary security deposit
- The tenant portion of the monthly rent
- Any charges for damaged caused by the family
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A Simple Step-by-Step Process
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- Place your property using the Available Property
List (form provided in this packet), or advertise
Section * OK in the local newspapers. I
- nterview and screen prospective tenants.
- Select a tenant, fill out the Request for Lease
Approval (RLA) form that the tenant has in their
possession and have the applicant submit the forms
to the Housing Authority. You may be requested to
complete a pre-inspection form to be returned with
the RLA.
- An appointment will be scheduled with you for
the Housing Quality Standards inspection.
- When the dwelling passes the inspection, a lease
effective date will be established.
- The Lease will be signed by both the Landlord
and tenant. The Housing Assistance Payment Contract
will be signed by the Landlord and a Housing Authority
representative.
- The tenant receives the keys to the dwelling and
moves in.
- YOU GET PAID!
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Closing
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To get started all you
have to do is look in your phone books white pages
under Government. Find your local Housing Authority,
call them, and ask for Section 8. As easy as 1-2-3.
Good Luck and Good Success!
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