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Section 8 and Housing Choice Programs
Information for investors and landlords
(adapated from various HUD documents on Section 8 and personal communications with Section 8 Assistant Director, Montgomery, AL)
The Section 8 program provides assistance for low income families in the private rental market through the Housing Assistance Payments Program. Rental Voucher Holders will select a unit to live in from the private rental market. Rental Assistance makes market rate housing affordable. Program participants normally pay no more than 30% of monthly adjusted income towards rent and utilities. The Housing Assistance Payment subsidizes the balance of the rent to the property owner.
Requirements for a unit to be rented to an assisted family
The unit must meet HUD Housing Quality Standards (HQS) and the rent amount must be approvable within HUD Fair Market Rents and market rate comparable. A copy of HQS is available on request.
Process to get paid through Section 8 funding
A Unit can be listed as an available unit by submitting to the housing office forms:
1. "Unit Information Form/Request for Tenancy Approval" (http://www.hud.gov/utilities/intercept.cfm?/offices/adm/hudclips/forms/files/52517.pdf),
2. "Tenancy Addendum" (http://www.hud.gov/offices/adm/hudclips/forms/files/52641-a.pdf),
3. "Disclosure of Information on Lead-Based Paint" (http://www.epa.gov/lead/pubs/lesr_eng.pdf),
4. "Request for Taxpayer Identification Number and Certification" (http://www.irs.gov/pub/irs-pdf/fw9.pdf), and
5. "Authorization Agreement for Direct Deposit."
Forms may be submitted by paper copy, by fax, or by direct submission onto their web site (http://www.GoSection8.com). The application must be accompanied by a copy of proof of liability insurance and tax records on the property to be listed. The Housing Authority may request the landlord to lower the rent amount if that amount appears to be higher than usual for that type of property in that location.
After approval, a Housing Assistance Payments Contract (http://www.hud.gov/offices/adm/hudclips/forms/files/52641.pdf) will be issued. The unit will then be listed with the Housing Office and can also be advertised through the media, using the phrase "will accept Section 8." It is recommended that the landlord have an answering service or device installed because there may a large volume of telephone calls from prospective tenants. The www.GoSection8.com website permits searching for potential tenants, and will list units on their website.
It is the responsibility of the landlord to screen and select tenants. The Housing Office will only certify income eligibility for the program. If asked, Housing Office may provide contact information for previous landlords. Fair Housing Laws prohibit discrimination on the basis of race, color, religion, ancestry, sex, country of birth, handicap, or familial status, including having children to live in a unit.
Potential tenants must show an original copy of their Voucher from the Housing Authority (HUD-52646 Housing Choice Voucher Program, 7/2000 or later version, http://www.hud.gov/utilities/intercept.cfm?/offices/adm/hudclips/forms/files/52646.pdf). The landlord can require an application form with fees from the applicants. The HUD voucher is a contract between the Section 8 Office and the tenant. The Tenant keeps the original. The tenant can pay extra money for upgrades to housing, with consent of Section 8 office.
When a tenant is selected, he/she will have a "Request for Tenancy Approval Form" for the landlord to complete. An inspection will be scheduled to ensure that the unit meets HUD Housing Quality Standards. Utilities must be on at the inspection so that all systems can be tested for compliance. A copy of the inspection repair list can be obtained on request. External air conditioning components may be installed on the move-in day if necessary, but the unit must be inspected before tenants can move in and payments to the landlord can begin.
After the unit passes inspection and the rent amount has been approved, the landlord and tenant enter into a lease for an initial term of one year. The Housing Authority and the landlord sign a Housing Assistance Payments contract through which the rent to the landlord is assisted on behalf of the tenant. Collecting a security deposit is recommended, but must not exceed the amount equivalent to one month's rent of unassisted tenants. It is highly recommended that all utilities be required to be in tenant's name before the move-in date is scheduled.
After one year, the lease may be renewed for a specific time period, month-to-month, six months, one year, etc. The tenant may vacate with a notice after the term of the lease expires. If the tenant remains in the unit, the tenant is recertified for eligibility and the unit is inspected yearly for Housing Quality Standards, at which time the landlord may request an annual adjustment rent increase which must be approved by the Housing Authority. The request must be submitted in writing to the Housing Authority and tenant at least sixty days prior to renewal.
Online Source for HUD Forms:
http://www.hud.gov/offices/adm/hudclips/forms/
http://www.housing-forms.com/Section8.htm
Reference Books:
Section 8 Bible by Michael Mclean. This handbook is useful for most types of rental property procurement and management, especially when dealing with Section 8 tenants.
Section 8 Occupancy Handbook by David Hoicka. Another handbook that does give a lot of attention to details in legal and financial protection for Section 8 Administrators. The most significant contribution in this book is the comprehensive index to HUD forms.
