June 16, 2015
3 Minute Read
By Stephanie Reid, Avvo attorney and NakedLaw contributor
Many property owners extend the welcome mat to Section 8 housing tenants because the program provides prompt, regular payments on behalf of voucher holders. Like any government program, it’s important to understand the details and requirements so you can avoid compliance issues.
The term comes from a section of the U.S. code known as Chapter 8 of the Public Health and Welfare title. The law uses taxpayer funding to help states address the shortage of affordable housing for low-income families and remedy unsafe housing conditions they may face. It’s also intended to foster economically mixed housing and local populations, and assist elderly and disabled tenants.
As a landlord, accepting Section 8 housing vouchers can be good for business while also promoting the common good.
To begin receiving Section 8-eligible tenants, start by contacting the local housing authority to inquire about program requirements. Each state has its own housing authority office, and some larger cities, such as New York City, also have their own housing authority sub-office.
The housing authority will place your property on its list of available rental units, and voucher holders can then decide if they’d like to rent one of your properties.
You are allowed to screen prospective Section 8 tenants in the same way as other tenants, including financial and criminal background checks. Like all landlords, Section 8 landlords must never engage in any discriminatory conduct and must treat all housing applicants equally.
After selecting a renter, there are several forms you must submit to the housing authority in order to complete the arrangement, including:
Aside from these documents, local housing authorities may have additional requirements, including home inspection forms or documentation relating to utility payments.
Once the tenant is properly enrolled and the paperwork is complete, you will receive a predetermined sum of money from the federal government each month which subsidizes the total cost of the rental unit.
You must provide the federal Department of Housing and Urban Development (HUD) with checking account information in order to receive your direct-deposit rent payment each month.
You may evict a Section 8 voucher holder for any lawful reason covered within the lease agreement. You are under no obligation to make exceptions to established rules for voucher holders, and are actually required to terminate the tenancy in the following scenarios:
Otherwise, you may use your discretion when evicting a tenant as long as you follow proper protocol. First, certify that the eviction is lawful under federal and state regulations (i.e., not based on discrimination), then provide written notice of the pending eviction process and allow the tenant 10 days to discuss the matter with you and request reconsideration. If the eviction is based on nonpayment of rent, the notice must contain the total dollar amount to be repaid — and must give the tenant 10 days to pay the outstanding balance.
You can simplify the landlord-tenant experience with Zillow Rental Manager, which lets you screen tenants, accept online payments and create online leases (in select locations) that are customized to your state or city.
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