How does Section 8 Housing work?

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ThankYouJack
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How does Section 8 Housing work?

Post by ThankYouJack » Mon Aug 05, 2019 5:14 pm

I have a friend who lives in an apartment and gets a (I believe) government subsidy because her net worth and income is quite low. Each year they check her apartment (she keeps it tidy and clean) and her finances (which stay the same). Yet she gets concerned they're going to remove the subsidy or increase rent to the point where she won't be able to pay. Is that possible or are there regulations regarding the subsidy and rent increases?

Better2bWise
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Re: How does Section 8 Housing work?

Post by Better2bWise » Mon Aug 05, 2019 5:18 pm

You buy homes and rent them. The damage of property and lack of payments forces constant turnover and costly evictions. The section 8 inspectors force ridiculous repairs that most home owners can't afford until you give up on it all and sell to unsuspecting ambitious new proprietors.

Hope it works out for some better than my memories of childhood, watching my father try to keep it all afloat.

dpm321
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Re: How does Section 8 Housing work?

Post by dpm321 » Mon Aug 05, 2019 5:26 pm

Better2bWise wrote:
Mon Aug 05, 2019 5:18 pm
You buy homes and rent them. The damage of property and lack of payments forces constant turnover and costly evictions. The section 8 inspectors force ridiculous repairs that most home owners can't afford until you give up on it all and sell to unsuspecting ambitious new proprietors.

Hope it works out for some better than my memories of childhood, watching my father try to keep it all afloat.
No landlord is required to accept Section 8 tenants. Easy solution is don't. Some like it because the rent is guaranteed to be paid every month (by the government). Also, to be fair, I have occasionally had property damage by tenants and mine are paying market rates. Just because someone is financially challenged doesn't mean they will damage your property.

CFOKevin
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Re: How does Section 8 Housing work?

Post by CFOKevin » Mon Aug 05, 2019 5:27 pm

My understanding is that Landlords who elect to accept Section 8 vouchers agree to collect fair market rent in two parts. The low income tenant pays a % of their income (maybe 30%) and the gov't pays the difference between fair market rent and the amount the tenant pays. Some of the challenges with the program include an incentive for tenants to under report their earnings, a lack of care for the property by tenants and a lack of property upkeep by Landlords. Annual inspections are meant to hold Landlords accountable. I do not know how reasonable your friends concerns are. However, good tenants like your friend are hard to find for Landlords and I imagine changes are unlikely unless there is an ownership change.

Kevin

Starfish
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Re: How does Section 8 Housing work?

Post by Starfish » Mon Aug 05, 2019 5:41 pm

ThankYouJack wrote:
Mon Aug 05, 2019 5:14 pm
I have a friend who lives in an apartment and gets a (I believe) government subsidy because her net worth and income is quite low. Each year they check her apartment (she keeps it tidy and clean) and her finances (which stay the same). Yet she gets concerned they're going to remove the subsidy or increase rent to the point where she won't be able to pay. Is that possible or are there regulations regarding the subsidy and rent increases?
I have a friend who is (was?) a Section 8 landlord. It is a very abused subsidy, for example by people with cash businesses, or by people getting more then they should (sq footage, bedrooms etc) so it is possible to be a general sentiment against it at political levels.

123
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Re: How does Section 8 Housing work?

Post by 123 » Mon Aug 05, 2019 5:50 pm

Section 8 housing is a program operated by the Department of Housing and Urban Development.

General information about section 8 is located here: https://www.hud.gov/topics/housing_choi ... _section_8

A lot of specific information is dependent on the specific public housing agency (PHA) that is involved so you may need to follow links to the specific local agency/project that is involved.

Though dated you may find some of the information in the following link helpful https://www.seniorliving.org/hud-senior ... -programs/

Some years ago I assisted a famiy friend with an application for residence in a public senior housing project. My recollection of the process was that at the time they applied a standard value of something like 2% to the balance in bank and investment accounts, in addition to things like social security and pensions, in determining the individuals income for purposes of qualifying for residence.

In some parts of the country there are senior housing projects that have their economic roots based on public housing guidelines. Nevertheless they can be very desirable arrangements for many older residents to live in, they are sort of like a fraternity house for the elderly due to the sense of community they provide.
The closest helping hand is at the end of your own arm.

travelspot
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Re: How does Section 8 Housing work?

Post by travelspot » Mon Aug 05, 2019 5:53 pm

Section 8 vouchers are now called Housing Choice Vouchers (HCV). They are usually administered by local housing authorities, who have an allotted number of vouchers approved by HUD, which pays the subsidy. It’s unlikely that the subsidy would be removed, as the HCVs aren’t going anywhere. It is however possible that the landlord can raise rent when the current lease expires. It’s my understanding that the landlord has to give written notification to the local housing authority that administers the HCV and of course also notifies the tenant, of a pending rent increase. If she cannot afford to pay the new rent, she can take her voucher and go elsewhere.
If you don't do stuff, then you don't do stuff.

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Sandtrap
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Re: How does Section 8 Housing work?

Post by Sandtrap » Mon Aug 05, 2019 6:19 pm

duplicate
Last edited by Sandtrap on Mon Aug 05, 2019 8:36 pm, edited 1 time in total.
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Topic Author
ThankYouJack
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Re: How does Section 8 Housing work?

Post by ThankYouJack » Mon Aug 05, 2019 6:36 pm

Thanks all for the info. Much appreciated

surfstar
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Re: How does Section 8 Housing work?

Post by surfstar » Mon Aug 05, 2019 6:45 pm

CFOKevin wrote:
Mon Aug 05, 2019 5:27 pm
My understanding is that Landlords who elect to accept Section 8 vouchers agree to collect fair market rent in two parts. The low income tenant pays a % of their income (maybe 30%) and the gov't pays the difference between fair market rent and the amount the tenant pays. Some of the challenges with the program include an incentive for tenants to under report their earnings, a lack of care for the property by tenants and a lack of property upkeep by Landlords. Annual inspections are meant to hold Landlords accountable. I do not know how reasonable your friends concerns are. However, good tenants like your friend are hard to find for Landlords and I imagine changes are unlikely unless there is an ownership change.

Kevin
Best answer here.

The tenant's rent is 30% of the gross monthly income. It can also be affected by who pays utilities (tenant pays, rent may be further reduced).
An annual inspection is to ensure that landlords provide basic standards - working smoke alarms, cooking facilities, heat, ingress/egress windows that can lock, no peeling paint, etc.

Unless the tenant's income increases to the point that the rent is no longer subsidized, they will not loose their voucher. Landlords are allowed to raise the rent a certain % each year, not to exceed fair market rents, also. As with any other housing situation, a good landlord and tenant = win, win.

(I worked for the local Housing Authority during HS and college)

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AerialWombat
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Re: How does Section 8 Housing work?

Post by AerialWombat » Mon Aug 05, 2019 7:13 pm

Sandtrap wrote:
Mon Aug 05, 2019 6:19 pm
And, yes, as a previous poster stated, a landlord is under no obligation to accept a "Section 8" rental application, or any person's rental application for that matter. Nor, is a landlord required to give a reason for rejection beyond perhaps, "the unit has already been taken".
Landlords need to carefully check local laws about this. In Oregon, a 2014 law prohibits discrimination based on income source. A landlord there can no longer refuse to do the HUD paperwork and inspection for Section 8, and income multipliers must be applied *before* housing voucher dollars.

This is why I refuse to buy rental property in that state, despite other good reasons to do so.

I have heard that other states are considering similar law.
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student
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Re: How does Section 8 Housing work?

Post by student » Mon Aug 05, 2019 7:38 pm

AerialWombat wrote:
Mon Aug 05, 2019 7:13 pm
Sandtrap wrote:
Mon Aug 05, 2019 6:19 pm
And, yes, as a previous poster stated, a landlord is under no obligation to accept a "Section 8" rental application, or any person's rental application for that matter. Nor, is a landlord required to give a reason for rejection beyond perhaps, "the unit has already been taken".
Landlords need to carefully check local laws about this. In Oregon, a 2014 law prohibits discrimination based on income source. A landlord there can no longer refuse to do the HUD paperwork and inspection for Section 8, and income multipliers must be applied *before* housing voucher dollars.

This is why I refuse to buy rental property in that state, despite other good reasons to do so.

I have heard that other states are considering similar law.
This article also mentions this. https://www.nolo.com/legal-encyclopedia ... chers.html

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Sandtrap
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Re: How does Section 8 Housing work?

Post by Sandtrap » Mon Aug 05, 2019 8:37 pm

AerialWombat wrote:
Mon Aug 05, 2019 7:13 pm
Sandtrap wrote:
Mon Aug 05, 2019 6:19 pm
And, yes, as a previous poster stated, a landlord is under no obligation to accept a "Section 8" rental application, or any person's rental application for that matter. Nor, is a landlord required to give a reason for rejection beyond perhaps, "the unit has already been taken".
Landlords need to carefully check local laws about this. In Oregon, a 2014 law prohibits discrimination based on income source. A landlord there can no longer refuse to do the HUD paperwork and inspection for Section 8, and income multipliers must be applied *before* housing voucher dollars.

This is why I refuse to buy rental property in that state, despite other good reasons to do so.

I have heard that other states are considering similar law.
ouch!
I was not aware of that one.
thanks
j
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Sandtrap
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Re: How does Section 8 Housing work?

Post by Sandtrap » Mon Aug 05, 2019 8:38 pm

student wrote:
Mon Aug 05, 2019 7:38 pm
AerialWombat wrote:
Mon Aug 05, 2019 7:13 pm
Sandtrap wrote:
Mon Aug 05, 2019 6:19 pm
And, yes, as a previous poster stated, a landlord is under no obligation to accept a "Section 8" rental application, or any person's rental application for that matter. Nor, is a landlord required to give a reason for rejection beyond perhaps, "the unit has already been taken".
Landlords need to carefully check local laws about this. In Oregon, a 2014 law prohibits discrimination based on income source. A landlord there can no longer refuse to do the HUD paperwork and inspection for Section 8, and income multipliers must be applied *before* housing voucher dollars.

This is why I refuse to buy rental property in that state, despite other good reasons to do so.

I have heard that other states are considering similar law.
This article also mentions this. https://www.nolo.com/legal-encyclopedia ... chers.html
The times they are changing.
Thanks for posting.
j
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