Lesson learned from Section 8 unit

[Thong Dang]

Hi all,

I want to share my experience with my first rental unit, which happen to be a Section 8 unit; hoping to share and learn more from everyone.

I’m in MA and purchased this home out of state through Roofstock in Montgomery, AL in Dec 2020. I’m aware that the current tenant is a section 8 tenant with 4 months left on lease. I researched online as much as I can but in the end the real experience will teach me much more.

In Jan 2021, the annual HUD inspection from the local housing finance agency (HFA) came up. The housing authority apparently has inspected the home on Jan 5th, determined that it didn't pass and need repairs, MAILED it to my home address and I only knew about it on Jan 21st - no one from the PM bother emailing or texting me or anything, while they were notified on Jan 5th.

Local HFA told me that rents will not be paid until the repairs are completed and inspection is passed. I did not know this (I should have researched more), but all I could do was to rush the PM to find vendor and do the repairs as soon as possible. The repair process for multiple reasons was delayed (PM finds bid, delayed communication with vendor or among different persons within PM, tenant who is hard to deal with, weather delay, and my own fault for not following up at least every 2 days, but everything took until the end of April to complete. One ridiculous delay was that when the vendor arrives at the home, the tenant said “there’s no need for repair”, and vendor marked the work as completed, PM doesn’t tell me anything for more than a week, I follow up and then vendor finally is dispatched again - losing about 3 weeks of time. In total, I lost 3 months of rent, and cannot do anything about it.

In hindsight, I think I should have:

1. Researched carefully about the local HFA guidelines

2. Make sure to find an experienced PM

3. Plan ahead with PM for the annual inspection cycle

4. Follow up more regularly with PM if they are not responsive

I’d love to hear about anyone’s experience and guidance on the above as well - thank you so much!

[Richard F.]

Aloha,

There is nothing unusual about the HFA process as you have detailed it. This is a Classic example of the NOT "Guaranteed Rent". Since YOU received the notice, apparently you did NOT provide the correct info to the HFA office when the property transferred to you. If you had a PM involved at that point, or, once you did hire a PM, you should have, in writing, instructed HFA to send communications and payments to: your name, C/O (in care of) your PMC and address. The breakdown appears to have started with your mishandling. You really need to read the HAP contract that is agreed to and attached to your Rental Agreement for ALL Section 8 Tenants.

As soon as you received the inspection appointment notification (usually 30 days in advance of the actual appointment), you should have sent a copy to the PM. He should have then confirmed the schedule with the Tenant, and performed a pre-emptive inspection, making repairs so it would pass the upcoming HFA inspection.

The HAP inspection checklist and inspection form are among the documents available here, which are common to most Title IX programs across the country:

https://www.hud.gov/program_offices/public_indian_housing/pr...

In case there still was some minor nit-picking item the inspector took issue with, the PM would have immediately had the actual inspection report with it's checklist which he could provide to the repair person as a required inspection and repair regardless of Tenant's wishes. Repairs could have been handled in a day, with re-inspection scheduled within a fairly short (by Government standards) time period...probably less than three weeks.

If, after (apparently) several years with your PM, WHY would you need "bids" for the work...it must be done, promptly and properly, or, as you are finding out, you lose far more in rent. The PM should have simply sent in a proven repair tech to handle the issues. The PM should also advise the Tenant the repairs are required by HFA, and the PM's repair people WILL be entering on X Date and Time.