Receiving Section 8 Voucher in Co-owned properties

[Christopher Freeman]

I am about to close on two properties where there are currently Section 8 renters. For lending reasons, both properties will be co-owned (JTIC). Our local section 8 housing office has advised that they can only make out one voucher check, and are requesting a W9 for whoever should be receiving the income. This is stupid as we will be splitting the income (schedule E will be allocated 50/50).

The office also suggested that they could send the voucher check directly to the tenant. However, we know from the current owner on one of the properties that the tenant was chronically late when she was receiving a direct subsidy.

Has anyone else experienced a situation like this? How would you handle it?