Section 8 Tenant portion of rent reduced by the housing authority

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Section 8 Tenant portion of rent reduced by the housing authority

Vikram Sharma
Monroe, NJ · Member since 2016 · 13 posts · 6 votes

Experts, seeking your advice on handling the situation with a Section 8 tenant living in my triplex. I inherited this Section 8 tenant on my property. The total rent I had been collecting on this apartment has been $950. The housing authority had been paying $495 and the tenant would write me a check for $455. I noticed this month the housing board only deposited $405 and slashed the tenant's benefit by $90. After inquiring with the housing board, found out that the change in the tenant's total income resulted in this change. The tenant is saying that his income did not change. Seeking expert's guidance on how best to handle this situation with the housing board as this is an "ideal tenant". He has been living on the property for some time and has been paying rent on time without any hassles. Thanks in advance for the guidance.

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
Quote from @Vikram Sharma:

Experts, seeking your advice on handling the situation with a Section 8 tenant living in my triplex. I inherited this Section 8 tenant on my property. The total rent I had been collecting on this apartment has been $950. The housing authority had been paying $495 and the tenant would write me a check for $455. I noticed this month the housing board only deposited $405 and slashed the tenant's benefit by $90. After inquiring with the housing board, found out that the change in the tenant's total income resulted in this change. The tenant is saying that his income did not change. Seeking expert's guidance on how best to handle this situation with the housing board as this is an "ideal tenant". He has been living on the property for some time and has been paying rent on time without any hassles. Thanks in advance for the guidance.

In my experience, Section 8 gives advance notice of any changes. You and the tenant would have been notified in writing about 60 dats before his/her benefits were cut. If that didn't happen, I would reach out to HUD and contest the change.

i agree with moving away from Section 8 if your laws allow, but this is no reason to evict the tenant. He should be able to make up the difference for the remainder of the term.

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  • Kar Sun
    Member since 2021 · 402 posts · 277 votes
    4y

    I am not really helping you for your immediate question but I can only suggest moving away form section 8. especially in this climate where the landlords are double enemies. anything to do with the govt is a bad deal. especially now. 

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  • Vikram Sharma
    OP
    Monroe, NJ · Member since 2016 · 13 posts · 6 votes
    4y

    @Kar Sun I appreciate your feedback. Is the eviction process for Section 8 the same as a "regular" tenant? Or do I have to notify the township, and get an eviction notice or just write a letter to the tenant that I am not renewing the lease? (luckily the 6 months lease for this tenant just got over and I was about to renew it)

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  • Kar Sun
    Member since 2021 · 402 posts · 277 votes
    4y
    Quote from @Vikram Sharma:

    @Kar Sun I appreciate your feedback. Is the eviction process for Section 8 the same as a "regular" tenant? Or do I have to notify the township, and get an eviction notice or just write a letter to the tenant that I am not renewing the lease? (luckily the 6 months lease for this tenant just got over and I was about to renew it)


     Unfortunately I do not know. I am certain there will be some other people with the expertise in it. Best wishes. 

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Quote from @Vikram Sharma:

    Experts, seeking your advice on handling the situation with a Section 8 tenant living in my triplex. I inherited this Section 8 tenant on my property. The total rent I had been collecting on this apartment has been $950. The housing authority had been paying $495 and the tenant would write me a check for $455. I noticed this month the housing board only deposited $405 and slashed the tenant's benefit by $90. After inquiring with the housing board, found out that the change in the tenant's total income resulted in this change. The tenant is saying that his income did not change. Seeking expert's guidance on how best to handle this situation with the housing board as this is an "ideal tenant". He has been living on the property for some time and has been paying rent on time without any hassles. Thanks in advance for the guidance.

    In my experience, Section 8 gives advance notice of any changes. You and the tenant would have been notified in writing about 60 dats before his/her benefits were cut. If that didn't happen, I would reach out to HUD and contest the change.

    i agree with moving away from Section 8 if your laws allow, but this is no reason to evict the tenant. He should be able to make up the difference for the remainder of the term.

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  • Quincy Lockett
    South Holland, IL · Member since 2017 · 376 posts · 432 votes
    4y

    @Vikram Sharma

    The tenant just has to pay the additional $90 regardless of whether or not they have realized an income increase. According to your lease they owe the full $9** and your agreement is with the tenant, not HUD. Just inform them of the additional amount and if they balk start the eviction process or serve them with notice of non-renewal of existing lease agreement.

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  • Steve K.
    Specialist · PA · Member since 2016 · 143 posts · 71 votes
    4y

    @Vikram Sharma Many of the experts already chimed in. As someone mentioned here, tenant signed the lease, Government didn't. We also have an issue with a temporary rental assistance program from Covid times, they have paid late twice. We waived late fees once, and second time tenant paid late fees.

    You're in NJ, even if your were not, work with the tenant. They should pay the difference. That difference isn't a lots of money, especially in NJ.

    1Reply
  • Patrick Shep
    Rental Property Investor · Washington, DC · Member since 2018 · 98 posts · 38 votes
    4y

    I'm not a section 8 expert. However, I've read that you can appeal to the housing authority if you have 3 or more rental comps...Good luck

    1Reply
  • Vikram Sharma
    OP
    Monroe, NJ · Member since 2016 · 13 posts · 6 votes
    4y

    Thanks everyone for your responses!

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