Purchasing A Property Already Approved For Section 8

[Cassandra Ramirez]

I am in the process of acquiring a duplex in Hagerstown that has Section 8 for one of the 2 units. The question is, does anyone know if there is special paperwork I have to do to make sure it stays Section? I plan on going down to the office, but would love some guidance so I don't get the run around at "the office" and do I can be prepared when I get there.

[Marcia Maynard]

Well, we do participate with the Section 8 program and it has worked out very well for us! The Section 8 program is usually administered by the local Housing Authority. If not, then by a local government entity. They are not all run the same and some are easier to work with than others.

You are doing the right thing by contacting the local administrator of the Section 8 program. Introduce yourself as the new owner of the property and they will guide you in the process. Since the tenant is already in place, it will just be a matter of completing paperwork. They will most likely stay on the same inspection schedule (once every year or two). Our Housing Authority now requires their payments to landlords to be by direct deposit, so bring your banking information with you.

Treat your tenants the same, whether on Section 8 or not. Tenant screening will remain the same as for all prospective tenants. You most likely will be able to use your own rental agreement, so bring a copy of that with you. It must not contain any clauses that would be prohibited by law or in violation of the Fair Housing Act.  

In addition you will enter into an agreement with Section 8 which may require a few additional things, such as a longer notice period when serving notices of a rent raise or changes to the rental agreement. This is because it can take extra time for them to process such changes through their system. For example, landlord-tenant law in our jurisdiction requires a 30-day notice for rent raises or other changes to the rental agreement, but Section 8 requires a 60-day notice. We prefer to treat all of our tenants the same, so we prefer to use the 60-day notice for all.

Try to establish a good working relationship with the Section 8 case managers and keep them apprised of any problems the tenant creates. If you serve the tenant with a "Notice to Comply", or such notice of violation of the terms of the rental agreement, send a copy to the case manager too. Participation in the Section 8 program is a privilege that tenants will not want to lose, so they have great incentive to stay in compliance with the terms of your rental agreement and Section 8 program requirements. If not, they jeopardize losing housing at your location and/or their Section 8 voucher.

About the inspections... we find them very beneficial. Ours occur every two years. The tenant receives notification of the date and must be present and allow the inspector in. We don't have to be there. Our tenants tend to clean their units well prior to inspection day. The inspector checks for health and safety items and to make sure the unit is habitable. You can get a copy of the checklist the inspectors use and inspect the unit yourself to make sure your unit complies with their requirements. Their requirements are fairly basic and any unit that is well maintained should easily pass inspection. If the unit fails the inspection, then you, the landlord, will receive a letter outlining the deficiencies and will be given a time frame to correct these. If you don't, Section 8 can stop payments and your tenant may stay there, with or without the means to pay you rent. Establish a good working relationship with the Section 8 inspectors. Try to be there on the day they inspect, even if you don't need to be, and be friendly and cooperative.