Section 8?

[Chris Jackson]

Hey BP. I am about to acquire and fix up a downtown rental in a low income part of town. Could anybody give me advice on how to get certified for section 8 housing, and if there are any pitfalls I should watch for? If I apply for section 8, for example, do I Have to rent only to section 8 at that point?

Is it more difficult to get mortgages on these sorts of properties? Or easier?

[Tim Miller]

You really need to read the Housing Assistance Payments Contract and see exactly what rights you are giving up.

Example: Section 6 d. The owner must give the PHA any information requested by the PHA on rents charged by the owner for other units in the premises or elsewhere.

Section 7 a3. the PHA shall not be obligated to pay any late payment penalty if HUD determines that late payment by the PHA is due to factors beyond the PHA's control

Section 11 b & c The PHA, HUD and the Comptroller General of theUnited States shall have full and free access to the
contract unit and the premises, and to all accounts and other records of the owner that are relevant to the HAP
contract, including the right to examine or audit the records and to make copies.

The owner must grant such access to computerized or other electronic records, and to any computers, equipment
or facilities containing such records, and must provide any information or assistance needed to access
the records.

That last part is a deal killer for us and we would never agree to allow that kind of access to our business records. Just carefully read and fully understand what you are signing and agreeing to.