Section 8 and Landlord change.

[Caleb Landry]

I've searched the forums and haven't quite seen this situation discussed so I'll go ahead and ask. I found a nice little multi family property for sale and have walked through it. It is 2 2/1 houses and a studio, all separate structures. Currently 1 tenant in one of the 2/1 properties. The others are vacant. This tenant is on section 8. I've been reading up on the pros and cons of section 8, seems to be lots of info on that here. My question is. Is the process difficult for the new landlord, regarding moving the section 8 benefits during a landlord change? Any pitfalls in this area? Any definite do's or don'ts. Thank you!

[Patti Robertson]

@Caleb Landry - It's an easy process. Once you put the unit under contract the seller should tell the SEC 8 office to put payments on hold as soon as the last payment he/she should receive is made. Then once you own the property, contact SEC and they will send you the paperwork you will need to assume your position as the new payee.You will have to submit proof of ownership. Since most counties take a while for that to show up on tax record, it is generally OK to use the HUD or Consumer Disclosure as proof of your closing. They will also send you a W-9 and a form for your direct deposit info. You will also need to provide either a new lease or an addendum identifying you as the new owner. Once this is all submitted, the SEC 8 office will create a new HAP contract (between you and HUD) that you will need to sign and return. Once they receive that they will release your payments. You won't lose any rent, but your first payment may be delayed while you get the paperwork done.