Answers on the Government Shut Down - LMHA Sect 8 Payments

[Andrew Fidler]

I've seen one article in our local paper throwing open the Pandora's Box regarding the federal government's shut down, HUD Sec 8 payments...asking the question that every landlord on this site should be concerned about:

Is Federal funding still flowing for social support???

- Are monthly food payments going to go out?

- Is the HUD Sect 8 Voucher program going to stop paying?

Here in Toledo, the HUD Sect 8 Housing Choice Voucher Program is administered by LMHA (Lucas County Metopolitan Housing Authority). I sit on their Landlord Advisory Board and was able to get straight answers on the second question...LMHA is funded through the end of February, so we will be paid 100% of the rent due to us like usual on February 1st.

I wanted to start this post so if, in some nightmare reality, the government is still shut down as we near the end of February I can provide updates and open the discussion up to other investors across the country to provide their own updates and ask questions. 

Personally I cannot see the shut down going another 30 days (double what it is now), the good news is Sect 8 landlords will be just beginning to feel the pain on Day 60 but really do not want to peer myself into the Catch-22 of not receiving rent, but being told it will be paid as soon as the government re-opens, especially with what I suspect would be the added joy of not being able to file an eviction on a tenant due to Federal delay in payment. (Let's hope it never comes to that, I am the guy who spends so much of my time touting Sect 8 as a great investment vehicle specifically in poorer neighborhoods...it's a profitable program to participate in, let's hope politics doesn't besmirch the image)

Keep on investing responsibly, like all things this too shall pass...I just hope we aren't doing too much damage to the economy overall.