Need advice on Section 8 and PM situation

[Laura Spaulding]

I have a question I need some guidance on. I purchased a home to hold as a long term rental in GA. I am an out of State investor. I hired a property manager who showed the property for about a month and told me he was only getting section 8 tenants wanting it because of the location. I authorized him to register for section 8 and he did. He immediately got a tenant. My rental amount was originally $1150 but HUD knocked it down to $1025. I agreed, tenant signed the lease and this is where things went awry. Tenant moved in April 12th. I wasn't notified of it till April 19th so utilities were still on in my LLC. Confronted Pm who lied about love in date but lease confirmed it when I received lease from him on the 24th. He also stated he got pro-rates rent for April and the security deposit was in cash. No receipt on either. 3 weeks later he sent both. No rent cake in for May. Called section 8 and got the run around. Then they said rent would be paid for April, May and June on June 1. June 1 came around and they didn't pay. Section 8 was paying 100%. So at this point I have a non paying tenant in my home for 3 months and it's really not her fault. Section 8 requests a copy of my lease, which was completed by the old PM. PM finally turned over HUD inspection docs showing house passed and signed lease. Section 8 is now saying tenant can't pay any utilities and I need to knock off another $85 off of my rent. I said no way get her out of there. In the meantime I have been searching for another PM to no avail. Found one who wanted to gouge me so I just decided to list the home and sell it. So question is do I pursue legal action against the PM? Section 8 or both? Section 8 emailed me yesterday and stated they are not going to pay any rent and will find other placement for the tenant. Sorry for any typos. On my cell.