SCT8 ? Legal?Tenants req to pay difference above what they qual 4

[Joyce Jackson]

I have a few properties- some I’ve rented to section 8. All of my properties are above the standard for a rental- falling into a luxury product. I have had issues with a few of my section 8 tenants in the past. Right now there is a housing shortage in Fl and I am having a lot of ppl that are coming to me with vouchers for less than what I would typically rent my home out for. Example: I have a four bedroom and their vouchers for a 3. They are willing to pay the difference if I am willing to accept.... when I read the HAP agreement it states that I’m allowed to charge them reasonable rent however, is it a violation if there is a verbal agreement for the difference? Are you allowed to have two separate leases? This may sound like a stupid question however, I am having a lot of section 8 candidates tell me this is common practice with landlords and tenants. I figured, I would ask you all...

[Kyle J.]

@Joyce Jackson I have no doubt that some Section 8 landlords charge a form of “under the table” rent. However, both of the things you asked about (e.g. charging additional rent above what the Housing Authority is aware of; and having two leases - one the HA is aware of and one they’re not) are specifically prohibited. 

The HAP contract that you will have to sign as a Section 8 landlord will require you to certify, among many other things, that: 1) You provided the lease to the Housing Authority, and 2) You will not receive any payments from the tenant (or any other source) above the rent for the unit. (By that they mean the rent that is stated in the lease you provided.)

If a landlord is found to be in violation of this, it’s considered a breach of the HAP contract and can result in immediate termination of the HAP contract, suspension of payments, as well as being kicked out of the Section 8 program.

(Not to mention that the same HAP contract also makes it a violation for the tenant.)

So not only could a landlord get kicked out of the program and have their payments stopped, but they’d also ultimately be stuck with a tenant who in all likelihood could no longer afford the rent without the Section 8 assistance. And to top it off, the HAP contract actually states “The owner must immediately return any excess rent payment to the tenant” (if you did violate the HAP contract and collect anything above the stated rent).

Hardly seems worth the risk, in my humble opinion.