Somerville, Massachusetts: Questions about Section 8

[Matt T.]

I am under agreement on a property in which we will inherit a section 8 tenant. She lives in the smaller of 2 units and is interested in moving to the larger one when her lease expires because her voucher has increased to cover the larger rent payment and she can move to a space that fits her needs. We met her and she and her 3 young kids seem great and they lived in this house for 9 years. I would love to be able to keep them living in the house, but I want to be sure I understand how Section 8 works before fully committing. A few questions:

1. The new lease would likely start Feb 1. In Somerville, MA, where this property is located we can get top dollar if we are on September lease cycle. Does section 8 allow for 8 month or 1 year and 8 month leases so that we can get back on that schedule?

2. If government shuts down, will we get paid? If not, when it comes back on, do we get paid for missing months?

3. As for the inspection process, we plan to get it up to code (new windows, fixing fixtures, paint, etc,) , but are there any major concerns we should be aware of? How long does the inspection process take? 

4. If we decided we wanted to raise rents YOY, would that be allowed and how we would go about initiating this? Does the tenant need to apply for a new voucher every year we raise rents and do we need to go through the whole process again?

5. If we decided, we wanted to raise rents to market rate later on and she was not able to afford the increase, and thus not-renew her lease, could there be any complications to that?

6. It states that the security deposit is not paid for by the state and they would not cover any damages to the property.  Can you take a security deposit from the tenant?

7.  Would the state provide an up front last month's rent in place of a security deposit.

8. From the section 8 guidelines in Mass: At the time you submit all documentation, a Program Specialist will review the requested contract rent to ensure that it would not result in the tenant paying more than 40% of their income if approved. If it would, you will be contacted and offered a rent that would be affordable for the tenant. This offered amount is based solely on the tenant’s income and payment standard and is non-negotiable. For more information, please review the attached rent ranges document. Would we be required to accept their rent offer if for some reason she is paying greater than 40% of her income? If she loses her job, would that reduce her voucher amount?

9.  All new unit rents must be approved by a Metro Housing|Boston Market Analyst. Once the initial inspection is conducted, the inspector will rate each unit utilizing the Metro Housing|Boston Housing Quality Addendum grading form. The unit grade correlates with a rent range guide, provided in this packet. The rent range guide establishes ranges based on rents that are paid for similar private market units, taking into consideration unit size, utilities, condition of the unit, location, and amenities. You will be contacted and offered a lower rent if the Market Analyst determines the requested amount to be unreasonable. I think what we are asking is below market rent, but that is up to the discretion of some government bureaucrat called a "market analyst". That is concerning. Any thoughts on that?

Lots of questions! Trying to make an informed decision. Any other advice would be helpful. Thank you!