@Theodore Arzt Did you complete a full credit, criminal, eviction check on the applicant?

Make the property unwelcoming to rule breakers and criminals.#7 Incorporate the principles of CPTED.

As a result, a criminal charge was filed against me, and I was due in Court (alongside lots of drug charge cases while I waited my turn). 

That is the thing that has always scared me about the whole process.The good news is you can screen all applicants the same in other areas,  so make sure you have credit/civil/criminal (not in seattle)/references criteria that you are comfortable with even if your applicant is fully subsidized.If your particular applicant has $1700ish income on their own they are probably among the stronger sec8 applicants around;  might be worth giving them a shot if the rest of their background check comes back decent.

We run credit and criminal checks on each of the tenants we place. 

Income / Criminal / Credit is explicitly stated.

Borrower with criminal history of: attempted murder, narco-trafficking and domestic terrorism (actually placed this loan)3.

- smoking, pet, illegal criminal activity, etc.

- smoking, pet, illegal criminal activity, etc.

As @Joe White pointed out, they may face criminal liability as well if they collected money for taxes but failed to pay them.