E-Book Succeed With Section 8-by Zack Wiest


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E-Book Succeed With Section 8-by Zack Wiest

  1. 1. Copyright 2011 | Provided by PA Deals, LLC www.padeals.com
  2. 2.   Table of Contents Chapter 1 What Is Section 8 …………………………………… History of the Program …..………………………… Goal of Section 8 …………………………………… Regulatory Body …………………………………… Chapter 2 Tenant Requirements ……..………………………… Property Owner Requirements ................................... Chapter 3 Payment Standards ...................................................... Applicant’s Subsidy .................................................... Rent Calculation ......................................................... Chapter 4 Property Selection ...................................................... Chapter 5 Tenant Found .............................................................. Subm itting For Tenancy and Unit Approval .............. Chapter 6 Inspection Process ...................................................... Chapter 7 Lease and Contract Signing ......................................... Chapter 8 Evictions ...................................................................... 1  
  3. 3. Chapter 1The Section 8 Housing Choice Voucher Program is a federally funded program designed toprovide housing to low income families. In order to better understand what the program is, wewill first need to address the history of the housing program. In the paragraphs to follow I willdiscuss the program from its inception, through it many changes to today’s current form.1937 - This marked the beginning of federally assisted housing in the United States. The US Housing Act was formed based on the US Constitution under Article 1, Section 8, which states – to provide for the general welfare. The Housing Act was part of President Roosevelt’s depression era legislation aimed at providing jobs to the submerged middle class. Federal funds were used to construct the housing units, and once completed managed and maintained by local public housi ng agencies.1961 - The first change to the program did not occur until now when Congress amended the US Housing Act, thus creating the Section 23 Leased Housing Program. This is the predecessor to our modern day program. Major changes that came along with the new program was the first use of privately owned properties. Although, the properties were privately owned the local housing agencies continued to manage and maintain the units. The local housing agencies signed a lease with the private owner, and subleased to the Section 23 tenant. Another change to the program occurring at this time was the implementation of tenant rent contributions. 2  
  4. 4. 1974 - At this point in history the Section 23 program was amended to create the Section 8 Rental Assistance Program. A lot of changes came along with this new program. The first being the local housing agencies would no longer manage or maintain the privately owned units. The subleasing that occurred with the Section 23 program was also ended, and the tenants would sign directly with the propert y owner. Qualified applicants were now permitted to go out into the open housing market to find housing. Due to studies performed by the federal government showing that substandard housing was no longer a problem, but the high percentage of income being spent on housing. Tenants on the program were now not permitted to pay more than approximately 30% of their adjusted gross income on housing.1999 - This was the inception of the program we currently use today, the Section 8 Housing Choice Voucher Program. The combination of the Rental Certificate and Rental Voucher programs created this Housing Choice Voucher Program. The local housing agencies were to become the most hands off they had ever been prompting clear tenant and landlord guidelines to be defined.The rules and regulations for the Section 8 Housing Choice Voucher Program are determinedby the U.S. Department of Housing and Urban Development (HUD).For the Section 8 Housing Choice Voucher Program to function the local public housingagencies must be able to contract with private owners who have decent, safe, and sanitary rentalproperties. Most must municipalities have a two month to a year long waiting list due to theshortage of eligible properties and willing property owners. 3   For Special Event Details - TEXT "PA Deals" to 41411 or "CLICK HERE"
  5. 5. Chapter 2In this chapter, we are going to first discuss what makes a tenant applicant eligible for theSection 8 Housing Choice Voucher Program. The first of the criteria we are going to look at isthe gross annual income. This eligibility factor is separated into two groups: Extremely Low,which is 30% of the median income, and Very Low, which is 50% of the median income in aset locality. The creation of two groups is mandated by HUD. In accordance with HUD’sRules and Regulations that govern the Section 8 program, not less than 75% of familiesadmitted during the fiscal year from the waiting list shall be extremely low-income families.Below you see a chart showing the income eligibility levels in Dauphin County, PA. $60,000 $40,000 $20,000 30% Income $0 50% IncomeThe next determining factor is also represented on this chart, and that is the number of personsin the family. The number of persons in a family is not closed to mother, father, and children.It can include a non-relative that requires assistance, an elderly grandparent that needsassistance, or even a grandparent that does not need assistance, but is part of the family unit.The last eligibility factor we are going to look at is the applicant must be a United States citizen,or a non-citizen who has eligible immigration status.Items that immediately make an applicant ineligible to receive a voucher are outstandingjudgments for unpaid rent. If they have drug related or violent criminal charges within the lastfive years they are not eligible. If the applicant has been evicted while on the voucher program, 4  
  6. 6. or performed fraud against the PHA (Public Housing Agency) these would also make theapplicant ineligible.Now, I would like to look at what makes a property owner eligible or ineligible for the program.First and foremost, the property must meet HUD guidelines regarding the property conditioninspection that will be performed either before a tenant is found, or in most municipalities aftera tenant is found. This inspection process will be discussed in a later chapter.The property owner must have paid current all property taxes to include municipal, county, andschool. Any utility that is municipal must all be paid current.Just as in the case of the tenant, the property owner may not have been convicted in last fiveyears of criminal drug charges.Lastly, if you have performed fraud against the PHA, or violated a prior Housing AssistanceProgram Contract you are not eligible.The property portion of eligibility is simply summed up to you must a have a safe and sanitaryproperty that is in good tax and utility payment status.PA Deals, LLC offers a one of a kind solution for new and seasoned investors alike! Whether you own10 rental properties or 0 rental properties we have something for you. After 800 plus real estate dealsit is safe to say we know a little about what we are doing and you would be foolish to not benefit fromvast investment knowledge. If you are ready to get started or still have more questions we offer a FREEWealth Creation Event every 2nd and 4th Saturday of the month. You can register one of two ways... TEXT "PA Deals" to 41411 or go to www.padeals.com A Successful Future Is Yours To Take - Will You Take It? 5  
  7. 7. Chapter 3Why implement the Section 8 Housing Choice Voucher Program into your buy and hold realestate investing strategy?There are a few reasons that top the list, and guaranteed rental payments, premium rentalpayments, and units kept typically in better condition are just a few There will be no morechasing your rent money each and every month because it will come to you by way of a UnitedStates government check.As far as premium rental payments go we will discuss that later in this chapter. In regard tounits being kept in better condition than a private tenant this I feel is due to the repercussionsthat come with the Section 8 tenant. If a private tenant damages your property they can simplyleave your property, and rent another property never noting you as a previous landlord. Whatare the repercussions from that tenant, none. With a Section 8 tenant if they cause damage, orare evicted from your property and you notify the PHA they will lose their voucher eligibilityfor five years. So, if this individual is in need of housing, and they do not obey your lease andrespect your property they have no means of housing for five years. In my eyes this a prettylarge deterrent.Lastly, before I move on to the explanations of the above, I would like to mention the lowturnover rate associated with Section 8 tenants. At this point there is no deadline on how long atenant may remain on the program. If you ask property owners that are currently using thisprogram their average tenant has been in their property for three to four years.I will end the reasons why to implement this strategy with stating that the average market timeof a Section 8 eligible property is four to six weeks including the property inspection process.As I stated earlier, 90% of all PHA Section 8 programs across the United States have waitinglists, or closed to new applicants. A sample of this is in Central Pennsylvania where housingagency case workers are pulling 250-400 applications every month to review for eligibility,these will become new tenants looking for housing. One Central PA city opened its applicationprocess for one day and received more than 500 applications that day alone. 6  
  8. 8. What I will now explain is how we will recognize premium and guaranteed rent, whileexplaining the exact calculations the PHA will be using.In the chart below you can see the difference between private tenant rental payments and aSection 8 tenant guaranteed rental payment in the Harrisburg, PA area. $1,000.00 $800.00 $600.00 $400.00 $200.00 Avg. Market Rent $0.00 Avg. Section 8 Rent (These rental rates reflect the property owner paying water, sewer, and trash.)The first item I will show you how to calculate is the subsidy an applicant receives from thePHA. The subsidy is the amount of assistance the applicant receives on a monthly basis. Themaximum housing assistance that eligible families can receive under the voucher program is thedifference between 30% of the net household income and the current payment standard. Theirmonthly housing expense may not exceed 40% of the net household income, this regulation wasput in place in 1974, which we discussed earlier.Let’s begin to calculate an applicant’s subsidy, and see how it works. I mentioned in theprevious paragraph that we must use the current payment standard. The current paymentstandards are fair market rents as determined by HUD. The payment standards vary from onelocality to another. 7  
  9. 9. The chart below reflects the payment standards for Harrisburg, PA as on January 1, 2009. FMR $1,400 $1,206 $1,200 $1,012 $1,049 $1,000 $802 $800 $558 $638 $600 $400 $200 FMR $0Now that we have the payment standards for our locality, which are available at your localhousing authority we will need to determine the next factor of the subsidy. To do this we mustcalculate the applicant’s adjusted monthly income. The adjusted monthly income is derivedfrom the applicant’s monthly income less applicable deductions. Applicable deductions aredependents, health care, etc... For example purposes we will be assuming the applicant iseligible for a three bedroom, and has an adjusted monthly income of $500, which is average foran applicant qualifying as an extremely low income family.First calculation is determining 30% of the adjusted monthly income $150.00/mo.We now use our payment standard chart for a three bedroom $1,012.00/mo. 8  
  10. 10. The subsidy is a simple subtraction calculation. Subtract the 30% of the adjusted monthlyincome for the payment standard. In this case the applicant would be eligible for $862.00/mo.Payment Standard = $1,012Adjusted Monthly Income = $150Subsidy = $1,012 - $150 = $862The next item is how the PHA will calculate if your property will fit this applicant’srequirements. The first item the PHA will look at when determining this is the monthly utilitycost. Each locality has a document that specifies what utility cost will be used in thiscalculation. This chart assigns cost based on many factors. What type of heat system – gas, oil,coal, or electric. Type of property – detached, attached, or semi-detached. Number of stories,interior unit if it is attached, and many more property characteristics.For this example, we will be using a property that is a semi-detached 3 bedroom unit withnatural gas heat, cooking, and hot water. Using the utility chart for Harrisburg, PA below wewill calculate the tenants monthly utility cost.Heating $107.00/monthCooking $13.00/m onthElectric $43.00/m onthWater Heat $34.00/m onthWater $40.00/m onthSewer $25.00/m onthTrash Collection $18.00/monthTotal $280.00/monthAt this point in the calculation we have determined all the factors we need to input to find if thisproperty will fit for this applicant. 9  
  11. 11. The property rent and the utilities are totaled to find the applicant’s total monthly housingexpense to make sure we do not exceed the 40% cap.For this example the owner of this property is attempting to rent his 3 bedroom 1 bath semi-detached single family home for $850/month with the tenant paying all utilities.Rental Payment $850.00/monthUtilities (which we previously calculated) $280.00/monthTotal Monthly Expense $1130.00/ monthSubtract the applicant’s subsidy $862.00/monthTenants Total Monthly Housing Expense $268.00/month30-40% of applicant’s adjusted income ($150 - $200/month)The projected tenant expense would exceed the 40% of the adjusted gross income, thusdisqualifying this payment arrangement. This property can easily qualify if the property ownerincludes water, sewer, and trash in the monthly rental payment of $850. The total for water,sewer, and trash using the utility cost chart is $83/month. This would reduce the $268/monthtotal monthly housing expense to $185/month now qualifying the property at these terms.As stated in the beginning of this chapter I was going to show you how to recognize not onlypremium, but guaranteed rental payments. These are two great attributes any buy and holdinvestor looking to build true wealth could ask for. 10  
  12. 12. The property owner of the example property will realize not only the premium rent I stated theywould, but in this example it will be 100% guaranteed government payment each and everymonth.The average 3 bedroom 1 bath semi-detached single family home in Harrisburg, PA averagemonthly rent is $750 including water, sewer, and trash. I have just showed you how this ownerwill be receiving $850/month for the exact same property. This is an additional $100/month theproperty owner would be leaving on the table not using the Section 8 Housing Choice Voucherprogram. If the property owner is using an accelerated principle pay-down program thatadditional $100/month alone can take a 30 year mortgage to 20 years.Better than the premium rent is that this rent payment will be a guaranteed rental payment. The$850/month this property owner is charging the applicant is less than the $862/month subsidythey are approved for, so the $850 each and every month will be delivered via United Statesgovernment check, or even better direct deposit. The additional $12/month, or the differencebetween the $850 the owner is charging and the $862 subsidy is mailed to the tenant eachmonth as a utility supplement.With the guaranteed rental payment benefit I just explained the headaches involved withchasing rental payments were eliminated. I have now showed you how to eliminate thisheadache, and get paid additional rent to do so.Although there are no HUD ceilings on the rents charged in the Section 8 Housing ChoiceVoucher Program, rents must still be reasonable and comparable to those charged for similarunassisted units. The PHA bases the determination of reasonableness and comparability on theunit inspection report and the rental market information. Hence the reason we want choiceproperties in choice areas ensuring we will receive the maximum rental payment. Being knownby the PHA as a property owner who enrolls choice properties in a choice areas that have beenrehabbed will guarantee when you turn other properties over to the PHA they will takepreference over other property owners with substandard properties. Your Future Is Becoming The Present... TEXT "PA Deals" to 41411 or go to www.padeals.com 11  
  13. 13. Chapter 4In this chapter we will discuss what properties are best suited for the Section 8 Housing ChoiceVoucher Program. Choosing the right property is our first step towards success with theprogram.Almost any property can be enrolled into the program and eligible once passing the HousingQuality Standard Inspection although my recommendation is not purchasing, and enrollingsubstandard properties located in neighborhoods described as “war zones”. What you need tobe purchasing and enrolling into the program are choice properties in choice locations. You asthe property owner will be receiving premium rent for even the best of neighborhoods, so whywith that being the case would you want to own property in less than marginal neighborhoods.What we as buy and hold investors are looking for is a valuable asset that we can cash in onyears down the road for a premium sale price. If you are using the premium rent you arereceiving, and applying it to an accelerated principal pay down program you will be furtherahead as the owner of a great property in great neighborhood when it comes time for you tocash in on your asset. Besides that fact Section 8 tenants will be more interested in leasing aproperty in a neighborhood they feel safe to live in. These tenants are providing us as theproperty owner great benefits, and we need to maximize by providing a great product. Over thelast 12 months we have seen Section 8 tenants, like any tenant steering clear or those types ofneighborhoods.Some other property characteristics that we need to look at when determining how to maximizethis strategy are the number of bedrooms. My recommendation when it comes to bedroomnumber is three to five bedrooms. The payment standard on a two bedroom is more than$200/month less than a three bedroom. This will weigh heavily in determining what you willbe able to charge in rent. The difference between a three bedroom and a five bedroom isminimal, but you can only use the payment standard associated with the number of bedroomsthe applicant is approved for by the PHA.The last item we want to look at to maximize our return is the type of heating source we have inthe property. As you saw above the monthly utility cost are put into the formula just the sameas your monthly rental payment. When you review the monthly utility cost sheet provided bythe PHA you will see that oil carries the highest cost. So, if you have natural gas or electric forthe heating you will recognize a higher possible rental rate. Oil on a three bedroom can put asmuch as $175/month, where natural gas is only $107/month. This difference of $68/month canmean you receiving $800/month and not $850/month or more. 12  
  14. 14. Chapter 5Now that we have learned how the PHA calculates subsidies and rental payments, what makesfor a great Section 8 investment property, we must now look at the process of locating aprospective tenant, and getting them into our property.When an applicant is found to be eligible by the Public Housing Agency (PHA) they are issueda Housing Choice Voucher, and the applicant begins their hunt for housing.So, how is it best for us to reach these applicants. Advertising through the open market withsignage on the property, newspaper classified, and online sites such as craigslist.com orbackpage.com is one way, although most of those do carry an unneeded cost. Myrecommendation here is to go right to the source of the voucher. If you choose, you can contactthe PHA, provide them with your name, contact information, and information about your rentalunit or units, and they will provide applicants this information immediately after they receivetheir voucher. If an applicant has interest in your unit they will contact you to schedule anappointment to view your property. If you use a property manager they may also submit yourproperty to the PHA. This is the best way to advertise your property to Section 8 tenants.With the demand for Section 8 housing units you will begin to receive calls within one to twoweeks of placing your property with the PHA.When you have found a prospective tenant you as the property owner should use the duediligence in screening the Section 8 tenant as you would with private tenants with one exceptionand that is reviewing the voucher.What you need to be looking for on the voucher is the expiration date, and the number ofbedrooms the applicant is approved for. Remember this will determine what payment standardthe PHA will use when determining if the rental rate will fit that applicants criteria. Eventhough a tenant may be approved for three bedrooms they can still rent a four or five bedroomunit from you, the PHA will just as stated calculate off the three bedroom.The next items you as the property owner want to look at when screening this tenant are thesame as a private tenant. They would include a personal interview with the prospective tenant.This is your opportunity to get a feel for what type of person the tenant may be. One rule I use,is if a prospective tenant does not look me in the eye I will think twice about renting to them.This may be a myth, but has held true for me. If the applicant provides you with previouslandlord information we need to contact them regarding damage to their premise, or complaintsfrom the neighbors, as well as their reference. Make sure that your tenant selection standards 13  
  15. 15. are based on objective, business-related considerations. Tenant selection must not be based onrace, color, age, religion, sex, familial status, disability, or any other discriminatory factors.Remember here the PHA does perform background checks for criminal charges, financialjudgments, and the applicant’s financial ability to afford the unit. The PHA does not screenfamilies for their suitability as renters. That is your job as the property owner.Once you have determined that you have found a tenant that you would like to offer yourproperty to you must prepare the documents and information the PHA will need to approve therental arrangements.You must submit a copy of the lease you will be using to the PHA along with a Request forTenancy Approval form (RTA). The RTA was provided to the applicant at the time theyreceived their voucher. The RTA will be reviewed by the PHA to determine if the unit is thecorrect size and the proposed rent is approvable, and tenants total monthly housing expenses donot exceed the 40% limit.The lease that you provide the PHA must include the following: ‐ Name of the owner ‐ Name of the tenant ‐ Unit rented (address, apartment number, and any other information needed to identify the unit) ‐ Term of lease o Initial term o Renewal terms ‐ Amount of monthly rent ‐ Utilities and appliances to be supplied by the property owner ‐ Utilities and appliances to be supplied by the tenantSome important additional items that must be included in the lease you are submitting to thePHA are: 14  
  16. 16. It must comply with state and local landlord tenant laws. The lease must also include information regarding the security deposit. With regard to the security deposit you may not be able to charge a full first month’s rent due to the tenant’s inability to pay this amount. This must be determined on a case by case basis. The lease initial term must be for a term no less than one year, and you must address the renewal terms and if there is to be a rent increase after that initial term. You may increase the monthly rental payment at the end of the initial term, but you must provide the tenant and the PHA in writing 60 days prior to this increase. The final item your lease must include is notice period for termination of tenancy.In the forms section at the end of this manual you will find a sample lease, a copy of a RTA,and a HUD Tenancy Addendum which is a document that must also be included whensubmitting. The lease must NOT be signed until the PHA has approved the tenancy. Thank you for registering for our FREE Wealth Creation Event! What you have not registered? What are you waiting for - TEXT "PA Deals" to 41411 or go to www.padeals.com, NOW!!! 15  
  17. 17. Chapter 6This chapter is dedicated to the largest myth associated with the Section 8 program, and that isthe unit inspection process. Once the Request for Tenancy Approval, the Lease, and the HUDTenancy Addendum are received by the PHA you and the tenant will be notified of the date andtime of the Housing Quality Standards Inspection.You as the property owner need to get out there and take advantage of this opportunity and meetthe inspector at the property and discuss different aspects of the inspection. This will help youlearn more about the Housing Quality Standards, and how you can best prepare for futureinspections. Do not be alarmed if the inspector finds items in noncompliance. This is to beexpected, just chalk it up to inspector job security.The inspection will be performed on the basis of HUD’s minimum Housing Quality Standards.These standards have been implemented by HUD nationwide to ensure that all assisted unitsmeet minimum health and safety standards. In the forms section you will find a copy of sampleinspection form, and you can go to www.hud.gov where you will find a booklet issued by HUDtitled “A Good Place to Live” which describes the general aspects of a unit that must beinspected for compliance with HQS.At the time of inspection the individual areas of inspection will receive one of three ratings. ‐ Pass – means the condition meets the minimum requirement ‐ Inconclusive – means that more information is needed for the inspector to make a determination. This finding will be noted if utilities are not on. You as the property owner need to make sure that all appliances you will be providing, and all utilities are on at the time of inspection. ‐ Fail – means that the condition does not meet the minimum requirement and must be brought up to the standard before the tenant can receive rental assistance on the unit. All fail items must be corrected and approved prior to the execution of the Housing Assistance Payments Contract. 16  
  18. 18. The inspection that is performed will be broken down into eight areas that must be reviewedand found to be in compliance. These areas are as follows: ‐ Living room ‐ Kitchen ‐ Bathroom ‐ Other rooms used for living and halls ‐ Secondary rooms (not used for living, such as laundry room) ‐ Building exterior ‐ Heating and Plumbing ‐ General Health and SafetyAs previously stated you can find in the forms section a sample inspection form the inspectorwill be using, and you may also reference the “A Good Place to Live” booklet which can befound at www.hud.gov , but I will discuss a few important areas of inspection concern.The first item of concern I will be addressing is paint. Due to the potential of lead based paint,the inspector will put a great emphasis on paint condition. The exterior of the property cannothave any peeling, chipping, or cracking paint. All defective surfaces must be properly preparedand repainted with two coats of non-leaded paint. With regard to the interior of the propertythere can be no peeling, chipping, or cracking paint anywhere in the interior of the unit. Thisincludes floors, walls, ceilings, steps, and all woodwork. This is one area you must be preparedfor and be in compliance. Some localities require a multiple step follow-up if you are found innon-compliance, but only a few. This is area of inspection you as the property owner with acouple minute walk around can ensure your property passing.The next are of importance we will discuss is the windows. All windows accessible from theoutside must have working locks. This includes windows to balconies and fire escapes. All 17  
  19. 19. rooms used for living must have windows (with the exception of the bathroom where properlyvented exhaust system will be adequate). All broken or cracked glass must be replaced orproperly repaired. If the windows are designed to be operable, they must open and close.Windows must have blinds or equivalent, storm screens, and be weather sealed.The last item to be addressed in this chapter is a list of the top things that regularly fail units atthe initial inspection: ‐ Nonfunctional Smoke Detectors ‐ Missing or Cracked Electrical Outlet Cover Plates ‐ No Railings Where Required ‐ Peeling Exterior and Interior Paint ‐ Tripping Hazards Caused By Carpets/Vinyl ‐ Inoperable Bathroom Fans or No Ventilation in the Bathroom ‐ Leaking Faucets or Plumbing ‐ No Temperature/Pressure Relief Valve on Water Heater ‐ No Drip Leg on the Water Heater ‐ No GFI Within 6 Feet of Water ‐ No Rear Egress Light Switch to Illuminate the Kitchen ‐ Window Condition: Missing sash cords, locks, shades or storm windows, cracked windowpanes ‐ No Inspection Sticker on the Electrical Box or Missing Sockets or Evidence of Tampering 18  
  20. 20. If the housing unit does not pass the initial inspection, you will be notified in writing of anyitem that failed and given a reasonable time to make repairs. As I said early in this chapter youas the property owner want to be at this inspection even if you employ a property manager, soyou understand what it is the inspector finds to be in non-compliance and they recommend youdo to remedy the issue. When the repairs are complete, the PHA will verify that they have beenmade. The PHA is not responsible for any rental payments until the unit passes and you havesigned a contract with the PHA, so do not move the tenant in until this process is complete. We cannot not force you to create wealth for you future we can only show you the way and assist you, remember the old adage; you can lead a horse to water but you cannot make him drink. If you are serious about your future you need to TEXT "PA Deals" to 41411 or go to www.padeals.com 19  
  21. 21. Chapter 7At this point of the Section 8 Housing Choice Voucher Program approval process you will becontacted by your local PHA once the lease you provided and the unit condition inspection areapproved.You as the property owner will sign a Housing Assistance Payment Contract with the PHA.This contract is between you and the PHA, and allows you to receive payment. In the formssection you find a sample Housing Assistance Payment Contract.Once the Housing Assistance Payment Contract is signed you will now want to contact thetenant, and schedule an appointment to sign the lease. At the time of lease signing you alsowant to have a pre-move-in property inspection report that you use with your unassisted tenants.Aside from this inspection report you will also have the inspection report created during theHQS inspection performed by the PHA inspector.The PHA will begin making payments to you after all of the above have been performed. ThePHA will mail or direct deposit your payment on or about the first of each month, and willcontinue to make payments as long as the following conditions are met: The unit continues to meet HQS. The tenant remains eligible for assistance and resides in the unit. The owner remains in compliance with the Housing Assistance Payment Contract.In the rare case the PHA fails to make timely payment, it may be obligated by state or local lawto pay a late fee.If the entire rental payment amount is not covered by the tenants subsidy they will beresponsible to make that difference in payment directly to you, the property owner. It is yourresponsibility to collect this portion of the rent not the PHA’s. 20  
  22. 22. Chapter 8In this final chapter we will discuss evictions and how they are to be handled when renting to aSection 8 Housing Choice Voucher tenant.During the term of the lease and the Housing Assistance Payment Contract that runs congruentwith the lease, the property owner must perform evictions as per your state’s landlord tenantlaw. The process by which you proceed is the same as an unassisted tenant. If your staterequires you must notices be posted, you post them, if they require you file a landlord tenantcomplaint with the District Justice, file it.The only step that is not associated with an unassisted tenant is that a copy of all notices,documents, and filings must be provided to the PHA in a timely manner. I recommend thesame day you perform them.As I stated earlier in this manual you may not terminate the lease for no good cause during theinitial lease term, due to the fact you are under contract with the PHA.The final item I wanted to discuss with you are the items you will need to perform annually ifyou opt to continue to stay enrolled in the Section 8 Housing Choice Voucher Program.Your unit must have an annual inspection. You will be notified by the PHA with the date andtime of the inspection. Once again, get out there and be involved in the inspection process.This is a great time to determine any damages caused by the tenant beyond normal wear andtear, and have them documented by yourself and the inspector. If items are found to be in non-compliance adequate time will be provided for you and the tenant to make the needed repairs.Your tenant annually will also be reviewed by the PHA to verify if there is a change in theirlevel of assistance.I hope this manual has opened your eyes to the great opportunities that exist for you as aproperty owner, and cleared up any misconceptions you may have had about the Section 8Housing Assistance Program.To purchase turnkey wholesale priced properties you must TEXT "PA Deals" to 41411 or go towww.padeals.com NOW! We have a "FREE" Wealth Creation Event coming soon and ifyou are serious about your future we will see you there! 21