PROSPECTIVE LANDLORDS

LANDLORDS GUIDE TO THE SECTION 8 HOUSING VOUCHER PROGRAM

The U.S. Department of Housing and Urban Development (HUD) federally funds the Section 8 Housing Choice Voucher Program. The Aurora Housing Authority, (AHA) an autonomous non-profit organization, contracts with HUD to administer housing assistance programs in Aurora.


The programs are administered in accordance with Federal Regulations. Income-eligible families participating in the Housing Choice Voucher Program receive a rent subsidy to lease a privately owned housing unit of their choice, which must be safe, decent and affordable. AHA pays the rent subsidy every month directly to the landlord.


The Program is a partnership between the landlord, the tenant and AHA. The landlord has an obligation to enforce the lease; AHA has an obligation to enforce the terms of program participation; and the tenant has an obligation to abide by both the lease and the terms of program participation.


Advertising:

Landlords can advertise their available units on www.ColoradoHousingSearch.com; it is a free housing locator service jointly sponsored by Colorado Housing and Finance Authority (CHFA) and the Colorado Division of Housing with collaboration from multiple agencies as a public service to the residents of Colorado. Property owners and managers, including private landlords, can use this service to manage their property listings FREE of charge.


Screening and Selecting Tenant:

Families determined eligible for participation in the Housing Choice Voucher Program are not screened for suitability as tenants. It is the landlord’s responsibility to screen and select a tenant for the unit. AHA strongly encourages prospective landlords to thoroughly screen all tenants.


Steps to becoming a landlord:

To participate in the program, a landlord must enter into a Contract with AHA and a 12 month minimum lease with the participant (tenant). The rental unit must meet Federal Housing Quality Standards (HQS) and the Landlord must agree to maintain the property to continue to meet HQS during the term of the contract. In return, the Contract guarantees prompt payment of the Housing Authority’s monthly portion of the rent.


  1. The participant searches for a unit and contacts the Landlord regarding an advertised unit 
  2. The landlord screens the participant for suitability as a tenant.
  3. If the landlord and tenant agree to proceed they will complete the Request for Tenancy Approval packet to notify the AHA. A lease that is filled out and unsigned must be submitted with the packet.
  4. AHA reviews the information to determine if the unit is eligible for the tenant based on their income and rent reasonableness.
  5. AHA schedules an inspection date and time; it is requested that all parties be at the inspection. 
  6. When the unit passes inspection:
  7. The Lease and Contract are executed.
  8. The Participant is authorized move into the unit with rent subsidy when the following three items are complete:
  9. The unit passes HQS inspection.
  10. The lease is signed and dated by the Participant and Landlord.
  11. The HAP Contract is signed and dated by the Landlord and Housing Authority.
  12. AHA will direct deposit the Housing Assistance Payment (HAP) to the Landlord at the next scheduled check release date, after contract execution. 


Landlord Responsibilities:

The Landlord manages the property, including:

  • Tenant screening and selection.
  • Setting the security deposit in accordance with the local market.
  • Collecting the security deposit and rent.
  • Executing the customary lease agreement.
  • Periodic property inspection and property maintenance.
  • Lease termination.


Benefits of working with the HCV program:

Shifts in the economy usually impact low-income families first and hardest. A layoff or reduction in hours may result in unpaid rent. The HCV program is income-based; if the tenant’s income decreases their rental portion decreases and the Housing Authority’s rental contribution increases. 


Landlords working with the HCV program:

  • Screen applicants and choose their own tenant–just as they do for market-rate units
  • Use their own lease–and go month-to-month, if they wish, after the initial lease term
  • Charge the same late fees and security deposits that they charge anyone else
  • Enforce the same tenant rules
  • If there’s a problem, terminate the lease at any point with good cause – or terminate for whatever reason they choose once the initial lease period is up.


Inspections:

The AHA inspects the unit at the initial time of lease-up and every 24 months thereafter. Inspectors will identify possible health or safety hazards like, an inoperable smoke alarm, or an outlet without a switch plate – what the U.S. Department of Housing and Urban Development (HUD) calls Housing Quality Standards. 


If everything checks out, the unit passes. If not, we will come back to re-inspect.


Our biennial inspection can help you preserve your investment by identifying problems before they become costlier to correct or lead to disputes with the tenant. Our discovery of energy wasters like loose seals in the refrigerator can lower your monthly expense when corrected.


10 most commonly HQS failed items:

1. The smoke detector is missing or is not functioning.

2. The electrical outlet cover plates are missing or cracked.

3. A hand railing is not stable or missing.

4. There is peeling paint inside or out.

5. Windowpanes are cracked or broken.

6. Stove burners or range fans are not in good working condition.

7. The burner control knobs are missing.

8. There is no ventilation in the bathroom or the existing fan is inoperable.

9. There are plumbing leaks.

10. There is no temperature/pressure relief valve or drainage pipe on the water heater.


Rent Increases:

After the initial lease term, you can get a rent increase if the new rent is comparable to similar units in your area and within AHA’s payment standards. 
Utility allowances and payment standard form 


Additional Resources for Landlords can be found at:

https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/landlord


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