Business & Finance Renting & Real Estate

Some Ideas for Homeowner Associations Dealing With Section 8 Housing Problems

The Section 8 Housing Program started off as a noble idea as the Housing Act of 1937.
The act was needed to help people find places to live during the Great Depression.
The Act was modified and amended over time.
The Housing Community and Development Act of 1974 created what is today known as the Section 8 Housing Assistance Program.
The Section 8 Housing Program is administered in several different ways depending on the state and county in which you live.
The ideas in this article are based on my experiences in the South Florida area while dealing with Section 8 problems faced by my Homeowners Association (HOA) after Hurricane Andrew and the recent housing collapse.
I recommend that all HOAs consult with their attorney before implementing any of these ideas to ensure that they comply with local laws and your governing documents.
The final caveat is that this is in no way to be considered legal advise.
I will begin with saying that not everyone on section 8 is a criminal or an undesirable element.
However my personal experience with landlords and tenants who are participants in the Section 8 program has been 99.
9% negative.
I have noticed that while many tenants have not been a problem in the community, their supporting cast (boyfriends, children, grandchildren, friends and their associates) bring the negative element into the community.
The Section 8 landlords that I have had the pleasure of dealing with have little or no sense of community and are usually only worried about the bottom line, no matter how many problems their tenants cause.
It is far better (and easier) not allow Section 8 assisted renters into your community than to try to get rid of a tenant once they have moved in.
The best guard against Section 8 rental properties taking over your community is adherence to your governing documents.
Association Board Members should read and understand the governing documents of their community and know the powers that they have within those documents.
I would recommend that your documents state that all individuals living or owning in your community must be screened and required to meet with the an Association Board Member or the property manager to have the rules of the community explained and signed for.
The screening should include a background check along with a criminal history and credit check.
Documents such as sales contracts and leases should be copied and kept on file for inspection and compliance with laws and community rules.
The screening process will have many with criminal records (or conducting criminal activity) to look else where for housing.
The presentation of a lease allows the HOA to know who is allowed to live in the community and how many people are in the house.
When dealing with a Section 8 lease, a copy of the landlord's agreement with the Section 8 Housing Authority should also be obtained prior to approval.
These documents will help you to exposed fraud and take much of the profitability of Section 8 rental properties out of the game, thus driving the landlord toward non-assisted renters.
In most cases with Section 8 assistance, the amount paid by the renter is based on a percentage of their income.
Section 8 makes up the difference and pays it to the landlord.
When comparing both the tenants lease and the landlords agreement with Section 8 one may find grand discrepancies that should be reported to the Housing Authority as fraud.
Section 8 assistance should also pay no more than non-assisted renters.
Reporting bloated rent payments to the Housing Authority and the media sends out a signal to your Housing Authority and landlords that your community is not one to exploited.
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