Posted by Sam on November 08, 2004 at 14:36:39:
Thanks, Carl. It is really helpful. --Sam
Section 8 utilities allowances - Posted by Sam
Posted by Sam on November 08, 2004 at 08:58:38:
I have a section 8 question. This is my first time to have a section 8 applicant for renting a house from me. I intended to only pay water by myself and tenant pays all other utilities. I heard section 8 office has utilities allowance and wonder how that works. The tenant?s voucher is $1450/month. Does this means section 8 office will pay $1450/mo to me, and pay whatever utilities to the tenant? If so, section 8 office will totally pays $1450 plus the utilities cost for tenant each month. Is that right? Thank you.
Sam
Re: Section 8 utilities allowances - Posted by Brent_IL
Posted by Brent_IL on November 08, 2004 at 17:58:15:
O.K., I’m not a Section 8 expert, but what Carl describes is fairly standard.
HUD starts with a maximum local rent based on the number of bedrooms. There’s a specified allowance for each type of housing-related living expense. There is a numerical figure for tenant paid heat, electricity, water, etc.
The total of the allowances that apply to your leasing situation is subtracted from the maximum allowable rent in the district. If the rent you are asking is equal to, or less than the HUD figure, they?ll approve the lease.
If you search the archives for ?Hal Roark? and ?Section 8? you will find posts where Hal has discussed the Section 8 process from start to finish. There are other folks with equal experience who also espouse Section 8, but I?ve always thought of Mr. Roark as the ?go-to? guy.
A Google?-search will provide the URL for Hal?s own website.
Re: Section 8 utilities allowances - Posted by PJ
Posted by PJ on November 08, 2004 at 09:46:07:
I have a house on Sec.8 and beleive that the voucher is the TOTAL amount the tenant will get.
Meaning, if you charge her $1200/mo. - she will have $250/mo left over for utilities
Re: Section 8 utilities allowances - Posted by Sam
Posted by Sam on November 08, 2004 at 10:13:51:
Thanks, PJ. In another word, the rent I charge is equal to the amount on the voucher, then they have to pay the utilities out of their own pocket. It looks I need to find out if they can afford that (about $150/month). Thanks again. Sam
Re: Section 8 utilities allowances - Posted by Jay(OR)
Posted by Jay(OR) on November 08, 2004 at 11:40:22:
The voucher may or may not be equal to the rent you charge. For example, if you charge $1450, but the voucher only alots $1400 for the tenant, they would pay the extra $50. My Section 8 tenants have to pay all their utilities on their own. I have no idea if they pay them or Section 8 but I believe they pay the utilities themselves.
Re: Section 8 utilities allowances - Posted by Sam
Posted by Sam on November 08, 2004 at 12:48:28:
Hi Jay,
It seems that you can pay utilities themself. I have another question. If the voucher is not equal to the rent that I charge, how much can I put into the lease? In my case, the voucher is $1450, the tenant is will to pay $50 more to make it $1500 a month. Can I write $1500 on the lease, or only $1450 on the lease and ask tenant to pay the extra $50 separately? Thanks. -Sam
Watch out! - Posted by Carl CA
Posted by Carl CA on November 08, 2004 at 13:43:55:
Sam,
What you’re proposing to do is called a “side agreement”. It’s non-
enforceable. Should the tenant decide at any point to stop paying the
additional $50 - there is absolutely nothing you can do about it. Can’t
evict, can’t sue for it, can’t do anything.
The way section 8 works in my market is; the total voucher amount is
for the residence, plus major appliances, plus all utilities. The housing
authority deducts various dollar amounts from the total voucher value
for everything that the tenant is expected to pay for. So a voucher for
$1450 may be worth an $1100 payment to you if you expect the
tenant to pay all utilities and supply major appliances (stove, fridge).
You can call your local HA office to get the specific values of the
deductions. All that said, there is enough wiggle room for the HA to
approve some additional rent to be paid to you if you can substantiate
a few “comparable” unassisted rental properties in your market that are
charging more rent than is allowed by their formula.
Good luck,
Carl