Landlords participating in government subsidized housing programs are required to comply with complicated rules, regulations and guidelines. We assist our clients in complying with the requirements of these programs including the HUD Section 8 Housing Choice Voucher Program, HUD Project-Based Section 8 Program, Low Income Housing Tax Credit (LIHTC) Program, and local affordable housing programs.
Section 8 Housing
The federal government funds the construction and rehabilitation of rental housing for low-income and elderly tenants and also subsidizes rents for the low-income and elderly. One of the key federal programs is contained in Section 8 of the United States Housing Act of 1937. Although Section 8 encompasses several programs, the Housing Choice Voucher program is the largest and is referred to as “Section 8.”
Good Cause Requirement to Terminate Tenancy
During the lease term, the landlord may not terminate a tenancy subsidized under the Section 8 Housing Choice Voucher Program except for serious or repeated violations of the lease terms and conditions;,violation of federal, state or local law that imposes tenant obligations in connection with the occupancy or use of the premises, or other good cause. During the initial lease term or during any extension term, other good cause may include disturbance of neighbors, destruction of property, or living or housekeeping habits that cause damage to the unit or premises. After the initial lease term, such good cause may include the tenant’s failure to accept the owner’s offer of a new lease or revision, the owner’s desire to use the unit for personal or family use or for a purpose other than use as a residential rental unit, or a business or economic reason for termination of the tenancy (such as sale of the property, renovation of the unit, the owner’s desire to rent the unit for a higher rent).
Low-Income Housing Tax Credit Program
The Low-Income Housing Tax Credit (LIHTC) is the federal government’s primary program for encouraging the investment of private equity in the development of affordable rental housing for low-income households. Like Section 8 tenancies, the LIHTC program requires good cause to terminate the tenancy.