Rental Property Investor 路 Scottsdale, AZ 路 Member since 2019 路 9 posts 路 2 votes
Hey BP 馃憢馃徏
I was curious if anyone has ever gone through the process and qualified to rent a property to a family member who is on section 8 housing? My mother is disabled and is currently on the program. We live in an area that has frequent rent increases and units that cater to her needs are few and far between. I own a home in the area and I am at a point where if we refinance, the rent would qualify against the section 8 guidelines for our city. I plan on investing in another home and moving from my current home within the next year, so I鈥檓 hoping to plan accordingly and understand what additional caveats I should keep in mind along the way! Thanks for any insights, and I hope everyone is staying safe and healthy!
Realtor 路 Twin Cities & Western WI 路 Member since 2020 路 42 posts 路 16 votes
6y
I'm following your post too. One of my relatives is disabled and qualifies for Section 8. I'd like to see if I can invest in a Single Family home in a good neighborhood in MN then have her rent from me. Has anyone gone through this process or similar?
Realtor 路 Twin Cities & Western WI 路 Member since 2020 路 42 posts 路 16 votes
6y
I'm following your post too. One of my relatives is disabled and qualifies for Section 8. I'd like to see if I can invest in a Single Family home in a good neighborhood in MN then have her rent from me. Has anyone gone through this process or similar?
Real Estate Broker 路 Minneapolis, MN 路 Member since 2011 路 5k+ posts 路 6k+ votes
6y
@Elisa Eesley as long as you have the property in a proper business entity and give no preferential treatment and follow the rules your golden. The biggest one that will burn you bad is giving any kind of financial kickback, can get you banned from sec8 program for life and or face federal fraud charges. But as I said, keep things above board and your good.
Real Estate Broker 路 Minneapolis, MN 路 Member since 2011 路 5k+ posts 路 6k+ votes
6y
A simple rule of thumb is are you trying to hide, sneak or manipulate something. If your doing things legit, then it should be legit.
For example, a person has there parent sign the property over to them which they will then get sec8 to pay on, that is not kosher. Now if you buy a property and rent it to the mother, as a normalized business to any other tenant, you should be fine. The difference is the intent.
And for any who think "oh, I will find a way around it" you might but that won't matter because when your caught they will go back retroactively and the longer you pull off the scam the bigger the hit will be. It's just not worth it, far to easy to do things legit and never have to look over the shoulder.
Be sure to check local regulations but my experience has been true to this in ever location.
Realtor 路 Twin Cities & Western WI 路 Member since 2020 路 42 posts 路 16 votes
6y
I'm following your post too. One of my relatives is disabled and qualifies for Section 8. I'd like to see if I can invest in a Single Family home in a good neighborhood in MN then have her rent from me. Has anyone gone through this process or similar?
Realtor 路 Twin Cities & Western WI 路 Member since 2020 路 42 posts 路 16 votes
6y
I want to do everything legally and ethically. She鈥檚 presently in a section 8 townhouse community that is questionable on safety. I basically want to help her with a better quality of living- safer area, yard she can play with her grandchildren in , more square footage & neighbors that have pride of ownership of their home.
Then the best thing to do is go to gosection8.com after she gives notice at her current place and help her find something owned by an unrelated party. In case you don鈥檛 know, she can use her voucher to purchase a home too.
The relatives that are not allowed to be Landlord of section 8 tenant deliberately exclude 'in-laws' and 'step-relatives'. If you plan to rent to your mother, perhaps your spouse can buy a property and you sign a quit-claim for the property so it is a separate property of your spouse . This is an excerpt from https://www.govinfo.gov/conten...
27436 Federal Register / Vol. 63, No. 95 / Monday, May 18, 1998 /Rules and Regulations
Comments Concerning Scope of Restriction and Exceptions:
COMMENT:
Some commenters recommended that the rule also exclude leasing to other relatives, such as, aunts, uncles and cousins. Other commenters believed that the restriction should apply to in-laws and step parents. They thought it might be easy to get around the proposed restriction if the restriction were not expanded.
HUD RESPONSE:
The Department is not inclined, at this time, to expand the scope of relatives to which the restriction applies. This is both to keep the restriction easier to apply and because the Department believes that the class of relatives covered is sufficient to cover the circumstances in which the program is most likely to be abused.