I’ve purchased a property with two Section 8 tenants. They are currently on the 3rd month under my ownership, and have paid their portion of the rent each time. What I haven’t seen is the government portion. The management company I’m using is getting them transferred. My question is whether the government will pay all 3 months once the transfer is finalized?
You should call the Housing Authority yourself and see what the hold up is. You should get a payment within 30 days if all the paperwork is completed. The steps are...
1) Before your closing, hopefully someone told the HA that the sale was pending which would have placed payments to the old owner on abatement. If that didn’t happen, payments are probably going to them.
2) Immediately after closing your PM submits the paperwork identifying them as the new payee. Included with this would be the tax record (actually the HUD for a sale b/c the tax record won't be updated yet), the property management agreement, and the signed lease.
2) Once the lease is received, the HA will create the HAP agreement, which still have to be signed in ink, so it is mailed.
3) Once the signed HAP agreement is returned to the HA, the payments are triggered. Most HAs pay on the 15th and the 1st.
If you have not received payment, one or more of these steps was missed. If defiantly is not normal for it to take 3 months for you to get payment.
3 months is a long time you need to call the housing authority, email them as well and explain the situation it could be some paperwork not submitted. Have your warranty deed and affidavit as well or some proof of ownership.
The good news is usually section 8 backdates all pay, so you will receive those past months portion of the rent, just like I said make sure you have your proof of ownership and the date of closely readily available.