Government Shut Down
5 Replies
Brittany King
from El Paso , Texas
posted about 3 years ago
Hello all. Thank you for taking the time to read my post. When the government shuts down will landlords receive payment for their section 8 tenants?
Aaron K.
Specialist from Riverside, CA
replied about 3 years ago
Looking at news articles from the last time this happened it looks like it depends on how responsible your state is. Most states will have a reserve that they would continue paying from but once that dries up you could have issues, see this news article from 2013 about Massachusetts.
http://www.masslive.com/politics/index.ssf/2013/10/federal_funding_for_low-income.html
Brandon Ingegneri
Rental Property Investor from Providence, RI
replied about 3 years ago
I have to be honest. I have never thought of this. Excellent question. Whenever it has happened before, I have never seen an interruption in payment from the local Housing Authorities. I would imagine that it was because there were reserves, or because the shut down did not span a long enough time.
A question to piggy back the original one... If there is an interruption in government, and no payment is needed, will they eventually pay you the back rent? I would imagine that they would because of the contract that they entered with you, but Im not 100%, so I'd rather ask and hear what everyone's thoughts are.
Brandon Ingegneri
Rental Property Investor from Providence, RI
replied about 3 years ago
@Brittany King excellent question!
Thomas S.
replied about 3 years ago
If rent does stop coming make sure you issue pay or quit notices and follow through with eviction papers to protect yourself.
The government should not be treated any different from other tennats.
Account Closed
replied about 3 years agoThis reminds me... if you are planning on having a closing with a government loan of any kind within a week of the next deadline I would try to speed it up or come up with plan B.
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