Section 8 and kids under 6YO - Is it heavily regulated?

Question

Hello BP members,

I recently bought a 2 unit SMF in a low income neighborhood (Buffalo NY).

I had to evict the upper unit and renovate, now starting to look for a tenant.

I priced it a bit high for the area and i have only one single mother with two kids (18 month old and a 9 years old) interested. She has a Sec 8 voucher and overall left very good impression. I did not run a background, credit, landlord, and employment check as of yet.

A friend of mine who is also a real estate investor told me that having a kid under 6 year old will bring only troubles with sec 8 as they regulate the building codes way more strictly and can ask me to repair "unnecessary" things. Did anyone experienced it and think the same way? Does it worth the extra $50 a month i can potentially make renting to Sec 8?

Best regards,

Jo

Denice S. · Answer

Joe in the city of buffalo you cannot even consider the age of the applicant’s children or their source of income in the tenant screening process.  Taking into consideration either one of those factors is illegal.

The city holds regularly  scheduled training for new Buffalo landlords.  Definitely worth the investment and you’ll avoid lawsuits and fines.  http://www.homeny.org/landlordtraining/

Jennifer T. · Answer

I've only had two units with S8 tenants and that's been here in NOLA.  I've heard strictness of inspections can vary by both the inspector and whatever local S8 agency manages the programs.

I've found the inspections to be pretty strict and, sometimes, very stupid.  I have many times had them require repairs that had nothing to do with habitability or safety.  But I've never noticed that they treat units/families differently.

Despite all that, overall, I like having S8 tenants when S8 pays the vast majority/all of the rent.  Not only that but, if it's a low income area, you will probably have a much larger pool of tenants if you accept S8.

Martin Grizzanti · Answer

I have had great success with sec 8--they are fair and simple to work with.  I would give it a try.

David S. · Answer

Having young children has nothing to do with Section 8 inspections.  They have the same inspection process for every unit regardless of who lives there.  They go by a "habitability standard," which as @Jennifer T. pointed out, some of it seems like BS. Like screens on windows.  We hardly ever open windows down here in the deep South because of the heat, but if you have a ripped window screen, you will fail the inspection and the property will be disqualified i.e. you don't get paid anymore from Section 8 if you don't fix before the re-inspection.

Also, I would strongly suggest you leave out the young kids in the equation.  That family structure is a protected class under familial status.  I would not even discuss it.  I am sure it doesn't matter to you, but the way your friend runs his business is definitely a red flag.  Keep in mind, HUD employs testers who will shop your apartment to see if you discriminate against protected classes.  Everything you say or do will determine if you get prosecuted.  There are even professional tenants who try to make money by bringing up discrimination lawsuits so watch out for tenants trying to bait you into a violation.

Denice S. · Answer

Jo, you say you haven’t performed a background check, credit check or employment check like it’s a good thing.

The fact that you “haven’t”  performed a background check, credit check or employment check (all LEGAL reasons to deny an applicant) is exactly why you might get accused of discriminatory screening practices.

You have NOT put her through your screening process because you’re:

1-wondering about sec.8 inspections being worth the extra rent

2- concerned how the age of her child might impact the housing inspection.

Both illegal reasons to not move forward with your screening here in Buffalo.

...Section8 inspectors have 1 checklist and it’s on their website. They use that 1 checklist at every inspection. Go to Belmont’s website and review the list.  It’s exactly what they’ll bring.

John Lamb · Answer

Jo, I myself just inherited a Section 8 tenant with the property I purchased. This is my first Section 8 tenant, but from my communication with the housing authority in my area (Phoenix, AZ), the annual inspection is just about the property and not so much of who is living there. I haven't had the housing authority do an inspection yet, so I can't verify if this is correct or not. One benefit I see of having a tenant (Section 8) with younger kids, is that the mother will probably want a stable living situation and will probably be on the voucher program for a while. So that means consistent rent and a tenant who will want to stay. That's the way I would look at the situation.

Jo W. · Answer

@Denice S.

Thank you for your comment i appreciate it.

Let me change the question , Will a kid under 6 would cause section 8 to regulate building codes more strictly or it's the same as any other sec 8 regulation?

I did not run a background, credit, landlord, and employment check as of yet so the age of the kid is not a factor. I just want to know for general knowledge so in the future i might change my investment strategy and invest in a higher class neighborhood :)

Section 8 and kids under 6YO - Is it heavily regulated?

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