Govmit shutdown affecting your section 8 payments ???

130 Replies

Never know what to believe. News this morning was talking about section 8 payments no being made and section 8 appealing to landlords not to evict .. I don't think many would evict over one missed payment given the situation.  section 8 tenants rarely have savings to make up rent that govmit fails to make..

Anyone experiencing this ?

@Jay Hinrichs all my Jan 1 payments came in... Hopefully this gets resolved  we won't have to worry about February 1 payments. 

Originally posted by @Jason Hirko :

@Jay Hinrichs all my Jan 1 payments came in... Hopefully this gets resolved  we won't have to worry about February 1 payments. 

well that's probably the media and their fake news LOL 

@Jason Hirko   boy if they do miss a payment that is going to be a sh####t storm .. for the PM's and tenants and landlords.. cant see it being more than one month though.

I have government employees as tenants. 1 of them I am filing eviction, but shes been behind since before the shutdown. (Shes been consistently behinf for 8 years)

One issue Ive seen though is one of my closings is delayed because the lender can not do an employment verification on a federal employee. 

Originally posted by @Russell Brazil :

I have government employees as tenants. 1 of them I am filing eviction, but shes been behind since before the shutdown. (Shes been consistently behinf for 8 years)

One issue Ive seen though is one of my closings is delayed because the lender can not do an employment verification on a federal employee. 

I didn't think about that- lenders not being able to do a VOE on fed employees.  Russell have you also seen delays because of Freddie and Fannie being closed?   Could be a mess!

@Jay Hinrichs - Section 8 was normal for me this month as well.  Breakdown e-mail on the 27th, EFT on the 2nd or 3rd. If the shutdown continues I'll expect mayhem,  especially for small mom and pops with just a house or 2!

Originally posted by @Russell Brazil :

I have government employees as tenants. 1 of them I am filing eviction, but shes been behind since before the shutdown. (Shes been consistently behinf for 8 years)

One issue Ive seen though is one of my closings is delayed because the lender can not do an employment verification on a federal employee. 

What are you doing for the other government employees who weren't behind? 

I received my section 8 direct deposits for January. Even if they get delayed next month I know they will make up the payments so no big deal. 

I just replaced carpet in one of my rentals and I got it installed the day after they measured. One of their installers is a federal employee by day and does flooring on the side. Since he out of work, he has been taking extra jobs to fill the time. Most likely he will also get back pay for his time time off work, so he told me it is a good deal for him. I was surprised he wasn't mad about it.

This is probably a good lesson for everyone, that you should always have multiple income streams. Call it a side job, side business, side hustle, whatever. No job is safe, which is why I got into rental properties.

@Joe Splitrock side bar: who measured/installed your flooring? Home Depot just told me this morning that it would take them 3-4 weeks after measuring to come out and install, so I'm shopping around. 

Originally posted by @Derek Luttrell :

@Joe Splitrock side bar: who measured/installed your flooring? Home Depot just told me this morning that it would take them 3-4 weeks after measuring to come out and install, so I'm shopping around. 

It is a local only company. I would call around local and see what others can do. If the property is vacant, usually you can find installers who will do it at night or on the weekend. Especially this time of year, construction has slowed, so people are looking for work. 

My S8 EFT was delayed by two days because of the gov't. shutdown.  It was right there on the main page of HANO's (Housing Authority of New Orleans) website that deposits would be two days late and paid on Jan. 4th because of the government shutdown.

Originally posted by @Jennifer T. :

My S8 EFT was delayed by two days because of the gov't. shutdown.  It was right there on the main page of HANO's (Housing Authority of New Orleans) website that deposits would be two days late and paid on Jan. 4th because of the government shutdown.

well two days late is not the end of the world.. media is trying to scare / with this fake news  it seems like.. not sure if the section 8 tenants read these news reports.. other wise you can just see the picketing coming.. and or full blown activism in the streets..  

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Got mine just fine on the first . When the government is back up and running soon they will get back pay which is a lot more than I ever got when I lost my manufacturing job years ago to foreign competition! No politician or celebrity was too worried that I couldn’t make my house payment or buy my family groceries

Shut down will not be a issue for the majority of S8 landlords until they can not make their mortgage payments. This will likely only effect a small percentage of landlord/investors that specialise in S8. Highly unlikely shut down will last long enough to have significant impact.

@Jay Hinrichs so far I have not experienced this none payment from section 8. But something tells me it may be coming, however I would definitely work to be in communication with the tenants case worker to find out if there will be any kind of delay. Also I wouldn't evict for one late payment but would start letting the tenant know of the default so that they can begin making preparations to find housing if housing is unable to pay for more than one month. 

My rent payments were deposited as usual.
Originally posted by @John Pierce :
My rent payments were deposited as usual.

 then I wonder why the media is trying to scare everyone to death does not seem to be accurate that millions of section 8 tenants are facing eviction.. 

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@Jay Hinrichs Understand that while a lot of us still think of "media" as well-researched, respectable people in business suits adhering to a journalistic code of honor, the reality is that most everything you read from every source (even the biggest institutions) these days is somebody just writing what they feel and getting it up on the website. 

Originally posted by @Jay Hinrichs :
Originally posted by @John Pierce:
My rent payments were deposited as usual.

 then I wonder why the media is trying to scare everyone to death does not seem to be accurate that millions of section 8 tenants are facing eviction.. 

A quick phone call to a buddy who works at HUD just gave me some clarification. HUD has a number of contracts with landlords. Some of those contracts have expired. As we continue to move forward in time, more will begin to expire. With a contract not in place, those landlords with expired HUD contracts will not be paid because they can not renegotiate new contracts with HUD. He also said at some point HUD will conceivably run through all of their current funding, and when that happens all payments could conceivably halt regardless of whether a contract is in place.

Originally posted by @Russell Brazil :
Originally posted by @Jay Hinrichs:
Originally posted by @John Pierce:
My rent payments were deposited as usual.

 then I wonder why the media is trying to scare everyone to death does not seem to be accurate that millions of section 8 tenants are facing eviction.. 

A quick phone call to a buddy who works at HUD just gave me some clarification. HUD has a number of contracts with landlords. Some of those contracts have expired. As we continue to move forward in time, more will begin to expire. With a contract not in place, those landlords with expired HUD contracts will not be paid because they can not renegotiate new contracts with HUD. He also said at some point HUD will conceivably run through all of their current funding, and when that happens all payments could conceivably halt regardless of whether a contract is in place.

Ya I bet we start seeing some people complaining they cant fill vacancies right now and that's why.. can get section 8 approved at this minute and they bought rentals that rely on this..  well it will get worked out soon enough.  so for those that have vacant units they will stay that way.. for those that their one year contract expired I suspect they may or may not get paid for the lapse.. but the tenant will still be living there. be kind of crazy to evict them..  

@Russell Brazil sorry if this is a silly question but what does HUD instruct tenants to do in this matter? Even landlords?

Loving this thread, never thought about this towards housing

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