I posted this in a different post yesterday when a local PM advised asking tenants to pay the Section 8 rent portion and if they did not pay to replace them with non-Section 8 tenants. Unfortunately, the Media news is not providing accurate information.
asking the tenant to pay the section 8 responsibility is a violation of the HAP contract See the Tenancy Addendum known as Part C of the HAP contract. Section 5 d. strictly prohibits this. It also has a provision in the same section that a tenant cannot be terminated for nonpayment by the Housing Authority.
I am an Investor since 1980 and have been utilizing the IHA Administered Section 8 program since 1985. This is the very 1st-time IHA has missed a payment schedule. Our PM company has been the only PM that has specialized in providing housing for Single Family Homes and Doubles since 2011. I fly to Washington DC once per year to cut through the BS and meet directly with the HUD Section 8 representative. I have also spoken on Landlord issues with the Section 8 program by invitation from HUD (not IHA). There is a lot of Mis Information out there. I would urge anyone who has Indianapolis Section 8 tenants to read all parts of the HAP contract and its addendums as well as read the most recent Administrative Plan to fully understand how the process works. The current situation is alarming but the FBI is working on assisting IHA in resolving the situation. This is a short-term issue and will be resolved.