Govt Shutdown Delaying DCA/HCV Payments

Lender · Southwest Georgia · Member since 2017 · 312 posts · 278 votes

For a long time, I have been a big fan of HCV/DCA, aka Section 8, payments but this past year has gotten me a little more cautious about the programs. We have been investing for over 7 years and have had some voucher tenants throughout that time. This past year with the new administration and state level changes in Georgia have made the program a bigger headache than it has ever been.

Now, we are notified that due to the shutdown payments will be delayed and some partial payments will be sent, but no one can say when or for what amount. So, we are just sitting here waiting. Thankfully we are prepared for delays in rent payment, but I know many are not. So depending on how long this last, wouldn't be surprised to see more landlords say no to vouchers in the future.

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Jonathan Taylor SmithBusiness Member

Rental Property Investor · Durham / Raleigh (Triangle), NC · Member since 2015 · 840 posts · 801 votes

10mo

@J. Mitchell Bernier - Yea, and this is even more true when you consider that a common provision of the HAP contract is that you cannot evict over a lack or shortfall in payment from the PHA. Its going to be a major disruption for both landlords and voucher holders. But I actually wonder if these programs go away, after the initial pain, the long term result is likely to be positive - a great increase in the number of 2-parent households. As these programs served to discouraged the male being in the home - replaced by "Daddy Government".

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Jonathan Taylor SmithBusiness Member
Rental Property Investor · Durham / Raleigh (Triangle), NC · Member since 2015 · 840 posts · 801 votes
10mo
@J. Mitchell Bernier - Yea, and this is even more true when you consider that a common provision of the HAP contract is that you cannot evict over a lack or shortfall in payment from the PHA. Its going to be a major disruption for both landlords and voucher holders. But I actually wonder if these programs go away, after the initial pain, the long term result is likely to be positive - a great increase in the number of 2-parent households. As these programs served to discouraged the male being in the home - replaced by "Daddy Government".
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- J. Mitchell Bernier
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  Lender · Southwest Georgia · Member since 2017 · 312 posts · 278 votes
  10mo
  Quote from @Jonathan Taylor Smith:
  
  @J. Mitchell Bernier - Yea, and this is even more true when you consider that a common provision of the HAP contract is that you cannot evict over a lack or shortfall in payment from the PHA. Its going to be a major disruption for both landlords and voucher holders. But I actually wonder if these programs go away, after the initial pain, the long term result is likely to be positive - a great increase in the number of 2-parent households. As these programs served to discouraged the male being in the home - replaced by "Daddy Government".
  
  If this short-term pain I experience brings about those long-term changes in our overall culture, I am all for the suffering!!!
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G. Brian DavisPro Member
Investor · Hatboro, PA · Member since 2016 · 2k+ posts · 852 votes
10mo
You’re highlighting a very real challenge that many investors are facing. Section 8/HCV programs can provide stable, long-term tenants and government-backed rent, but as you’ve experienced, policy and administrative changes can create unpredictability.

It’s a reminder that while government-backed programs reduce tenant risk, they don’t eliminate operational or policy risk. This might also influence some investors to diversify tenant types or consider mixed portfolios.
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- J. Mitchell Bernier
  OP
  Lender · Southwest Georgia · Member since 2017 · 312 posts · 278 votes
  10mo
  Quote from @G. Brian Davis:
  
  You’re highlighting a very real challenge that many investors are facing. Section 8/HCV programs can provide stable, long-term tenants and government-backed rent, but as you’ve experienced, policy and administrative changes can create unpredictability.
  
  It’s a reminder that while government-backed programs reduce tenant risk, they don’t eliminate operational or policy risk. This might also influence some investors to diversify tenant types or consider mixed portfolios.
  
  Exactly. 20% of our portfolio are voucher tenants and we have that diversification for a reason.
  1 Reply
Adah N.
Investor · Atlanta, GA · Member since 2020 · 294 posts · 142 votes
10mo
We only got 33% of the amount due this November. Anyone else got partial payments in GA for the month of November?
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