Landlord Handbook. Section 8 Housing Choice Voucher Rental Assistance Program. City of Janesville Neighborhood & Community Services

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1 Landlord Handbook Section 8 Housing Choice Voucher Rental Assistance Program City of Janesville Neighborhood & Community Services

2 Table of Contents Neighborhood & Community Services Staff Listing.. 3 Introduction to the Section 8 Rental Assistance Program.. 4 Renting Your Unit to a Section 8 Voucher Holder. 5-6 Housing Quality Standards (HQS) Inspection 7 Self Inspection Check List 8-9 Housing Assistance Payment (HAP) Contract. 10 The Lease. 11 Utility Allowances.. 11 Security Deposits 12 Evictions and Lease Terminations.. 12 Ownership Responsibilities. 14 Section 8 Participating Family Responsibilities. 15 Neighborhood & Community Services Responsibilities Approval of Owners Utility Allowance Worksheet. 19 Apartment Opening Form 20 Landlord Application Flowchart of Section 8 Inspection and Leasing Process. 25 Sample of Housing Assistance Payment Contract and Tenancy Addendum 2

3 Neighborhood & Community Services Staff Linda Moses Customer Service Specialist Roxann Glick Case Manager for families with last names starting with A-L Kim Mangione Case Manager for families with last names starting with M-Z Jennifer Petruzzello Neighborhood & Community Services Director Contact Information: City of Janesville Neighborhood & Community Services Office PO Box N. Jackson St. Janesville, WI Fax: ci.janesville.wi.us 3

4 Introduction to the Section 8 Rental Assistance Program The Section 8 Rental Assistance Program is a federal housing assistance program funded by the United States Department of Housing and Urban Development and administered in Janesville by the City of Janesville, Neighborhood & Community Services Office. The program is designed to provide rental subsidies to eligible low-income households enabling them to obtain basic decent, safe and sanitary housing. The Section 8 Rental Assistance Program pays a portion of the rent directly to landlords on behalf of a participating family. In order to participate in the Section 8 Program, a household must meet certain income and eligibility requirements. A landlord who participates in the Section 8 Rental Assistance Program enters into a partnership with the Housing Authority and the assisted family. A Contract of Participation will be signed between the landlord and Neighborhood & Community Services. A lease will be signed between the landlord and the participating tenant. Neighborhood & Community Services will not be a party to that lease, and all rights and provisions under the lease are retained by the tenant and landlord. There are distinct responsibilities for participation in the Section 8 Rental Assistance Program for the participating families, the Housing Authority and the participating landlord, all established through federal program regulation. This handbook will help you to understand your rights and responsibilities as an owner of a Section 8 assisted rental property. 4

5 Advertising an Available Unit Renting Your Unit to Section 8 Voucher Holders The Neighborhood & Community Services Office maintains a binder at the front counter that landlords may access at any time to insert flyers or notices of available units for rent. Participating Section 8 families are instructed to search for potential housing in all areas of the rental market in the typical fashion. Suggested methods are yard signs, newspaper advertisements, Craig s list, postings, word of mouth, and checking the Neighborhood & Community Services binder. (A unit vacancy form is provided for your use at the end of this handbook.) Tenant Screening A family participating in the Section 8 Rental Assistance Program has been screened for income eligibility and certain criminal behavior within a very specific timeline. Your standards for tenant selection as a landlord may be different than ours, and may be more extensive. You must use the same selection criteria for a Section 8 tenant as you would use for any other prospective tenant. We are unable to share our findings with you regarding a specific tenant; we can only speak in generalities. We strongly recommend an application and approval process for all tenants, assisted and unassisted alike. Following a structured tenant selection process is a good start to having a positive experience with the Section 8 Rental Assistance Program as a landlord. Unit Approval The unit must be affordable for the family. The unit must pass the Housing Quality Standards (HQS) inspection. It must be of adequate size for the number of family members, ensuring that an overcrowded condition does not exist. The family may not rent from a family member. Assistance Begins The HQS inspection will be performed, and once the unit has passed the HQS inspection, the tenant rent portion will be determined and disclosed to the landlord and tenant. The Housing Assistance Payment (HAP) contracts will be prepared for landlord signature, and the lease may be executed by the landlord and tenant. The HAP will begin on the first of the month following the passed inspection. The payment will be held until the Neighborhood & Community Services Office receives a copy of the fully executed lease, and the HAP contracts have been signed by the landlord and a representative from the Neighborhood & Community Services Office. 5

6 Direct Deposit Direct deposit of your HAP will be used to pay landlord housing payments. Paper checks are also still available for those landlords who do not wish to have funds electronically deposited at their banking institution. 6

7 Housing Quality Standards Inspection Housing Quality Standards (HQS) are minimum nationwide standards applying to all units receiving Section 8 Rental Assistance subsidies. HQS helps to ensure that the unit receiving a federal subsidy is decent, safe and sanitary. A HQS inspection is performed prior to the execution of the HAP contract for a new unit, and at least annually thereafter. There is no charge to the landlord for any HQS inspections. At initial lease-up, a potential unit must pass the HQS inspection before payment can begin. If the initial inspection results in a Fail rating, the landlord and prospective tenant are mailed an inspection letter outlining any deficiency that was found, and how it must be corrected. The repairs listed in the letter must be completed, the unit re-inspected and a Pass rating achieved before the lease is executed, the HAP contract is signed and subsidy payment can begin. Neighborhood & Community Services cannot make retroactive payments for the period of time before this has occurred, even if the family has already taken occupancy. Allowing an inspection to be performed on the prospective unit does not obligate the landlord to make the repairs on the unit and participate in the Section 8 Rental Assistance Program. If, after reviewing the inspection results, a landlord determines that they do not wish to make the changes necessary for the Section 8 Program participation, then they may opt to not continue. In this case, prompt notification to the tenant and the Neighborhood & Community Services Office is appreciated, so that new housing can be located for the prospective family. Be aware, if the unit was constructed before 1978, and there are children under the age of 6 residing in the unit, or expected to reside in the unit, chipping and peeling paint will be a concern, and will result in a Fail rating. Lead-based paint is a hazard to children under the age of 6, and under Federal Regulations we must assume that any deteriorated paint surface may contain lead. These areas must be addressed by individuals with current certifications that meet the requirements to address lead based paint safely. If deteriorated paint surfaces are found in a unit that was built before 1978, instructions for repair will be specifically indicated in your inspection results letter, and you will be afforded the opportunity to make those repairs according to the specifications or opt to not proceed with Section 8 assistance at unit. Some examples of safety issues that our HQS inspector is checking for are included in the following charts on the next 2 pages. 7

8 Yes No Major Areas of Unit Questions to Ask Electricity 1. Do all fixtures and outlets work? 2. Is there lighting in the common hallways and porches? 3. Are all outlets, light switches and fuse boxes properly covered with no cracks or breaks in the cover plates/doors? 4. Are light/electrical fixtures securely fastened without any hanging or exposed wires (anywhere the tenant has access)? 5. Have you arranged for all utilities to be on the day of the inspection? - For Move-Ins Only 6. Is there adequate heat in all spaces? Bathroom 7. Is toilet securely fastened with no leaks or gaps? 8. Does toilet flush properly? 9. Is there hot and cold running water in sink and tub, with proper drainage and no leaks? 10. Is bathroom vented with either an exterior window or exhaust fan? Kitchen 11. Is there hot and cold running water at the sink, with proper drainage and no leaks? 12. Do all burners on the stovetop ignite? 13. Does refrigerator/freezer cool properly? Other 14. Does hot water tank have a TPR pipe that extends to within 4" of the floor? 15. Do radiators function with no leaks? Walls 16. Are walls free of holes, large cracks and moisture leaks? Ceilings 17. Are ceilings free of holes, large cracks and moisture leaks? Floors 18. Are floors free of weak spots and missing floor boards? 19. Are floors free of tripping hazards, such as loose floor covering? General Safety 20. Are cabinets securely fastened to the wall? 21. Are all doors securely hung and latch able? 22. Is there free and clear access to all exits? 23. Do first floor windows and those opening to a stairway, fire escape or landing have workable locks? 24. Is there a working smoke detector on each level of the unit? 25. Is unit free of any evidence of insect or rodent infestation? 8

9 Yes No Major Areas of Unit Questions to Ask Ventilation 26. Is unit free of any evidence of mold or mildew? 27. Is there at least one exterior window in each bedroom and in the living room? 28. Do the windows open and lock properly? 29. Is unit free of any cracked/broken or leaky windows? 30. Does at least one window per room have a screen in place? 31. Are the screens free from holes and tears? Exterior 32. Is roof free of leaks? 33. Are gutters firmly attached? 34. Are openings around doors and windows weather-tight? 35. Are sidewalks free of tripping hazards? Stairs 36. Is a handrail present when there are 4 or more consecutive steps? 37. Are stairs free of any loose, broken or missing (interior and exterior) steps? 38. Are stairways free of any tripping hazards? 39. Are there secure railings on porches, balconies and landings that are 30" from the ground or higher? Paint 40. Is unit free of chipping, peeling, chalking, flaking or cracking painted surfaces - including windows, window wells, door frames, walls, ceilings, porches, garages and fences? Cleanliness 41. Is the unit clean? 42. Is unit free of debris inside and outside of unit? 43 Is unit free of any brush piles, non-running vehicles, and unlicensed vehicles? The State of Wisconsin requires a minimum of one carbon monoxide detector per floor, including basements. Please ensure that they are in place. Feel free to use this self inspection checklist to review your unit and address some of the most commonly found HQS violations. Please be aware, this is not an all-inclusive list. Items listed are commonly found issues during HQS inspections, and this list is to be considered a guide. 9

10 The Housing Assistance Payment (HAP) Contract The HAP contract is the contract between Neighborhood & Community Services and the landlord. By signing the HAP contract, the landlord agrees to lease a unit to an eligible family and Neighborhood & Community Services agrees to make monthly housing assistance payments to the landlord on behalf of the participating family. Term of the HAP Contract The term of the HAP contract runs concurrent with the lease that is signed between the tenant and the landlord for the assisted property. The HAP contract terminates when the lease terminates. Neighborhood & Community Services Payments to the Landlord The Neighborhood & Community Services Office will pay a monthly housing assistance payment to the landlord on behalf of the participating family. The payment amount will be determined in accordance with HUD regulations. The amount of the housing assistance payment is subject to change during the term of the HAP contract. Neighborhood & Community Services will continue to make housing assistance payments as long as: o The unit continues to meet HQS o The tenant is eligible for Section 8 Rental Assistance o The tenant resides in the unit o The landlord is in compliance with the HAP contract 10

11 The Lease The executed lease must have a lease term of at least 12 months. The lease and the HAP contract will mirror each other with the same term, initial rent amount, and tenant and landlord responsibilities for gas, electric, sewer and water services and stove and refrigerator provisions. The Neighborhood & Community Services Office will supply a Tenancy Addendum that must be included in the lease (copy at the back of the HAP contract attached for your review). Adding New Family Members The family members who are listed as approved members on the HAP contract are the only individuals who may reside in a Section 8 assisted unit. If the family wishes to add additional occupants to the assisted unit, the individuals must meet eligibility requirements and be approved for addition to the household in writing, by both the landlord and the Neighborhood & Community Services Office. An unauthorized individual residing in a Section 8 assisted unit is grounds for Section 8 Program termination. Rent Increases A landlord may not request a rent increase during the first year of the lease term. A rent increase can be requested at the Annual Review, with a 60-day notice to the tenant and Neighborhood & Community Services. When the Neighborhood & Community Services Office receives a written request for a rent increase, a determination of Rent Reasonableness will be made. The proposed rent amount cannot be higher than what is charged to unassisted tenants. The proposed rent must be comparable to unassisted units renting in the area with similar amenities and structures. The location, quality, size, number of bedrooms, age and utilities will be compared. Neighborhood & Community Services will not approve an initial rent amount, or request for a rent increase without first determining that the rent is reasonable. Changes to Lease Terms Any changes to the lease terms which are agreed to by both the landlord and the tenant must result in a new lease document, which outlines the changes, to be executed. Neighborhood & Community Services must be provided with a copy of the fully executed lease, and a new HAP contract, which mirrors the changes in the lease, will be drafted and must be signed. Utility Allowances Section 8 participating families pay approximately 30% of their gross monthly income towards rent and utilities. If utility costs are not included in the lease, an adjustment is made to offset the cost of tenant-paid utilities. 11

12 The Neighborhood & Community Services Office maintains a Utility Allowance Schedule that is based upon the typical cost of utilities and services paid by energy conservative households in similar housing types in the same locality. This Utility Allowance Schedule is reviewed annually and adjusted if necessary. At initial occupancy and annually thereafter, the Neighborhood & Community Services Office applies the most current Utility Allowance Schedule for the utilities the family is responsible for paying out of pocket. The appropriate utility allowance amount is then subtracted from their rent payment obligation to the landlord. The amount of the utility allowance added to the tenant rent obligation to the landlord equals the total tenant payment, which is approximately 30% of the family s gross monthly income. Security Deposits There are no restrictions on the amount that a landlord can ask for in terms of a security deposit. The security deposit requirement for a Section 8 participant should be the same as what you require for an unassisted tenant. The security deposit may not be greater than what you require for unassisted tenants. The Neighborhood & Community Services Office does not assist with security deposits. Tenants should explore area service providers if they are seeking assistance with the deposit. Evictions The landlord may only evict the tenant by instituting court action. The landlord must supply the Neighborhood & Community Services Office with a copy of any notices that are given to participating families. The HAP will continue as long as the family continues to reside in the unit. Once the family vacates the unit, the HAP contract is terminated with the lease obligation and the HAP will cease. Neighborhood & Community Services is unable to pay a housing subsidy for any month that a participating family is not residing in an approved unit. Terminating the Lease by Mutual Agreement The lease agreement may be terminated at any time by written mutual agreement by the participating family and the landlord. If the HAP contract is terminated for any reason, the lease obligation is terminated as well. If the lease is terminated for any reason, the HAP contract is also terminated. 12

13 Change of Ownership If a landlord sells the property, they must contact Neighborhood & Community Services prior to the sale of the property. Upon written request, proof of change of ownership, completion of the W-9 form for payment and approval of the new owner, the HAP contract may be transferred to the new owner. The Neighborhood & Community Services office is not responsible to the new owner for payments issued under the old owner s name prior to the approval of the transfer of the HAP contract. Change of Address and Phone Number Please remember to notify the Neighborhood & Community Services office of any changes in your address and/or phone number so that we can ensure correspondence to you is not delayed. 13

14 Ownership Responsibilities (Including, but may not be limited to) Consider all applicants equally. Indicate no preference when advertising or showing apartments. Give all applicants accurate and complete information about available units, occupancy dates and rental terms and conditions. Be consistent in applying rental policies. Comply with the terms of the HAP contract. Comply with the terms of the lease. Collection of security deposits. Collection of tenant share of rent. Enforce tenant obligations under the lease. Maintain the unit in accordance with HQS throughout the tenancy. Make any needed repairs promptly. Pay for utilities and services, if indicated in the lease agreement. Provide appliances that are indicated in the lease agreement. Comply with all fair housing laws. Notify Neighborhood & Community Services if tenant is no longer residing in the assisted unit. Notify Neighborhood & Community Services and provide copies of any documentation regarding eviction proceedings. Notify Neighborhood & Community Services of any change in property ownership. Notify Neighborhood & Community Services of any change in property management, or mailing address and contact phone number. 14

15 Section 8 Participating Family Responsibilities (Including, but may not be limited to) Provide complete and accurate information to the Neighborhood & Community Services Office in order to determine their eligibility, or continued eligibility for participation in the Section 8 Program. Make a best effort to find a unit that is suitable for their family and qualifies for the Section 8 Program. Cooperate in attending all appointments necessary for their continued participation, as scheduled for their family by the Neighborhood & Community Services Office. Take responsibility for the care of their assisted unit, ensuring not to damage the unit beyond normal wear and tear. Comply with the terms of the lease. Comply with the Family Obligations of the Housing Choice Voucher, and their Statement of Family Responsibility. Not engage in criminal activities. Obtain written permission from the landlord and the Neighborhood & Community Services Office prior to moving an individual into the assisted unit. Report any income and asset changes to the Neighborhood & Community Services Office within 10 days of the change, to ensure that their housing assistance remains accurate. 15

16 Neighborhood & Community Services Responsibilities (Including, but may not be limited to) Processing of applications, verifications and maintenance of the Section 8 waiting list. Voucher issuance and family briefings. Calculation of Total Tenant Payments and HAP. Landlord education regarding Section 8 Voucher Program. Processing of Request for Tenancy Approval forms. Outreach to families and owners. Annual re-examination process for families, Interim re-examination process for families. Adherence to HQS through initial, annual and compliance inspections. Assuring owner compliance with HAP Contract. Assuring family compliance with obligations defined within the Statement of Family Responsibility, and within the body of the Voucher document. Conducting Appeal Reviews and Hearings. Maintain and monitor leasing schedules. Prohibitions of conflict of interest. Authorizing HAP to Owners. Budgeting, accounting and financial management. Maintaining Administrative Plan and Equal Housing Plan. 16

17 APPROVAL OF OWNERS If a property owner wishes to participate in the Section 8 Rental Assistance Program as a landlord, an application form must be filled out. This application is submitted to the City of Janesville, Neighborhood & Community Services Office and will be reviewed. Eligibility for participation in the Section 8 Program will be based upon the following criteria: The City of Janesville, Neighborhood & Community Services Office will not approve an assisted tenancy in any of the following situations: 1. If the owner is the parent, child, grandparent, grandchild, sister, or brother of any member of the family unless the Housing Authority determines that approving the unit would provide reasonable accommodation for a family member who is a person with disabilities. Re-certification may be required on an annual basis. 2. If the Housing Authority has been informed (by HUD or otherwise) that the owner is debarred, suspended, or subject to a limited denial of participation under 2 CFR part When directed by HUD if: (a) (b) The federal government has instituted an administrative or judicial action against the owner for violation of the Fair Housing Act or other federal equal opportunity requirements, and such action is pending; or A court or administrative agency has determined that the owner violated the Fair Housing Act or other federal equal opportunity requirements. In its administrative discretion, the Housing Authority may deny approval of an assisted tenancy for any of the following reasons: 1. The owner has violated obligations under a HAP contract under Section 8 of the 1937 Act (42 U.S.C. 1437f); 2. The owner has committed fraud, bribery or any other corrupt or criminal act in connection with any federal housing program; 3. The owner has engaged in any drug-related criminal activity or any violent criminal activity; 4. The owner has a history or practice of non-compliance with the HQS for units leased under the tenant-based programs, or with applicable housing standards for units leased with project-based Section 8 assistance or leased under any other federal housing program; 17

18 5. The owner has a history or practice of failing to terminate tenancy of tenants of units assisted under Section 8 or any other federally assisted housing program for activity engaged in by the tenant, any member of the household, a guest or another person under the control of any member of the household that: a. Threatens the right to peaceful enjoyment of the premises by other residents; b. Threatens the health or safety of other residents, of employees of the Housing Authority or of owner employees or other persons engaged in manangement of the housing; c. Threatens the health or safety of, or the right to peaceful enjoyment of their residences, by persons residing in the immediate vicinity of the premises; or d. Participates in drug-related criminal activity or violent criminal activity; or 6. The owner has a history or practice of renting units that fail to meet State or local housing codes; or 7. The owner has not paid State or local real estate taxes, fines or assessments. The decision to reject an owner rests in the discretion of the Housing Authority. Such decisions may be appealed to the Neighborhood & Community Services Director within fourteen (14) days of such determination. The decision of the Neighborhood & Community Services Director shall be final. 18

19 1 Bedroom Unit Electrical Service: $28.00 Water Service: $42.00 Cooking: If stove is gas $4.00 If stove is electric $9.00 Water Heater: If it runs on gas, add $10.00 If it runs on electric, add $25.00 Does tenant supply refrigerator? If yes, add $12.00 If no, add $ 0.00 Does tenant supply stove? If yes, add $10.00 If no, add $0.00 Heating: Select Type of Heat Select Type of Housing Gas Furnace Electric Heat Oil Single Family House Duplex Fourplex Apartment House High Rise If you pay for the heat, insert one figure from chart: Add all figures together for total Utility Cost: DATE: 19

20 These forms are available at the Neighborhood & Community Services Office. We have a binder at the front counter where we place notices of vacancies. Voucher holders are encouraged to consult this binder when they are considering moving. APARTMENT OPENING Address: Date Available: Rent Requested: Security Deposit: Number of Bedrooms: Off Street Parking? Garage? Appliances provided? Pets OK? Handicapped Accessible? Utilities: Water: Tenant or Landlord Electricity: Tenant or Landlord Heat: Tenant or Landlord Additional Information: Contact Information: Name: Telephone Number: 20

21 Landlord Application for Participation in the Section 8 Rental Assistance Program Administered by The City of Janesville Neighborhood & Community Services Office Date of Application: Please Print Property Owner Information: Name: First Name Middle Initial Last Name Business Name if Applicable Birthdate: Address: Daytime Phone: Address: Property Management Information: Do you currently use a management company? If yes, please provide name and address: (If using a management company, please attach a copy of the signed contract, authorizing them to sign documents and receive rent subsidy payment on your behalf) 21

22 Please answer the following questions: 1. Have you been arrested for any drug related activity in the past 5 years? Yes No 2. Have you been arrested for any violent criminal activity in the past 5 years? Yes No 3. Are you subject to a lifetime sex offender registration in any state? Yes No 4. Are you now, or have you ever been, the subject of a Fair Housing Lawsuit? Yes No If yes, please explain: Regulations governing the Section 8 Housing Choice Voucher Program do not allow non-resident or undocumented aliens to receive Housing Assistance Payments, pursuant to 42 USCA 1436a. I attest, under penalty of perjury that I am (check one of the following): 1. A citizen or National of the United States. 2. A lawful Temporary or Permanent Resident or his/her spouse or child Alien or Admission # 3. A non-resident or undocumented Alien I do hereby swear and attest that all of the information that I have provided on this application is true and correct. I understand that I am responsible for notifying the City of Janesville, Neighborhood & Community Services Office immediately if my mailing information or phone number changes. Property Owner Signature Date 22

23 I, the undersigned, do hereby acknowledge that I have read and understand the following: A landlord who is participating in the Section 8 Rental Assistance Program and receiving subsidy payments under said program must not: Be the parent, child, grandparent, grandchild, sister, or brother of any member of the Section 8 assisted family unless the Housing Authority determines that approving the unit would provide reasonable accommodation for a family member who is a person with disabilities. (Re-certification may be required on an annual basis.) Be debarred, suspended, or subject to a limited denial of participation under 2 CFR part 24. Be the subject of administrative or judicial action for violation of the Fair Housing Act or other federal equal opportunity requirements, or have such action as pending; or been found by a court or administrative agency to have violated the Fair Housing Act or other federal equal opportunity. Must not commit fraud, bribery or any other corrupt or criminal act in connection with any federal housing program. Must not engage in any drug-related criminal activity or any violent criminal activity. Must not practice non-compliance with Housing Quality Standards for units leased under the tenant-based programs. Property Owner Signature Date 23

24 AUTHORIZATION FOR THE RELEASE OF CRIMINAL HISTORY RECORDS Full Name: Date of Birth: I, the undersigned, do hereby authorize the release of any and all local, state and federal criminal history records pertaining to me to the City of Janesville, Neighborhood & Community Services Office. This criminal investigation is for the purposes of determining initial or continuing eligibility to participate in the Section 8 Rental Assistance Program as a property owner/landlord. I understand that the Neighborhood & Community Services Administrative Plan, which governs participation in the Section 8 Rental Assistance Program, provides that participating landlords must not engage in the following illegal activities: o o o o Drug related activity Violent criminal activity Pattern of illegal use of a controlled substance, or alcohol abuse Subject to lifetime registration on the Sex Offender Registry I understand that if I have engaged in any of these behaviors/violations, I may be ineligible for participation as a landlord in the Section 8 Rental Assistance Program, and the following actions could occur: o Termination of existing HAP Contract(s) o Termination of HAP o Removal from landlord eligibility listing o Ineligibility to participate in the City of Janesville Section 8 Program for up to 3 years. I understand that the above statements will remain in effect for the duration of my participation in the Section 8 Rental Assistance Program. Landlord Signature Date 24

25 FLOWCHART OF THE SECTION 8 RENTAL ASSISTANCE LEASING AND INSPECTION PROCESS You are approached by a Section 8 Voucher holder. You complete your normal application and screening process. You select the Voucher holder as a potential tenant, and the tenant selects your unit to rent. You deny tenancy. Your unit remains available for another tenant. Voucher holder will give you yellow Request for Tenancy Approval Form. Fill this out in full, prepare a 12 month lease, but do not sign. Tenant will return this paperwork to the Neighborhood & Community Services Office. Housing Quality Standards Inspector will contact you and set up an inspection date and time. The unit passes inspection. The unit fails inspection. You make repairs listed on inspection report, and the unit is re-inspected. You opt not to make repairs. You do not participate in the Section 8 Program with this unit. The Voucher holder begins looking for another unit. Amount of Housing Subsidy is calculated. Housing Assistance Payment (HAP) contracts are prepared. Tenant comes to Neighborhood & Community Services Office and signs prepared lease. HAP contracts and lease are mailed to landlord for signature. Signed HAP contracts and a copy of the fully executed lease are provided to the Neighborhood & Community Services Office by the landlord. Housing subsidy payment begins on the first of the month following the date that the unit passes the HQS inspection. Housing subsidy payment will be made directly to the landlord each month. Tenant pays their rent portion, if they have one, directly to the landlord each month. Tenancy continues for 12 months. Any changes in subsidy payment are communicated to the landlord and tenant in writing. 25