1.

A Section 8 voucher holder would like to move into my unit.  How do I lease with Section 8, and how long does it take?

It generally takes under thirty days, from the time a Section 8 voucher holder applies to rent your unit, until you receive your first payment from the Housing Authority of the County of Los Angeles (HACoLA).  Your first payment from HACoLA is retroactive to the contract effective date.

• When a Section 8 voucher holder applies to rent a unit, they ask the owner to complete a Request for Tenancy Approval form.  Attached to this form is the New Contract Processbrochure, which contains detailed instructions on HACoLA's contracting process.  Also attached is a Lead Paint Disclosure form, and some ownership documents.
  
  
• Once HACoLA receives a completed Request for Tenancy Approval form and any required attachments from the owner, we will schedule an inspection of the rental unit. Inspections usually occur within 7 days, depending on how quickly we are able to reach you by telephone.  If we are unable to reach you by telephone, HACoLA may mail a contact letter to you to start the inspection scheduling process.
  
  
• The purpose of the inspection is to confirm that the previous tenant has vacated the rental property; to ensure the unit is in decent, safe and sanitary condition, and to verify that the proposed rent amount is reasonable for the unit.  HACoLA determines rent reasonableness based on factors including size, quality and amenities.  For tips on passing the unit inspection, see Inspection Question 5.  To prepare for your scheduled inspection, you may download the self-inspection sheet.
  
  
• After the unit passes inspection (see Inspection Question 7 to learn how to access inspection results), it will take about 1-2 weeks for HACoLA to review the lease, verify ownership, authorize payments and conduct any necessary post-negotiation of the rent with the owner.
  
  
• Next, HACoLA and the owner enter into a Housing Assistance Payments (HAP) contract.  Payments will begin as soon as HACoLA and the owner sign the HAP contract.
  
  
• The HAP contract effective date is usually the later of the following: the date the unit passes inspection, or the date HACoLA authorized the owner to give authorization (and the key) to the family to move into the unit.
  
  
• Payments are made on the first day of each month.  Payments are made retroactive to the contract effective date. HACoLA's direct deposit program guarantees timely, hassle-free payments (see the Finance and Ownership page for more information).

3.

How much of a security deposit can I charge a Section 8 tenant? How much can I keep if they move?

You may collect a security deposit from a Section 8 tenant.  The security deposit amount cannot exceed amounts collected from non-Section 8 tenants and must be in line with California State and local law.  The amount of the security deposit that you reimburse or keep also must be the same as for unassisted families, in accordance with what the law permits.  For more information, please refer to the California Tenant Guidebook on the Department of Consumer Affairswebsite.

HACoLA does not provide security deposit assistance to families.

The payment standard is used to calculate how much rent subsidy HACoLA can  pay an owner on behalf of a Section 8 tenant. It does not limit or affect the amount of rent an owner may charge or the Section 8 tenant may pay.  A Section 8 tenant can select a unit with rent that is below or above the payment standard; however, a tenant is not allowed to pay more than 40% of their income toward rent in the first contract year.  (Note: These payment standards do not apply to HACoLA’s Section 8 Moderate Rehabilitation Program).

The payment standard is the amount generally needed to rent a moderately-priced dwelling unit in the local housing market.  HACoLA sets this amount between 90% and 110% of the Fair Market Rent that HUD determines each year for Los Angeles County.

Setting payment standards at this level keeps them high enough to ensure that quality housing is available, and also keeps them in a range that allows us to assist as many families on the waiting list as possible.

Under the Section 8 program, HACoLA subsidizes housing costs, so that low-income families can pay an affordable percentage of their monthly adjusted income towards rent.

The payment standard is used to calculate how much HACoLA contributes to the rent payment.  If the unit’s gross rent (rent plus utilities) is equal to or below the payment standard, the family’s contribution is based on 30% of their income, and HACoLA subsidizes the balance.  If the unit’s gross rent exceeds the payment standard, the family will need to contribute a larger percent of their income towards rent. In a family’s first year in a contracted unit, their rent portion is not allowed to exceed 40% of their monthly adjusted income. HACoLA encourages families to find rental units that are affordable based on their income.

Both owner and tenant are notified of the tenant’s portion of rent in the lease rider.

The rent you charge should be comparable to the rent of other privately rented units, and it must not be higher than what you would charge a non-Section 8 tenant.  HACoLA's bases approval of a proposed rent solely on a rent reasonableness test.  Rent reasonableness is determined on a case-by-case basis.  We compare your proposed rent to the rents currently charged by other owners for comparable units in the area.

Comparable units are units that are of the same number of bedrooms, unit type, age and quality, taking factors such as amenities and facilities into consideration.  Comparable units must be in the same area, which HACoLA defines by census tract.  HACoLA generally relies on non-Section 8 units to determine comparability with the private market, though a Section 8 unit may be calculated into a rent reasonableness test under certain circumstances.

No, the Section 8 tenant must pay only the amount approved by HACoLA.  Any amount paid by the tenant other than the authorized amount is considered an unauthorized side payment, and is considered grounds for termination of the housing assistance contract and may adversely affect your ability to participate in the program in the future.  HACoLA may approve payments for extra services or amenities, such as parking spaces or appliances (other than range and refrigerator).  However, any payment agreement between the tenant and owner, for items not included in the lease, must be made in writing, and pre-approved by HACoLA.

The Rent Increase Request form will be mailed to you with the tenant's annual reexamination. You must send the form to both the tenant and HACoLA at least 60 days before the tenant's anniversary date.  On the form must list the unit address, current and proposed rent. If the Section 8 unit is in a complex of 2 or more units, you must also submit a rent roll. A rent roll is the owner’s up-to-date official list of all rental units on the property, including each unit's address and apartment number, rent amount, and bedroom size. You must also indicate which units are subsidized or unsubsidized.

Your rent increase request must be in accordance with the terms of your lease and the HUD tenancy addendum.  HACoLA will deny rent increase requests made during the first twelve months of the lease, or from owners whose contracts are in abatement for owner violations.

When HACoLA receives a rent increase request, the proposed rent amount is subject to a rent reasonableness test, as explained in Questions 8 and 9.

10.

How long will it take you to process my rent increase?  How do I check the status of a request?

Normally, HACoLA processes rent increase requests within 30 days of receipt.  You may check the status of your rent increase request by contacting your tenant's case manager.

Please remember that rent increase requests will be paid retroactive to the approved date.  Meanwhile, please do not charge the tenant for the increase.

No.  If you receive a denial letter stating that rent comparables did not justify your proposed rent increase, the Housing Authority's decision is final.  HACoLA uses "Rentellect," an independent service, to determine rent reasonableness for new units and for rent increase requests. Rentellect utilizes continually refreshed market data and a reliable, commonly-accepted statistical methodology.