Can Mother Get Section 8 if Daughter Owns her Apartment?
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Question:
My understanding is that a Section 8 tenant can’t rent an apartment where the landlord is a relative. Is there a way around this? Here’s our fact pattern:
- Dad and Mom never married (and thus have different last names); and lived separate lives.
- They had daughter.
- Dad owned a 2-family house. Daughter lives in one unit; and Mom lives in the other unit.
- Mom has a Section 8 voucher and rented (using voucher) from Dad. This wasn’t an issue because Mom and Dad never married, and because they had different names (which might trigger a red flag).
- Dad was dying; and wanted daughter to inherit house, BUT was afraid Mom would be ineligible for Section 8 if daughter inherited the house (since the landlord would then be a relative of the voucher holder, her mom), so Dad gave house to Dad’s sister. Dad’s sister (and her husband) placed the house into a simple trust naming daughter as the beneficiary in case they died.
- Now, sister and her husband want to give it to daughter, but the same issue emerges: if they give it to daughter, then Mom will be ineligible to use the voucher with this house.
Any ideas on how the sister and her husband can pass the house on to the daughter without Mom losing her Section 8 voucher?
Response:
I looked into the US Department of Housing and Urban Development (HUD) Section 8 scenario that you present. I was able to confirm what you say that, generally, Section 8 does not allow for family members to be both the tenant and landlord of a Section 8 household. Based on the HUD definition, family members are relatives defined by blood or marriage. Specific examples of family members listed were parent, child, grandparent, grandchild, sister, and brother.
There are, however, exceptions to this rule. The housing authority overseeing this matter may approve the unit for lease if it determines that the unit would provide reasonable accommodation for a family member with disabilities. So, you could check with the housing authority that serves the area where the daughter and her mother live whether they might approve an exception.
That said, I wonder what’s wrong with using the trust. Depending on how it’s drafted, it might provide the daughter with creditor protections, allow for the mother to continue to live in the house if something happened to the daughter, and even permit the daughter to act as trustee. The existing trust may be a bit too “simple,” but if the daughter and her aunt and uncle consult with a local special needs planning attorney, I’m sure they can come up with a trust that satisfies their goals.
You can find a qualified special needs planning attorney at the website for the Academy of Special Needs Planners.
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Hi Harry! Thanks for answering this question. That was very helpful. I had a question related to the relationship of the landlord renting to tenants. My uncle and aunt have a voucher. Their daughter has a domestic partner who would like to rent out her place and become a landlord for Section 8. Does HUD consider same-sex domestic partners as a family member? They are not married; the condo’s title is under the domestic partner only. Thanks for helping clarify! Take care,
Dave,
As far as I know, HUD will not consider a domestic partner to be a family member. Either you’re married or not. And even if they were, I don’t know that it would be a problem to rent to in laws, assuming that I have this right — that the domestic partner would rent her place to your aunt and uncle. My understanding is that you cannot use a Section 8 voucher if the landlord is a parent, child, grandparent, grandchild, or sibling of anyone in the tenant household. Domestic partners and in laws are okay.
Thank you, Harry! I really appreciate your quick reply. This is a relief as my uncle and aunt need to move. And finding a new place that accepts Section 8 is very challenging.
Hi Dave. My ex husband wants to rent to my mom but will this be an issue because I used to be on her voucher 10 years ago.
I can’t see how that would be an issue if you’re not on the voucher now and, even if you were, you’re no longer married to the landlord.
Harry
I am not sure if this specific scenario has been answered, but my husband and I are separated and I’ve recently been displaced due to water damage at my previous place. I have a section 8 voucher and my soon to be ex husbands parents are offering to rent their home to me via my voucher. Would this be an issue?
Marian,
While most relatives cannot be Section 8 landlords, I don’t believe this applies to in-laws, and certainly not to former in-laws. As long as this is your Section 8 voucher, and not your husband’s, you shouldn’t have any issues. But you can check with your local housing authority to be absolutely certain.
Greetings! I’m a business owner. Is it possible for me to purchase a home in my business and rent it to my mother via Section 8?
Mike,
I’m sorry, but I’m not certain of the answer, and it may differ from housing authority to housing authority. You may still be excluded as the “principal” of your business. I’d check directly with your local housing authority.
Harry
My partner and I recently bought a house but we are not married and would like to rent it out to my mother that has a voucher would it be possible
Alex,
Under the Section 8 housing rules you cannot be your mother’s landlord. There may be an exception if she is disabled. But your partner can be her landlord since they’re not related. The question is whether you would feel comfortable having the house titled solely in your partner’s name in order to gain this benefit.
Harry
Hi Harry,
Can daughter in law rent the house to mother in law for section 8 voucher?
Thanks
pp
Pete,
I spent some time on-line trying to find an answer to your question (as you might have done), and I can’t find the applicable regulation. I found others that suggest that an in-law is a family member and thus cannot be a section 8 landlord. But this was for a different HUD program. I’d recommend contacting your local housing authority to ask them.
Harry
Hello,
I’m writing to find out how to go about obtaining residency on my daughter’s property. It’s a separate dwelling and is handicapped accessible. I’m elderly, disabled and live alone. She is buying a home in Gwinnett county within the next few months and would like to have me close to her since I need more help these days. I live in Clearwater Florida and have a section 8 certificate. From my research I’ve found that this is possible to do this but I keep getting shifted from one person to another and running into obstacles when I’ve read and researched that a move like this is totally acceptable.
I can provide documentation from my dr that states that I need this type of assistance. Florida housing authority told me I will lose my certificate if I attempt to make this move. Florida tells me to call Georgia and then Georgia tells me to call Florida. I’m trying to do all of this in a timely manner but time is running out and after speaking to so many people, both here in Florida and in Georgia I feel I’m running in circles. If you would please get back to me to let me know what to do and where to start, I’d appreciate it.
Thanks for taking the time to read my issues and I thank you in advance for your patience in helping me to see this through.
Barbara Grovner
Barbara,
I was surprised when researching your question to learn that you can in fact move your Section 8 certificate from one state to another from Florida to Georgia. Here’s what the Housing and Urban Development (HUD) website says:
“Under the voucher program, new voucher-holders may choose a unit anywhere in the United States if the family lived in the jurisdiction of the PHA issuing the voucher when the family applied for assistance. Those new voucher-holders not living in the jurisdiction of the PHA at the time the family applied for housing assistance must initially lease a unit within that jurisdiction for the first twelve months of assistance. A family that wishes to move to another PHA’s jurisdiction must consult with the PHA that currently administers its housing assistance to verify the procedures for moving.”
The way I read this is that you should contact your housing authority (PHA) to ask it for the procedure for moving. If you need to show them the website from which I took the quote, here it is: https://www.hud.gov/topics/housing_choice_voucher_program_section_8#hcv05
Good luck.
Harry
Hi Harry,
My mother currently has section 8 and disabled on SSI and the landlord that she currently has wants to sell the house and gave me an option of buying it so that she can stay there. I spoke with Section 8 and said it would be hard for them to approve it unless there was special accommodations, do you know any reasons that would allow them to let her rent from a family member. Also, i am her caregiver if that helps
Rose,
That is all correct. The Section 8 rent subsidy program generally does not allow relatives to be landlords but does permit exceptions when the tenant is disabled and special accommodations must be made as a result. While Section 8 is a federal program financed by the Department of Housing and Urban Development (HUD), it is administered by local housing authorities, each of which may interpret the rules differently.
Here is a list of possible reasons to justify a disability accommodation which I found on the website howtogeton.wordpress.com:
• You need to live near family who is helping care for you.
• They have a wheelchair accessible unit and you cannot find another accessible unit that will accept Section 8 and is currently available.
• The apartment has a larger bedroom size or a unit on one floor and you struggle with stairs/mobility (for example: cane, walker, prone to falls, seizures) and you’ve not been able to find another unit that is similar and will accept Section 8.
• Your family member lives on the property (but not with you), and it would make it easier for them to help with things around the house.
• For medical conditions they can monitor your health if they live closer.
• For psychiatric conditions, they can help calm you down or they are a key part of your support system.
• Relative is more willing/able to accommodate your disabilities than a regular landlord.
The site also provides a sample letter to send to the housing authority here: https://howtogeton.wordpress.com/template-letter-for-disability-accommodation-request-in-housing/
As you will see, the sample letter references verification from a doctor, social worker or other professional about the disability and the need for the accommodation. This can be vital to having the request approved.
I hope this helps.
Harry
I’m disabled and I rent a room from my mother who also lives in the home. Is it possible to use the voucher to rent a room? She is also my SSI payee. Texas is the state I live in.
Jason,
Normally, you cannot use a Section 8 voucher to rent from a family member. But there’s an exception if you are disabled and you need to live with a relative as an accommodation. My guess is that this would apply in your case.
Harry
I am the sole owner of a condo that I purchased for my divorced daughter and her 3 young children.
I’m on a waiting list for Section 8 housing and will probably be for two or three years. How can I avoid the condo being treated as an asset of mine (which I fear would disqualify me)? I hesitate to add her name because she has a history of drug abuse. Would a revocable or irrevocable trust be appropriate and allow me to qualify???
I’m presently living with my sister. The entre proceeds of the house I sold, went towards this condo. Many thanks for any advice you can offer. Josie
Josie,
That’s a difficult situation. It would make sense to transfer the condominium into an irrevocable trust for your daughter’s benefit. But there are a few potential problems with this.
First, you will lose access to the equity in the condo, since the trust will be only for the benefit of your daughter.
Second, my understanding is that the value of the condo will be treated as belonging to you for a period time after the transfer, not for determining whether you are eligible for Section 8, but in the amount of rent you have to pay. Since the tenant’s contribution to rent is based on their income, the housing agency would deem a certain income to be earned from the missing asset and increase your rent accordingly.
Third, the transfer could make you ineligible for Medicaid coverage for up to five years. This would not be the case if your daughter is receiving public benefits, such as Supplemental Security Income (SSI), and the trust qualified as a (d)(4)(A) trust.
As you can see, this is complicated. I recommend that you consult with a local special needs planning attorney.
Harry