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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Special Needs Trusts and Subsidized Housing
Section 8 and SNTs – Stretching Out the Dollars for Housing
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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