Landlord FAQs

• Housing Assistance Payments (HAP) are mailed directly to the owner or their agent on the first working day of the month.

• The risks of rent default are reduced because a tenant’s portion of their rent is income- based.

• Free listing of available rental units. SFHRC maintains a listing of available rental units that is provided to all voucher holders searching for a unit. Listing an available rental unit with SFHRC increases the pool of potential tenants and therefore may assist with the reduction of loss from vacancy.

• Owners/landlords retain all management rights and responsibilities. Owners/landlords perform all tenant screening and selection.

• Owners/landlords may accept or reject a Section 8 tenant for any available vacancies. It does not matter whether the building already contains a Section 8 tenant.

• Annual Housing Quality Standards (HQS) inspections assist the owner with identifying areas requiring repair and help to maintain the overall quality of the unit.

• SFHRC enforces the household responsibilities. Tenants can lose their Section 8 Vouchers if they violate program responsibilities, namely by failing to pay rent on-time or causing damage to their unit beyond normal wear and tear.

Yes. Owners/landlords determine if households meet their tenant selection criteria.

There is a contractual relationship between SFHRC and the tenant through the Section 8 Housing Choice Voucher, between the owner/landlord and the tenant through the Lease Agreement, and between the owner/landlord and SFHRC through the Section 8 Housing Assistance Payments (HAP) Contract. According to federal regulations, the Lease Agreement and the Section 8 HAP contract must have the same effective date.

Landlords must:

• Provide safe and healthy housing as determined by SFHRC’s evaluation of the unit using HUD’s Housing Quality Standards (HQS)

• Comply with the terms and conditions of the tenant’s lease and HAP Contract

Tenants must:

• Comply with lease and program requirements

• Pay their share of the rent on-time

• Maintain the unit in good condition

• Notify SFHRC of any changes in family composition or income

SFHRC must:

• Provide housing assistance to eligible households based on funding allocated by HUD

• Recertify household composition and income at least annually

• Adjust each household’s monthly rental assistance as necessary

• Inspect the rental unit at least annually to ensure compliance with HQS

No. Owners/landlords are responsible for all tenants, including those who participate in the Section 8 program. If problems arise between the owner/landlord and tenant, the landlord will handle this situation the same as they would for open market tenants. Under SD state law, Section 8 tenant have the same rights as open market tenants.

SFHRC uses a formula to calculate each tenant’s rental subsidy. This formula accounts for the payment standard for the bedroom size that the tenant qualifies for, the contract rent for the rental unit, tenant-paid utilities, and the tenant’s adjusted monthly income. At the minimum, tenants pay 30% of their adjusted monthly income for rent.

Tenants pay their portion of the rent directly to the owner/landlord per the terms of the lease. SFHRC sends its share of the rent to the owner/landlord on the first working day of the month, provided the US Treasury has deposited the money to cover the housing assistance payments in SFHRC’s bank account.

Owners/landlords set the rent for their apartments. However, SFHRC must determine that the rent the requested rent is reasonable with comparable, unassisted units in that area. SFHRC uses the following factors in determining if the rent the owner/landlord is requesting is reasonable:

• Location
• Square footage of the unit
• Type (i.e., house, duplex, apartment, mobile home)
• Age of the unit
• Amenities
• Services available to the tenant (i.e., on-site management, maintenance, etc.)
• Utilities included in the rent
• Quality of unit

By accepting HAP each month, the owner/landlord is certifying that the rent charged is not more than rent charged for comparable, unassisted units.

Yes. During the initial term of the Lease Agreement, Tenants cannot pay more than 40% of their monthly adjusted income for rent and tenant-furnished utilities. HUD refers to this as the “rent burden test.”

Yes. After the expiration of the initial or subsequent lease, landlords/owners may increase the monthly rent by providing the tenant and SFHRC with at least 60 days’ written notice. Often, the tenant will bear the burden of any increase in rent.

Yes. SFHRC encourages owners/landlords to collect a security deposit. However, SFHRC does not pay security deposits for its voucher holders. Security deposits also cannot exceed that charged to other, unassisted renters or one month’s rent, whichever is lower.

Tenants are responsible for unpaid rent and damages, just as they are in the open market. If the unpaid rent/damages exceed the security deposit held by the owner/landlord, the owner/landlord could take the tenant to court.

Yes. The owner/landlord has the right to evict a tenant for non-payment of rent or other violations of the lease. The landlord must follow SD State law and notify SFHRC of any action s/he takes to evict the tenant.

Yes. SFHRC requests that the owner/landlord notify the tenant and SFHRC as soon as possible in the event of a change in ownership. SFHRC will then determine if the HAP Contract can be transferred to the new owner.

No. Rental assistance cannot start before the date SFHRC evaluates the unit and determines it meets HUD criteria for safe and healthy housing. If the tenant resides in the unit before the date SFHRC determines the unit meets HQS, the tenant is responsible for the rent.

SFHRC will provide written notification to the owner/landlord and tenant of any deficiencies found during the evaluation of the unit. The owner/landlord will be instructed to return the “Owner Certification” form after the deficiencies have been corrected.

The owner/landlord will be given 30 days to make the required property repairs, unless SFHRC determines the deficiencies are life-threatening. If this occurs, the owner/manager will have 24 hours to correct these deficiencies. If SFHRC has not received the signed “Owner Certification” at the end of the 30 days, though, the HAP Contract will be terminated on its anniversary date and housing assistance payments will cease. In this case, the tenant may either relocate to another unit that meets HUD’s criteria or remain in place and pay full rent.

No. Any amount collected over the amounts listed on the SFHRC documents is considered “side payments” and is illegal. Fees for late rent and property damage may be charged, however.

SFHRC will not provide information on the suitability of a tenant. However, SFHRC will provide a prospective landlord the following:

• The tenant’s current address and prior address, as shown in SFHRC’s records

• The tenant’s current and prior landlord’s name and address, if known to SFHRC

Yes. SFHRC may refuse to enter a HAP Contract with an owner/landlord for any of the following reasons:

• The owner has been disbarred, suspended, or subjected to a limited denial of participation under 24 Code of Federal Regulations part 24

• The federal government has instituted administrative judicial action against the owner for violation of the Fair Housing Act or other federal equal opportunity requirements and the action is pending

• A court or administrative agency has determined that the owner violated the Fair Housing Act or other federal equal opportunity requirements

• Owner participation in drug-related or violent criminal activity

• The owner has committed fraud, bribery or any other corrupt or criminal act in connection with any federal housing program

• The owner verbally or physically threatens SFHRC staff

• The owner is a parent, child, grandparent, grandchild, sister, or brother (including step) of any member of the applicant household seeking the initial use of a Voucher, unless SFHRC determines that approving the unit would provide a reasonable accommodation for a household member who is a qualified individual with disabilities

• The owner has violated any obligations under one or more HAP Contracts

• A conflict of interest exists under federal or state law

An owner/landlord may list a unit with SFHRC by calling (605) 332-0704, 711 TTY, or faxing the following information to SFHRC:

• Address of the unit
• Number of bedrooms
• Contact information