Section 8 Got Sequestered

Not to get political but this sequester may be putting a crimp into any of you that build your business around section 8.

About half our rental income is from section 8 so this is a huge deal to us. It’s not that we couldn’t find other normal paying tenants though. Cutting the section 8 payments would just mean lots of evictions, fix-ups, and cause a huge temporary headache. This article was from early March. We just received our May 1 payment direct deposit as normal. I have not seen anything in writing from our local section 8 office about any cuts or non-payment. My guess is the first place we would see this is reduction or elimination of new vouchers as noted in the article. If section 8 payments get cut, there will be tons of families put out like they said in the article. There would be a huge uprising over that and I think that would be a last resort.
I still think there needs to be a lot of reform to the housing welfare system, but it will be very difficult to do politically as well as make any meaningful change that can be enforced. I say this as someone who is familiar with the system and works with the section 8 program. Tons of people are using the system with no shame and the gov’t has effectively eliminated their biggest living expense…housing.
Just last week, I had a tenant complain that I was taking down a carport that had deteriorated. She wanted me to pay 1k+ to replace it so her not so old Cadillac CTS would have a covering over it. Oh and by the way, section 8 pays all of her rent.
Or then there’s the story of the section 8 tenant who had 22" chrome wheels on her Tahoe and the absolute biggest flatscreen TV I’d ever seen (had to be 80" or so) who kept her thermostat on 78 degrees in the winter and abandoned our house because her utility bills were just too high. She didn’t pay a dime of rent either.

I’ll post if we hear anything about assistance being cut in our area. The only thing I have seen over the past couple years is how the program has kept rents artificially low in order to have more money to pay for the section 8 tenants’ utilities too.

I hate to wish loss of income on any of you, but as a taxpayer, I would love to see the welfare benefits tightened up.

I don’t mind giving a little help to people who really need help, but the agencies handing out the dough can’t seem to tell the difference between cheats and those who genuinely need help.

I agree with you and actually feel the same way. The problem is that to have any meaningful change, many people would complain of the draconian tactics. Not that this would ever pass, but something that might get some people kicked off the program would be to have random inspections of the rental units to see what the tenants actually owned. Anyone found to have luxury items in the house would lose their benefits. Then also set a limit to the value and age of the car they could own. I used to think we had it made when sect 8 paid all of the rent until a single mom with a three year old car couldn’t pay her utilities. She then broke the lease and sect 8 didn’t care one bit.
These people have no shame and will take every dollar you give them. It’s like a proud thing here for them to have their voucher. I still think it’s dumb the govt got rid of food stamps and adopted debit cards because the food stamps were too embarrassing. They should be ashamed and motivated to do better on their own, but most people just stay on the program because it’s easier.

From my experience, as the economy recovers there are going to be some key changes on the assistance our government provides citizens in need. Not only do we have a budget problem on the local level but there is no solution causing this sequesteration in the first place.

Section 8 will probably have an easing on new tenants available allowing current landlords to transition.

ALSO WATCH THOSE TAXES and be sure to appeal!