Section 8 Housing

Section 8 housing is a program designed to assist very low-income families in paying for housing. To be eligable for the Section 8 housing program, an individual must have an income that is below 50% of the median income for the county. Section 8 is a federal program administered through state and local agencies, known as Housing Authorities. In Montana, the Montana Department of Commerce administers Section 8 through a number of local agencies. This section covers a few of the rules and regulations for Section 8 housing, but should not be considered complete. You should contact your local Section 8 agent or the Montana Department of Commerce (see reference section in the back of this book) if you want to inquire about getting on the Section 8 wait list or if you have any further questions regarding Section 8 housing. Average time on the Section 8 wait list is 3 to 7 years.

All Section 8 tenants and landlords are required to abide by Montana tenant/landlord laws.

Section 8 regulations are supplements to Montana law, not replacements for it.

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Screening of Tenants

If you are a landlord and are considering acceptance of a Section 8 housing voucher, it is your responsibility to check the prospective tenant's rental history, credit report, etc. Participation in the Section 8 program or being on the Montana Department of Commerce (MDOC) wait list is not a representation of the tenants suitability of tenancy or expected behavior. MDOC will provide prospective landlords with the family's current and prior addresses and the names and addresses, if known, of current and prior landlords, as they appear in MDOC records. However, it is the responsibility of the prospective landlord to seek appropriate refrences.

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Security Deposits

Section 8 landlords are allowed to collect security deposits from their tenants. However, MDOC local field agents may prohibit security deposits above private market practice or above the amount
required of non-Section 8 tenants. For Moderate Rehabilition Housing, the landlord may collect a security deposit in the amount of one month's tenant payment, or $50, whichever is greater. The Montana Residential Security Deposit Act ( MCA 70-25 ) applies in full to all Section 8 security deposits (see Security Deposits ).

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Landlord Responsibilities

Section 8 landlords are required to maintain their units in accordance with MCA 70-24-303 (see Landlord & Tenant Responsibilities ) and with federal Housing Quality Standards. MDOC local agents may perform inspections of Section 8 housing once a year, or in response to a tenant complaint, to insure that all units are meeting the standards. If a defeciency is found the landlord will recieve a deficiency letter stating what the landlord needs to do to bring the unit into compliance and specifying a period of time in which the repairs must be made. If the defect is life threatening, the landlord must correct the problem in 24 hours. After the deficiency has been fixed, the tenant must call the local Section 8 agency to schedule another inspection to verify that the problem has been fixed. The landlord should verify with the local agency that a reinspection has been scheduled. MDOC will not issue a rent check to the landlord until a reinspection has been completed.

In Moderate Rehabilitation units, landlords are responsible for repairing all damages to the unit, even those caused by the tenants. The landlord may, however, seek compensation for damages to the unit caused by the tenant in Civil Court and/or terminate the rental agreement.

Landlords are also reponsible for enforcing all tenant obligations under the lease. It is not the reponsibility of MDOC or their local field agents to ensure tenant compliance with the lease. If the unit is to be occupied by a disabled person, it is also the landlord's responsibility to make any nessecary modifications to the unit though these modifications may be at the tenant's expense.

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Tenant Responsibilities

All Section 8 tenants are required to abide by Montana tenant/landlord law in regards to the care and maintainence of the unit they are renting. Tenants are responsible for correcting any breach of the Housing Quality Standards that were caused by the tenant, within the amount of time specified by MDOC. If the breach is life threatening, the tenant must correct the situation in 24 hours.

In addition to these responsibilities, tenants must supply all information that MDOC, its local agents or HUD determines is necessary for the administration of the program. The family must also provide local Section 8 agents with at least a 30 day written notice if they intend to terminate their rental agreement or a copy of any eviction notice from the owner of the unit. Families are also required to notify their local agents of any change in the composition of the household. No family members may be added to the household without prior consent from MDOC.

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Payments to Landlords

The portion of rent payed by the Section 8 program is mailed directly from MDOC in Helena to the landlord on or before the 10th of each month. Local offices have no control over rent checks. If you are a Section 8 landlord and have not recieved your check by the middle of the month, call your local office (see Montana Resource Directory ) and the staff will investigate the delay. If you owe the state money for taxes, student loans, child support, etc. your check may be witheld. If the check was sent, MDOC will verify whether the check was cashed or not. If the check was issued and not cashed, MDOC will require the landlord to sign a bond to re-issue the check.

Landlords may never ask the tenant for more money than is stipulated in the rental contract. If a landlord asks for more than the amount stipulated by the rental contract, the contract may be canceled and the tenant may sue the landlord for damages.

For tenants on the voucher program, landlords must seek reimbursement through the Civil or Small Claims Court from the tenant for damages to the unit caused by the tenant or for cleaning costs, un-paid rent or un-paid utilities owed to the landlord, . No claims for damages or cleaning may be filed with MDOC for tenants on the voucher program. For Moderate Rehabilitation housing, if the security deposit is insufficient to cover the amount owed to the landlord, or if the landlord did not collect a security deposit, the owner may claim reimbursement from MDOC. The reimbursement will be for the lesser of a) the amount owed to the owner, or b) two month's contract rent minus the amount of the security deposit collected, or the amount that the landlord could have collected from the tenant.

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Rent Adjustments

Rent adjustments for moderate rehabilitation housing programs may only occur once a year, on the anniversary date of the contract. For voucher programs, rent may be adjusted at any time after the expiration of the original six month contract with at least a 60 day written notice to the tenants and MDOC. For moderate rehabilitation housing, all rent adjustments must be approved by MDOC and such approval is contingent on inspection of the unit, compliance with the contract and evaluation that the adjustment is reasonable.

Landlords may apply to MDOC for special rent adjustments other than at the times specified above by submitting to MDOC with the request for rent adjustment all tax records and utility bills for the
current and prior year. Special increases will only be approved if the landlord can show that his/her costs have increased due to increased property taxes, utility rates or assesments.

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Terminations and Evictions

All Housing Assistance Payments contracts are for an initial period of six months. During this time, both the landlord and the tenant are barred from terminating the rental contract unless the other party has repeatedly and severely violated the terms of the lease or Montana law. Landlords may also terminate the rental agreement during the initial six month period for other good cause, as long as that cause is something the tenant did or failed to do. Landlords may not terminate the agreement during the first year because they want to use the unit for some other purpose or becuase the tenant won't agree to a revision of the lease. The landlord may not terminate the rental agreement for non-payment of MDOC's share of the rent.

After the first six months, a tenant or landlord may terminate the rental agreement for any reason by delivering to the landlord or tenant and MDOC a written notice of termination. The notice must be delivered at least 30 days prior to the termination but not more than 60 days. If a tenant moves out of the rental unit before the end of the month, the landlord is entitled to keep the entire month's rent portion from MDOC but must return a prorated amount of rent to the tenant if the unit is re-rented before the end of the month.

If at any time the landlord sells the property to a new owner, they must immediately notify MDOC of the sale. MDOC cannot issue rent checks to the new owner until they have filled out the required paperwork for the Section 8 program.