HCV Landlords
Welcome Current & Prospective HCV Landlords
Thank you for your interest in affordable housing in Littleton! Your role as a landlord is vital in supporting our community’s growth by offering diverse housing options.
The Housing Choice Voucher (HCV) Program, funded by the U.S. Department of Housing and Urban Development (HUD), is an excellent opportunity for landlords like you. Administered locally by South Metro Housing Options (SMHO), this program provides rental subsidies to eligible lower-income individuals and families, allowing them to afford safe and decent housing in the private rental market. By participating in the HCV Program, you not only contribute to the well-being of our community but also gain the benefit of a reliable tenant base, as these vouchers ensure consistent rental payments. Join us in making a positive impact while maximizing your rental opportunities.
- SMHO will determine eligibility of an applicant household after their application has been reviewed and an interview has been conducted. All applicant screening is based on HUD regulations. All household members applying for the Program (eighteen years of age and over) must meet established SMHO criteria on criminal activity. Upon screening approval, applicants will be required to attend an orientation conducted by SMHO to go over all Program rules, HUD regulations, and participant/landlord obligations. At completion of the orientation applicants will become program participants and issued a Housing Choice Voucher. The voucher expires 60 days after issuance.
- The participant searches for a suitable unit and contacts the landlord regarding unit rentals. By providing rental assistance, SMHO does not warrant a participant’s suitability as a tenant. It is the sole responsibility of the landlord to perform their own due diligence and screen a prospective tenant based on their own criteria as long as it follows fair housing regulations. If requested by the landlord, SMHO may provide the landlord with the current and last known address of the prospective tenant.
Screening criteria that landlords utilize may include, but not be limited to:
- Credit Reports
- Police Reports, criminal background checks
- County court records
- Current/previous landlord references
- Once a landlord determines that a participant has successfully passed their screening criteria, a Request for Tenancy Approval (RFTA) must be completed and an unsigned lease, including unit address and rent amount needs to be prepared. The landlord will also need to complete other pertinent documents such as; IRS form W-9, a Lead Based Paint form, Direct Deposit Authorization, and Landlord Certification in order to start the lease-up process.
- SMHO reviews each of these documents for completeness, and conducts unit rent reasonableness to ensure that the rent on the unit is reasonable based on current market conditions. SMHO will also determine if the client is income-eligible for the proposed unit. For the initial lease, the participant may not pay more than 40 percent of their adjusted monthly income toward the initial rent and utilities for the unit. If the proposed rent is not within the 40 percent range, an SMHO Housing Counselor will contact the landlord to discuss other RFTA issues.
- If the RFTA is approved, the packet is forwarded to SMHO Inspections Department to schedule an HQS inspection, which will be conducted within 15 business days of receiving the request. HUD requires that the unit meet certain Housing Quality Standards before the housing assistance payments can begin. An inspector will contact both the landlord and the participant to schedule an initial inspection. The landlord and the participant must both be present for the initial inspection. If you have additional questions in regard to the requirements of the inspection, you may contact SMHO at (303) 794-9608.
Please note: Since SMHO does not conduct move-out inspections, we recommend that the landlord create their own move-in/move-out check list to document the condition of the unit when the participant moved in and moved out. If there are damages to the unit beyond normal wear and tear, the participant is responsible for this expense, as in any other rental situation.
- When the unit successfully passes the inspection:
- The lease and HAP contract will be executed.
- The landlord will collect the security deposit and the participant’s portion of the rent. It is the responsibility of the participant to pay the total security deposit and the responsibility of the landlord to collect it.
- The participant will be authorized to move into the unit with rent subsidy upon completion of the following items:
- The unit successfully passes the HQS inspection.
- The participant contacts SMHO to schedule a move-in date.
- The lease is signed and dated by the participant and landlord.
- The HAP contract is signed and dated by the landlord and SMHO.
- The HAP contract is a binding legal agreement between the landlord and SMHO. It outlines the rights and responsibilities as a participating landlord in the Section 8 Housing Choice Voucher Rental Assistance Program. (Please see the HAP contract). The contract expires on the last day of the term of the lease. The landlord may not make any changes in the terms of the lease during the first 12-months, including, but not limited to, raising the rent or utilizing the property for their own or their family’s use. The lease will be for a term of one year. After the initial year, if no action is taken by either the landlord or the tenant to renew the lease, the lease will continue on a month-to-month basis.
- SMHO will directly deposit the monthly HAP into an account authorized by the landlord within 60 days after the execution of the HAP contract. If the participant moves in on a day other than the first of the month, the HAP and participant portions will be pro-rated for the number of days in the unit and the payment will be released within 60 days after the execution of the HAP contract.
- Despite the best of intentions, at times problems may arise between participants and landlords. As a landlord, you are solely responsible for the management of your property and/or unit. SMHO Section 8 staff will try to assist you if we are kept informed, but we are not property managers. If the participant violates the lease, it is the responsibility of the landlord to follow the same procedures as with other tenants. If you should need further assistance, you may contact Tenant Landlord Counseling at (303) 237-0230. Notice of an eviction must be reported to SMHO at the same time the tenant is notified. The landlord may proceed with eviction in accordance with Colorado State Law.
Landlord Changes: Please notify the Housing Authority:
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- If a management agent is engaged. A copy of the management agreement must be provided to SMHO.
- When a property is sold and there is a Section 8 client residing in the unit.
- Of any changes in owner/agent/landlord addresses, and/or contact information.
- If a property is in the process of foreclosure.
The Housing Choice Voucher (HCV) Program is a federally funded initiative managed by the U.S. Department of Housing and Urban Development (HUD) and locally operated by South Metro Housing Options (SMHO). This program helps lower-income families secure safe and affordable housing in the private rental market.
How It Works
SMHO administers the HCV Program according to federal guidelines, ensuring a smooth rental assistance process. Each month, SMHO pays a portion of the rent directly to you, the landlord, on the first of the month. The tenant pays their share of the rent directly to you as outlined in their rental agreement.
The amount the tenant contributes is determined by their household income and family size, typically making up about 30-40% of their adjusted monthly income. As a tenant’s income or household situation changes, their rent contribution may also change, with SMHO providing written notice to both you and the tenant.
Benefits of the HCV Program
This well-established program operates nationwide and offers a viable alternative to government-owned housing, giving participants the flexibility to choose homes that meet their unique needs.
Joining the HCV Program benefits everyone involved:
- For Landlords: You can gain reliable rental income with a government-backed payment.
- For Participants: Families can find safe and suitable housing.
- For the Community: The program promotes housing stability and diversity.
Partnership Responsibilities
The HCV Program fosters a partnership among you, the tenant, and SMHO. As a landlord, you are responsible for upholding your lease agreement and the Housing Assistance Payments (HAP) contract. Meanwhile, SMHO ensures compliance with HUD regulations, and participants must adhere to their lease and program requirements.
Join us in making a difference in the community by providing affordable housing options through the HCV Program.
- Unit Listing Form
- Property Survey (For Rent Increase Requests)
- Automatic Deposits (ACH Credits)
- W-9 Form
- Mutual Rescission Form
- How to Complete a Request For Tenancy Approval (RFTA)
What are the Landlord responsibilities?
The landlord is responsible to screen the HCV participant for suitability as a tenant, just as they would any prospective tenant. A Request for Tenancy Approval that is provided to the landlord, is completed and submitted back to SMHO, who will then schedule a HUD Housing Quality Standards inspection of the rental unit. If it is determined that the unit meets HUD Housing Quality Standards, a lease is signed by the landlord and the HCV participant. In order to rent to an HCV participant the landlord must also sign a contract with South Metro Housing Options.
The landlord is expected to collect a security deposit and the HCV participant’s share of the rent. SMHO will pay the landlord on the first day of each month for its portion of the rent.
It is the responsibility of the landlord to maintain the property’s overall condition and see that the basic plumbing, electrical, heating/cooling systems, etc. function properly. Should the HCV participant violate the terms of the lease or fail to pay rent, the landlord can evict the participant through normal court eviction procedure. It is the responsibility of the landlord to send the HCV participant’s Assisted Housing Specialist, copies of any notices of lease violations that are served to the participant. Serious or repeated lease violations can result in the termination of housing assistance under the federal regulations. If the participant damages the rental unit beyond normal wear and tear, they are responsible to pay for the damages. Damaging the unit may also result in the termination of the participant’s assistance.
What is the HCV participant(s) responsible for?
The HCV participant is responsible to follow all of the terms of the lease as well as paying the rent and utilities for which they are obligated under the lease. The participant is also responsible for normal housekeeping of the rental unit. Serious or repeated lease violations can result in the termination of housing assistance under federal regulations. If the participant damages the rental unit beyond normal wear and tear, they are responsible to pay for the damages. Damaging the unit may also result in the termination of a participant’s assistance.
What are the rent limits?
There are no maximum rent limits, but the owner is expected to charge a reasonable market rent for the unit based upon its size, location and amenities. The Fair Market Rents set by HUD for Arapahoe County can be found on the HUD website at www.hud.gov. The Fair Market Rents set by HUD are a guideline and include the cost of utilities. These do not imply that all rents should be set at these rates.
What kind of unit qualities?
Any existing rental housing may be eligible; single-family homes, condominiums, apartments, townhouses, and duplexes. All units must pass a Housing Quality Standards (HQS) Inspection and meet local code requirements.
Where can units be located?
These rental units can be located anywhere in SMHO’s jurisdiction, which is Littleton and Arapahoe County.
How does a unit pass inspection?
Please see the Requirements Prior to Scheduling Inspections for HUD Housing Choice Vouchers. You can also review details on Housing Quality Standards. In addition to the initial inspection, inspectors check the unit annually and on an interim basis if necessary. The inspector reports the findings to both you and South Metro Housing Options.
May I increase the rent after a contract has been signed?
After the first year, the landlord may request an increase in writing, at least 60 days prior to the anniversary date of the lease. You must also send a notice of rent increase to SMHO’s HCV Specialist 60 days in advance.
Inspections play an important role in the HCV Program for housing agencies, landlords, and tenants. Inspections are required by law and conducted annually in addition to the initial move-in inspection. Deficiencies may reduce the safety of the residence or have financial repercussions for landlords. Inspection results can determine how quickly a resident can move in, determine whether a landlord will receive a Housing Assistance Payment (HAP), or cause a delay or stoppage of HAP. Inspections also benefit landlords receiving outside evaluation on the present condition of their property.
Below are important items to note of an HQS inspection:
Common Life-Threatening or 24 Hour Fails:
- Smoke or carbon monoxide detectors out of batteries or needing replacement
- Missing or moderately damaged outlet covers or faces
- Any leak (bathroom or kitchen sinks)
- Overflow pipe/discharge tube installed on water heater
- Exposed or hanging wires
Common 30 Day Fails:
- Garbage disposal not working properly
- A stove/range burner not working properly
- If a window is designed to open, it must be able to do so and stay open. If on the 1st floor, it must be lockable
- Ventilation for showers/bathtubs via working fan or openable window
- Faucets that do not shut completely off
SMHO has a dedicated and knowledgeable Inspector who works with landlords in this area. Questions can be sent to inspection@smho.co.
Contact the HCV Team
Call (303) 794-9608
Fax (303) 794-0806
5808 S. Rapp Street, Suite 100, Littleton, CO 80120
Office Hours: Monday – Thursday, 8 a.m. – 5 p.m.
*Office hours are subject to change without notice.