HCV Landlords
For Landlords
Are you a landlord that is interested in participating in the Housing Choice Voucher program?
The Housing Choice Voucher (HCV) Program is federally funded by the U.S. Department of Housing and Urban Development (HUD) and is administered locally by South Metro Housing Options (SMHO) providing rental assistance to lower-income families so they can afford safe, decent and sanitary housing in the private rental market.
The Program is administered in accordance with federal regulations. SMHO assists program participants by paying a portion of the contract rent directly to the landlord on the first of each month. The participant pays their portion of the rent directly to the landlord in accordance with the terms of their rental lease. The participant’s rent contribution is based on household income and family composition and is approximately 30-40 percent of their monthly adjusted income. In accordance with federal regulations, SMHO and participant rent amounts may change as the participant household composition and income change. These changes are effective after written notice to both parties by SMHO.
This Program is well established and operates nationwide. It offers a solution to government owned housing and allows participants the freedom to choose housing that meets their individual needs. The Program provides benefits to the landlord, the participant and the community. It is a partnership between the landlord, the participant, and SMHO. The landlord has an obligation to enforce their lease and the Housing Assistance Payments (HAP) contract; SMHO has an obligation to enforce the requirements set forth by HUD regulations regarding program participation, and the participant has an obligation to abide by both the rental lease and the requirements of the Program.
The benefits to the landlord and the community include, but are not limited to:
- Guaranteed rental assistance payments made directly to the landlord on the first of each month.
- The landlord applies their own screening criteria and selects participants/tenants based on their specific requirements.
- SMHO conducts Housing Quality Standards (HQS) inspections on the property on an annual basis to ensure safety and proper maintenance of the unit.
- The landlord can request annual rent increases.
- The participant/tenant maintains their privacy and dignity while receiving public assistance.
- Provides affordable housing in the community while stimulating the local economy.
To participate in the program, a landlord enters into a HAP contract with SMHO and a minimum 12-month initial lease with the participant. The rental unit must meet federal HQS guidelines and the landlord must agree to maintain the property in accordance with HQS during the term of the contract. In return, the HAP contract guarantees prompt payment of SMHO’s monthly portion of the rent.
A brief description of how the Housing Choice Voucher (HVC) program operates is as follows:
- 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. The landlord must give SMHO and the participant sixty (60) days written notice if any proposed rent increase is requested after the first initial year. Each rent increase must meet established rent reasonableness criteria in order to be approved. The participant has the option to move rather than accept the new rental amount.
- SMHO will directly deposit the monthly HAP into an account authorized by the landlord at the next scheduled payment release date 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 in the next HAP payment date.
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:
- 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.
Referral List: SMHO provides a free referral service for landlords interested in listing available units. Landlords wishing to list their properties on SMHO referral list must complete a survey form. Units must be rent reasonable in order to be added to the referral list. The Federal Fair Housing Act requires that landlord’s do not discriminate among prospective tenants on the basis of race, color, religion, sex, national origin, or familial status.
We, at South Metro Housing Options, want to thank you for considering the Housing Choice Voucher (HCV) Program. Landlord participation is an essential part of the program. Without your assistance, we would not be able to effectively serve our community.
If you have any questions or are interested in becoming a landlord under SMHO’s HCV program, please contact our HCV Department at (303) 794-9608.
Interested in becoming a HCV landlord?
If you are interested in listing your property with us, please click here to download the property survey. Once completed, this form should be returned to:
South Metro Housing Options
5808 South Rapp Street
Suite 100
Littleton, CO 80120
or it can be faxed to (303) 794-0806.
If you are a current HCV landlord and wish to update your direct deposit information, please click here to fill out the ACH Credits and return to South Metro Housing Options. Please note that you must also provide a voided check for the new account.
If you need further information on participating in the HCV program, please contact our HCV Department at (303) 794-9608.