What Owners and Landlords Should Know About Section 8 Inspections

Property owners appreciate the fact that renting to Section 8 tenants means regular, monthly payments from their local housing authority, and it nearly eliminates the cost and hassle of marketing. However, operating a Section 8 property can come with its fair share of challenges, including unruly tenants, reams of paperwork, and hassle-filled government inspections.

While a Section 8 inspection may never be something to look forward to, if a property owner or property manager is sufficiently prepared, it can be a relatively straightforward, worry-free process.

Section 8 Inspection Basics

There are several situations in which a Section 8 owner may be subject to an inspection. During the approval process, properties are inspected before a Public Housing Authority agrees to allow the landlord to participate in the program. Owners can also expect annual inspections, and may also receive inspections as the result of a specific complaint or an audit. In most cases, owners will be alerted in advance of their inspection time and date, though they may not get much advance notice if the inspection is related to significant health or safety issues. Inspections will generally either be conducted by an inspector from the local public housing authority, or an outside firm that the PHA has hired.

While we’ve attempted to give the broad strokes of what a Section 8 inspection will cover, there are local variations, often regarding specific elements of a unit (ex. garbage disposals) that may be focused on in some cities/counties and not others. In addition, inspection intervals may be shorter or longer in some areas than in others. For instance, in San Diego, many units are only inspected every two years. To be fully sure of the standard a property will be measured against, Section 8 owners should consult HUD’s Property Standards Guide as well as the local guides and forms for their local PHA.

Preparing for a Section 8 Inspection

As an owner, preparing for an upcoming Section 8 inspection is essential. If you are careful about regular maintenance and upkeep, not much may need to be done for the specific inspection.

In general, owners should make sure that any broken building components inside their Section 8 units are fully repaired, but, most importantly, owners need to ensure that any major health and safety hazards are addressed.

To help Section 8 owners prepare, we’ve provided a comprehensive list below of the unit and building components will be focused on during an inspection. This is similar in some elements to a standard HUD REAC inspection, but there are some key differences.

• Each room in each unit

• Hazards and potential hazards

• Electricity & electricity hazards

• Potential security issues

• Window, ceiling, floor, and wall conditions

• Lead-based paint check

• Kitchen check, determining if kitchen has stove or range with oven, refrigerator, and sink

• Determining if reasonable space present for safe food storage & preparation

• Bathrooms: presence of flush toilet in a closed room, fixed wash basin, and presence of tub or shower

• Adequate ventilation/interior air quality

• Smoke detectors

• Site and foundation condition

• Stair, rail, and porch condition

• Roof/gutter condition

• Exterior surface condition

• Unit access, including fire exits

• Pest infestation, garbage and debris check

• Elevator safety and maintenance

• Interior stair condition

• HVAC and water heater condition

• Plumbing, water supply, and sewer

• Sewer connection

A full list of areas that may be checked can be found on the HUD Section 8 Inspection Checklist. In addition to any areas on this list, inspectors may cite properties for other hazards, so regardless if something is on this list, if it is potentially dangerous, it should be taken care of as quickly as possible. Some common inspection issues include:

• Paint flaking (especially if there are children in the unit)

• No locks and deadbolts on exterior doors

• No window locks/screens

• Asbestos issues

• Improper pressure release valves on hot water heaters and boilers

• Lack of handrails on stairs, both interior and exterior

• Broken carbon monoxide and/or smoke detectors

• Tub caulking issues

• Lack of smoke detectors on every level

• Lack of bathroom fan/ventilation

• No weathertight windows or doors

As these are some of the most issues a unit/property is likely to be flagged for, it’s a good idea for landlords to specifically check their property for these issues, both prior to an inspection and on a regular basis.

Section 8 Inspection Results

Once a Section 8 inspection is complete, an inspector may give one of three scores to every item they inspect in a unit. This includes a pass, which means that an area is fully compliant with Section 8 standards, a fail, which means that area in question must be addressed, or inconclusive, which means that not enough information is present for the inspector to make an informed decision. In general, this simply means that an inspector will need to consult with the landlord to get more details about the unit or building component in question. If only one area in the inspection is regarded as a fail, the entire unit is considered a fail.

In regard to failures, if a tenant has not already moved into a unit, a landlord will need to fix the issues prior to their move-in date. For units with tenants in-place, owners generally have a certain time period before re-inspection in order to fix the issue. However, if a unit fails the re-inspection, rental subsidy payments will temporarily stop until the issue has been addressed. For minor issues, re-inspection extensions may be permitted on an individual basis. For very serious issues, however, an inspector may mandate that repairs be completed within 24 hours.

In some situations, Section 8 inspections result in an inspector mandating that a owner reduce their rent, as they do not believe the current rental price is fair. However, in many cases, owners may be able to remedy this by making minor upgrades to their property, such as providing on-site laundry, ceiling fans, microwaves, or other amenities. These unit amenities will be reported on in the “Special Amenities” section of the inspection report, and, if they are sufficient, will generally make your intended rate acceptable to HUD.

Section 8 Inspections: Preparation is Key

As we said in the beginning of this article, Section 8 inspections aren’t generally a cause for celebration, but they shouldn’t be overly concerning, either. In general, if a landlord and/or property management firm is adequately maintaining their property and addressing tenant concerns in a timely manner, a Section 8 inspection is unlikely to uncover many issues.

In contrast, if a landlord’s property is in terrible condition, an inspection could cause serious issues. In the end, with a little preparation and a smart plan, Section 8 inspections may seem like hassle, but won’t derail your ability to be a successful Section 8 owner/operator.

Section 8 Inspections and Rent Subsidies

Landlords who participate in the Section 8 program may wonder how inspections can impact their rent subsidies. Inspections are an important part of the Section 8 program, as they ensure that properties meet basic health and safety standards. However, if a property fails an inspection, it can impact the landlord's ability to receive full rent subsidies.

When a property fails an inspection, the landlord is given a list of required repairs to be completed within a specific time frame. If the repairs are not made within this time frame, the property may be taken off the Section 8 program entirely.

If the repairs are made, the property will be reinspected to ensure that it now meets the required standards. During this time, the landlord may receive reduced rent subsidies or no subsidies at all, which can impact their bottom line.

Additionally, landlords should be aware that there are certain violations that are considered "life-threatening" or "health-threatening," such as issues with electrical, plumbing, or heating systems. If these violations are not corrected within 24 hours of being reported, the property can be deemed uninhabitable and the Section 8 contract can be terminated immediately. This could result in a complete loss of rent subsidies for the landlord.