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Subsidized Tenants

A tenant is a subsidized tenant if the government helps the tenant pay some or all of his/her rent
Generally, subsidized tenants have legal rights under federal law in addition to rights under state law
Subsidized tenants may also have special concerns that they need to be aware of when they are facing an eviction

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Types of Subsidies

Project-Based Voucher (PBV) Housing 🡪 former public housing

Section 8 Housing Choice Voucher

Project-Based Section 8 Housing

Other

There are many different types of subsidizes. The first step for a tenant to finding out her rights as a subsidized tenant is to identify which subsidy program she is a part of. These are some of the most common ones.

Public Housing tenants are tenants who live in homes owned and/or managed by a public housing authority. In Charlotte, public housing is run by the Charlotte Housing Authority. Public Housing Tenants pay rent based on their income. Examples of Public Housing in Charlotte are Dillehay Courts and Southside Homes.

Section 8 Housing Choice Voucher tenants also receive a rent subsidy, but their subsidy travels with them wherever they choose to live. They have a voucher that they can take to any private landlord who agrees to participate in the program. Wherever they use their voucher, the government helps them pay their rent. The amount they pay depends on their income. They also have certain program requirements they have to follow or else their voucher could be terminated. In Charlotte, the voucher program is also run by the Charlotte Housing Authority.

Project Housing is not owned or managed by the Housing Authority but still receives a subsidy. In project housing, the subsidy is attached to the home. If you live in project housing, you cannot take your subsidy with you if you leave or are evicted. Some examples of Project Housing are Section 8 Project-Based Housing or Section 236 Housing. Some examples of project housing in Charlotte are Little Rock Apartments, Timber Ridge Apartments, and Greenhaven Townhouses.

There are several other types of less-common subsidies, such as Shelter Plus Care, HUD Veterans Affairs Supportive Housing (VASH) or HOPWA housing. Every type of subsidized housing comes with different rules and regulations, so it’s important to determine what type of subsidized housing you live in.

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Project-Based Voucher (PBV) Housing

Formerly public housing with Charlotte Housing Authority (CHA)

In 2017, CHA conducted the Rental Assistance Demonstration (RAD) process. This changed the public housing properties into project-based voucher properties.

Instead of CHA being landlord, the owner is now Horizon Development Properties & the property manager is Blue Horizon Property Management.

If a tenant lives in Public Housing, the Charlotte Housing Authority is her landlord.

If CHA wants to evict a public housing tenant, it is required to give the tenant a written notice of eviction before filing any court papers. CHA can only evict a public housing tenant for certain things, such as serious or repeated violations of the lease agreement or criminal activity. The notice has to give the tenant a certain amount of time to respond and also has to say certain things. The lease should tell the tenant the reasons CHA can evict her and goes on to explain what type of notice has to be given. If CHA does not give you the correct type of notice, the tenant should bring that issue up with the magistrate or judge.

In most cases, CHA also has to provide the tenant with a grievance hearing before evicting her. However, in some cases, like if CHA is evicting you for criminal activity, CHA does not have to provide a grievance hearing. The notice should inform the tenant of her right to request a grievance hearing. If a tenant would like a grievance hearing, she has to ask for one in writing within 10 days of receiving the notice.

At the grievance hearing, a tenant can explain to the hearing officer why she should not be evicted. A tenant can also bring an attorney to represent her. Even if CHA decides to evict the tenant after the grievance hearing, it still has to go through the court process and the tenant will have another opportunity to defend herself in court.

Before any grievance hearing or court proceeding, CHA has to let a tenant inspect her tenant file and make a reasonable number of copies of anything in her file. A tenant might find things in her file that will help her prepare for a grievance hearing or for court. If CHA does not let the tenant inspect her file before her court date, the tenant should tell the judge or magistrate. In that case, CHA should not be allowed to proceed with the eviction.

Also, if a tenant becomes financially unable to pay the minimum amount of rent required by CHA, the tenant might qualify for a hardship exemption. To do so, the tenant has to request a hardship exemption form from your property manager or from CHA’s main office, fill it out, and turn it in. If the tenant is approved, CHA will not require the tenant to pay rent for a certain period of time. Depending on how long the hardship lasts, the tenant may have to pay CHA back or CHA may waive the money that is owed. While the tenant is under hardship status, CHA can not evict the tenant for nonpayment of rent.

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PBV Housing

Subsidy Manager: CHA

Tenant

Landlord: Horizon Development Properties

Property Manager: Blue Horizon

Manages tenant’s subsidy

Manages tenant’s lease

CHA releases subsidies to its subsidiaries

UNLIKE PUBLIC HOUSING,

a breach of lease can trigger BOTH a lease termination and a subsidy termination. Tenants must request and win in both hearing processes to be able to stay in their home.

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PBV Housing – Evictions

Housing subsidy is connected to the unit

Tenant cannot live in unit without being on subsidy program & cannot take the subsidy to another property

Good cause required for evictions
Notice of eviction required before court docs
Grievance hearing (10 days to request)

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PBV Housing – Subsidy Termination

Right to informal hearing

10 days to request after receiving notice from CHA

If a tenant needs more time to prepare or find an attorney, tenant may request that the hearing be rescheduled once.

Right to review tenant file before the hearing
Tenant can bring an attorney to the hearing

The hearing will likely be a tenant’s only chance to save the subsidy.
If the tenant loses the subsidy, she cannot remain in the PBV unit even if she wins her eviction hearing.

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PBV Housing – Current Properties

Autumn Place
Cedar Knolls
Charlottetown Terrace
Claremont
Dillehay Courts
Edwin Towers
Gladesdale
Glen Cove
Grove Place
Hampton Creste
The Landing at Park Road
Leafcrest
Mallard Ridge
McAlpine Terrace

McMullen Wood
Meadow Oaks
Oak Valley
Parktowne Terrace
Robinsdale
Savanna Woods
Southside Homes
Strawn Tower
Tarleton Hills
The Oaks at Cherry
Towerview
Victoria Square
Wallace Wood
Woodlawn

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Section 8 Housing Choice Voucher (HCV) Program

CHA manages the Voucher Program
Housing subsidy moves with the tenant

Tenant responsibilities:

Report changes in income & employment to CHA immediately
Need to pass federal Housing Quality Standards inspection each year
Cannot make rent side payments to landlord to secure rental unit

Tenant rights:

Rent will be adjusted based on income/employment
Tenant cannot be charged for CHA’s rent portion if CHA withholds it from landlord for repair issues

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Section 8 Housing Choice Voucher (HCV) Program

Housing Quality Standards

Rent abatement because of landlord repair violations

🡪 Tenant may need to consider moving

Eviction could cause tenant to lose his/her voucher!

CHA

Tenant

Landlord

Family Obligations

Housing Assistance Payment (HAP) Contract

Lease

CHA manages the voucher program. It requires the tenant to follow certain rules – “Family Obligations” – while the tenant is in the voucher program. It also requires the landlord to follow certain rules.

CHA requires both the tenant and the landlord to keep the property in good repair – “Housing Quality Standards.” CHA will regularly inspect the property. If CHA finds items that need to be repaired, it will tell the tenant and the landlord who is responsible for fixing what items. If the tenant does not allow CHA to inspect or does not fix items that are the tenant’s responsibility, CHA could try to terminate the tenant’s voucher assistance. If the landlord refuses to fix items that are his responsibility, CHA could stop paying the landlord.

This is called abatement. If CHA stops paying the landlord and the landlord still does not make repairs, CHA’s agreement with your landlord – the HAP Contract – will end and the landlord will start charging the tenant for the full rent. If a tenant knows that her property is in abatement, the tenant should consider requesting a transfer and working quickly with CHA to move with her voucher to another property so that the landlord does not charge the tenant more than she can pay. Also, if CHA stops paying the landlord and the tenant waits too long before using her voucher somewhere else, the tenant’s voucher could expire.

If a tenant is evicted by your landlord while the tenant is still using a voucher at the property, CHA could send the tenant a recommendation for termination letter and try to terminate the voucher. If the landlord files an eviction lawsuit against a tenant while the tenant is on the voucher program, the tenant should contact Legal Aid immediately to see if Legal Aid can help. It is important to do everything possible to prevent an eviction while someone is in the voucher program so that the tenant does not lose her voucher.

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Recommendation for Voucher Termination

Right to informal hearing

10 days to request after receiving notice from CHA

If a tenant needs more time to prepare or find an attorney, tenant may request that the hearing be rescheduled once.

Right to review tenant file before the hearing
Tenant can bring an attorney to the hearing

The hearing will likely be a tenant’s only chance to save the voucher.

In addition to the rule against being evicted while on the voucher program, there are other rules that a voucher participant has to follow. If CHA thinks a voucher participant has broken a rule (“Family Obligation”), it could send a “Recommendation for Termination” letter. CHA can terminate a voucher participant’s assistance (the voucher) even if the landlord is not trying to evict her.

If the voucher participant does not request an informal hearing within 10 days after receiving this letter, the voucher participant will automatically lose her assistance. If the voucher participant does request a hearing, the voucher participant will have an opportunity to defend herself against the termination in front of a hearing officer at CHA’s office. If a voucher participant receives a letter like this, the voucher participant should immediately make a written request for a hearing to CHA. Then the voucher participant should call Legal Aid to see if Legal Aid can provide assistance.

After requesting a hearing, the voucher participant will receive a letter telling her where and when the voucher hearing will be. The voucher participant can have an attorney at the hearing if she brings one. The voucher participant also has the right to review her tenant file and make copies before the hearing by making a written request to CHA.

If a voucher participant needs more time to prepare for the hearing or find an attorney, CHA will reschedule the hearing one time with or without cause. In order to reschedule, the voucher participant should make a written request to CHA before the day of your hearing.

At the hearing, the case will be heard by a hearing officer. The hearing officer will not work for CHA and will serve the function of a judge. The voucher participant should prepare for the hearing as if she were preparing for court. In most cases, this is the only chance to prevent the voucher from being terminated. The voucher participant can bring any evidence she wants to show, as well as any witnesses she wants to testify. CHA will present its case first, and the voucher participant will have an opportunity to ask questions of CHA’s witnesses. Then the voucher participant will have an opportunity to present evidence and tell the hearing officer why she should not be terminated. At the end of the hearing, the hearing officer will make a decision whether or not to terminate the voucher. The hearing will likely be the voucher participant’s last chance to save the voucher. Do not wait until the last minute to begin preparing, and do not hesitate to call Legal Aid to see whether Legal Aid can help.

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Project-Based Section 8 Housing

Non-CHA properties, private owners
Housing subsidy is connected to the unit

Examples in Mecklenburg County:

Little Rock Apartments
Orchard Park Apartments
Timber Ridge Apartments

Project Housing is not owned or managed by CHA. In Project Housing, the assistance is attached to the unit. A tenant can not take her subsidy with her if the tenant moves.

Project Housing Evictions

Depending on the type of project housing, the landlord has to follow certain rules when trying to evict a tenant. For example, in almost all project housing, the landlord can only evict a tenant for certain things, such as major or repeated minor violations of the lease or criminal activity. In almost all project housing, landlords have to give a notice of eviction before filing court papers for eviction. The landlord might have to give the tenant a certain amount of notice, and the notice might have to say certain things. A tenant should read her lease to find out what kind of notice the landlord has to give. If a landlord does not give a tenant the correct notice, the tenant should bring that issue up in court.

Some types of project housing also provide grievance hearings. Like public housing grievance hearings, a tenant has to request the hearing within a certain time of receiving the notice of eviction. Also, if a tenant attends a grievance hearing and the landlord decides to continue the eviction, the landlord still has to go through the court process, and the tenant will have a second chance to defend herself in court.

If a tenant is evicted from Project Housing, the tenant might become ineligible for other types of subsidized housing in the future. If a tenant is living in project housing and is being evicted, the tenant should contact Legal Aid immediately to see if Legal Aid can help.

Project Housing Subsidy Terminations

A project housing landlord may also try to terminate the tenant’s subsidy without evicting them right away. A landlord can only terminate a tenant’s subsidy in project housing for limited reasons – mainly, if the tenant fails to recertify. A landlord can not terminate a tenant’s subsidy for breaching the lease or for not paying rent. If a tenant lives in project housing and the landlord has terminated the tenant’s subsidy, this could lead to an eviction if the tenant is unable to pay the market rate rent. In this case, the tenant should contact Legal Aid to see if Legal Aid can help.

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Project-Based Section 8 Housing

Tenant Responsibilities:

Must inform property of changes in income/employment immediately
Must recertify every year

Tenant Rights:

Good cause required for evictions
Notice of Eviction required
Informal Hearings (10 days to request)

Evictions from Project-Based Section 8 Housing can make a tenant ineligible for other types of subsidized housing!

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Rent Bond & Subsidized Housing

If a tenant appeals a judgment, the tenant’s rent bond should be her portion of the rent.

The landlord may not tell the magistrate that the tenant’s rent is subsidized. If the magistrate doesn't know, the court could set the bond too high.

If the tenant can’t pay the bond, she could be forced to move.

A tenant may tell the magistrate in court what subsidy program she is in and how much her portion of the rent is.

One special concern common to all subsidized tenants has to do with rent bond. As discussed in the last section, if a tenant loses in small claims court, the tenant can appeal for another trial in District Court.

However, in order to stay in the home on appeal, the tenant has to pay a rent bond to the court.

North Carolina law says that the amount of rent bond the tenant pays should be the tenant’s portion of the rent—the portion the tenant pays under the subsidy program that the tenant participates in.

In small claims court, the landlord might not tell the magistrate that the tenant’s rent is subsidized. If the magistrate does not know that the tenant’s rent is subsidized, and the tenant loses, the court could set the rent bond at an amount equal to the market rate of rent for the home. In that case, the rent bond might be too high for the tenant to pay. If the tenant can’t pay the rent bond, then the landlord can get a Writ of Possession and have the sheriff’s department come out to change the locks.

Subsidized tenants in small claims court should always make sure to tell the magistrate what subsidy program they participate in and how much their portion of the rent is.

If the rent bond is set higher than the tenant’s portion of the rent, the tenant can show the clerk written verification of her portion or can submit a motion to modify the rent bond. The tenant should contact Legal Aid to see if Legal Aid can help.

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Other Subsidized Programs

Other subsidized housing programs exist. Each one has its own rules and regulations.

Identifying what program a tenant participates in, what the lease says, and what rules apply to the program may help the tenant increase his/her chances to preserve the subsidy and prevent an eviction.

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Resources

City Housing Inspector 🡪 Dial 311

Legal Aid of North Carolina, Inc., Charlotte

🡪 (704) 376-1600

Self-Serve Center 🡪 (704) 686-0210

M-F, 8:30AM-4:00PM

Mecklenburg County Courthouse

832 East 4^th Street, Room 3350

Legal Aid of North Carolina, Inc. provides free legal services for low-income tenants in Mecklenburg County. If you have a housing issue, you can call Legal Aid to see whether or not Legal Aid can help you.

However, Legal Aid does not have enough lawyers to represent everyone in court. Legal Aid may represent some tenants in court and give others advice so that they can represent themselves.

Everyone can get free court forms to represent themselves at the Self-Serve Center. The Self-Serve Center has an answer and counterclaim form that you can use to make your defenses and counterclaims. The Self-Serve Center has instructions on how to use this form. It also has a short video that shows you how to present evidence to the court.

Also, I have brought several brochures and handouts that might be useful. As mentioned before, I have a brochure on repair issues, a handout telling you how to appeal a court case, a brochure on the Fair Housing Act, and some other resources. Please feel free to take copies of any of these materials with you.