When NYCHA Section 8 was King

When NYCHA Section 8 was King

Did you know there was a time when NYCHA Section 8 was King? It was the program both owners and agents prized. At least until things went bad.

When I started practicing New York real estate I met an agent named Alex. In the office he was the Section 8 expert. Most of his income came from Section 8 rentals.  It seemed that every other week he was at a Section 8 rental closing.

Guaranteed Money

He explained to me that owners liked the program’s guaranteed money. He had the paperwork and inspection process down to an art. Alex could perfect a tenant’s package in a few days. And he never failed an inspection until Section 8 changed its procedures.

The Change

First came the changes in the agreements. Different versions seem to be coming out every few months. When these changes came out real estate agents were the last to know. It was only when you had the package in hand did you find out that there were changes. This practice is still in use today and still causes problems.

Can you hear me now?

Next, came the communications breakdown. Little by little phone numbers used for assistance became inactive. Finally, all numbers became inactive and we could no longer reach anyone.  No sane reason for this was given.  Instead, we were told the numbers were now confidential and not to be given out.

Of note is the fact that at the same time the “Landlords or Owner’s Hotline” became ineffective. This would begin the process of owners losing faith in the program.

More Problems

As the years of the Bloomberg administration continued past their legal time frame other programs were created. Some of these programs started out great. They offered incentives and bonuses but soon the program would change or run out of money.

Throughout it all NYCHA Section 8 was still there but its days as the de-facto program were over. For a time HUD Section 8 became the go-to program but its requirements are different than NYCHA Section 8.  See: Why Can’t I Find a NYCHA Section 8 Apartment

The Moratorium

NYCHA Section 8 would soon have its 2nd moratorium. This time limiting the qualification for the program. The 1st moratorium did not have such limitations. When lifted anyone that had applied for Section 8 before the moratorium was still entitled to it.

This resulted in something the city had not foreseen.

1. The vouchers were not revocable and did not expire. So the city had to honor them no matter what.
2. When the moratorium was lifted there was a flood of people entitled to Section 8 housing.
3. And here’s the best part. There were people with Section 8 vouchers that didn’t need them. These people had gotten on their feet without the city’s help. They had good jobs and some had apartments. Nonetheless, many used their vouchers and the city could not refuse them.

As I said the 2nd moratorium was more restrictive and this situation was not repeated.

The Greatest Destroyer

The moratorium, which may still be in place,  had restrictions on who can qualify for Section 8. But it doesn’t matter much.  This is because the greatest destroyer of NYCHA Section 8 is word of mouth. The city fails to understand that owners talk to each other.

Experiences both good and bad are shared. However, bad experiences when shared are like wildfires destroying everything in their path.

Owners today shun NYCHA Section 8 because at some point the program burned them. This was usually in the form of a lack of support. Such as when an owner is stuck with bad program tenants. Or when a tenant is removed from the program without prior notice to an owner.

All Programs Are Section 8 Programs

When owners hear “program,” they think Section 8. So any consideration of any program is refused.

Program recipients have been led to believe that they are the problem and not the other way around. True, bad program tenants have painted all program tenants with the same brush. But a good agent can overcome this by reminding owners that bad tenants come from all walks of life. Once understood and accepted the only obstacle is the program(s) itself.

As I said before owners like guaranteed money. Programs when they work supply that source of money but and this is important. When programs fail to protect owners there is no amount or source of money that is acceptable.

The city administration needs to accept that a top to bottom overhaul of Section 8 is mandatory. Not a tweaking but a complete overhaul, however, I doubt that will happen.

As the physics rule states: A body in motion tends to stay in motion. A body at rest tends to stay at rest. In the case of NYCHA Section 8, the latter applies.

It is more likely that a time will come when we old-timers will be the only ones to remember a time when NYCHA Section 8 was King.

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Disclaimer: I am not a lawyer and nothing stated here is legal advice. This article applies to the five boroughs of New York. All information deemed accurate but not guaranteed. Always check the real estate laws in your part of the country.

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