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Section 8 Rent From Family Member LLC

Section 8 rent from family member LLC – is it possible? Section 8 rules don’t allow voucher recipients to rent from relatives. Does this restriction extend to renting a property owned by a relative’s LLC?

Section 8 Rent From Family Member LLC – Answered

Section 8 Rent From Family Member LLC

Renting to a family member on Section 8 through an LLC (Limited Liability Company) is against the rules. To participate in the Section 8 program both landlord and tenant have to certify that a family relationship doesn’t exist.

Making a false certification (if discovered) could result in legal action being taken. The tenant would also lose their Section 8 benefits.

See the section below covering HUD’s Policy On Renting To Family Members to find out how LLCs are included in the renting to family members restriction.

See Also: Can You Get Section 8 With An Eviction On Your Record?

Family Member Definition (HUD)

The Department of Housing and Urban Development (HUD) is the federal agency that supplies the funding used for the Section 8 Housing Choice Voucher (HCV) program.

HUD also sets the majority of the rules that the public housing authorities administering the Section 8 program have to follow

According to HUD, a Section 8 tenant cannot be related by blood or marriage to the owner of the unit they rent.

HUD defines a family member as follows:

  • Child (a child is defined as a son, stepson, daughter, or stepdaughter)
  • Parent (includes a step-parent or foster parent)
  • Grandparent (includes a step-grandparent or foster grandparent)
  • Spouse or domestic partner
  • Legally adopted son or daughter
  • Foster child
  • Brother, stepbrother
  • Sister, stepsister
  • Uncle
  • Aunt
  • Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law

HUD’s Policy On Renting To Family Members

HUD's Policy On Renting To Family Members

When a landlord wants to rent to a recipient of Section 8, they must request approval by filling out a Request For Tenancy Approval form.

See the sample form on HUD’s website: https://www.hud.gov/sites/dfiles/PIH/documents/Request_Tenancy_approval52517.pdf

Under the owner certification section, you’ll see this declaration:

“The owner (including a principal or other interested party) is not the parent, child, grandparent, grandchild, sister or brother of any member of the family, unless the PHA has determined (and has notified the owner and the family of such determination) that approving leasing of the unit, notwithstanding such relationship, would provide reasonable accommodation for a family member who is a person with disabilities.”

“including a principal” is the key phrase that prevents the owner of an LLC from renting to a family member.

What Does Principal Mean?

In this context, principal means a person who has a significant ownership or decision-making role in the property or business entity that owns the property.

The owner of an LLC is a principal.

So, even when a property is owned by an LLC, the owner of the LLC still falls under HUD’s restriction on renting to family members.

Except for one very limited exception, the answer to ‘Can I rent to a family member on housing benefit?’ is always no.

When Can I Use My Section 8 Voucher To Rent From Family?

When Can I Use My Section 8 Voucher To Rent From Family?

HUD allows renting from a family member if you’re a person with disabilities who requires modified accommodation and this accommodation is only available from a relative.

Your relative cannot live in the same rental unit.

Renting under this exception is only allowed with prior approval from your housing authority.

Your housing authority will ask for an explanation (backed by medical reports) of the special features your unit must have to accommodate your disability.

You’ll also need to prove you’ve searched for a unit with the necessary features and

been unable to find one.

What circumstances might be accepted as valid reasons to rent from a family member?

Examples include:

  • Your family member (who doesn’t live with you) is your carer and no suitable rentals are close enough to enable your relative to look after you.
  • You need a wheelchair-accessible unit but no suitable, available units, accept Section 8.
  • You’ve been unable to find a Section 8 rental with a handicapped bathroom or designated, accessible parking spot.
  • You can’t live in places with central air heating because of mold allergies.

Can I Use Section 8 To Rent From Family Friends?

As long as a family relationship (by blood or marriage) doesn’t exist, then you will be able to rent from a family friend under Section 8.

Your friend will need to have the rental unit approved by your housing authority. To do this the property owner needs to fill out a Section 8 landlord application and pass a property inspection.