• Introduction
• What happens after I move if I damage my apartment or owe unpaid rent?
• What can I do to protect myself from a damage or vacancy claim?
• What is my landlord files a claim and I disagree with it?
• What should I focus on at the hearing?
• What happens if I lose the hearing and the Housing Authority pays a damage or vacancy claim to my landlord?
• What can I do if I cannot pay a damage or vacancy claim or make payment arrangements with the Housing Authority?

Introduction

As a tenant in the Section 8 Existing Housing Program, you have greater protection against evictions than most other tenants. At the same time, you have more to lose if your landlord claims that you damaged your apartment or moved in violation of your lease. This publication explains what you should do if your landlord files a damage or vacancy claim with the Housing Authority.

What happens after I move if I damage my apartment or owe unpaid rent?

HUD has revised the Section 8 Existing Housing regulations. Prior to the revision, a landlord could file a damage or vacancy claim with the Housing Authority asking them to reimburse them for unpaid rent or other money owed under your lease. If you moved in violation of your lease, your landlord could also file a vacancy claim for rent while the unit was vacant. Once the Housing Authority paid a "damage" or "vacancy" claim, the Housing Authority could demand reimbursement from the family.

Most landlords will no longer be able to file damage and vacancy claims with the Housing Authority. Instead, they will have to recover any claims directly from you. This change, however, only applies to Section 8 leases and housing assistance contracts that were signed after October 2, 1995.

If your Section 8 lease was signed before October 2, 1995, your landlord may still have the right to file a damage or vacancy claim with the Housing Authority until s/he signs a new contract with the Housing Authority. In addition, under the new regulations, a Housing Authority can immediately terminate you from its program if you fail to reimburse the Housing Authority for a damage or vacancy claim. As a result, you must continue to take precautions against such claims until a new contract is signed.

What can I do to protect myself from a damage or vacancy claim?

You can protect yourself against a damage or vacancy claim by taking four simple precautions:

1. Carefully inspect your home or apartment before moving in. You should make sure that all preexisting damages are shown on a written checklist signed by your landlord and that you are given a copy of the checklist.

2. When you move out make sure that you clean your home or apartment so that it is in the same or better condition than when you moved in except for reasonable wear and tear or conditions caused by your landlord's failure to maintain the premises.

3. Make sure you have witnesses, pictures, or other proof of the condition of your home or apartment when you move. If possible, ask the Housing Authority to do an "exit" inspection. You should be present during the inspection and insist that they do a thorough job. In particular, ask the Housing Authority to check all appliances, carpeting, walls and drapes.

4. Do not move without written permission from your landlord except after talking to a lawyer or following the requirements of your lease.

What if my landlord files a claim and I disagree with it?

You have the right to fight the claim through an informal hearing. You should ask the Housing Authority for a copy of its hearing procedures. You must act quickly or you may lose your right to challenge the claim. Before going to a hearing you should ask the Housing Authority to give you copies of any papers that are related to the claim. This should include any inspection reports prepared by the Housing Authority and any papers filed by your landlord. You should bring all your witnesses, pictures and any other evidence you have to the hearing.

What should I focus on at the hearing?

As a practical matter, it is very difficult to appeal an unfavorable hearing decision. Because of this, you must present whatever defenses and evidence you have at the informal hearing.

Damage Claims
There are several issues that the Housing Authority must decide before paying a damage claim. First, did you restore the unit to its initial condition except for normal wear and tear? If not, who caused the damages? You are responsible for any damages you, your family, or your guests cause in excess of normal wear and tear. You are not responsible for damages done by vandals or those you did not invite onto the premises. You are also not responsible for damages caused by your landlord's failure to maintain the premises.

Second, the Housing Authority must determine how much to reimburse your landlord for any damages. Your landlord must present proof of his or her damages. There are three measures of damages:

1. The cost to repair or clean;

2. The cost to replace missing or damaged items; or

3. The actual market value of the item damaged.

You can challenge your landlord's evidence or present evidence about one of the other measures of damages. In calculating the damage claim, the Housing Authority should choose the measure of damages which requires you to pay the least amount of money, provided they have the information needed to do so.

Vacancy Claims
There are four critical issues that the Housing Authority must decide before paying a vacancy claim. The Housing Authority should not pay a vacancy claim unless:

1. You moved in violation of your lease or state law;

2. Your landlord promptly notified the Housing Authority of the vacancy;

3. Your landlord took all possible actions to rerent the premises; and

4. Your landlord did not reject any applicants except for good cause acceptable to the Housing Authority. If your landlord fails to meet any one of these four requirements, the claim should be denied.

What happens if I lose the hearing and the Housing Authority pays a damage or vacancy claim to my landlord?

If you lose the hearing and the Housing Authority pays a damage or vacancy claim, they can ask you to reimburse them. Most Housing Authorities will ask that you sign a repayment plan. If you refuse to do so, the Housing Authority can refuse to give you another Section 8 Certificate or Voucher, to approve a new lease, or to execute a new Section 8 Housing Assistance Payments Contract. The Housing Authority should not take any of these actions, however, unless it has actually paid the claim and provided you with an opportunity to challenge it.

New HUD regulations allow a Housing Authority to terminate its Section 8 housing assistance payments immediately if a family fails to pay a damage or vacancy claim or make payment arrangements acceptable to the Housing Authority. Before taking any of these actions, the Housing Authority should notify you in writing of its decision and of your right to appeal its decision through its informal hearing procedure.

What can I do if I cannot pay a damage or vacancy claim or make payment arrangements with the Housing Authority?

If the Housing Authority pays a damage or vacancy claim, you should try to negotiate a repayment agreement with the Housing Authority. If you cannot negotiate such an agreement, your options are limited. You should contact a lawyer if the Housing Authority threatens to terminate you from their Section 8 Existing Housing Program. As a last resort, you may be able to file a bankruptcy in order to protect your federal housing subsidy.