Section 8 Stuff
Hello. Might be purchasing a Section-8 building (as though of you who have been following my posts know!!!)
I just called the Albany Housing Authority to find out if they could tell me when the last HQS inspection was conducted on the building, and if there are any open violations of those standards that need to be addressed. They said they couldn't release that information to me, and that I would have to rely on what the seller tells me...
Any ideas around this? Or do I just have to build a clause into the contract saying that the seller guarantees that the property passed and has no unaddressed section-8/code violations?
Thanks much!
Tony
A few ideas came to mind that may help.
Talk to another person at Sec 8.
Hire an inspector familar with HQ standards to inspect property for you.
Your agreement would be fine also maybe back it up with cash escrow that the seller would provide until you are happy with Sec 8 inspection status after you close. The escrow would depent on # units rented with assistance
Thank you,
Ted P. Stokely Jr[ Edited by rajwarrior on Date 11/13/2003 ]
the good thing about section 8, even if some things are not up to code, they will give you a list of things to fix once they inspect it. so it shouldn't be a big deal.
[addsig]
Thanks much for taking the time to reply.
I also wanted to know how I could find out anything about the current occupants...as in have they ever wrecked property before....
Hi tony1853,
If you feel that there may be some violations in place for section 8 standards, simply call one of the inspectors at the housing authority! They are also out and about in neighborhood all day, and I have never had a problem getting them out to inspect or reinspect a potential property! They wont give me a formal written list of items, but they will mention them to me and that it all I need them to do.
About the current tenants, why are you concerned that they may have trashed the place before? Do they all have a full security deposit on file?
BAMZ
BAMZ, thanks for the advice...I will see if I can get it re-inspected. I'm concerned because this is like "zero-hour" for us (my cousin and I)...we had a tough time getting the financing, now we're prequalified, and we are leaving ourselves flat broke (and borrowing a few $$ from a relative) to come up with down-payment and closing, etc. God forbid a tenant vacated in a couple of months let's say, and trashed the place, I don't know that we could afford the repair costs if they were in excess of the security...
Just scared, I guess...I never thought that I'd be this close to a deal, and I'm starting to get a little shaky...I guess what they say is true: the first one is the hardest!
Thanks,
Tony
Hi Tony,
I dont blame you. It is perfectly normal to be nervous of the first one. you may be nervous on the second one too, and that is ok. Just remember to always complete your due diligence on the properties in advance. And you will learn to be cautious and what to be on the look-out for with time.
Keep studying, keep educating yourself, and for the next properties do as Donald Trump says......"Never Buy Anything, Unless Someone Has To Sell"!
Best of Success!
BAMZ