Section 8 Tenant Issues

[askingquestionz]

I am a landlord using section 8. Total rent is $1200. Section 8 pays $800 of the rent. My tenant pays $400. Section 8 is unaware of the tenant's portion of the rent. We have a second contract that specifies this "secret" payment which both of us willingly signed. If section 8 finds out about our second contract what can happen to me? Will charges be filed against me and I'll have a criminal record? If I come clean to section 8 and admit i made a mistake will that help?

 

[army judge]

You do understand the legal consequences of your arrangement, don't you?

You need to speak with a lawyer immediately.

The tenant might reveal the arrangement.

The Feds always find out about these kinds if things.

Trouble is brewing...

 

[askingquestionz]

I didn't understand the consequences at the time i made the arrangement as i went along with what the tenant proposed. They claimed to have done it with their previous landlord to whom i spoke with to confirm. Anyway it was a bad choice.

This is my first time using section 8 and as soon as i found out what could happen, I stopped receiving payment as of 3 months ago.

If the tenant reveals it, they are risking their exposure to it as well correct? We're both at risk of getting in some kind of trouble. But it seems to be more on their end.

I will definitely speak to a lawyer though.

 

[army judge]

I didn't understand the consequences at the time i made the arrangement as i went along with what the tenant proposed. They claimed to have done it with their previous landlord to whom i spoke with to confirm. Anyway it was a bad choice.

This is my first time using section 8 and as soon as i found out what could happen, I stopped receiving payment as of 3 months ago.

If the tenant reveals it, they are risking their exposure to it as well correct? We're both at risk of getting in some kind of trouble. But it seems to be more on their end.

I will definitely speak to a lawyer though.

No, you have mire exposure than the tenant.

I've seen this play out before.

If the tenant lies about the arrangement (most of them will), you'll be the bad guy.

Even if the tenant supports your story, you profited illegally.

The IRS comes sniffing around.
An audit, alone, can be extremely disruptive.

Then HUD is going to snoop around.
Offenses such as these, are violations if federal statutes.
They are felonies.

The tenant has little, if any, exposure.
The tenant and the government are the victims of the scheme.

 

[askingquestionz]

No, you have mire exposure than the tenant.

I've seen this play out before.

If the tenant lies about the arrangement (most of them will), you'll be the bad guy.

Even if the tenant supports your story, you profited illegally.

The IRS comes sniffing around.
An audit, alone, can be extremely disruptive.

Then HUD is going to snoop around.
Offenses such as these, are violations if federal statutes.
They are felonies.

The tenant has little, if any, exposure.
The tenant and the government are the victims of the scheme.

The section 8 tenants are getting way too much credit here. They're definitely not the victims. They know how to work the system and are dragging landlords into it with them. They're hiding income they have so section 8 picks up the bulk of the rent.

Anyway i understand my involvement in this and I thank you for your input.