3. The Rent and Deposit

OHA actively seeks the involvement of property owners in all areas of Oakland by striving to accommodate the market demands of different neighborhoods.

Owners who lease to tenants with Section 8 rental assistance may charge market rate rents for their property. Owners determine the rent by comparing their property to similar places that have recently been leased in their neighborhood. HUD requires all housing authorities to review the rent through a comparison process that takes into consideration factors such as size, quality, location, age, maintenance, amenities, and any utilities the owner provides. This process is called comparability and it is designed to ensure that property owners receive fair market rents.

Though not common, sometimes a tenant is unable to rent a particular property even if the rent for the unit is reasonable. This happens if a family’s portion of the rent and utilities would exceed 40% of their income. Just as in the private market, some units are affordable to one tenant but not another because of the amount of income they each have available for rent.

Can the Tenant Pay More than What OHA Approved for Rent? The owner should never accept a rent amount from the tenant other than what is stated on the lease or an OHA amendment to the lease. OHA will give advance notice in writing of any changes to the tenant’s portion of rent. The lease and contract explicitly state that accepting additional payments from the tenant is fraud on the part of the tenant and the owner. The family will lose their assistance and the chance to apply for Section 8 in the future. In addition to being terminated from participation in the program, the owner may be required to repay the tenant and could face civil and criminal charges.

How Much Does the Tenant Pay for Rent?

OHA will let the owner know how much rent is to be collected from the tenant and will notify the owner in writing if this amount changes.

The amount a tenant will pay for rent is based upon their income and will vary from tenant to tenant. The exact amount depends upon several factors including the total rent for the unit and the utilities paid by the tenant. For a new lease:

> Tenant pays 30% - 40% of their income for rent and utilities.

> OHA pays a Housing Assistance Payment (or HAP) for the difference between the tenant's portion and the total rent.

Rent Checks
The tenant pays their portion of the rent when they move in and is responsible for paying this amount to the owner each month just as any other tenant would. As part of their management duties, owners are responsible for rent collection from their Section 8 tenants. OHA will mail the owner the first assistance payment shortly after the unit passes inspection and regular monthly HAP checks on the first business day of every month thereafter. Owners should contact OHA, not the tenant, if they have any questions about their HAP checks.

What Can I Charge for a Security Deposit?
The owner may collect a market rate security deposit that is within the requirements of local and state law. By law, the deposit for Section 8 tenants cannot exceed that of unassisted tenants.