What to Do When Your Section 8 Tenant Doesn't Pay Their Portion

One of the biggest concerns landlords have about Section 8 is what happens when a tenant stops paying their share of the rent. The government portion arrives reliably via direct deposit, but the tenant is responsible for paying their portion directly to you, and some tenants fall behind.

The good news: you have the same legal remedies available to you as with any non-paying tenant, plus the Housing Authority can take action against the tenant's voucher. The process requires some additional steps, but non-payment by a Section 8 tenant is absolutely something you can address.

Understanding the Payment Structure

In Section 8, the total rent (called the "contract rent") is split between two payments:

• Housing Assistance Payment (HAP): The portion NYCHA, HPD, or HCR pays directly to you via direct deposit
• Tenant's portion: The amount the tenant pays you directly, typically around 30% of their adjusted monthly income

You receive the HAP automatically each month. The tenant is responsible for paying their portion on time, just like any other tenant pays rent.

Critical rule: You cannot pursue the tenant for the Housing Authority's portion of the rent. If there's an issue with the HAP payment (delayed inspection approval, abatement, administrative error), you must resolve that with the Housing Authority directly. You can only pursue the tenant for their portion.

Step 1: Document Everything

Before taking any action, make sure you have clear documentation:

• The tenant's monthly share amount (from your Rent Breakdown Letter)
• Which months they failed to pay
• The total amount owed
• Any partial payments received
• Copies of any communication about the missed payments

Keep copies of your HAP contract and current lease, which establish the tenant's payment obligation.

Step 2: Communicate with Your Tenant

Sometimes non-payment stems from temporary hardship, confusion about the amount owed, or a change in circumstances that affected their income. Before escalating to legal action:

• Send a written notice that rent is past due
• Specify the exact amount owed and which months
• Offer to discuss payment arrangements
• Keep copies of all correspondence

If the tenant's income changed (job loss, hours reduced, household member moved out), they should report this to the Housing Authority. When income drops, the tenant's portion decreases and the HAP increases. If they haven't reported the change, encourage them to do so immediately, as it may reduce what they owe going forward.

Step 3: Report the Problem to the Housing Authority

Contact the Housing Authority that administers your tenant's voucher:

When you report nonpayment, the Housing Authority can:

• Contact the tenant and warn them about their program obligations
• Review whether the tenant has unreported income changes
• Document the issue in the tenant's file
• Begin proceedings to terminate the tenant's assistance for serious violations

According to NYCHA's Property Owner Guide, if the tenant does not pay their portion of the rent, "you can proceed with legal action against the family and NYCHA may terminate the tenant's participation in the Section 8 program."

This is significant leverage. Tenants who lose their Section 8 voucher face years-long waitlists to get back on the program. Most tenants want to avoid this.

Step 4: The Certification of Basis for Eviction

If the tenant continues not paying and you decide to pursue eviction, you must follow additional steps for Section 8 tenants. Before commencing a court proceeding, you must submit NYCHA Form 059.518 (Certification of Basis for Eviction) to NYCHA.

This form requires you to provide:

• The tenant's monthly share amount
• Which months the tenant failed to pay
• The total amount alleged due
• Any additional rent allowed under the HAP contract
• The HAP contractual rent amount

You must also mail a copy of this form to the tenant on the same day you submit it to NYCHA.

Where to submit:

Via the NYCHA Owner Extranet (fastest)

By mail to NYCHA Leased Housing Department

NYCHA will review the certification and may:

• Approve the proceeding
• Object to the proceeding
• Contact the tenant about the violation

If NYCHA objects to the eviction proceeding, you may still continue in Housing Court, but you must name NYCHA as a co-defendant.

For HPD and HCR vouchers, contact those agencies directly about their notification requirements before commencing eviction proceedings.

Step 5: Nonpayment Proceeding in Housing Court

Once you've submitted the Certification of Basis for Eviction (and NYCHA has had time to respond), you can commence a nonpayment proceeding in Housing Court.

Key requirements for Section 8 nonpayment cases:

• Only seek the tenant's portion: Your petition must clearly state you are seeking the tenant's unpaid share, not the HAP portion. Seeking the Housing Authority's portion will get your case dismissed.

• Serve NYCHA: In addition to serving the tenant, you must serve a copy of the Notice of Petition and Petition on NYCHA. This can be done by:
- Personal service (treating NYCHA like a tenant) - Overnight mail (regular mail is not sufficient and may result in dismissal)

• Include the Certification: You must be able to show the court that you submitted the Certification of Basis for Eviction to NYCHA before starting the case.

The court process then proceeds similarly to any nonpayment case:

• Initial appearance and opportunity for settlement
• If no settlement, the case is marked for trial
• If you win, you receive a judgment for the amount owed
• If the tenant still doesn't pay, you can pursue eviction

What About When There's No Current Lease?

Many Section 8 tenancies continue month-to-month after the initial lease expires. If your tenant is on a month-to-month holdover and stops paying:

• You cannot bring a nonpayment action (there's no valid lease specifying payment terms)
• You must bring a holdover action instead
• You still must submit the Certification of Basis for Eviction to NYCHA
• You still must serve NYCHA with the Notice to Quit and court papers

In holdover cases, you're seeking to terminate the tenancy rather than collect a specific amount owed.

The Tenant's Voucher Can Be Terminated

Section 8 participants must meet their program obligations, which include paying their portion of the rent on time. Failure to do so is grounds for termination from the program.

According to NYCHA and HPD guidelines, serious and repeated lease violations (including nonpayment) can result in:

• Warning letters to the tenant
• Required repayment plans
• Termination of Section 8 assistance

When a tenant's assistance is terminated, the HAP payments stop. At that point, the tenant becomes responsible for the full contract rent, and you can pursue them for the entire amount if they remain in the unit.

However, voucher termination is not automatic. The Housing Authority must follow due process, and tenants have the right to appeal. This process takes time, so don't rely on voucher termination as your primary remedy. Pursue legal action through Housing Court simultaneously.

Prevention Strategies

The best approach is preventing nonpayment in the first place:

Screen thoroughly: Just because someone has a Section 8 voucher doesn't mean they'll be a reliable tenant. Check rental history, call previous landlords, and verify they have the income to cover their portion.

Communicate early: If a tenant misses a payment, contact them immediately. Don't let months of arrears accumulate before addressing it.

Know the tenant's recertification schedule: Tenants must recertify their income annually. If they miss recertification deadlines, their tenant portion may increase or their assistance may be suspended. Check with the Housing Authority if payments change unexpectedly.

Keep contact information current: Make sure the Housing Authority has your correct address and banking information so HAP payments arrive on time.

Encourage income reporting: If a tenant's circumstances change (job loss, new household member, etc.), they should report it to the Housing Authority promptly. This can adjust their portion and prevent them from falling behind.

Key Points to Remember

• You can only pursue the tenant for their portion, never the Housing Authority's portion
• Document everything before taking action
• Report nonpayment to the Housing Authority (they can pressure the tenant and potentially terminate assistance)
• Submit the Certification of Basis for Eviction before starting court proceedings
• Serve NYCHA/HPD/HCR with all court papers
• The process is similar to regular nonpayment cases, just with extra notification steps

Resources

NYCHA:

Property Owner Guide

Owner Extranet (submit Certification of Basis for Eviction)

Customer Contact Center: 718-707-7771

HPD:

Section 8 Rights and Responsibilities

Client Services: 917-286-4300

Legal Resources:

NYC Tenant Helpline: 311 (ask for "Tenant Helpline")

NYC Tenant Resource Portal

Housing Court Help Centers: Free assistance navigating Housing Court

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