The Michigan State Housing Development Authority is one of the public housing agencies tasked with administering the Housing Choice Voucher (HCV) program in Michigan. The Housing Choice Voucher Program is the federal government’s primary program for assisting very low-income families, the elderly, and persons with disabilities to afford decent, safe, and sanitary housing in the private market. Since housing assistance is provided on behalf of the HCV tenant, participants are able to find their own housing, including single-family homes, townhouses and apartments. Housing Choice Vouchers are administered locally by public housing agencies (PHAs) that receive federal funds from the U.S. Department of Housing and Urban Development (HUD). This means that the tenant, landlord and PHA all have obligations and responsibilities under the HCV program.
HUD has posted HCV Program Facts with more information here:
https://files.hudexchange.info/resources/documents/PIH-HCV-Landlord-Fact-Sheet.pdf
MSHDA utilizes contracted Housing Agents to assist with executing program requirements across the state. A list of MSHDA Housing Agents by county can be found at:
While the Michigan State Housing Development Authority (MSHDA) performs screenings on adult household members using the State of Michigan ICHAT and OTIS systems, and the National Dru Sjodin Sex-Offender Registry, the landlord/owner is responsible for screening the family and deciding to lease to the family, just as the landlord/owner would with any other potential tenant.
Additionally, tenants and landlords have obligations under the MSHDA HCV program. When tenants select a housing unit, they are expected to comply with the lease and the program requirements, pay their share of rent on time, maintain the unit in good condition, and notify their MSHDA Housing Agent of any changes in income or family composition.
The landlord cannot occupy the rental unit, nor be related to any member of the participant family. Relatives include parents, children, grandparents, grandchildren, sister, brother, stepfamily, or in-law of any member of the family who will live in the assisted unit. An exception may be granted if it is necessary to provide reasonable accommodation for a family member with disabilities.
A summary of MSHDA’s tenant and landlord obligations for the HCV Program can be found here:
Notice and Disclosure of Select HCV Rules
Beginning with inspections on or after July 1, 2024, MSHDA will be following the U.S. Department of Housing and Urban Development (HUD) National Standards for the Physical Inspection of Real Estate (NSPIRE) protocols for all inspections. NSPIRE strengthens HUD’s physical condition standards and improves HUD oversight by aligning and consolidating the inspection regulations used to evaluate “HUD housing” as defined in 24 CFR 5.701(c), across multiple programs. Implementation of the NSPIRE final rule ensures that residents of HUD housing live in safe, habitable dwellings. It also ensures that the items and components located both inside and outside, and within the units of HUD housing are functionally adequate, operable, and free of health and safety hazards.
NSPIRE inspection requirements
The landlord/owner is responsible for any repairs required to keep the unit in compliance with NSPIRE as notified by MSHDA. Required repairs must be made in order for MSHDA to begin or continue making rental payments. For assistance with LEAD paint abatement;
No unit can be approved until MSHDA has determined that the rent for the unit is reasonable. The purpose of the rent reasonableness test is to ensure that a fair rent is paid for each unit rented under the HCV program.
An HCV tenant cannot pay more than 40% of their adjusted monthly income for rent and tenant-supplied utilities. If the unit exceeds the 40% affordability limit, MSHDA cannot approve the unit for rental assistance unless the owner is willing to negotiate the rent and/or utility responsibility.
The utility amount for the rental unit is determined using MSHDA’s Utility Schedules.
The landlord/owner may collect a security deposit from the tenant that does not exceed one and one-half month's rent.
The landlord/owner responsible for collecting the tenant's portion of the monthly rent. The landlord/owner and the tenant will determine the monthly rent. However:
The landlord/owner must provide a lease to MSHDA for review. While the lease is between the landlord/owner and the tenant, MSHDA must approve the lease. The lease must contain at a minimum:
A Tenancy Addendum must be attached to every lease and includes HUD’s requirements for the tenancy. If there is conflict between the landlord/owner’s lease and the Tenancy Addendum, the terms of the Tenancy Addendum prevail over any other provisions of the lease.
MSHDA will enter into a Housing Assistance Payment (HAP) Contract with the landlord/owner. The contract is MSHDA's pledge to pay rent on behalf of the HCV participant.
Proof of Ownership is required for all assisted units. There are exceptions for units with certain types of financing. Acceptable proof of ownership includes:
> Landlord Death – A copy of the court order appointing a Personal Representative if the landlord died “Intestate.” The Personal Representative is normally required to obtain a FEIN from the IRS.
> Surviving Spouse – A copy of the death certificate and proof of joint ownership of property (i.e. current property tax statement or deed to property).
> Not survived by spouse – A copy of the death certificate and a copy of the landlord’s Last Will and Testament.
> Divorce – Copy of court order transferring property; or
Proof of paid local real estate taxes, fines, and assessments is required for all assisted units. There are exceptions for properties with certain types of financing. Acceptable proof of paid real estate taxes, fines, and assessments is:
MSHDA will provide the owner with the required documents to complete in order to be registered as a payee on the State of Michigan's payment system. More information on payments can be found here:
Housing Choice Voucher (HCV) Program - Payment Information
After the initial lease term has been completed, and annually after that, a landlord/owner may request contract rent increases. The request for a rent increase must be received by the MSHDA Housing Agent and the tenant at least 60 days prior to the requested effective date of the change. Once the rent increase request has been received by the MSHDA Housing Agent, a review will be done to ensure that the rent requested does not exceed the rent charged for comparable, unassisted units in the same market area. See above for more information on rent reasonableness.
Aftert the initial lease term the tenant may terminate the contract with 30 days advance noticve to the landlord and MSHDA, subject ot the provisions of the lease.
Both landlord and tenant may jointly agree to terminate the lease. However, the termination must be in writing. A Mutual Lease Termination Agreement form is available from MSHDA and may be used for this purpose.
All reasons for landlord lease terminations require that a Notice to Quit or an Eviction Notice be sent by the landlord to the tenant with a copy to MSHDA at the same time. The landlord may terminate the lease only for the following reasons:
> Owner's desire to utilize the unit for personal or family use, or for a purpose other than use as a HUD-assisted residential rental unit
> Business or economic reason such as sale of the property, renovation of the unit, or desire to rent the unit at a higher rate
For information on preventing evictions see the HUD HCV Landlord Flyer - Preventing Evictions
If a tenant becomes ineligible to receive assistance under the program, the landlord will no longer receive payments from MSHDA. The tenant could become ineligible for a number of reasons such as excess income, failure to provide required information, failure to comply with a MSGDA repayment agreement, failure to provide and/or maintain tenant-supplied appliances or utilities, or failure to correct an damages caused by the tenant, the tenant's family, or guests. If the tenant becomes ineligible for the program, the tenant will then be responsible for the full amount of the rent.
A federal law, the Protecting Tenants at Foreclosure Act [Pub. L. No. 111-22 §§ 702 - 703 (2009),] enacted on May 20, 2009, imposes requirements on people and entities (including banks) that become the new owners of residential property as a result of foreclosure.
Under this law, new owners who take title to residential property as a result of foreclosure assume their ownership of the property subject to any HCV (Section 8) leases and to any existing Housing Assistance Payment (HAP) contracts.
The new owners must honor the existing arrangements, including the duration of the original lease, and no matter what the length of the remaining term, must provide the tenants at least 90 days advance notice before requiring the tenants to vacate the property.
The law contains an exemption for new owners who plan to live in the unit as their primary residence - these new owners are not required to honor the existing lease terms for more than 90 days. New owners in this situation must give the tenant at least 90 days advance notice to vacate; beginning after the new owner acquires the property and may terminate the tenancy after the 90-day period.
When a landlord signs a HAP contract with MSHDA, they agree to follow HUD stated protections for survivors of abuse. For more on VAWA see our Violence Against Women Act of 2013 (VAWA) webpage. You can also download the MSHDA 1632 Notice to HCV Owners and Managers RE_VAWA pdf.
