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Section 8 Finance & Ownership

Section 8 Program Finance and Ownership (FAQ)

1.   What are the benefits of direct deposit?  Is direct deposit mandatory?

Direct deposit is one of the most exciting features for Section 8 owners.  When you sign up for direct deposit, your automatic payment is securely deposited into your bank account on the first* of every month.  No more lost checks!  No more lag time for reconciling missing payments!  Direct deposit not only helps us pay you more efficiently, it allows us to provide you with better service by cutting down on processing time and transaction fees.  Owners will continue to receive payment stubs by mail, but the hassle of depositing those checks each month will be gone.

Very soon, the Housing Authority’s sole method of paying housing assistance payments will be through direct deposit.  So that we may release payments effectively to owners, it will soon be necessary that all owners provide the Housing Authority with the requested information for the direct deposit program.  The bank account information is necessary, so that the Housing Authority can release payments to owners.  Therefore, enrollment in direct deposit is necessary.

* If the first of the month is a weekend or holiday, payment will be released on the next business day.

2.   How do I sign up or change my direct deposit account?

To sign up, or to change your account information, simply submit a direct deposit form, along with a cancelled check or savings account number and routing number (deposit slips are not acceptable as they do not contain bank routing information).  If you are currently receiving paper checks, your direct deposit payments will begin within a month.  If you are entering into a new contract with us, setup will take four to six weeks, and payments will be retroactive back to the contract date.

Please note:  If your account, address, or ownership status changes, please notify the Housing Authority as soon as possible by faxing the appropriate information or form to (562) 941-3401.

3.   What happens if I sell the property?

If you sell the property during the course of the Section 8 tenancy, the lease and HAP contract may be transferred to the new owner. You are responsible for informing interested buyers that the unit is rented to a Section 8 tenant, and for giving a copy of your Housing Assistance Payments (HAP) contract to the buyer.  The new owner should report a change of ownership to the Housing Authority as soon as possible in order to facilitate transfer of housing assistance payments.

4.   How do I report a change of ownership and how long does the process take?

If you are a new owner, submit an Ownership Change Request form, along with proof of ownership (such as a recorded grant deed or deed of trust, closing escrow statement or title insurance policy).

When the Ownership Service Unit receives the request form, a hold is placed on the monthly housing assistance payment for the following month, and ownership change documents will be sent to you within one week.  A confirmation letter will be mailed to the new owner to confirm that the new transfer has been completed, and the tenant will be notified of new ownership as well.  Once you return the requested information and signatures, a transfer of ownership will be completed within 10 business days, and payments will be released to the new owner.

You may contact the Ownership Service Unit at, or send faxes to (562) 941-3401.  To telephone, call (562) 347-4663, extension 8016.  When you take over a lease (including the HUD Tenancy Addendum) and Housing Assistance Payments (HAP) contract for a Section 8 tenant, you are required to adhere to the terms of the agreements.  Please become familiar with the terms of these documents by reading the HAP contract you obtained from the seller; or request a copy from the Ownership Service Unit.

Please note: Monthly payments are generated 10 days before the first of the month.  If you are reporting an ownership change on the last week of the month, the payment for the following month will be issued to the owner/payee on record.  The new owner is responsible for advising the former owner to return the overpayment back to the Housing Authority.  Once it is received, the Housing Authority will re-issue payment to the new owner when the transfer of ownership is processed.  The new owner may also simply obtain reimbursement from the former owner.

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