Opinion ID: 445604
Heading Depth: 2
Heading Rank: 1

Heading: The Section 8 Program

Text: 2 Understanding the nature of Hackett's claim calls for inquiry into the United States Housing Act of 1937, 42 U.S.C. Secs. 1437-1437j (1982), and the regulations that the Act generated. Section 8 of the Act contains the relevant provisions. That section authorizes the Secretary of Housing and Urban Development to contract with local public housing agencies (PHA's) for subsidies of low-income tenants' rental payments. 42 U.S.C. Sec. 1437f(b) (1982). The PHA's, in turn, pass the assistance payments along to landlords pursuant to assistance contracts, in which the PHA's and landlords join for that purpose. Id. Owners remain free to return their dwellings to the open market when their contracts expire. The assistance contracts must specify, however, the maximum monthly rent that the landlord may receive for each unit. Id. Sec. 1437f(c)(1). The statute for the most part leaves to the Secretary the task of establishing regulations to guide the PHA's in assessing rental rates. See id. Sec. 3535(d) (empowering Secretary to make such rules and regulations as may be necessary to carry out his functions, powers, and duties). 3 The regulations set out two limitations on the rents that PHA's may allow owners to charge. The first restriction mandates that rents not exceed by more than ten percent the fair market rent that the Secretary establishes for each area (city, county, or similar locality) at least once a year. See 24 C.F.R. Sec. 882.106(a) (1984). The regulations also establish a rent reasonableness limitation, which provides as follows: 4 (1) The PHA shall certify for each unit for which it approves a lease that the Contract Rent for each unit is: 5 (i) Reasonable in relation to rents currently being charged for comparable units in the private unassisted market, taking into account the location, size, type, quality, amenities, facilities and management and maintenance service of each unit, and 6 (ii) Not in excess of rents currently being charged by the Owner for comparable unassisted units. 7 Id. Sec. 882.106(b) (1984). The regulations permit annual and special adjustments to rents but generally proscribe adjustments that result in material differences between the rents charged for assisted and comparable (as defined in Sec. 882.106(b)) unassisted units.... Id. Sec. 882.108(b) (1984). 8