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If a Project Based Section 8 apartment community is sold and the new owner decides not to renew the Housing Assistance Payment (HAP) contract with HUD, they can permanently relocate residents. However, under the federal Uniform Relocation Act (URA), Project-Based Section 8 tenants receive certain protections including relocation advisory services, extended relocation notice requirements, moving expense reimbursement and substantial payments to cover the increased costs of replacement housing.
According to Relocation Assistance To Tenants Displaced From Their Homes (HUD-1042-CPD), HUD booklet for displaced tenants, if a tenant is notified they will be displaced, "it is important that you do not move before you learn what you must do to receive the relocation payments and other assistance to which you are entitled."
The benefits displaced tenants are entitled to are:
To receive these benefits, a displaced tenant must file a claim.
Relocation regulations and the benefits tenants are entitled to are complicated. Many purchasers of Project-Based Section 8 properties are either inexperienced with the program and its requirements or choose to ignore them. Often, a new owner tries to just evict everyone upon assuming ownership without following the Uniform Relocation Act, which is unlawful.
If you find yourself in a situation where you are being displaced, it is very important that you do not move until you identify what your rights are.
HUD has a great overview of the URA and even provides Regional Relocation Specialists (directory) that can assist tenants in danger of relocation.
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