How to Handle a Section 8 Termination Notice in L.A.

In 2006 AAGLA was victorious in a case entitled Apartment Association vs. City Of Los Angeles.

The court reviewed an owner's rights under state law (the Costa-Hawkins Act) to terminate a Section 8 contract and found:

"Civil Code Section 1954.53... provides: 'Where an owner terminates... a contract... with a governmental agency that provides for rent limitations to a qualified tenant, the tenant or tenants... shall be given 90 days' written notice of the effective date of the termination and shall not be obligated to pay more than the tenant's portion of the rent as calculated under the contract... to be terminated for 90 days following receipt of the notice of termination... of the contract."

"Despite a landlord's recognized right to terminate... a Section 8 contract, Municipal Code Section 150.4B imposes a prohibitive burden on the exercise of that right..." (and is of no effect).

So, the California Court of Appeal has declared that an owner may terminate or not renew a Section 8 contract after expiration of the initial one‑year term by service of a 90‑day notice, no matter what the Public Housing Authority says about "no termination of a Section 8 contract without termination of the tenancy."

Remember, the 90‑day notice does not terminate the tenancy... it terminates the HAP contract. Once terminated, the tenant must decide whether to pay100% of the rent after receipt of a 3­day notice to pay or quit that the owner may serve.

On termination of a Section 8 contract, the owner should not accept any more HAP payments or partial payments from the tenant. The tenant may be required either to pay 100% of the monthly rent or vacate the premises.

If the tenant holds over with the consent of the owner, the tenancy becomes month-to-month and the HAP contract becomes month-to-month. There is no automatic renewal provision in the HAP contract. With a 90day notice the owner may terminate the HAP contract and demand that the tenant pay 100% of the rent. No matter that the Section 8 (HAP) contract is month-to-month, termination still takes service and expiration LJLU of a 90‑days' notice.