Investor-landlords linked to rise in Section 8 fraud
Source: Indianapolis Star
Federally subsidized properties have become a hot acquisition target for investment-minded buyers of Indianapolis homes.
One problem: The investor-landlords are increasingly running afoul of the Section 8 program's strict rules.
... One of the most aggressive investor-buyers of Indianapolis homes in the past year, a San Diego firm called Mt. Helix Real Estate Investment Fund, was recently cited by the IHA for violations at several of its Section 8 homes and faces potential repayment of rent subsidies totaling thousands of dollars. Violations included overcharging tenants on their rent and allowing a felon to move in with a tenant.
... Another major investor-buyer, American Residential Properties of Scottsdale, Ariz., has 57 Section 8 homes in Indianapolis out of a total of almost 500 homes it acquired in the metro area in the past year. In November, the IHA cited American Residential for fraud for one home, at 8821 E. 41st St., for wrongly listing a property management company as the owner and for allowing "unauthorized live-ins" and violent crime to occur on the property.
Read more: http://www.indystar.com/story/news/2014/02/01/home-buying-boom-tied-to-rise-in-section-8-fraud/5107499/
