how to rent from relative under HUD allowance in FL

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bobolinx
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Joined: Fri Feb 25, 2011 7:44 am

how to rent from relative under HUD allowance in FL

Post by bobolinx »

Not sure of all the details here. But have a friend who has a sister currently on SSDI in Fl. Her mother, who recently passed away, almost owned their property. ($7000) yet to pay to the bank. Her sister has lived for 15 years in a garage apt. without a kitchen. She shared the kitchen with her mother and helped her mother as the mother lost her ability to get around. I am not sure about all the questions but will relay a few of them here. They have visited a lawyer who was requesting outrageous amounts for such a small estate. Here we go:

1. Is there a legal way for the sister to stay in the house. In FL, one is not allowed to rent from a relative under HUD allowance.

2. Which is the better L-T solution? Put house in a trust and get a monthly allowance? But how to buy a new roof? Can a trust get a HF Loan for the house?

It would be ideal if the sister could remain on the property. However, she is incompetent to maintain any of it. Therefore, her landlord would be her sister. She would like to avoid the responsibility, if possible.

I am lacking some of the details. But, how to keep the sister on the property? Thanks
Katietsu
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Re: how to rent from relative under HUD allowance in FL

Post by Katietsu »

I am not sure that I understand the question.

Was there a will? Who inherits the equity in the house as things stand?

Are they hoping to use a HUD housing voucher for the sister? Besides the problem with not being able to rent from a relative, would there not be other issues? I thought that waiting lists were years for HUD vouchers. And what type of property a person qualifies for is pretty specific. As a single person would sister qualify for the house? Would the house pass a HUD inspection?
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celia
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Re: how to rent from relative under HUD allowance in FL

Post by celia »

If the disabled daughter is incompetent, why would anyone think she should continue to live there alone? It sounds like she needs to live with someone, not alone. The first thing that might need to be done is get a legal guardian for her. It could be a relative or not.

And a garage without a kitchen is not a legal living unit.

I think they need to see a Special Needs lawyer. A county social worker who works with special needs adults or seniors might also know some of the answers. Our local senior center has a social worker on site one day a week.
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arcticpineapplecorp.
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Re: how to rent from relative under HUD allowance in FL

Post by arcticpineapplecorp. »

since there's an outstanding loan on the home it will have to be:
1. sold to pay off the remaining balance of mortgage (either to family or stranger)
2. transferred to family member who wishes to assume/pay off remaining mortgage owed and can maintain upkeep of home
3. be foreclosed either by mortgage company or local taxing authority if school/property/real estate taxes are not paid going forward.

once you've done that, you can then determine how the proceeds are split by next of kin (assumed) in the event the deceased homeowner did not have a will.

how do you know the estate is small? what if the house is worth $350,000 and has a loan balance of $7000? Then the estate (if nothing else remained) is still worth $343,000. Is that small?
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Katietsu
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Joined: Sun Sep 22, 2013 1:48 am

Re: how to rent from relative under HUD allowance in FL

Post by Katietsu »

I will add that if the disabled sister is getting any SSI and not just regular social security disability, I am pretty sure that even eligibility for an inheritance can effect the SSI (and the HUD assistance eligibility too).

Maybe get a few more details and update for better answers.
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