Owner Denied Section 8 Payments Due to Unit Defects

Facts: A resident sued the owner and the local housing authority for alleged wrongful termination of her Section 8 subsidy. In August 2008, the resident was notified that her unit failed a Housing Quality Standards (HQS) inspection. When she received this notification, she understood it to mean that if the housing authority stopped paying the Section 8 subsidy, it was due to the repair conditions in her unit. The resident claimed that, after the owner failed the 2008 HQS inspection, it failed to complete repairs.

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