Rent Ryan Braun January 25, 2022
HOUSING OPTIONSRENT
Family member with a disability rents from an unrelated third party

Renting a housing unit (e.g. apartment, house, condo) is another option for the family member with a disability. This section offers information on renting from an unrelated landlord – NOT a parent or sibling. Information in this section is offered from the perspective of the parent(s).

Family Member with a Disability Rents from a Third Party

Low Risk

Liability Risk

High Risk

Much Control

Day-to-Day Control of Property

Little Control

Much Control

Long-Term Control of Asset

Little Control

Flexible

Flexibility to Move

Limited Flexibility

Parents Rent from Third Party and Sublease to Family Member with Disability

Low Risk

Liability Risk

High Risk

Much Control

Day-to-Day Control of Property

Little Control

Much Control

Long-Term Control of Asset

Little Control

Flexible

Flexibility to Move

Limited Flexibility

This page describes two rental arrangements: 
    1. The family member with a disability is the tenant and rents directly from a third party. 
    2. The parent(s) is the tenant and the parent(s) enters into a Leasing Agreement with the landlord, and the lease agreement allows for a Subleasing Agreement for the family member with a disability to reside in the property. The Subleasing agreement is between the parent(s) and the family member with a disability.  The parent(s) is liable to the landlord for rent and any damages to the property. (If the lease agreement does not specifically allow subleasing of the property, then a parent(s) should not risk this option).
A Subleasing Agreement means that the landlord has entered into an agreement with the tenant (parent) to allow them to rent the property. The tenant (parent) then enters into an agreement with the family member with a disability (the Sub lessee) to actually reside in the property.
    • The parent’s name is on the lease; the name of the family member with a disability is NOT on the lease.  (If the family member with the disability has their name on the lease and the parent(s) is a co-signer, it is not a subleasing agreement).
    • The Sublessee does not have a contract with the landlord, but instead, with the tenant (parent). Subleasing is subject to the lease agreement with the owner of the real property. Subleasing should be done with legal advice.  
    • The advantage of a sublease agreement is that the family member with a disability can live in a housing unit that he/she may not be able to qualify for with their income (they would not qualify to rent the property under the landlord’s financial parameters).  Therefore, the parent(s) leases the property using their income, and then sublease the property to the family member at a lower rental rate that the family member with a disability can afford.
    • The drawbacks are that there may be in kind support and maintenance issues if the parent(s) rents the housing option for less than fair market value ( ie. less than what they are paying to rent the property.)  A STABLE Account can be used to pay to the landlord the portion of the rent they are not charging to the family member with a disability and then that rental support is not deemed to be in kind support and maintenance.
    • As always, funds used from a STABLE account are not counted as in kind support and maintenance. See STABLE Account the Information and Resources section.
For information on how guardianship may impact this option, see the Information and Resources: Guardianship and Housing. If a Guardian has court authority to enter into a contract, the Guardian is not personally liable for contracts signed on behalf of the ward. A STABLE Account can provide a mechanism for parents and others to make donations/gifts that can be used to support housing and other expenses. The parent(s) and others can contribute to the STABLE Account, and funds from the STABLE Account can be used to pay rent and utilities, provided certain guidelines are met. If proper procedures are followed, distributions from the STABLE account will not impact benefits.  A trust can be set up to provide for certain ongoing financial needs of the family member with a disability. The trust can be set up in a way that provides for regular movement of funds from the trust to the STABLE Account. Please contact a legal professional for guidance on setting up a trust fund for your family member with a disability. If the parent(s) directly subsidize the rent, utilities, or other housing costs, this is considered to be in kind support and maintenance  to the family member with a disability and could negatively impact Medicaid or SSI benefits. (See Information and Resources: Housing and Benefits section).  The parent(s) can contribute to the STABLE Account, and then the family member with a disability can use funds from the STABLE Account to pay housing expenses (see Information and Resources: STABLE Account).  It is important to know that Medicaid Waivers do not provide funds for rent. A family member with a disability who uses a Medicaid Waiver for staff and other supports must pay rent. Typically, a  portion of the family member’s earned income or public benefit (SSI/SSDI or Social Security) is used to cover rent.  

What Circumstances Make this a Possible Fit?

    • The parent(s) and the family member with a disability want a flexible housing arrangement that does not require a long-term commitment. 
    • The parent(s) and the family member with a disability do not have the resources or desire to pursue other housing options. 
    • The parent(s) wants to help their family member with a disability take some first steps toward living on their own, without making a substantial financial commitment.

What Does This Mean to My Family Member with a Disability?

Many people, with and without disabilities, find that renting is the housing option that works best for them. Many parents and family members with a disability value the flexibility and ease of this arrangement. 

Because leases are generally for only a one-year period, there is no long-term security that the family member will be able to live in one place. The family member with a disability may move multiple times. These moves may result in additional costs for security deposits, deposits for initiation of utility service, and moving expenses.  Frequent moves may also have negative emotional and social impacts.

Depending on the financial situation of the family member with a disability, they may be eligible for a rent subsidy through the Housing Choice Voucher program (commonly referred to as “Section 8”). If a family member with a disability has a Housing Choice Voucher, they can use it to offset a portion of the rent, provided the landlord is willing to accept the voucher and participate in the program. (See “Vouchers: What and How?”) Other kinds of rent subsidies are available through the Public Housing and Low Income Housing Tax Credit programs (see below).

What Does this Mean to My Estate?

This option does not impact the estate of a parent or sibling (if any) as it does not require that an asset be provided for housing.

Where Do I Get More Information?

    • Information on the Housing Choice Voucher Programs (in Hamilton County) is available through the Cincinnati Metropolitan Housing Authority or Talk To Us Hotline 513-721-2642, or contact the county board Service and Support Administrator (SSA).    
    • Information on available Low Income Housing Tax Credit housing units can be found at Ohio Housing Locator.

Pros

Cons

Pros and Cons

Extent of Control

  • The parent(s) can choose to maintain more control through the use of sublease arrangement, where the parent is the tenant and the family member with the disability is the sublessee.
  • No control over rent increases.
  • If there are problems with the landlord or property, there are few legal options. (One option is Rent Escrow through the courts).
  • If not properly followed, early termination of a lease results in financial obligations.

Effects on Public Benefits

  • A STABLE account can be used to pay rent. Parents and others can contribute to the STABLE Account. Rent paid via the STABLE Account is not considered "in kind support and maintenance" and does not impact benefits as long as a few simple guidelines are followed.
  • Medicaid waivers do not pay for rent.
  • If the parent(s) pays rent for the family member with a disability, it is considered "in kind support and maintenance" and will impact benefits.
  • Hamilton County DD Services does not offer rental subsidies.

Longevity

  • The family member with a disability may be able to use a local housing advocacy organization or the parent(s) may be able to contact ProSeniors to assist in issues related to a lease or sublease. See ‘Where Do I Get More Information?’
  • Landlords are under no obligation to renew a lease.

Property Management Responsibility

  • There are no unexpected property upkeep or improvement charges.
  • Quality of property management varies significantly from place to place.
  • The parent(s) should review property management responsibilities (e.g. lawn mowing, bed bug extermination cost and responsibilities) included in the lease.

Financial Considerations

  • A security deposit is typically required.
  • Some Medicaid waivers may be used to pay for some accessibility modifications with required Landlord approval.
  • Housing vouchers and other subsidies may be available to offset the cost of rent.
  • If the lease is in the name of the family member with a disability, the parent(s) are not responsible for upholding the terms of the lease.
  • There are no financial risks for the parent(s) if the lease is in the name of the family member with a disability.
  • Parents or other relatives may need to cosign if credit worthiness or income is an issue.
  • The family member with a disability should have their name on the lease or sublease to ensure maximum legal rights.
  • If not properly followed, early termination of a lease results in financial obligations.

Long Term Flexibility

  • The family member can easily move upon termination of the lease.
  • Many landlords do offer month to month options with increased rent and/or deposit.
  • A lease generally has a one year term, making it difficult to plan for use of the arrangement for more than one year at a time.

Tax Issue

  • N/A
  • N/A
Download a Printable PDF of this Option

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Created by a Home Think Tank workgroup. 

Information on this sheet is provided for informational purposes only. Nothing in this document should be considered legal or accounting advice. Contact a professional for information pertinent to your specific situation.

© 2022 Hamilton County Developmental Disabilities Services

This document may be reproduced and distributed without modification.