As more multifamily properties adopt either medical or recreational marijuana, owners and agents concerns continue to form.
HUD Statement: HUD Multifamily last published an official position vis use of marijuana in HUD properties in a memorandum from Ben Metcalf, dated 12-29-14. In short, marijuana continues to be an illegal controlled substance under federal law. Owners must deny admission to prospective residents who the owner determines, at the time of application, is illegally using a controlled substance. Owners are afforded the discretion to evict or not evict current tenants for marijuana usage.
Excerpted directly from the Metcalf memo:
By extension, the expense of medicinal marijuana cannot be deducted as a legitimate medical expense. Since the substance and its usage is illegal under federal law, its associated cost cannot be treated as an acceptable adjustment to income in determining annual income and establishing rent.Please share this post with your friends!