Welcome to the entitlement mentality of Section 8. I used to do Section 8, still have one. But I am done with them. The basement flooded is indeed a health hazard. You have bacteria, electrictity, etc. in the basement. You will not get paid if they come and inspect, as it will be condemed with standing water. If it's just a little, you may be OK. If it's over an inch, good luck.
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