Section 8 discrimination remains a persistent issue despite laws designed to protect against it. A recent undercover investigation by the OC Register revealed that over half of landlords in their study, including well-known real estate companies, refused Section 8 tenants outright. This alarming statistic highlights the need for landlords to understand their legal responsibilities and break free from long-standing misconceptions about the program.
For more information on Section 8 compliance and landlord support, reach out to our Good Life Property Management team.
Key Takeaways
- Effective January 2020, Section 8 discrimination is illegal in California under SB329.
- Starting in 2024, landlords must accept alternative financial proof for Section 8 tenants.
- In our experience, working with Section 8 tenants ensures stable payments, as HUD covers 70% of rent directly.
- Avoid costly mistakes—don’t use language like “No Section 8” in your listings.
Table of Contents
What is Section 8
The Housing Choice Voucher Program, commonly known as Section 8, is a federal initiative run by the U.S. Department of Housing and Urban Development (HUD). Its goal is to assist low-income individuals and families in accessing safe, affordable housing in the private rental market.
Under the program, HUD subsidizes about 70% of a tenant’s rent, which is paid directly to the landlord, while the tenant covers the remaining 30%. This assistance makes housing more accessible for vulnerable populations but often leaves voucher holders facing challenges like discrimination and long waitlists.
In California, Section 8 eligibility is based on income, with most vouchers allocated to households earning less than 50% of the area median income. For example, in Orange County, this means a household of four earning $63,900 or less may qualify. However, vouchers can also cover very low-income households with incomes as low as $29,250 for a family of four.
The Legal Landscape: Discrimination is Illegal
California law has made it clear that Section 8 discrimination is prohibited. Since January 1, 2020, the “source of income” protection under the California Fair Employment and Housing Act (FEHA) forbids landlords from rejecting tenants based solely on their use of housing vouchers. This was introduced through Senate Bill 329 (SB329).
Despite this, many landlords remain unaware of the law or fail to update their policies. For example, one outdated rental listing from our team in 2020 inadvertently included “No Section 8” language, resulting in a costly settlement. These mistakes are avoidable with proper education and awareness of legal obligations.
Steps to Section 8 Compliance
Start by collecting two key things from your potential tenant: their housing voucher and their caseworker’s contact info, along with their regular rental application. Since January 2024, there’s a new law (SB267) that’s pretty helpful for tenants – if they don’t have a traditional credit history, you’ll need to consider other ways they can show they’re financially responsible.
Your next step is to connect with the tenant’s caseworker – they’ll be your guide through the approval process and will give you a form called the Request for Tenancy Approval (RFTA). Fill this out and send it back to them.
Before everything is finalized, HUD will stop by to check that your property meets their health and safety requirements. Once you get the green light, you’ll sign the lease with your new tenant, and HUD will set up direct payments to you – which means reliable, on-time rent payments.
Section 8 vs. Rent Control
While California continues to explore additional rent control measures, expanding and improving Section 8 could offer a more effective solution to the state’s housing challenges. Streamlining approval processes, increasing funding, and raising income limits could help more voucher holders secure housing quickly.
Incentives could also encourage independence among long-term voucher holders. For instance, transitional tax credits could provide financial benefits to those working toward self-sufficiency. For landlords, staying informed about evolving regulations ensures compliance and builds a reputation for fair and ethical practices.
Breaking the Stigma
You might have heard stories about mountains of paperwork or problem tenants, and these old myths can make landlords hesitant to participate in Section 8.
But here’s the reality: Section 8 actually offers some real advantages for landlords. You get consistent, reliable rent payments backed by the government. More importantly, you’re giving hardworking families and individuals a chance to find a safe, stable place to call home.
Sure, there’s some paperwork involved (what government program doesn’t have it?), but it’s manageable. And while every tenant is different – Section 8 or not – many landlords find their Section 8 tenants are just as responsible and respectful as any other renters. After all, these folks have often waited years for their voucher and value the opportunity it provides.
The law is clear on this: turning away tenants just because they have a Section 8 voucher isn’t just unfair – it’s illegal in many places. It’s time to move past old stereotypes and see Section 8 for what it really is: a program that helps both landlords and tenants succeed.
Learn More About Section 8
Our Sales Manager, Adam, recorded a video that breaks down the details of working with Section 8 tenants. It’s an excellent resource for landlords looking to better understand the program and its requirements. Click here or watch the video below.
We’re Here to Help You Navigate Fair Housing Practices
At Good Life Property Management, we understand that staying compliant with evolving housing regulations, like Section 8 requirements, can feel overwhelming. That’s why we’re here to make property management simple and stress-free. We care about you, your property, and your tenants, ensuring fair and ethical practices every step of the way.
Let us help you avoid costly mistakes and build a positive reputation as a landlord.
Schedule a call to speak with one of our Good Life experts.
FAQs About Section 8 and Fair Housing Compliance
What is Section 8?
Section 8, officially known as the Housing Choice Voucher Program, is a federal housing assistance initiative run by the U.S. Department of Housing and Urban Development (HUD). It helps low-income individuals and families afford private rental housing by subsidizing about 70% of their rent directly to landlords, leaving the tenant responsible for the remaining 30%.
Is it legal for landlords in California to refuse Section 8 tenants?
No, it is illegal for landlords in California to refuse tenants based solely on their use of Section 8 vouchers. This protection falls under the “source of income” clause in the California Fair Employment and Housing Act (FEHA), introduced by SB329 in January 2020.
What are the penalties for discriminating against Section 8 tenants?
Landlords who discriminate against Section 8 tenants may face legal consequences, including demand letters, lawsuits, and financial settlements. For instance, using language like “No Section 8” in rental listings can result in costly legal actions. Staying informed about fair housing laws is essential to avoid penalties.
What steps should landlords take to comply with Section 8 regulations?
Landlords must follow specific steps to comply with Section 8 regulations, including accepting applications with vouchers, coordinating with the tenant’s caseworker, submitting the Request for Tenancy Approval (RFTA) form, and ensuring the property passes HUD inspections. Starting January 2024, SB267 requires landlords to accept alternative evidence of financial stability if credit history is insufficient.
Why do some landlords hesitate to accept Section 8 tenants?
Some landlords hesitate to accept Section 8 tenants due to misconceptions about the program, such as concerns over bureaucracy, unreliable tenants, or delays in payment. However, Section 8 offers stable rental payments directly from HUD and legal protections against discrimination
How does Section 8 differ from rent control?
Section 8 focuses on providing rental subsidies to low-income households, allowing them to access private housing. Rent control, on the other hand, regulates rent increases for tenants in specific jurisdictions. Many experts argue that improving and expanding Section 8 could be a more effective way to address California’s housing crisis than implementing additional rent control measures.
Steve Welty
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