Section 8 Housing - Ultimate Guide for Landlords and Tenants Use that information to make your choice. "Chapter 10 Housing Quality Standards," Page 27. SB 329 redefines source of income as "lawful, verifiable income paid directly to a tenant or to a representative of a tenant, or paid to a . Does refusing section 8 vouchers make sense for the common landlord, or are there benefits to accepting these government-backed housing vouchers? One example is the U.S. Department of Agriculture (USDA) Rural Development (RD) division, which offers several programs in rural areas. Many apartments and houses around the country will accept Section 8 as long as they meet the federal government's rules and regulations. The PHA will review your lease and limit how much rent you can charge based on market rents for comparable properties in your area. Martha Galvez, one of the authors of the Urban Institute study, explained why landlords are discriminating: Theres a lot of reasons why landlords dont want to accept vouchers. The simple fact is that all tenants, regardless of where their income is sourced from, need to be thoroughly screened to help ensure that, If youre interested to know more about becoming a HUD landlord, you can check out our complete guide to becoming one. Here are the top four benefits of being a Section 8 landlord. Alas, you may not live in one of these four states. Median incomes vary, sometimes dramatically, from one area to another. Note: these rights exist regardless of a rental . Youll need to complete an application and provide documentation that the PHA will use to verify your household income. In the right situation, however, tenants that have hit hard times will have a Section 8 housing voucher they can use to rent approved properties. This is not the only way that Section 8 housing works. Short-Term vs. But a new investing trend could spell trouble. Many landlords do not initially realize that there are a large number of good reasons to review Section 8 applicants with a positive eye. "Chapter 10 Housing Quality Standards," Pages 25-26. For example, if the rent is $1000 a month, the tenant may be responsible for paying $50. The form must be signed and dated by both you and the tenant. HUD's Housing Choice Voucher Program, also known as Section 8, helps low-income people afford homes to rent, whether it's an apartment, single-family house or townhouse. All products, logos, and company names are trademarks or registered trademarks of their respective holders. If youre thinking about. 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Hidden tears and suppressed emotions are probably not expressions often associated with landlords unless describing efforts to remain calm after seeing their once-pristine, one-year-old property destroyed. The court pointed out that the subsidy paid to the landlord was not income to the tenant it was money that went from the federal government to the local housing authority, and then to the landlord. Here are the top four benefits of being a Section 8 landlord. You must give the tenant written notice of the grounds for eviction before or upon commencement of the eviction action. For example, Chicago's municipal code includes a housing discrimination ban based on source of income that includes applicants who have Section 8 vouchers. In March 2020, the Supreme Court declined to consider a case that would have required landlords to accept Section 8 vouchers. Private landlords must guarantee that apartments and other rentals will protect the health, safety and security of their residents. Receiving consistent, on-time payments is a top concern for most landlords, and for good reason. If youre interested to know more about becoming a HUD landlord, you can check out our complete guide to becoming one here. Erin Eberlin is a real estate and landlord expert, covering rental management, tenant acquisition, and property investment. Just because a landlord accepts Section 8 doesnt mean that he or she has to approve anyone who receives this benefit as a tenant. She specializes in landlord/tenant law and is co-author of Every Landlords Legal Guide and Every Tenants Legal Guide. She can be reached at [emailprotected]. Best States to Buy an Investment Property in Ohio Landlord Spanks Tenant Over Unpaid Rent. in urban areas said they cant afford a home in their preferred neighborhood, compared to 45% of suburban renters and 32% of rural renters. Once a Section 8-qualified renter signs a lease at an approved residence, the PHA pays a portion or the entirety of the rent directly to the landlord or property manager, effectively subsidizing the rental cost for the tenant. Get a free consultation from a leading tax expert, Compare Business Checking Accounts Reviews. The General Court of the Commonwealth of Massachusetts. Copyright 2023 MH Sub I, LLC dba Nolo Self-help services may not be permitted in all states. If the unit does not comply with any item on their list of performance standards, the problem must be fixed within a set time frame. Before you follow a policy of turning away prospects with Section 8 vouchers, you should first take a moment to find out whether what you're doing is legal. If Californias notoriously rancorous state Legislature wants to require participation in Section 8, it can do what other states have done and say so directly. Many tenants receive rental assistance through a federal program referred to as "Section 8". For more information on accepting section 8, check out this video: Ultimately, the thing that matters most about Section 8 housing is not whether or not you are required to accept these vouchers. Section 8 tenants tend to occupy the same home long term, in part because it can be a hassle for them to get permission from the PHA to move or because they are elderly or disabled and may have difficulty moving. They should be able to guide you through the application process. But there are some challenges that come up when living with a voucher that folks regularly brought up. The landlord uses the Section 8 benefit to collect the subsidizes portion of the rent from the PHA. A Section 8 tenant who does not meet the credit and background check guidelines may still be rejected (under most circumstances). refers to a specific part of the national housing code that helps struggling tenants pay for housing. In some cities, landlords are required to accept Section 8. Personal Loan Vs. Line Of Credit: Which Is Better? There are two types of housing choice vouchers: project-based vouchers and tenant-based vouchers. So, after you learn whether your state or local fair housing law bars discrimination against applicants with Section 8 vouchers, follow some tips to avoid accusations. Many landlords have historically declined to accept prospective tenants holding vouchers issued pursuant to the Section 8 Housing Choice Voucher Program ("Section 8"). To accept Section 8, private landlords must have their apartments and other properties approved by HUD. Still, many renters may not know where to look to find private landlords that accept housing vouchers. Certain states, such as Massachusetts, require that all landlords accept Section 8 tenants. You need to know if this is a requirement in your state so that you are not accused of violating the law if you refuse to rent to tenants with these vouchers. In order to help allay the state's housing crisis, California implemented Senate Bill 329, authored by Los Angeles Democratic State Senator Holly Mitchell and signed into law by Governor Gavin Newsom, at the beginning of 2020 to require landlords and property management companies to accept Section 8 housing vouchers as an income source from . After getting your initial questions answered, you can follow these general steps: Once your application is approved, the housing authority will set up an inspection to visit your property and make sure it meets, Under the Section 8 rules, owners may screen tenants for factors such as payment of rent; care for the rental unit and premises; respect for other tenants rights to the peaceful enjoyment of their premises; and drug-related criminal activity or other criminal activity that is a threat to the health, safety or property of others. Proposed State Bill Says Landlords Couldn't Be Required To Take Section 8 You cannot take shortcuts when dealing with Section 8 tenants because the rent is being paid by the government. Fair housing prohibits discrimination based on race, color, national origin, religion, sex, familial status and disability. Public housing agencies determine eligibility for Section 8 vouchers based on a household's income and the number of family members living in the home. Landlords receive a voucher for fair market rates, while a tenant can find rental housing that better fits within their budget. Your rental property must be inspected and approved by the PHA annually. Zillow, Inc. does not guarantee that the information in this guide is adequate or that it is compliant with current, applicable laws. PHAs are required to give 75% of their Section 8 vouchers to people whose income is less than 30% of the median income for their household size in the county or metropolitan area where they choose to live. Section 8 is the United States Department of . A second-generation native of Los Angeles, Geffner now lives in Ventura, California, a surf city northwest of her hometown. Other landlords have an implicit bias against those that use vouchers, and they falsely believe that these tenants will be more likely to cause property damage than other tenants. She also says that the public housing authoritys rules were confusing and difficult to comply with, inside the short window she was given to find housing before the voucher expired. Rental Agreements: What's the Difference? Your email address will not be published. Some waiting lists are so long that the PHA has to close the waiting list to new applicants. The real test is the Housing Quality Inspection. A portion of the tenants rent is paid by the U.S. government, so the rent payment is essentially guaranteed. What Does Equal Housing Opportunity Mean? By submitting your email, you agree to our, Iowa is making it harder to be a low-income renter. Would love your thoughts, please comment. A landlord is never required to accept a tenants application, but many areas will require you to treat a Section 8 tenants application with the same respect that you would treat any other application. Her work has appeared in The New York Times, The Guardian, Good Housekeeping, HuffPost, Parade, Money, Business Insider, Realtor.com and lots more. It hurts. Something went wrong. Regardless of who you are screening as a Section 8 landlord, you must never engage in any discriminatory conduct, and you must treat all housing applicants equally. The PHA receives funds to distribute from the U.S. Department of Housing and Urban Development (HUD). Buying a home is more out of reach than ever. To learn more or opt-out, read our Cookie Policy. Household size refers to the number of people who live in the home. According to the Iowa Capital Dispatch, state Rep. David Deyoe, the floor manager for the bill Reynolds just signed, argued, We have some landlords that just simply would rather not have to get involved with the extra paperwork or inspections or changes to their apartments or whatever else might come around because of (accepting federal vouchers)..