Some waiting lists are so long that the PHA has to close the waiting list to new applicants. You cannot take shortcuts when dealing with Section 8 tenants because the rent is being paid by the government. While the majority of state laws do not require Section 8 acceptance, many cities and counties have adopted their own HUD housing ordinances. 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. The attorney listings on this site are paid attorney advertising. Will accepting these vouchers help or hurt your business? This, The type of screening they conducted on the tenant, The tenants current and previous addresses (as shown in the PHA records), The names and addresses of the tenants current and previous landlords, if known. Think Twice Before Turning Away Tenants With Section 8 Vouchers 7 burning questions about sunscreen, answered, How Keri Russell sells The Diplomats disaster heroine, On Succession, Sisyphus rolls the rock uphill. A Section 8 tenant is still subject to the same qualifying standards as non-Section 8 tenants. Search online (start by checking the "State Information" section of the HUD website) and contact your local fair housing agency to see if the law protects prospects and tenants based on the fact they have Section 8 vouchers. Prohibiting Discrimination Against Renters Using Housing Vouchers SECTION 8 California Landlords Must Accept Section 8 Applicants!- By Simply put, it was the landlords income, not the tenants. Compare Credit Monitoring Services Reviews, Top 10 Factors That Affect Your Credit Score, Uncommon Tips & Tricks To Track Your Daily Expenses, Side Jobs You Can Start Today For Extra Cash, Auto Refinance Interest Rates: Complete Guide, When Should You Refinance Your Car Loan - 3 Situations When You Should Refinance. Your email address will not be published. Receiving consistent, on-time payments is a top concern for most landlords, and for good reason. Can a First-Time Home Buyer Get a Jumbo Loan? Landlords receive a voucher for fair market rates, while a tenant can find rental housing that better fits within their budget. Accessed Nov. 17, 2020. Any opinions, analyses, reviews or recommendations expressed here are those of the authors alone, and have not been reviewed, approved or otherwise endorsed by any financial institution. Getting a Mortgage With a Smaller Down Payment and No PMI. If any items fail the inspection, they must be remedied, or the housing authority may declare that the unit is unfit for the Section 8 tenant.. However, private landlords are not required to accept Section 8 vouchers and participate in the program, under federal law. We are available 7 days a week to answer your questions and to receive your feedback, ezLandlordForms products and services are reviewed and approved by attorneys, accountants, fellow landlords, or industry experts. , effectively subsidizing the rental cost for the tenant. We are continuously working to improve the accessibility of our web experience for everyone, and we welcome feedback and accommodation requests. 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. Lawmaker Requires Landlords to Accept Section 8 - AAOA The biggest concern that landlords have is about whether or not they can trust tenants with limited income to pay their rent in full in a timely manner. What You Need to Know About How Section 8 Really Works These agencies will have listings of all the landlords in your area that accept Section 8 vouchers. 2. Over half (53%) of renters in urban areas said they cant afford a home in their preferred neighborhood, compared to 45% of suburban renters and 32% of rural renters. A Section 8 tenant who does not meet the credit and background check guidelines may still be rejected (under most circumstances). The standards focus on safety, security and the condition of the property. Federal fair housing laws protect renters from discrimination when renting a home, including Section 8 rentals. This guide is not a substitute for the advice or services of an attorney. To check the rates and terms you qualify for, one or more soft credit pulls will be done by SuperMoney, and/or SuperMoney's lending partners, that will not affect your credit score. According to the Zillow Group Report, only 52% of renters say they would be able to cover an unexpected expense of $1,000 if they had to. Contact a local USDA-RD office for more information. Your property must meet the PHAs minimum standards for health and safety. The family pays the difference between the rent and the subsidy. 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. Can Section 8 vouchers be used anywhere? The program benefits private landlords and tenants. Then, it will be time to landlords who will accept housing vouchers. In Connecticut, Maryland and Massachusetts, for example, landlords may not refuse to rent to current or new tenants who become or are eligible for Section 8 help. Get a free consultation from a leading credit card debt expert. Best States to Buy an Investment Property in Ohio Landlord Spanks Tenant Over Unpaid Rent. Denials in Philadelphia were more frequent in higher-income neighborhoods. But concerns about Section 8 go beyond property damage: the initial approval process can be grueling and fraught with inspections and red tape, and there are required annual property inspections. 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. Even when there are additional laws and protection in place to prevent housing discrimination, no law will require you to accept any tenant that you do not find to be a good fit. The landlord is responsible for collecting this deposit directly from the tenant or from another agency which has agreed to pay the deposit for the tenant. Understanding how Section 8 housing vouchers could play a part in your profits or losses is an important part of becoming a more experienced landlord; heres what we think that you need to know. "Section 4:Unlawful Practices." This will help you find houses and apartments that meet your family's needs and that are well within your budget. The main thing that we would like to emphasize is that you are never required to accept a tenant just because they apply to rent your property and have a special voucher. Private landlords must guarantee that apartments and other rentals will protect the health, safety and security of their residents. Should landlords be able to discriminate based on vouchers? Janet Portman is an attorney and managing editor at Nolo. Once the PHA selects someone for the federal housing program, they select the type of rental that best meets their needs but that also accepts the housing choice voucher. Currently there are 17 states in which landlords are legally mandated to rent to prospective tenants with Section 8 vouchers. See if you qualify for student loan refinancing and compare real time offers. At Vox, we believe that everyone deserves access to information that helps them understand and shape the world they live in. Do Not Sell or Share My Personal Information, How to Avoid Housing Discrimination Complaints and Lawsuits, that includes applicants who have Section 8 vouchers, "State Information" section of the HUD website, how to stay on the right side of fair housing laws when choosing tenants, Do Not Sell or Share My Personal Information. The law also created a mitigation fund for. Section 8 recipients arent forced to live in housing projects or homes that have been designated for low-income residents. How do you get a house approved for Section 8? One hears lots these days about activist judges, usually from quarters that disparage tenant rights, but in the California case, the judges were simply doing their job applying the clear law that the Legislature wrote. And Section 8 [public housing authority] didnt help me at all.. What is Bluesky, and why is everyone on Twitter talking about it? No matter where your rental property is, accepting Section 8 tenants can open the door to a larger group of renters in your area, which can ultimately allow you to fill your vacancy more quickly. When you notify the PHA of a vacancy, it will refer income-qualified applicants to you from its Housing Choice Voucher waiting list for review under your admission standards. This pre-screening process requires local PHAs to provide landlords with: The Section 8 program is extremely popular, especially in urban areas where housing costs are high. Long-Term Rentals: the Pros and Cons 8 Winterizing Tips for Your Home & Rental 5 Ways to Finance Your Next Investment Property. Directly to your inbox. Twelve states, plus dozens of cities ranging from Seattle to Los Angeles, Washington D.C. to Atlanta, Chicago to Philadelphia have all passed laws requiring landlords to accept Section 8 vouchers. As with any other tenant, you must follow the terms of the lease agreement, as well as local landlord-tenant laws, when renting to a tenant with a housing choice voucher. Currently there are 17 states in which landlords are legally mandated to rent to prospective tenants with Section 8 vouchers. 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. Section 8 Participants The Housing Choice Voucher Program (formerly Section 8) provides rental assistance to income-eligible tenants by subsidizing a portion of their monthly rent and utilities and paying it directly to their landlords. In Montana, legislators are attempting to do the same to invalidate the city of Billingss laws. Enforce and comply with the landlord's responsibilities outlined in the lease. Which States Require Landlords To Accept Section 8 In Connecticut, Maryland and Massachusetts, for example, landlords may not refuse to rent to current or new tenants who become or are eligible for Section 8 help. Does refusing section 8 vouchers make sense for the common landlord, or are there benefits to accepting these government-backed housing vouchers? You may evict a Section 8 voucher holder for good cause, which generally includes a serious or repeated violation of the lease agreement. Section 8 housing is the governments largest low-income rental assistance program. Texas has laws that forbid cities and counties from implementing any discrimination bans such as those passed in Chicago. More States & Municipalities Requiring Landlords to Accept Section 8 Landlords are encouraged to screen Section 8 recipients in the same way they would other prospective tenants. So not only will the state refuse to protect very low-income renters from this type of discrimination, but it wont let localities enact protections either. This debate is not a new one, of course. In the past, landlords had the luxury of turning away tenants with Section 8 housing vouchers without much explanation. A landlord is responsible for following the law. 5 million households use federal rental assistance, states where landlords can't refuse to rent, 8 Questions to Ask During the Tenant Screening to Find the Right Renters, How to Make Sure Youre Performing a Fair Tenant Screening. While the government pays 70% of the rent directly each month, the other 30% will still need to be paid by the tenant. Section 8 housing vouchers in New York City will cover at least 60% of your monthly rent costs. Voxs German Lopez is here to guide you through the Biden administrations burst of policymaking. For more information, please consult with an attorney who is familiar with the laws in your area. Connecticut, Maryland and Massachusetts are states where landlords can't refuse to rent to tenants who are eligible for Section 8, according to the American Apartments Owners Association. Your local PHA might also run a rental listing website you can use. That's why we keep our work free. 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. As a Section 8 landlord, you can advertise your rental property on the site. This is not the only way that Section 8 housing works. You must be a U.S. citizen or a non-citizen who has an eligible immigration status. Also, check out Every Landlord's Legal Guide, by Marcia Stewart, Janet Portman, and Ann O'Connell (Nolo) for detailed advice on housing discrimination and how to avoid fair housing lawsuits. How the PHA makes rent payments to the landlord (e.g., by check or direct deposit). Finding out whether youre eligible for a Section 8 housing benefit isnt always easy. Section 8 renters also must comply with the lease, including paying their portion of the rent payment on time and following other rules and regulations. For listings in Canada, the trademarks REALTOR, REALTORS, and the REALTOR logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The best ways to find Section 8 rentals are to check with the PHA in your area and search sites like Rentals.com, where you can filter "income-restricted" properties. An inconclusive result generally means they need more information from the property owner. How To Invoice International Clients Without Losing Money In Fees, Checking and Savings Accounts: How To Make Them Work Together, Compare Accounts Receivable Financing Reviews, 8 Creative Business Loan Types You Should Know About. But some states do. The first and most obvious way to contact Section 8 landlords is through local housing agencies. 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).. Section 8 Housing - Ultimate Guide for Landlords and Tenants The question is when is a landlord obligated to accept these rental payments from a tenant?