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. Your rental property must be inspected and approved by the PHA annually. When Can a Tenant Legally Break a Rental Lease? Tenants in positions like yours have used creative arguments to support their theory that the landlord must participate in the program. 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. On its face, source-of-income discrimination is not explicitly banned by the Fair Housing Act, which names race, color, national origin, sex, religion, disability, and familial status as protected groups. While the majority of state laws do not require Section 8 acceptance, many cities and counties have adopted their own HUD housing ordinances. Landlord Responsibilities for Section 8 in Virginia. Some landlords passionately disagree with a legal mandate to accept Section 8 tenants, largely due to fear of major damage done in the rental property. How the PHA makes rent payments to the landlord (e.g., by check or direct deposit). Here are some tips, along with an overview of what housing vouchers are and who's eligible to receive them. We use cookies to ensure that we give you the best experience on our website. Please enter a valid email and try again. The plaintiff, a fair housing nonprofit in Texas, sued four entities on the grounds that their refusal to accept these vouchers disproportionately harmed Black would-be renters. In 2018, the Urban Institute did a pilot study with the Department of Housing and Urban Development looking into how widespread source-of-income discrimination is, and found that landlords often refuse to rent to Housing Choice Voucher (HCV) holders. Denial rates ranged wildly in the cities they studied: Fort Worth, Texas (78 percent); Los Angeles (76 percent); Newark, New Jersey (31 percent); Philadelphia (67 percent); and Washington, DC (15 percent). In fact, you can keep your property full and profitable if you treat Section 8 housing vouchers the right way. Support our mission and help keep Vox free for all by making a financial contribution to Vox today. But a new investing trend could spell trouble. Thats why the federal government offers the Section 8 Housing Choice voucher program, which subsidies rent for very low-income families, as well as elderly and disabled people. Consolidating vs. Not all private landlords accept Section 8. Will accepting these vouchers help or hurt your business? Getting a Business Loan When You Have Bad Credit. Dozens of other landlords and property managers weighed in with fervent opinions on both sides. Buying a home is more out of reach than ever. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2004 - 2022 AAOA.com. Tenants pay the difference between the rent payment and what the voucher covers. If landlords arent required to participate in your area, ask your PHA to give you a list of landlords that do participate and have rental homes available. However, there are some regions and states where there are some limitations about when landlords can and cannot deny an application by a Section 8 voucher holder. The best way to find out about Section 8 requirements for landlords is to contact the local PHA. A public housing agency (PHA) administers the housing choice voucher. In some states and localities, landlords are required to accept Section 8. More than 5 million households use federal rental assistance through the U.S. Department of Housing and Urban Development's Section 8 program, and about 70 percent of those individuals are older people, children and people with disabilities. The rental assistance applies only to U.S. citizens and specific non-citizen groups. Are landlords required to accept Section 8 tenants, or are they able to refuse them? Fair housing prohibits discrimination based on race, color, national origin, religion, sex, familial status and disability. Home Equity Loan vs. Line of Credit: Which Should You Choose? 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. Our tenant screening services have been trusted by over 90,000 landlords & property managers since 2007. However, some fair housing lawyers argue that discriminating against voucher recipients has a disparate impact on protected groups that disproportionately make up the program, such as families with children, Black Americans, and people with disabilities thereby making source-of-income discrimination unconstitutional. How do you get a house approved for Section 8? 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. When prospective tenants ask if you take Section 8, they want to know if you would accept part of their rent through the Housing Choice Voucher Program (still commonly known as the tenant-based Section 8 program). In the latter circumstance, a landlord could not legally refuse to rent to a conservatee whose support was channeled through a conservator. Zillow, Inc. does not guarantee that the information in this guide is adequate or that it is compliant with current, applicable laws. Sharita, a Section 8 voucher recipient who lives in Memphis, Tennessee, with her six children, told me earlier this year that shes experienced frequent discrimination. To find apartments and other rentals owned by private landlords that accept Section 8 vouchers, follow these steps: Section 8 allows private landlords to accept housing vouchers and rent to low-income people at a fair market rate. This is actually part of a federal statutory rental subsidy scheme found in Title 42 of the United States Code, Section 1437 (f). Alert. Have more questions about being a landlord? 7 burning questions about sunscreen, answered, How Keri Russell sells The Diplomats disaster heroine, On Succession, Sisyphus rolls the rock uphill. Federal fair housing laws protect renters from discrimination when renting a home, including Section 8 rentals. "Rent Reasonableness," Page 3. If a family already occupies a home that meets those standards and the landlord accepts Section 8 vouchers, the family can use their Section 8 benefit to stay in that home. Your email address will not be published. You will need to determine if low vacancy rates make up for the lower price point. But, said the lawmakers, a landlord is no such representative. Waiting periods to apply and be approved. All Rights Reserved. A Section 8 renter can't live there otherwise. Discover your lowest eligible rate. Nevertheless, landlords and property managers should keep an eye out for local Section 8 mandates, as more jurisdictions adopt the mandate around the country. Also known as HUD housing, this program grants vouchers to tenants that act as a guarantee that the program will pay 70% of the rent while the tenant will be responsible for the other 30%. After approval, you may get wait listed. The real test is the Housing Quality Inspection. Short-Term vs. These jurisdictions are: States with SOI Discrimination Protection for Section 8 Housing Choice Voucher Holders Connecticut District Of Columbia Maine Massachusetts New Jersey New York North Dakota Oklahoma Oregon Vermont Washington2 Counties with SOI Discrimination Protection for Section 8 Housing Choice Voucher Holders Marin County, CA How to Get a Reverse Mortgage: 3 Steps to Getting an HECM. Currently 15 states, now including Washington, ban housing discrimination based on a person's source of income; four others use tax and other incentives to persuade landlords to accept public. There are sound reasons to say yes as well as some downsides to consider. Some landlords rent to Section 8 tenants by choice, and others do not have a choice. For example, immediate family members might be prohibited while distant cousins might be okay. In most areas, landlords are not required to accept Section 8 tenants. And Section 8 [public housing authority] didnt help me at all.. You can also find some specific information about each states rules on the HUD website. Also, the tenant may be responsible for paying a portion of the monthly rent. Some states require private landlords to accept vouchers. The program assists not only low-income families but low-income elderly and disabled tenants as well. To begin receiving Section 8 tenants, start by contacting your local PHA to inquire about Section 8 housing landlord requirements. Voxs German Lopez is here to guide you through the Biden administrations burst of policymaking. Denials in Philadelphia were more frequent in higher-income neighborhoods. It allows recipients to choose their own home as long as the landlord participates in the program as well. While Section 8 pays part of the rent to make finding a place to live much more affordable, it doesn't cover everything. Apartments and other rentals that accept Section 8 must pass an inspection by HUD and the local PHA. Each state has its own housing authority office, and many cities and counties also have their own PHAs. 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. While we cannot list every single area as there are too many, we can cover some of the most well-known exceptions: All in all, there are 15 states that have some type of rules about Section 8 housing or income-based housing discrimination at this time. With a bachelors degree in English from UCLA and MBA from Pepperdine University in Malibu, Geffner has impressive credentials in both story-telling and business management. You can also find some specific information about each states rules on the, Low vacancy rates because of the high demand for HUD-friendly properties, 70% of rent paid directly by the government; no risk, Tenants pre-approved by the PHA before receiving their voucher, 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. Zillow (Canada), Inc. holds real estate brokerage licenses in multiple provinces. 442-H New York Standard Operating Procedures New York Fair Housing NoticeTREC: Information about brokerage services, Consumer protection noticeCalifornia DRE #1522444Contact Zillow, Inc. You must give the tenant an eviction notice, such as a notice to vacate, under local law. 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. Colorado state law does not currently prohibit local cities from passing legislation for SOI mandates. US home building jumped higher in February, turning around after five consecutive months of Are you a landlord dealing with a tenant withholding rent? Get a free consultation from a leading tax expert, Compare Business Checking Accounts Reviews. Long-Term Rentals: the Pros and Cons 8 Winterizing Tips for Your Home & Rental 5 Ways to Finance Your Next Investment Property. Do Private Student Loans Have a Statute of Limitations? To begin receiving Section 8 tenants, start by contacting. In some cases, a PHA may allow a family to use a Section 8 benefit topurchasea modestly priced home. On Friday, Reynolds and the Republican-controlled Iowa legislature enacted a bill that will have the state join Texas and Indiana in barring localities from enacting laws that stop landlords. Landlords may have difficulty getting rents paid on time by the local public housing authority and often the unit inspections can be an inefficient and arduous process. For the lucky few who do make the cut, its not a one-way ticket to a home. A second-generation native of Los Angeles, Geffner now lives in Ventura, California, a surf city northwest of her hometown. 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. Another great way to find Section 8 landlords is . To be eligible, a family can't earn more than 50 percent of the area's median income. Marcie Geffner is an award-winning freelance reporter, editor, writer and book critic. Would love your thoughts, please comment. Renters pay their portion directly to the private landlords that accept Section 8. 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. Each week, we explore unique solutions to some of the world's biggest problems. According to the Center on Budget and Policy Priorities, 5.2 million people nationwide receive vouchers from the program that cover some portion of their rent. Youll need to contact the PHA where you currently live and the PHA in your new city to arrange a transfer of your benefit. Back Whether its okay to rent to family members who receive Section 8 benefits and, if so, which family members are allowed. Before we get into the pros and cons of accepting Section 8 tenants, lets review what section 8 is and how it may affect your business. Provide a clean and safe living environment. Section 8 is the United States Department of . Receiving consistent, on-time payments is a top concern for most landlords, and for good reason. The standards focus on safety, security and the condition of the property. Therefore, the City of Boulder and the City and County of Denver recently passed ordinances requiring local Landlords to accept all legal sources of income, including Section 8 vouchers. Theres a lot of evidence that Section 8 vouchers reduce homelessness and alleviate poverty. These include rental assistance and self-help housing loans for low-income individuals and families. Federal Register. All products, logos, and company names are trademarks or registered trademarks of their respective holders. Ecuadors political instability, explained, In Sudan, the US government finally begins evacuating its citizens. Your listing will appear on Zillow, Trulia and HotPads. Here is what you need to know about living in Section 8 housing: No matter what, always pay . 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).. What Are The Different Types of Life Insurance? Once you've been approved for the program, the next step is to find houses and apartments that accept Section 8 vouchers. The Department of Housing and Urban Development website. Return to Zillow.com. Housing Choice Vouchers are available to low-income individuals and families who are U.S. citizens or in a specified category of noncitizens who have eligible immigration status. Perhaps, in the very near future, it wont even be relevant if the federal government follows the lead of municipalities like Cook County, Illinois, where Section 8 voucher holders were recently made a protected class in anti-discrimination laws. Section 8 is a huge help to many renters struggling to find a place that they can afford. The Section 8 program determines how much to pay private landlords based on several factors, including how much apartments and houses typically rent for in the area, and the PHA determines the maximum amount they'll pay. This usually focuses on a background check and credit check to learn about the individual's criminal history and rental history. Receiving consistent, on-time payments is a top concern for most landlords, and for good reason. Rentals.com is part of the RentGroup Network of Sites. But when it comes to the U.S. housing market, we can look to the past to get a Average landlord costs are up and revenue is down across New York Citys 1 million rent-stabilized After three years of research, the city is finally deciding what to do about Airbnbs, Vrbos, and other Evictions dont just take a toll on displaced families, they put the safety of entire communities at Rosenberg & Estis, P.C. Landlords also have certain rights, such as the right to timely rent payments and for reimbursement of costs for property damage beyond normal wear and tear. While the Section 8 program isnt a great fit for every landlord, there are some key advantages that might make you consider joining and renting to Section 8 tenants. When prospective tenants ask if you take Section 8, they want to know if you would accept part of their rent through the Housing Choice Voucher Program (still commonly known as the tenant-based Section 8 program). How Can You Deal With Multiple Offers From Tenants (and Pick the Best One)? Also known as HUD housing, this program grants vouchers to tenants that act as a guarantee that the program will pay 70% of the rent while the tenant will be responsible for the other 30%. How landlords can apply and be approved to accept Section 8 residents if acceptance isnt required by law. 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. Becoming a Section 8 landlord can open up a new group of renters to you. Enforce and comply with the landlord's responsibilities outlined in the lease.

Irrevocable Payment Undertaking Sample, Articles S