The standards focus on safety, security and the condition of the property. You must be a U.S. citizen or a non-citizen who has an eligible immigration status. In other cities, accepting Section 8 is optional for landlords. Household size refers to the number of people who live in the home. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). You cannot take shortcuts when dealing with Section 8 tenants because the rent is being paid by the government. But source-of-income discrimination laws are only as good as their enforcement. However, private landlords are not required to accept Section 8 vouchers and participate in the program, under federal law. Consolidating vs. The federal law that established Section 8 does not require landlords to participate in the program. 4. Section 8 housing is the governments largest low-income rental assistance program. ezLandlordForms is not a law firm and our products and services are not a substitute for the advice of an attorney. While the government pays 70% of the rent directly each month, the other 30% will still need to be paid by the tenant. The HUD has a website that prospective tenants can use to, It is important to follow proper protocol when. The housing authorities will contact you once you reach the top of the list. Landlords Forced to Accept Section 8. 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. 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. Becoming a Section 8 landlord can open up a new group of renters to you. 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. SuperMoney.com is an independent, advertising-supported service. April 24, 2023. (If you own multiple properties in different states, counties, or towns, be sure to check the law for each location.) Will having the worlds biggest population make this the Indian Century? 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. Would-be Section 8 tenants can attempt to extend that ban to subsidies to the landlord from the government under Section 8. Local city or county PHAs typically issue and administer Housing Choice Vouchers, although some state PHAs do as well. 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. Federal fair housing laws protect renters from discrimination when renting a home, including Section 8 rentals. As a result, many low-income families turn to housing vouchers to help cover the cost of the rent. 1. This portion must be paid directly to you by the tenant, so it is your responsibility to make sure you receive it. "Chapter 10 Housing Quality Standards," Page 27. Do Landlords Have to Accept Section 8? - FindLaw These include rental assistance and self-help housing loans for low-income individuals and families. Sign up to receive our newsletter each Friday. How much landlords can collect from the tenant as a security deposit. The attorney listings on this site are paid attorney advertising. Some states require private landlords to accept vouchers. Some PHAs give priority to certain applicants, such as people who are homeless, living in substandard housing, paying more than half their income for rent, or were evicted without cause. I couldnt eat, crying every day, and I was constantly calling, calling, calling, and it was so hard, Sharita said. This is part of a trend of Republican states preempting laws made by their more liberal cities from being enacted or enforced. This article is provided for informational purposes only. Of the five cities they studied, Newark, Washington, and Philadelphia all had source-of-income discrimination laws. Now, Iowa Gov. Landlord Responsibilities for Section 8 in Virginia. How To Find Private Landlords That Accept Section 8 Near Me 2023? Housing Choice Voucher Program Section 8 Read our, Find Out If You're Required to Accept Section 8 Tenants, Pass Housing Quality Standards Inspection/Pass Yearly Inspections, Collect Security Deposit and Monthly Rent, A Tenant's Responsibilities Under the Section 8 Voucher Program. Landlords Forced to Accept Section 8 - AAOA 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. SB 329. 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 HUD has a website that prospective tenants can use to find qualifying low-income housing. Something went wrong. , effectively subsidizing the rental cost for the tenant. You can also contribute via. 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 Landlords may raise the concern that waiting for a PHA to inspect a unit and process required paperwork leaves a unit vacant longer than if they rented to a market-rate tenant. Receiving consistent, on-time payments is a top concern for most landlords, and for good reason. Personal Loan Vs. Line Of Credit: Which Is Better? This is actually part of a federal statutory rental subsidy scheme found in Title 42 of the United States Code, Section 1437 (f). To apply for Section 8, contact your local PHA office or HUD office. However, private landlords must charge Section 8 renters the same as other renters for comparable apartments. Many renters know that finding affordable housing is tricky these days. 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%. Sign up for the In Nebraska, abortion rights are safe for now. Getting a Mortgage With a Smaller Down Payment and No PMI. The program assists not only low-income families but low-income elderly and disabled tenants as well. Accessed Nov. 17, 2020. After getting your initial questions answered, you can follow these general steps: To begin the Section 8 landlord qualification process, contact your local PHA for the paperwork. How do you get a house approved for Section 8? Required fields are marked *. 3. Get helpful tips and articles on our. There is evidence that landlords have valid (nondiscriminatory) reasons for not wanting to participate in Section 8 housing working with the government to make sure your property fits the requirements can be onerous and frustrating. Discover your lowest eligible rate. The PHA receives funds to distribute from the U.S. Department of Housing and Urban Development (HUD). Joshua Nostradamus, we are not. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Erica Sweeney is a freelance journalist and landlord who covers real estate, business, health, wellness and many other topics. The amounts are updated annually, so be sure to search for the current year. 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 PHA will verify your monthly income with your employer and determine whether you're eligible and the amount of Section 8 funds you'll receive in housing assistance. You can also find some specific information about each states rules on the HUD website. The bill also says that Landlord's woul. Then, it will be time to landlords who will accept housing vouchers. Currently there are 17 states in which landlords are legally mandated to rent to prospective tenants with Section 8 vouchers. Select a Section 8 Tenant 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. 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. Pros and Cons of Refinancing Your Mortgage, Questions to Ask Before Refinancing Your Mortgage, SuperMoney's Student Loan Refinance Marketplace, How To Get The Best Student Loan Refinance Rates. required to accept Section 8 tenants. 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 . How and when a lease can be terminated or not renewed, and what notification must be given to the tenant in such situations. This is not the only way that Section 8 housing works. Rental Agreements: What's the Difference? A public housing agency (PHA) administers the housing choice voucher. Could it also require landlords to accept Section 8 housing vouchers? A Section 8 tenant cannot live in your property until your property is approved by the Section 8 office. If youre tired of renting and ready to become a homeowner, start by comparing mortgage lenders today. Why You Need to Make Sure Your Tenants Security Deposit Is Returned on Time, Do Not Share or Sell My Personal Information, Start with your local PHA, which can point you in the direction of property owners that accept vouchers. Think Twice Before Turning Away Tenants With Section 8 Vouchers This guide is not a substitute for the advice or services of an attorney. Who is eligible for Section 8 housing assistance? During the video, he explains why he will not show the viewing audience his face amidst the rubbish: because I dont want you to see a grown man cry, he says as he walks from room to room panning the damages in each. The landlord uses the Section 8 benefit to collect the subsidizes portion of the rent from the PHA. SuperMoney strives to provide a wide array of offers for our users, but our offers do not represent all financial services companies or products. Enacted in the early 1970s, this program is managed by the Department of Housing and Urban Development. In the past, landlords had the luxury of turning away tenants with Section 8 housing vouchers without much explanation. Note:This article is provided for informational purposes only. To be eligible, a family can't earn more than 50 percent of the area's median income. Accessed Nov. 17, 2020. . newsletter, According to the Center on Budget and Policy Priorities, Sign up to receive our newsletter each Friday, According to the National Multifamily Housing Council, barring localities from enacting laws that stop landlords from discriminating, barred localities from enacting certain housing reforms, looking into how widespread source-of-income discrimination is, that would have required landlords to accept Section 8 vouchers. That means landlords cant advertise No Section 8 or treat Section 8 recipients differently. By clicking Accept All Cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Copyright 2006-2022, ezLandlord, Inc. All Rights Reserved. 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. Do Landlords Have To Accept Section 8? (Rules and Benefits) - RentPrep If youre thinking about becoming a Section 8 landlord, here are the steps to get started and a few pros and cons to consider. In places where landlords are allowed to discriminate against Section 8 recipients, they have a choice of whether to rent to those tenants or not. 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. In Philadelphia, 67% of landlords polled would not accept vouchers. While youll still want to exercise your right to screen Section 8 tenants, housing authorities will also screen tenants when qualifying them for vouchers. Please switch to a supported browser or download one of our Mobile Apps. Prohibiting Discrimination Against Renters Using Housing Vouchers Section 8 is a huge help to many renters struggling to find a place that they can afford. The real test is the Housing Quality Inspection. But just because a prospect asks such a question doesn't mean the answer is up to you. 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. Compare real offers from multiple lenders. 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). The Department of Housing and Urban Development website. 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. And in New Jersey, when an existing tenant becomes eligible for Section 8 help, the landlord may not refuse to accept Section 8 money. Accessed Nov. 17, 2020. These rights vary by state but always include the tenant's right to a habitable premises, due process before an eviction and more. You can also contact your local PHA (see below) for more information on what the median income is for a household the size of yours in your area. A Section 8 renter can't live there otherwise. If youre interested to know more about becoming a HUD landlord, you can check out our complete guide to becoming one here. Comply with terms of the Housing Assistance Payments or HAP Contract. Directly to your inbox. Denver's New "Source of Income" Ordinance A sample form can be viewed on the HUD website. All Rights Reserved. An inconclusive result generally means they need more information from the property owner. Some states require private landlords to accept vouchers. Why Should You Get a Business Credit Card? Some have to do with stereotypes about families that have vouchers and some parts of it have to do with landlords experiences with housing authorities and dealing with the government as a partner in your lease.. Bill would prohibit Ohio landlords from turning away renters based on Long-Term Rentals: the Pros and Cons 8 Winterizing Tips for Your Home & Rental 5 Ways to Finance Your Next Investment Property. Your household income must be less than 50% of the median income for a household of the same size in the county or metropolitan area where you want to live. 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. The state has passed a law allowing landlords to engage in the last (mostly) legal form of housing discrimination. A landlord is responsible for following the law. That means private landlords must handle repairs and maintenance, as stated in the lease. Not all private landlords accept Section 8. *SuperMoney is not responsible for third party products, services, sites, recommendations, endorsements, reviews, etc. Sometimes, youll meet a potential tenant that you really like, but they just cant afford the rent at your property so you have to let their application pass by. refers to a specific part of the national housing code that helps struggling tenants pay for housing. Accessed Nov. 17, 2020. Copyright 2023 MH Sub I, LLC dba Nolo Self-help services may not be permitted in all states. Youll need to contact the PHA where you currently live and the PHA in your new city to arrange a transfer of your benefit. The program assists not only low-income families but low-income elderly and disabled tenants as well. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. The rental assistance applies only to U.S. citizens and specific non-citizen groups. 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. More States & Municipalities Requiring Landlords to Accept Section 8 Tenants, first-time landlord offered up video footage. Hendren estimates that the lifetime benefit to a newborn child of moving from a low- to high-opportunity neighborhood is about $210,000 in additional income, or an 8.1 percent increase in lifetime earnings. Even in Washington, where the researchers found the least amount of discrimination, the Equal Rights Center still found 130 advertisements that stated no vouchers accepted or no Section 8 (essentially writing out we are doing crimes here), indicating that some landlords are either unaware of the law or are confident that they will get away with breaking it. The question is when is a landlord obligated to accept these rental payments from a tenant? 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. Iowas move will likely make it even harder for Section 8 recipients to find housing, and it could be opening the door to discrimination based on race, disability, and familial status. "Chapter 10 Housing Quality Standards," Pages 25-26. 7 burning questions about sunscreen, answered, How Keri Russell sells The Diplomats disaster heroine, On Succession, Sisyphus rolls the rock uphill. Which Account Fits You Best? The trademarks MLS, Multiple Listing Service and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. Avoid These Costly Mistakes, Compare Specialty Homeowners Insurance Reviews, Expert Strategies to Invest in Real Estate, How To Start Investing with $1,000 or Less, Investment Strategies to Start Building Wealth, Finding the Right Investor for Your Startup, Strategies On Increasing Your Current Income, How To Manage Your Personal Finances Successfully, Retirement Savings: Making Up for Lost Time. Median incomes vary, sometimes dramatically, from one area to another. Please enter a valid email and try again. The flipper touts the high rent and guaranteed on-time payment, knowing the tenant was not screened and the property is in poor shape under the new carpet and fresh coat of paint. Support our mission and help keep Vox free for all by making a financial contribution to Vox today. Instead, you should think about HUD housing from the business side of things. Your listing will appear on Zillow, Trulia and HotPads. 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. Alas, you may not live in one of these four states. A portion of the tenants rent is paid by the U.S. government, so the rent payment is essentially guaranteed. 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. With the Section 8 program, you can be virtually assured you will receive the PHAs portion of the rent on time (subject to congressional appropriations). While youll still want to exercise your right to screen Section 8 tenants, housing authorities will also screen tenants when qualifying them for vouchers. Vouchers are typically worth the difference between 30% of a households income and the rent price, up to either the published fair market rent ceiling or the comparable unassisted rent determined by the PHA (whichever is less). The Section 8 program verifies a renter's income before approving them for the program. Project-based vouchers must use specific housing developments. 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. Low-income individuals and families have a choice in housing. "Rent Reasonableness," Page 3. Everything Landlords Need to Know About Section 8 in Virginia Landlords receive a voucher for fair market rates, while a tenant can find rental housing that better fits within their budget. In the latter circumstance, a landlord could not legally refuse to rent to a conservatee whose support was channeled through a conservator. 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. May 5, 2021. You can use tenant-based vouchers for any home, as long as the owner will accept the voucher and the property meets the program requirements. And, they can only raise the rent once a year. If you're required to take Section 8, keep these pointers in mind: If you discover that you're not required to take Section 8 and can follow your own policy, these tips can help you avoid fair housing trouble: The Rental Applications section of Nolo.com includes several useful articles on how to stay on the right side of fair housing laws when choosing tenants. What is Bluesky, and why is everyone on Twitter talking about it? Landlords don't have to take Section 8 rent vouchers, 8th Circuit says Even if the unit has passed the firstSection 8 inspection, it must pass this yearly inspection for the tenant to continue living in the property. Austin, TX passed a similar ordnance, which was challenged by the Austin Apartment Association. Get a free consultation from a leading credit card debt expert. You just need to find homes that accept the voucher. The U.S. Department of Housing and Urban Development (HUD) provides funds to local public housing agencies, or PHAs, who in turn issue vouchers to qualifying renters. 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. Denver's SOI ordinance took effect January 1, 2019. 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. For example, if the rent was $2,000 per month and the Section 8 benefit covered $1,700 per month, the family would pay the landlord $300 per month. The length of a waiting list depends on location. "Last year, we had 19,000 evictions filed in the state of Iowa. 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. But some states do. that prohibits landlords from denying or refusing to accept applications from those who utilize public assistance. They should be able to guide you through the application process. What KInd Of Credit Do You Need For An Auto Loan? Its a familiar refrain to low-income renters searching for a place to live. 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. 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. Normally, this prohibition prevents a landlord from refusing to rent to someone who receives Supplemental Security Income (SSI) payments, alimony or money from any other legitimate source. Your email address will not be published. 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. Tenants in positions like yours have used creative arguments to support their theory that the landlord must participate in the program. How to Find Landlords That Accept Housing Vouchers The inspection and, if necessary, the repair process can take a while. Requirements vary depending on your area, so inquire with your local PHA prior to inspection to make sure your property will meet the criteria. An argument of just this kind was recently settled by an appellate court in California, which has a ban on source-of-income discrimination. In March 2020, the Supreme Court declined to consider a case that would have required landlords to accept Section 8 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 . Importantly, the researchers also discovered that landlords were the most likely to discriminate in wealthier areas, which has the effect of concentrating poverty and forcing voucher recipients to live in less desirable neighborhoods with worse outcomes for children. 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. Erin Eberlin is a real estate and landlord expert, covering rental management, tenant acquisition, and property investment. Changes in the law may or may not impact landlords' rights regarding acceptance of Section 8 participants. Simply put, it was the landlords income, not the tenants. For example, Chicago's municipal code includes a housing discrimination ban based on source of income that includes applicants who have Section 8 vouchers.