Happy Saturday Housing Heroes!
A few weeks ago, we faced an upset client after approving a Section 8 tenant. The reaction was understandable—Section 8 has long been shadowed by stigma and misconceptions, with landlords often assuming it brings bureaucracy and unreliable tenants. For years, a “No Section 8” policy was routine for many housing providers. However, California law now forbids this.
We reminded the client that since January 1, 2020, it’s illegal to deny tenants based on Section 8 or any housing assistance under the “source of income” protection added to California’s Fair Employment and Housing Act (FEHA) by SB329. Nonetheless, many landlords remain unaware of the rule change or fail to understand it fully.
The next day, an OC Register article revealed just how common discrimination remains. In an undercover investigation, over 200 landlords—including well-known real estate companies—were found to have explicitly refused Section 8 tenants, with rejections happening in over half of all interactions.
What is Section 8?
Section 8, also 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’s designed to help low-income individuals and families afford safe, decent housing in the private rental market. Through Section 8, HUD subsidizes approximately 70% of a tenant’s rent directly to the landlord, leaving the tenant responsible for the remaining 30%. This assistance is invaluable for many, yet Section 8 holders often face long waitlists and discrimination.
In California, around 300,000 people hold Section 8 vouchers, with eligibility based on income. Most vouchers are reserved for households earning less than 50% of the area median income—$58,400 in San Diego County or $63,900 in Orange County, for example. For very low-income households, vouchers can cover families of four with incomes as low as $29,250 in Orange County.
Why the Confusion?
Part of the problem is that new rental regulations are popping up frequently, and the complexities pile up fast. The OC Register findings suggest that many landlords may not realize they’re breaking the law.
Take our own experience back in 2020: we refreshed an old listing that still had “No Section 8” language buried in the copy. We quickly received a demand letter from an attorney, and it ended up costing us several thousand dollars to settle.
Steps to Section 8 Compliance
Landlords can streamline Section 8 compliance by following these steps:
- Application & Voucher Submission: Tenants submit applications along with their vouchers and caseworker contact information.
- Adjusted Screening: Under SB267, effective January 2024, landlords must accept alternative evidence of a Section 8 tenant’s ability to pay if credit history is insufficient.
- Caseworker Coordination: Landlords should contact the tenant’s caseworker to begin the approval process.
- RFTA Form Submission: Complete and return the Request for Tenancy Approval (RFTA) form provided by the caseworker.
- Property Inspection: HUD conducts an inspection to ensure the unit meets required standards.
- Lease Finalization & Payment: Once the lease is signed and approved, payments are set up through HUD.
Section 8 vs. Rent Control
While California considers additional rent control measures, many argue that expanding and improving Section 8 would more effectively address housing costs. For example, expediting approvals and increasing funding for higher income limits could help voucher holders more quickly secure housing. Another idea? Incentivizing independence for long-term Section 8 holders through transitional tax credits, giving individuals a path toward financial independence.
For Landlords: Staying updated on new housing regulations and Section 8 requirements is essential to avoiding costly penalties and supporting fair housing practices in California’s complex rental landscape.
Adam, our Sales Manager at Good Life put a video a few years ago talking about section 8.
Just click here or tap the thumbnail below to watch! 👇
|
|
Get A Free Rental Analysis
Are you wondering how to pinpoint the perfect rental price for your property? Setting the right rate isn’t just about covering your expenses, it’s about maximizing your investment while staying competitive in the market.
|
That's it for this week! We hope you enjoyed the content and found it useful. Be sure to check your inbox next Saturday at 6 AM for our next update. Have a fantastic week!
P.S. Please share this newsletter with a friend, so they can stay informed
|
|
Steve Welty
CEO @ Good Life Property Management
DRE #01744610
|
