Just because a landlord accepts Section 8 doesnt mean that he or she has to approve anyone who receives this benefit as a tenant. And in New Jersey, when an existing tenant becomes eligible for Section 8 help, the landlord may not refuse to accept Section 8 money. 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. Each week, we explore unique solutions to some of the world's biggest problems. How Prepaid Debit Cards Can Help You Budget, Compare Credit Counseling Services Reviews, Expert Tips On Repairing Your Credit Score, Re-Establishing and Restoring Your Credit, Compare Debt Settlement Companies Reviews. Texas: Texas has laws that forbid cities and counties from implementing any discrimination bans such as those passed in Chicago. The form must be signed and dated by both you and the tenant. Theres a lot of evidence that Section 8 vouchers reduce homelessness and alleviate poverty. 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. Under the program, the government pays a portion of your rent. 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 from discriminating against Section 8 renters. But some states do. This debate is not a new one, of course. Enforce and comply with the landlord's responsibilities outlined in the lease. You must be a U.S. citizen or a non-citizen who has an eligible immigration status. Best States to Buy an Investment Property in Ohio Landlord Spanks Tenant Over Unpaid Rent. Consolidating vs. Post your listing quickly and easily! Instead, this program covers a wide assortment of houses, townhomes, and apartments in a variety of neighborhoods. Landlords are encouraged to screen Section 8 recipients in the same way they would other prospective tenants. In some cities and states, its illegal for landlords to discriminate against people who receive Section 8 benefits. Although some states do require that landlords accept Section 8 tenants, a landlord does not have to accept every Section 8 tenant. 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. 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. As a landlord, you could face liability whether or not you must comply with a discrimination ban. When Can a Tenant Legally Break a Rental Lease? For the lucky few who do make the cut, its not a one-way ticket to a home. The first and most obvious way to contact Section 8 landlords is through local housing agencies. 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. Why Should You Get a Business Credit Card? It is important to follow proper protocol when evicting a tenant. Buying a Mobile Home: What You Need to Know, Compare Motorcycle and ATV Insurance Reviews, Compare Personal Watercraft Insurance Reviews, Considering Renters Insurance? A Section 8 tenant who does not meet the credit and background check guidelines may still be rejected (under most circumstances). 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. 1. 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. U.S. Department of Housing & Urban Development. But some states and municipalities do, often as part of a broader ban on "source of income" or "public assistance status" under the state or local fair housing law. The attorney listings on this site are paid attorney advertising. Generally speaking, the familys income may not exceed 50% of the median income (adjusted for family size) for the area where they reside. HUDs website includes a searchable database of median incomes in the U.S. Your local PHA might also run a rental listing website you can use. Do you write "No Section 8" in your apartment ads, or you do you tell inquiring prospects that you don't "take 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. The HUD has a website that prospective tenants can use to, It is important to follow proper protocol when. There may be validity to this claim, but unit inspections ensure the safety of rental units and policymakers are unlikely to be persuaded that safety inspections should . A landlord is responsible for following the law. If a landlord is renting to Section 8 tenants, the landlord must still follow the statewide landlord-tenant law, but must also follow additional rules placed on them by the Section 8 program. However, participating in this federal affordable housing program requires enduring long waiting times and many restrictions on the type of unit you can rent. 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. In some states, the information on this website may be considered a lawyer referral service. These rights vary by state but always include the tenant's right to a habitable premises, due process before an eviction and more. Here are some tips, along with an overview of what housing vouchers are and who's eligible to receive them. 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. A sample form can be viewed on the HUD website. Some states require private landlords to accept vouchers. 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. Now that weve gotten our refresher course about Section 8 housing, lets get into todays main topic: Are landlords required to accept Section 8 tenants? The phrase Section 8 Housing refers to a specific part of the national housing code that helps struggling tenants pay for housing. Meanwhile, your property may be vacant and your expected tenant might decide to live someplace else. Accessed Nov. 17, 2020. ezLandlordForms is not a law firm and our products and services are not a substitute for the advice of an attorney. Accessed Nov. 17, 2020. Getting a Business Loan When You Have Bad Credit. In an online debate about whether renting to Section 8 tenants is a good idea, a first-time landlord offered up video footage to support his emphatic vote against it. A Section 8 tenant cannot live in your property until your property is approved by the Section 8 office. A Section 8 tenant is still subject to the same qualifying standards as non-Section 8 tenants. If youre interested to know more about becoming a HUD landlord, you can check out our complete guide to becoming one here. Federal Register. Becoming a Section 8 landlord can open up a new group of renters to you. The state has recently passed legislation that prohibits landlords from denying or refusing to accept applications from those who utilize public assistance. 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. The form requests basic information including: The Request for Approval Form is the first step in getting your property approved for a Section 8 tenant. What Are The Different Types of Life Insurance? What KInd Of Credit Do You Need For An Auto Loan? Here is what you need to know about living in Section 8 housing: No matter what, always pay . Rather, they must use the samerental screening proceduresthey would use to evaluate any other prospective tenant to consider Section 8 rental applicants. Instead, theres a five-step process. For more information, please consult with an attorney who is familiar with the laws in your area. All Rights Reserved. Section 8 does not pay a tenants security deposit. If youre thinking about. 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 rental assistance applies only to U.S. citizens and specific non-citizen groups. The home that the family selects must meet the PHAs minimum standards for health and safety. 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. Provide a clean and safe living environment. Section 8 Discrimination Under the Housing Act, there is no provision requiring a landlord to accept Section 8 vouchers. The laws focus on the reasons why you decide that a tenant is fit or unfit for your property. If youre tired of renting and ready to become a homeowner, start by comparing mortgage lenders today. Section 8 offers a rent subsidy, but the benefit isnt paid directly to recipients in cash. Each state has its own housing authority office, and many cities and counties also have their own PHAs. . What are the benefits of being a Section 8 landlord? The HUD has a website that prospective tenants can use to find qualifying low-income housing. The Section 8 office conducts a very basic background check on all Section 8 applicants.. Youll need to contact the PHA where you currently live and the PHA in your new city to arrange a transfer of your benefit. You must give the tenant written notice of the grounds for eviction before or upon commencement of the eviction action. 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. An argument of just this kind was recently settled by an appellate court in California, which has a ban on source-of-income discrimination. As there are some major benefits to renting through the section 8 program, we usually recommend that you determine whether you accept a tenant or not based on their overall application and not on where their income comes from. You should not rely on it for any purpose without consulting a licensed attorney in your jurisdiction. For more information, please consult with an attorney who is familiar with the laws in your area. But source-of-income discrimination laws are only as good as their enforcement. Section 8 is a huge help to many renters struggling to find a place that they can afford. To begin receiving Section 8 tenants, start by contacting. Note:This article is provided for informational purposes only. The length of a waiting list depends on location. Should You Use a HELOC to Pay Off Credit Card Debt? Theyll review a tenants income level and may uncover issues like criminal history. Through New York's Housing Choice Voucher (HCV) program, the federal . These checks help you uncover issues, such as a criminal history or a history of frequent moving. Have more questions about being a landlord? This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This editorial content is not provided by any financial institution. One such argument is based on the states ban (if there is one) on discrimination on the basis of source of income.. 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. But a new investing trend could spell trouble. The federal law that established Section 8 does not require landlords to participate in the program. A portion of the tenants rent is paid by the U.S. government, so the rent payment is essentially guaranteed. Renters who receive Section 8 must contribute to their rent, as well. 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. Short-Term vs. 1 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. "Last year, we had 19,000 evictions filed in the state of Iowa. Could it also require landlords to accept Section 8 housing vouchers? 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. Their use does not signify or suggest the endorsement, affiliation, or sponsorship, of or by SuperMoney or them of us. 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. May 5, 2021. A second-generation native of Los Angeles, Geffner now lives in Ventura, California, a surf city northwest of her hometown. Brokerage. 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. How much also varies, but it's often 30 percent of their adjusted monthly income or 10 percent of their monthly gross income, whichever is greater. Ultimately, it will be up to you to decide. 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. In some cases, the voucher is held by a specific property rather than by a specific tenant. That means private landlords must handle repairs and maintenance, as stated in the lease. Here are the top four benefits of being a Section 8 landlord. The family designates its Section 8 benefit to the landlord. "Chapter 10 Housing Quality Standards," Pages 25-26. Get helpful tips and articles on our. 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. Landlords Forced to Accept Section 8. 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. The Date the New Rent Will Become Effective. Please enter a valid email and try again. U.S. Department of Housing and Urban Development. Texas has laws that forbid cities and counties from implementing any discrimination bans such as those passed in Chicago. 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. 2023 RentGroup Inc. All photos, videos, text and other content are the property of RentGroup Inc. RENTALS.COM and the RENTALS.COM Trademark are registered trademarks of RentGroup Inc. All rights reserved. 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. 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. Named for Section 8 of the U.S. Housing Act of 1937, the law allocates taxpayer funding to help states address the shortage of decent and safe affordable housing for low-income families. Support our mission and help keep Vox free for all by making a financial contribution to Vox today. A private landlord receives a payment from the PHA on behalf of the renter participating in the Section 8 program. 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. In Philadelphia, 67% of landlords polled would not accept vouchers. Oops. 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. Section 8 sets up a specific range of prices, and these prices usually fall on the lower end of the market average. 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 The source of income may be from government or non-profit organizations. This is actually part of a federal statutory rental subsidy scheme found in Title 42 of the United States Code, Section 1437 (f). If you continue to use this site we will assume that you are happy with it. 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. Many apartments and houses around the country will accept Section 8 as long as they meet the federal government's rules and regulations. The family pays the difference between the rent and the subsidy. SB 329. Business Loans for New Businesses: What You Need To Know ? After the initial term, you may generally evict a voucher tenant for other good cause, such as a tenants failure to accept a new lease or lease revision, or a desire to lease the unit for a higher rent. Whether utility bills are included in the rent or are paid by the tenant. Note: these rights exist regardless of a rental . Zillow, Inc. holds real estate brokerage licenses in multiple states. 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. In a sense, you must be more diligent when dealing with Section 8 tenants because you and your property will be scrutinized by the Public Housing Authority and by HUD. That means landlords can't advertise "No Section 8" or treat Section 8 recipients differently. After selecting a Section 8 renter, there are several forms you must submit to the housing authority in order to complete the arrangement, including: Landlord Information form, which describes the property owner and rental unit, Housing Assistance Payments Contract form, if you have one if you dont have one, then the form of lease you wish to use, which could be a PHA-model lease, The HUD forms Lease Addendum to attach to the lease form, isnt a great fit for every landlord, there are some key advantages that might make you consider joining and renting to. Can a First-Time Home Buyer Get a Jumbo Loan? You must give the tenant an eviction notice, such as a notice to vacate, under local law. What is Bluesky, and why is everyone on Twitter talking about it? The housing authorities will contact you once you reach the top of the list. The PHA signs a lease with private landlords and pays a piece of the rent, while tenants must pay the difference. Receiving consistent, on-time payments is a top concern for most landlords, and for good reason. 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. Landlords who own four or fewer properties are exempt, however. We use cookies to ensure that we give you the best experience on our website. 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. We use cookies and other tracking technologies to improve your browsing experience on our site, show personalized content and targeted ads, analyze site traffic, and understand where our audiences come from. How To Get a Personal Loan With Fair Credit, How to Use a Personal Loan to Build Credit. Marcie Geffner is an award-winning freelance reporter, editor, writer and book critic. A common maneuver among real estate flippers is doing the bare minimum property repairs to pass the initial Section 8 inspection, signing a quick lease with the first voucher holder that comes along, and then quickly selling the property to an unsuspecting novice rental investor. As is often the case in real estate, there is not a single answer to this question. In Nebraska, abortion rights are safe for now. 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. 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. 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. The best way to find out about Section 8 requirements for landlords is to contact the local PHA. If a landlord requires an income threshold, any rent subsidy must be . Directly to your inbox. Some states (such as Oregon) and cities (such as Seattle) impose laws that require landlords to accept Section 8 tenants. This is not the only way that Section 8 housing works. These housing units, sometimes referred to as projects, grant voucher privileges to those living at the property. While youll still want to exercise your right to screen Section 8 tenants, housing authorities will also screen tenants when qualifying them for vouchers. 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. 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). . Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Not all private landlords accept Section 8. A proposed pro landlord bill in North Carolina says that Landlords could not be required to accept section 8 tenants. Compare Home Equity Lines of Credit Reviews. 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. , effectively subsidizing the rental cost for the tenant. This usually focuses on a background check and credit check to learn about the individual's criminal history and rental history. All rights reserved. But just because a prospect asks such a question doesn't mean the answer is up to you. 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). Once youve been approved and put a screening process in place to find a great renter, youre ready to begin accepting Section 8 tenants. In fact, you can keep your property full and profitable if you treat Section 8 housing vouchers the right way. Erin Eberlin is a real estate and landlord expert, covering rental management, tenant acquisition, and property investment. Your rental property must be inspected and approved by the PHA annually. Support our mission and help keep Vox free for all by making a financial contribution to Vox today. The real test is the Housing Quality Inspection. 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. But there are some challenges that come up when living with a voucher that folks regularly brought up. For example, Chicago's municipal code includes a housing discrimination ban based on source of income that includes applicants who have Section 8 vouchers. 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. 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. They just need to inform their local HUD office in advance. HUD ensures that voucher-holding tenants are treated properly by their landlords and only using the vouchers at approved and safe housing locations. And, this is tough, depending on where you live. Many renters know that finding affordable housing is tricky these days. Tenants pay the difference between the rent payment and what the voucher covers. Certain states, such as Massachusetts, require that all landlords 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 . When determining if your home meets health and safety standards, the inspector will pass, fail or mark inconclusive for each item on the requirements list. April 24, 2023. Accessed Nov. 17, 2020. "Rent Reasonableness," Page 3. That is a record," he said. "Our numbers show that around . In the past, landlords had the luxury of turning away tenants with Section 8 housing vouchers without much explanation. Regardless of who you are screening as a. , and you must treat all housing applicants equally. Required fields are marked *. U.S. Department of Housing & Urban Development. That means landlords cant advertise No Section 8 or treat Section 8 recipients differently. In Tennessee, legislators barred localities from enacting certain housing reforms, a law widely seen as targeting the more liberal Nashville laws. accident in prince george, va yesterday, channahon patch police blotter,

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