After selecting a Section 8 renter, there are several forms you must submit to the housing authority in order to complete the arrangement, including: Aside from these documents, local PHAs may have additional requirements, including home inspection forms or documentation relating to utility payments. A proposed pro landlord bill in North Carolina says that Landlords could not be required to accept section 8 tenants. Rentals.com is part of the RentGroup Network of Sites. What Are The Different Types of Life Insurance? Something went wrong. How and when an existing tenants rent can be raised and if so, how much. Commonly referred to as source-of-income discrimination, landlords across the nation often refuse to accept tenants who attempt to pay rent with help from the federal governments Section 8 housing voucher program. Currently there are 17 states in which landlords are legally mandated to rent to prospective tenants with Section 8 vouchers. However, if you choose a product and continue your application at a lending partners' website, they will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit. How long it takes to be approved varies from one PHA to another. The Section 8 office conducts a very basic background check on all Section 8 applicants.. You can also contribute via. 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. Section 8 offers a rent subsidy, but the benefit isnt paid directly to recipients in cash. For example, if the rent is $1000 a month, the tenant may be responsible for paying $50. But theres also anecdotal evidence that landlords may be using source-of-income discrimination as a cover for other illegal forms of discrimination. Landlords who own four or fewer properties are exempt, however. Its a familiar refrain to low-income renters searching for a place to live. In most areas, landlords are not required to accept Section 8 tenants. Buying a home is more out of reach than ever. While youll still want to exercise your right to screen Section 8 tenants, housing authorities will also screen tenants when qualifying them for vouchers. What Are Collateral-Free Unsecured Business Loans? That is a record," he said. This editorial content is not provided by any financial institution. There are often waiting lists to access housing vouchers, usually a few months but sometimes longer. However, private landlords must charge Section 8 renters the same as other renters for comparable apartments. 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. 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. Accessed Nov. 17, 2020. What KInd Of Credit Do You Need For An Auto Loan? Still, many renters may not know where to look to find private landlords that accept housing vouchers. In some states, the information on this website may be considered a lawyer referral service. For example, immediate family members might be prohibited while distant cousins might be okay. The program assists not only low-income families but low-income elderly and disabled tenants as well. You may evict a Section 8 voucher holder for good cause, which generally includes a serious or repeated violation of the lease agreement. The Fair Housing Act (FHA) (42 U.S. Code 3601-3619 and 3631), a federal law, doesn't bar landlords from discriminating based on Section 8. SuperMoney strives to provide a wide array of offers for our users, but our offers do not represent all financial services companies or products. Please enter a valid email and try again. "Our numbers show that around . Comply with terms of the Housing Assistance Payments or HAP Contract. According to the Des Moines Register, three cities Des Moines, Iowa City, and Marion currently have anti-source-of-income discrimination laws on the books, and these cities have until 2023 to adjust to the new law. A portion of the tenants rent is paid by the U.S. government, so the rent payment is essentially guaranteed. If a landlord is found to have violated the rule, that property owner is liable for up to 4 times the monthly rent, plus court fees and attorney costs. What Does Equal Housing Opportunity Mean? Your use of this website constitutes acceptance of the Terms of Use, Supplemental Terms, Privacy Policy and Cookie Policy. Note: these rights exist regardless of a rental . 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. 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. 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).. . based on how tenants pay their rent, including whether they use a Section 8 voucher. Who is eligible for Section 8 housing assistance? Please also read our Privacy Notice and Terms of Use, which became effective December 20, 2019. 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. Some landlords rent to Section 8 tenants by choice, and others do not have a choice. 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. This is the argument that landlords in Iowa used to garner support. Section 8 housing vouchers in New York City will cover at least 60% of your monthly rent costs. The PHA signs a lease with private landlords and pays a piece of the rent, while tenants must pay the difference. We are continuously working to improve the accessibility of our web experience for everyone, and we welcome feedback and accommodation requests. Once youve been approved and put a screening process in place to. This portion must be paid directly to you by the tenant, so it is your responsibility to make sure you receive it. But that is no longer the case in many areas, and some believe that federal inclusion of Section 8 voucher holders as a protected class will arrive in the not-too-distant future. 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. 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. 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. HUDs website includes a searchable database of median incomes in the U.S. The family chooses a home where the landlord has agreed to accept Section 8 benefits. Still, there are plenty of landlords who court Section 8 tenants because of the guaranteed on-time payments, and in some cases, higher rents paid by the government. In other cities, accepting Section 8 is optional for landlords. 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. 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. U.S. Department of Housing and Urban Development. 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. 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. There are quite a large number of places where you cannot deny a Section 8 applicant simply because they are going to be using a housing voucher to cover some of their rent. Home Equity Loan vs. Line of Credit: Which Should You Choose? For the lucky few who do make the cut, its not a one-way ticket to a home. Maintain the rental property per HUD's Housing Quality Standards. 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. A sample form can be viewed on the HUD website. Many tenants receive rental assistance through a federal program referred to as "Section 8". Simply put, it was the landlords income, not the tenants. U.S. Department of Housing & Urban Development. That means private landlords must handle repairs and maintenance, as stated in the lease. To be eligible, a family can't earn more than 50 percent of the area's median income. But there are some challenges that come up when living with a voucher that folks regularly brought up. Section 8 does not pay a tenants security deposit. What Are Different Types of Credit Cards? How do you get a house approved for Section 8? 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. Each state has its own housing authority office, and many cities and counties also have their own PHAs. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Requirements vary depending on your area, so inquire with your local PHA prior to inspection to make sure your property will meet the criteria. 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. 4. The length of a waiting list depends on location. 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. Post your listing quickly and easily! Instead, theres a five-step process. Fair housing prohibits discrimination based on race, color, national origin, religion, sex, familial status and disability. 1. If youre tired of renting and ready to become a homeowner, start by comparing mortgage lenders today. If youre thinking about. 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. According to the Zillow Group Report, only, say they would be able to cover an unexpected expense of $1,000 if they had to. 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. 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. Section 8 authorities inspect the home once a year. Support our mission and help keep Vox free for all by making a financial contribution to Vox today. Changes in the law may or may not impact landlords' rights regarding acceptance of Section 8 participants. More States & Municipalities Requiring Landlords to Accept Section 8 Tenants, first-time landlord offered up video footage. Although some states do require that landlords accept Section 8 tenants, a landlord does not have to accept every Section 8 tenant. Savings vs. Money Market? Landlords: Ever Wondered What to Do With Your Previous Tenants Mail? Many landlords do not initially realize that there are a large number of good reasons to review Section 8 applicants with a positive eye. However, private landlords are not required to accept Section 8 vouchers and participate in the program, under federal law. A Section 8 tenant cannot live in your property until your property is approved by the Section 8 office. The first step in this approval process is to submit a Request for Approval of the Tenancy Form. Some states (such as Oregon) and cities (such as Seattle) impose laws that require landlords to accept Section 8 tenants. The unit must then be re-inspected before it can be approved for a Section 8 move-in., Section 8 will perform an inspection once a year, usually when the tenants lease is up for renewal. A Section 8 renter can't live there otherwise. In Philadelphia, 67% of landlords polled would not accept vouchers. You must give the tenant an eviction notice, such as a notice to vacate, under local law. Zillow Group is committed to ensuring digital accessibility for individuals with disabilities. Generally speaking, the familys income may not exceed 50% of the median income (adjusted for family size) for the area where they reside. Waiting periods to apply and be approved. 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. And, they can only raise the rent once a year. To deny Section 8 voucher holders constitutes discrimination in these jurisdictions, similar to Fair Housing Act violations. Get helpful tips and articles on our. But source-of-income discrimination laws are only as good as their enforcement. If a landlord requires an income threshold, any rent subsidy must be . But, said the lawmakers, a landlord is no such representative. 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). 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. Sign up for the The form must be signed and dated by both you and the tenant. Youll need to complete an application and provide documentation that the PHA will use to verify your household income. Each week, we explore unique solutions to some of the world's biggest problems. 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. . Instead, this program covers a wide assortment of houses, townhomes, and apartments in a variety of neighborhoods. 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. A private landlord receives a payment from the PHA on behalf of the renter participating in the Section 8 program. It's quick, free and wont hurt your credit score. April 24, 2023. Landlord Responsibilities for Section 8 in Virginia. Reverse Mortgages: When Do They Make Sense? Section 8 pays the majority of the tenants rent, but it does not pay all of it. Get a free consultation from a leading credit card debt expert. There are sound reasons to say yes as well as some downsides to consider. Here is what you need to know about living in Section 8 housing: No matter what, always pay . 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. 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. Theyll review a tenants income level and may uncover issues like criminal history. 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. 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.