Section 8 Shutout: Philadelphia Landlords' Refusal to Rent

[Jimmy O'Connor]

The mayor just signed off on  legislation to that is aimed at tackling the issue of discrimination against households that use tenant-based vouchers, also known as Section 8 vouchers, to pay for their housing. These vouchers are provided by the Philadelphia Housing Authority and are meant to help low-income families afford housing on the private market. However, the resolution states that many landlords in Philadelphia are refusing to rent to households that use these vouchers, making it difficult for these families to find housing. The Fair Practices Ordinance already prohibits landlords from refusing to rent based on a tenant's source of income, including tenant-based vouchers. However, the resolution suggests that source of income discrimination is still a problem. The Committee on Housing, Neighborhood Development, and the Homeless will conduct hearings to examine the issue of source of income discrimination and how it is exacerbating the City's affordable housing crisis. As a result of this resolution, landlords may face increased scrutiny and possibly penalties for refusing to rent to households with tenant-based vouchers. They may also be required to participate in education and outreach programs to learn about their obligations under the fair housing laws, accept tenant-based vouchers, or face penalties. Landlords may also face increased competition for housing stock from households with vouchers, and may experience lower vacancy rates or higher tenant turnover. Overall, landlords may need to adapt their business practices to comply with the fair housing laws and to accommodate tenants with vouchers.

Section 8 landlords and Section 8 adverse landlords, what do you make of this?

Link to legislation: https://phila.legistar.com/Leg...

[Kevin M.]

Thanks Jimmy this is a significant looming issue that courts have been dancing around for a while in Philadelphia. It's currently illegal to discriminate based on an applicant's source of income when evaluating a rental prospect, but does a voucher really qualify as 'income'? 

The voucher is tied to mandatory training certification for landlords, mandatory property inspections, and mandatory administrative work with PHA. There's a lot more to working with a voucher-holder than simply accepting the voucher as income. It's a significant burden and risk on landlords. 

Even if you agree to do all the required administrative work, you have to get all the way through the process to get a rent 'offer' from PHA that can be hundreds of dollars less than your marketed price. 

It's my professional opinion this is an even more important issue to monitor than 'rent control' and will have a significant impact on property rights.