Is this statement used to turn down Section 8 really legal?

General Landlording & Rental Properties
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Is this statement used to turn down Section 8 really legal?

Robert Jackson
Member since 2021 · 6 posts · 5 votes

HI everyone, 

So I have noticed a trend among some of my fellow property owners here in Los Angeles, California. 

As you may know, it is illegal to deny someone the opportunity to apply for a unit simply because they have section 8 as income. However, I noticed allot of property owners here using this phrase if someone asks if section 8 is accepted: 

"The building is not certified for section 8." 

Is this really a legally tested and legitimate way to deny section 8 voucher holders an opportunity to apply for a unit without breaking the law? To be clear, this tactic, while not saying flat out section 8 is not accepted, has the same outcome: to deny the opportunity to apply. 

By the way, I would never engage in discrimination, but I find it interesting that so many property owners are using this sort of line in an attempt to skirt the law.

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
4y
Originally posted by @Brent Coombs:

Seems to me that many Landlords just don't want "Section 8" Tenants (not because their properties aren't up to scratch).  On the other hand, my mate had a property in Youngstown that he wanted to rent out to Section 8, but his Property Manager disallowed such.

I'm posing this question for that mate: Just what is it that scares many Landlords/Property Managers from allowing Section 8 Applications (seeing as there is supposed to be a heavy burden upon those Tenants to keep the property in very good condition, while rent income is as-good-as assured)?...

reality there is no heavy burden on the tenant to keep them in great shape.. the opposite happens you need annual inspections and more times than not the tenant or their kiddos have done damage that the inspector will make the owner repair. 

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  • Maurice D.
    Coppell, TX · Member since 2015 · 485 posts · 310 votes
    4y

    Good thread, there are some other great threads on Section 8 here in BP.  Set your tenant criteria high if you don't want section 8 (as in high credit score) but has to be applied equally to every applicant.

    Section 8 can be profitable, but comes with the bureaucracy headaches as @Curtis Mears states.  That being said, good tenants can be found in that realm.

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  • Max T.
    Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    4y

    I'm told by other LLs in my market that the local housing authority takes months to onboard a new property into the program and get a tenant approved. 

    Market rate tenants can be processed and approved in a few days.

    Am I forced to wait for a poorly run government agency to approve me/my applicant, foregoing several months of rent? Even in the case of multiple applicants? @Russell Brazil

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  • Adrianne EppsPro Member
    Real Estate Agent · Mount Vernon, NY · Member since 2014 · 15 posts · 5 votes
    4y

    I work in Section 8 and trust me...there is no such thing as a "building certified for Section 8". There are buildings that are government subsidized AKA "the projects" but that is project based housing and has nothing to do with voucher holders. Anyone using that term is surely skirting on a potential discrimination complaint, because it will only be a matter of time before a  disgruntled applicant goes to Fair Housing.  Nathan G was right when he said you can deny an applicant for poor credit but not based on source of income. In my area they take it very seriously and Fair Housing is on offenders very quickly. The best thing to do is to have an application process that is applied to every single applicant and make sure that every single applicant goes through the very same process. It's OK to choose the best applicant, as long as it's not done on the basis of their source of income. 

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  • Deanna O.
    Rental Property Investor · San Diego, CA · Member since 2010 · 366 posts · 314 votes
    4y

    Ad is stating that property hasn't been inspected for Section 8. Possibly it would pass, but in most markets the property will be rented before a Section 8 applicant could get it inspected. It used to be 4-6 weeks in my area...maybe. Pre-covid. Personally I have zero interest in holding a property vacant while an agency piddles around and MAYBE inspects the property 2 months from now. 

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