Ban on renting to Section 8, 3 year time limit on renting rules proposed for new development

8 Replies

Hello All,

I thought some would find this article interesting:

http://www.mlive.com/news/ann-arbor/index.ssf/2015...

I am curious to know how they will enforce the time limit on how long you can rent out a house (3 years) and how they will stop people from accepting Section 8.  The current fair market rents are slightly higher than the the going rates for this area...

Kelly

Interesting - if this materializes, we are coming a full circle. A lot of the apartments I am seeing from 2,000 are tax credit projects whereby the developer received credits in exchange for obligatory renting to low income. This case would signal that municipalities are in support of redlining against low income, which is of course at odds with the feds.

Interesting - thanks for sharing, Kelly.

No doubt Obama and his "justice" department will have some intervention. Read the comments. Is the problem section 8 or "slumlords".

this is not that uncommon... Madison county Mississippi out lawed apartments all together. you cannot build a multi family in the whole county... And most of the subdivisions have rent control via CCR's and they enforce them.. you need to check your CCR's to see if you can rent a home at all... Most of the high end subdivisions there have these rules.. and its the highest priced real estate in the State .. with some parts of Oxford being up there as well.

In Oregon for instance one city ban's nightly rentals  No Air BnB  you must have a permit to do this and they only give out a small hand full.

This also illustrates clearly that when you buy rentals that are going to be section 8 your property is what it is and will never really go anywhere as for good bad or indifferent you are on the face lower the perception and reality of the area... so when you look at what's happened in the last 20 years were rental business has exploded into mom and pops you have whole sections of towns and cities that will go through and have gone through exactly what this article describes.

The only time this reverses is if like this property its a big complex and the owners have the right to do this... or if its SFR in an area of a city that is regentrifing

@Ben Leybovich

  watching the move Thomas Crown Affair when I was on the stair master and the lead female ( Rene Russo) character was born and raised in Lima Ohio... how random is that.

John, HUD and fair housing laws were around before your favorite President. Dang, it's raining again, we don't need any more rain! That Obama bunch is at it again!

Many aspects will probably fly, police powers must be consistent. 

Sec 8 is clearly rubs fair housing laws, we will see what HUD may say. Kinda hard to ban the federal government.

Had they just used a rental property tax, that would have made it an economic restraint, a better way in my opinion. 

It's what happens when social factors are at play and are ignored. 

My question too, is how did a group of investors move in buying a bulk of "nice homes", I'd think there were other problems there in the beginning, like poor P&Z, thinking they'd build another Key West. LOL 

Originally posted by @Jay Hinrichs :

this is not that uncommon... Madison county Mississippi out lawed apartments all together. you cannot build a multi family in the whole county... And most of the subdivisions have rent control via CCR's and they enforce them.. you need to check your CCR's to see if you can rent a home at all... Most of the high end subdivisions there have these rules.. and its the highest priced real estate in the State .. with some parts of Oxford being up there as well.

In Oregon for instance one city ban's nightly rentals  No Air BnB  you must have a permit to do this and they only give out a small hand full.

This also illustrates clearly that when you buy rentals that are going to be section 8 your property is what it is and will never really go anywhere as for good bad or indifferent you are on the face lower the perception and reality of the area... so when you look at what's happened in the last 20 years were rental business has exploded into mom and pops you have whole sections of towns and cities that will go through and have gone through exactly what this article describes.

The only time this reverses is if like this property its a big complex and the owners have the right to do this... or if its SFR in an area of a city that is regentrifing

@Ben Leybovich

  watching the move Thomas Crown Affair when I was on the stair master and the lead female ( Rene Russo) character was born and raised in Lima Ohio... how random is that.

 It's not that random, Jay - one of my favorite movies! Love that line by the detective "life is full of ****** compromises..." He also says something about fine art being important to "some very silly rich people", and he would rather take time to solve real crimes. Every time I hear that I think "$30,000 turn-key PIGS in Ohio are only important to some very silly rich people..." hahaha

@Ben Leybovich

  not to get totally off topic but I love the opening scene in his office where he sells the building and the money boys light up a cigar and cheer and then he looks at them and says

" I hope your still smiling when you explain to the board that you paid 25 million more than the next highest offer"  classic

Originally posted by @Jay Hinrichs :

@Ben Leybovich

  not to get totally off topic but I love the opening scene in his office where he sells the building and the money boys light up a cigar and cheer and then he looks at them and says

" I hope your still smiling when you explain to the board that you paid 25 million more than the next highest offer"  classic

 Classic indeed! That's majority of the buyers today :)

Wow, this seems like a giant invitation for the township to be sued over violating fair housing laws. Considering the Supreme Court just ruled that you're allowed to sue HUD over unintentional clumping of low income housing, I'm guessing you'd probably be pretty safe to sue a township over overtly excluding it. The article makes it seem like this is a knee jerk reaction to one complex that was owned by a slumlord for a few years combined with the housing bubble. They realize their 17% rental to total housing stock ratio is about half of the national average, right?

If you're not banning all rentals, how do you enforce a "No Section 8" policy? A landlord's relationship with the local PHA isn't public record, so even if they leave it to the HOA to enforce, how do you force someone to tell you if a tenant is on a voucher program or not? Also how does a town enforce whether your rents are "fair market" or not?

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