Section 8 in California - how to respond?

Question

I received a response to my ad from someone who said he has a Section 8 voucher.  My ad says nothing about Section 8 and his voucher is 69% of the rent.  I have a book about landlord/tenant laws in California and it says "You have the right to decide not to participate in the Section 8 program without violating any antidiscrimination laws."

So I think my answer to this person will be, "I am scheduling appointments to view the property at xxx.  If you'd like to make an appointment please contact me.  We do not participate in Section 8."

What is the opinion of BP?  Is this a kosher response?

I know it's a legal question and I'm not taking anything anyone says as legal advice, just asking for opinions, particularly in California from anyone who might've been in this situation.

Thank you!

Jeff B. · Answer

NOT TRUE.  HUD Fair Housing states we can not discriminate on the source of income.

It is true you do not have to participate; I always responded "We have not been qualified by HUD"

Account Closed · Answer

I simply state in my ads, "We do not accept Section 8". This stops 90% of the calls. Of course renters aren't the sharpest tools in the shed so some calls still come in asking. I simply reply, "sorry, we do not accept Section 8".

There is no law stating you have to accept Section 8. Landlords can discriminate based on source of income (except alimony or child support).

This will probably change one day, however. Seattle already enacted an ordinance stating that landlords cannot discriminate based on source of income. A nightmare boiling.

Patti Robertson · Answer

@Yoni Ramras - It's not that complicated, but you need to keep the tasks straight so you get paid as quickly as possible. The fasted amount of time from the time you accept a tenant to the date you can sign a lease and move them is  about 20 days.  You get an inspection before the tenant moves in, about 9 months after than, and then annually thereafter.  I'm attaching a handout I use when teaching the basics of SEC 8 at investor clubs in my local market.  Hopefully it isn't a violation of BP to share it.  Feel free to contact me if you have any questions.

Click here - Intro to SEC 8

Yoni R. · Answer

Hi @Patti Robertson I am really interested in some more info and experience with section 8. Can you shed some light on it for me? How complicated is the process for a first timer? How long does it take to get the house approved for section 8? Does "section 8" come to inspect your property all the time and give you a hard time? Any ins and outs will be appreciated. Thanks!

Eve Mahoney · Answer

Well, according to my book, "The tenant pays up to 30% of his monthly income to the landlord, and the housing authority pays the landlord the difference between the tenant's contribution and *what it determines is the market rent each month.* " Italics added.  My concern is "UP TO 30% of his monthly income."

Continuing:

"The housing authority's determination of what is market rent is often low.

The landlord is locked into a tenancy agreement for one year, and can't terminate the tenancy except for nonpayment of rent or other serious breach of the lease.  Even then, 90 days' notice is required."

Having said that - I have a tax client (I'm an accountant) who has a 4-unit building in a low income area.  She has Section 8 tenants and is quite happy with the guaranteed payments.

I guess it depends if you can make it work for you.

In any case, I am, truthfully, not approved for HUD and not participating in Section 8.

Yoni R. · Answer

Why not go for a section 8 tenant? I have been really interested in this. Doesn't a section 8 tenant mean that 70%+- of the rent is guaranteed? Why is this a bad thing?

Matthew Paul · Answer

In my ad  I state this property not approved for section 8

Eve Mahoney · Answer

Thank you so much, very helpful.

Section 8 in California - how to respond?

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