It is now illegal to reject Section 8 in California

CA · Member since 2016 · 1k+ posts · 1k+ votes

I was reading today that it is now illegal to reject section 8 in california due to SB 329 signed into lawy by CA governer in Oct 2019....

I am wondering how they are going to enforce it, especailly for for small pop and mom landlords?

0 Reply

56 views

Most Popular Reply

Greg M.

Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes

It's meaningless. I can't say that I do not participate in the S8 program. Every landlord now participates in the S8 program. However, this does not mean that I have to fill out the S8 paperwork they require, or allow them to inspect my unit, or make any changes to my unit that S8 requires in order to be accepted into their program.

So instead of saying "I do not participate in the S8 program", we will now have to say "I participate in the S8 program as required by law. However, I will not fill out any S8 paperwork, or allow the inspection of my property by S8, or make any necessary changes required by S8 in order to have this unit under their program. But I do participate in the S8 program and accept S8 vouchers."

8 Reply

See this reply in the discussion

19 Replies

Jump to latestLatest

Sort by

Greg M.
Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
6y
It's meaningless. I can't say that I do not participate in the S8 program. Every landlord now participates in the S8 program. However, this does not mean that I have to fill out the S8 paperwork they require, or allow them to inspect my unit, or make any changes to my unit that S8 requires in order to be accepted into their program.

So instead of saying "I do not participate in the S8 program", we will now have to say "I participate in the S8 program as required by law. However, I will not fill out any S8 paperwork, or allow the inspection of my property by S8, or make any necessary changes required by S8 in order to have this unit under their program. But I do participate in the S8 program and accept S8 vouchers."
8 Reply
Account Closed
San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
6y
The bill just says you need to let them apply, and you need to include the amount they receive in verifiable legal sources of income when you're verifying income. You don't have to rent to them. You just need to let them apply.
As to enforcement - probably mainly by complaints. But, honestly, in CA, the DFEH is already way understaffed as far as the fair housing side. Otherwise, there will probably be some local fair housing advocates who will do fake applications. They're always so easy to spot, though, it's pretty funny. I actually had one show up with a clip board. Have you ever had a real applicant show up with a clip board and act like they were interviewing you for a job? LOL.
Anyway, I don't think it will be a real issue for most landlords. Most of them will pre-screen themselves out. And if you have a legit one show up, they'll probably be great tenants. But, you'll have to deal with inspections and paperwork.
It's not the end of the world, though. I could pre-screen most tenants over the phone. Just ask them your criteria - Can you provide proof you have x amount of income per month? Do you have a credit score of at least x? Will your current and your previous landlord give you a good reference? Will you pass a background check?
1 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
6y
God bless the man willing to do business in a communist state like California
5 Reply
Diane G.
OP
CA · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Greg M.
This is hilarious..... so you go from being consistent words and action, to saying one thing and doing another..... that is what this law is accomplishing ...
1 Reply
Kyle J.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
6y
Technically, this new law didn't make it "illegal to reject Section 8". It made it illegal to discriminate based on source of income. Or, said another way, it made it illegal to reject a prospective tenant based solely on the applicant’s use of a Section 8 housing voucher.

It may sound like a matter of semantics, but if it truly were now illegal to reject Section 8 then landlords would have to accept every Section 8 applicant that applied regardless of whether they otherwise qualified, and that's just not the case.

Basically, the new law just prohibits the "No Section 8" you used to see in rental housing advertisements, and requires landlords to screen Section 8 applicants the same way they would any other non-Section 8 applicant. And if they don't meet your standard/minimum criteria (i.e. minimum credit score, no prior evictions, etc), you can still reject them just like you would any other applicant. However, if they meet all of your standard/minimum criteria, you can't reject them solely because they happen to get part of their rent paid via a Section 8 housing voucher.
Here's an article on the new law that talks more about it: https://www.sacbee.com/news/politics-government/capitol-alert/article235927377.html

4 Reply
Diane G.
OP
CA · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Kyle J.
Thank you for the link... So this really looks to be just another "for show" law that lawmaker created using (and wasting) tax payer's money... Lol
I usually set minimum credit score at 750... so if a S8 tenant comes in with 800 credit score, sure, I will take him/her.....
2 Reply
Jacob Sampson
Investor · Topeka, KS · Member since 2015 · 1k+ posts · 1k+ votes
6y
Are Section 8 tenants a problem? I don't find that the source of someones income is the problem. For me I have had crap section 8 tenants and great section 8 tenants and crap non section 8 and great non section 8. My issue is the person not the source of their income. In fact, an eviction knocks them off section 8 for 5 years so there is an incentive to not be evicted.
0 Reply
Michael D.
San Diego, CA · Member since 2018 · 15 posts · 12 votes
6y
@Diane G. Look at what is the voucher rate is for your units... it may not even be your asking rate. At which point it’s all moot because you aren’t required to lower your rent amount.
0 Reply
Marc Winter
Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
6y
@Diane G., please let us know when you find that unicorn of S8 tenant with a 750+ credit score! You are correct in setting your approval criteria high so long as it's applied evenly across the board.
0 Reply
Wesley W.
Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
6y
Originally posted by @Jacob Sampson:
Are Section 8 tenants a problem? I don't find that the source of someones income is the problem. For me I have had crap section 8 tenants and great section 8 tenants and crap non section 8 and great non section 8. My issue is the person not the source of their income. In fact, an eviction knocks them off section 8 for 5 years so there is an incentive to not be evicted.

Section 8 tenants aren't necessarily the problem, it's the micro-managing and governmental oversight of your small business that comes with the section 8 tenant that's usually more of the problem.
2 Reply
Ned J.Pro Member
Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
6y
If I don't want to do all the paper work and inspections and possible repairs required for S8, doesn't that disqualify them right there? Rather than state "no S8" in your ad etc, maybe state "unit is not S8 qualified"....basically I haven't done all that is required for a S8 tenant to move in, and I'm not planning to do it either so no point in applying....
1 Reply
Syed H.
Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
6y
Originally posted by @Jacob Sampson:
Are Section 8 tenants a problem? I don't find that the source of someones income is the problem. For me I have had crap section 8 tenants and great section 8 tenants and crap non section 8 and great non section 8. My issue is the person not the source of their income. In fact, an eviction knocks them off section 8 for 5 years so there is an incentive to not be evicted.

Exactly, Nothing wrong with section 8. Honestly, most section 8 tenants are better than dealing with free market tenants when you are talking about class c-d areas.
0 Reply
Lynnette E.
Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
6y
Originally posted by @Jacob Sampson:
Are Section 8 tenants a problem? I don't find that the source of someones income is the problem. For me I have had crap section 8 tenants and great section 8 tenants and crap non section 8 and great non section 8. My issue is the person not the source of their income. In fact, an eviction knocks them off section 8 for 5 years so there is an incentive to not be evicted.

The problem can be that some section 8 tenants have learned that if they trash the place they and section 8 do not have to pay rent. This subset can cause you lots of time and $ in fixing things they will immediately trash again, just to save their $30 co-pay. The dog or 4 year old chewing on the porch rails, window sills, stair rails and claiming 'peeling paint' which can not be painted outside until the temperature comes up. But nope they do NOT want to move to another place with out peeling paint.
1 Reply
Keith Hackett
Rental Property Investor · Clarksville, TN · Member since 2019 · 44 posts · 31 votes
6y
@Diane G. Smh politics
0 Reply
Anthony Wick
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
6y
@Greg M.
Interesting. So, in essence, you’re not rejecting S8 applicants, the S8 program will simply reject you for not completing all the requirements?
0 Reply
Jason D.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
6y
@Diane G. It is not illegal to reject a section 8 tenant.... it it illegal to reject a tenant BECAUSE they are a section 8 voucher recipient. BIG DIFFERENCE.
0 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
6y
Source of income being a protected class does not mean it is illegal not to rent to section 8. You screen your tenants just like your normally would. If someone does not meet your credit requirements, you deny them whether they are section 8 or a cash paying tenant.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group546 Reviews
Website View Page
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
Originally posted by @Russell Brazil:
Source of income being a protected class does not mean it is illegal not to rent to section 8. You screen your tenants just like your normally would. If someone does not meet your credit requirements, you deny them whether they are section 8 or a cash paying tenant.
LIke what was stated above you get a section 8 with a > 750 fico that's probably a pretty good bet.. great credit and govey rent..
now not sure but it would be interesting to see how many section 8 have 750 plus fico's .. I am sure some exist..
in my years in the deep south though the average credit score is 600..

Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.