Landlord Refuses Section 8 and pays the price

Nathan Gesner · 2021-08-04T06:46:21-07:00

The interesting part is that the person reporting the violation earned $5000 from the settlement just for reporting the violation. I don't see any evidence they actually applied and were rejected or in any way injured by the Landlord's policy. In my opinion, the government is taking away private property rights and then encouraging citizens to tattle on each other, which sounds very Communist.But the point of this point post is to warn Landlords to know and follow the law, whether or not you agree with it. Pacifica Tribune: East Bay landlord rejects low-income tenants — and pays the price, literally.https://www.mercurynews.com/2021/08/03/east-bay-landlord-says-no-to-low-income-tenants-pays-the-price-literally

Scott M.

Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes

5y

As you often say @Nathan Gesnerand it is some of the best advice any landlord can understand is to know and follow the law.

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Adam Martin

Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes

5y

Sounds like this applicant has found a new occupation as an informant to fair housing. I don’t agree with this and feel it is taking away property rights of selecting tenants. That said it is our responsibility to know the law and not violate it so blatantly. Surely you can make screening criteria such as credit scores and income restrictions that will weed out the majority. I do have a question though for people in these areas, what if section 8 refuses you. From my understanding most people fail the first inspection but if you refuse to fix minor repairs are you in the clear to seek non section 8. Could a landlord potentially have a small amount of say peeling paint in a safe spot to intentionally fail and get around the mandate. This seems like a fairly easy loophole where you don’t refuse section 8 they are the ones refusing you since I don’t see how they could force you to make minor repairs.

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Brian Garlington

Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes

5y

Adam.........a landlord that blatantly refuses Section 8 with no criteria can get in trouble, period. If credit scores are part of the criteria then that is different.

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Russell BrazilBusiness Member

Moderator

Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

5y

It is a clear Fair Housing violation. Your response here about it troubles me that you seem to believe that not renting to a protected class is ok. All people deserve a fair chance at housing.

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Greg M.

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

5y

Originally posted by @Adam Martin:

I do have a question though for people in these areas, what if section 8 refuses you. From my understanding most people fail the first inspection but if you refuse to fix minor repairs are you in the clear to seek non section 8. Could a landlord potentially have a small amount of say peeling paint in a safe spot to intentionally fail and get around the mandate. This seems like a fairly easy loophole where you don’t refuse section 8 they are the ones refusing you since I don’t see how they could force you to make minor repairs.

S8 doesn't refuse a landlord, but they may not qualify a specific unit. In most areas that require you to accept S8 payments, you must accept the voucher if the tenant has one, but you are not required to be enrolled in the S8 program, so the tenant will never have a voucher for your unit.

Basically, I cannot say that I do not accept S8. I legally must accept S8 payments. However, I have not and will not enroll in the S8 program. I also have not and will not allow my units to be inspected by S8. Therefore, while I technically accept S8 payments as I must by law, S8 will never actually issue a payment for my units. Therefore, the tenant will never qualify for my units as they will never have a voucher for my units.

It'd be much simpler if I could say that I don't accept S8, but then the government couldn't issue fines for wrong-speak. So I accept S8 vouchers if they give you one, but they'll never give you one for my units.

1 Reply

Adam Martin

Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes

5y

Originally posted by @Greg M.:

Originally posted by @Adam Martin:

I do have a question though for people in these areas, what if section 8 refuses you. From my understanding most people fail the first inspection but if you refuse to fix minor repairs are you in the clear to seek non section 8. Could a landlord potentially have a small amount of say peeling paint in a safe spot to intentionally fail and get around the mandate. This seems like a fairly easy loophole where you don’t refuse section 8 they are the ones refusing you since I don’t see how they could force you to make minor repairs.

S8 doesn't refuse a landlord, but they may not qualify a specific unit. In most areas that require you to accept S8 payments, you must accept the voucher if the tenant has one, but you are not required to be enrolled in the S8 program, so the tenant will never have a voucher for your unit.

Basically, I cannot say that I do not accept S8. I legally must accept S8 payments. However, I have not and will not enroll in the S8 program. I also have not and will not allow my units to be inspected by S8. Therefore, while I technically accept S8 payments as I must by law, S8 will never actually issue a payment for my units. Therefore, the tenant will never qualify for my units as they will never have a voucher for my units.

It'd be much simpler if I could say that I don't accept S8, but then the government couldn't issue fines for wrong-speak. So I accept S8 vouchers if they give you one, but they'll never give you one for my units.

Thanks for your insight on this and this is exactly what I was wondering. I just didn’t see how they could force you to follow through with the inspections and force compliance to update to their standards. Where I live and have my rentals there is no requirement to accept or even consider section 8 so this is not something I have really thought about before this article. Here it is perfectly acceptable to put in your add that you don’t accept section 8 and if I get a reply asking if I do I respond that I don’t and there is no issue. It honestly is more the bureaucracy and red tape that drive me away from it plus I have properties on the more expensive side and don’t think section 8 would pay my price. I am in no way trying to discriminate against anyone and considered it in the past but the inspection periods were too long and I have heard horror stories about picky inspectors I don’t want to deal with.

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Lynnette E.

Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes

5y

I had a lady ask me about accepting section 8 in one of my historical houses. I told her that this house would not qualify for section 8 because of some of the historical features. I know the handrails are not the correct height for modern times, but if they were higher on the landing no mattress would ever make it to the bedrooms. Lots of little things that are not up to current code.

Is this illegal? I am not saying I won't accept it, just that that house would not qualify. For a different property, and the right applicant I would. I also hate to spin someone's hopes.

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Landlord Refuses Section 8 and pays the price

Landlord Refuses Section 8 and pays the price

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