Minneapolis considering Section 8 Discrimination Law
Just got word that the City Council is considering an ordinance that would make it unlawful or discrimination to exclude section 8 applicants from the application process. I think HUD's own rules should govern this and not city policy. For all Minneapolis investors, perhaps this is an opportunity to contact your council members and let them know if you have an objection to this, and what its impacts will be.
My dislike of section 8 has more to do with the program being so poorly run than the tenants themselves, though from what I've read on BP, there are plenty of bad apples. I can think of three main reasons this ordinance will backfire, and why they should not do it.
1) HUD's own maximum allowable rent is being easily surpassed by the market. HUD's section 8 tenants are not even at market rate in the cities.
2) As landlords, we can still require rent to income ratios, without being discriminatory. I can put in an ad that says you must have 3 times monthly rent minimum income. Obviously, section 8 rents will not have 3 times monthly rent.
3) City policy is not consistent with affordable housing. Where are low income housing units being concentrated? Uptown? Southwest? Downtown? Nope.