Section 8 rules - I need the guru's!

Hi all - Recently a question came up between conference calls on my properties and I wanted to get the MFI universe's input on this.
Quite frequently, prospects call with one question on their mind..."Do you accept Section 8?"
The issue is whether or not the property can say "no"...
There seems to be a question about the legality of denying Section 8... to my understanding, if a property isn't listed with Section 8 already, they would have a difficult time receiving the voucher, correct?

The property must be registered with your local housing authority in order to qualify to accept the Sec. 8 Voucher. The property needs to go through a inspection with them before it can qualify. If you need further information you can go to your local housing authority website. There will be a section that gives you the information regarding becoming a landlord. You can say that the property does not accept Sec. 8 at this time. Hope this helps.

Nadeen Green wrote an article about this. I don't know if it's posted on her MFI blog, but it's available on her "Dear Fair Housing Lady" website from For Rent.

Here's a link: fairhousing.forrent.com/whats-in-my-mail...ng-lady-no-section-8

Unless source of income is a protected class in your area it is permissible to advertise that Section 8 vouchers are not accepted. She explains that the program is voluntary, so landlords are allowed to refuse (unless local or state laws require them to accept).

The old image of "take one, take all" with regards to Section 8 no longer holds true. If the applicant meets to eligibility requirements for the site, then you can lease to them. Also the unit needs to pass an HQS inspection, along with the contract rent being within the range where it would not be a burden to the potential tenant. The site and the Local Housing Authority enter into a contract, where as the resident and the site enter into a lease.

You don't need to register your property with the Housing Authority.

Ran HCV (Housing Choice Voucher) programs for 12 years, got tired of meetings for meetings sake.

Talk to you local housing authority the laws change all the time when it comes to accepting Section 8. The rule of thumb is this if they can qualify with your rental criteria, the voucher is falls into your rental rates and the unit can pass an inspection then you can take them. Some owners have rules to where they don't want to a Section 8 voucher holder due to the fear of what the stereo type can do to a property. Your best source of resource is your housing authority for your information pertaining to your city/state laws.

Talk to you local housing authority the laws change all the time when it comes to accepting Section 8. The rule of thumb is this if they can qualify with your rental criteria, the voucher is falls into your rental rates and the unit can pass an inspection then you can take them. Some owners have rules to where they don't want to a Section 8 voucher holder due to the fear of what the stereo type can do to a property. Your best source of resource is your housing authority for your information pertaining to your city/state laws.

Any property owner can accept Section 8, but not every Housing Authority will accept the owner's property under their program. It has to pass inspection, not only at move-in but each time it is inspected.

From experience, I find it better for my owner to require a minimum income in addition to the rent voucher. Even if the voucher covers the entire rent.

When I get the call "Do you accept Section 8?", I always ask the following:

Do you have one approved for (local Housing Authority name). If yes, when does your lease expire?

Have you given your current landlord a 30-day notice and told HA you're moving?

Usually, they haven't, they're just looking around to see where they could go. I get calls from out-of-state who haven't even requested their voucher transfer.

If they have told HA and given their landlord 30-days notice...ask how much time do they have before they have to move.

This will give you a better timeline.

I also make them bring me a copy of their voucher to their appointment with me.

Cuts down on a lot of wasted time for me.

You may want to check on the benefits of Affordable Housing. Special programs exist which may make it attractive.

Check this resource emag for info
www.housingfinance.com/

One thing with accepting Section 8 at your property, it is gauranteed rent. At least a portion of it is. If the resident doesn't pay or has any lease violations you can get the public housing authority to help get them out or they will threaten to pull the tenants subsidy. To me it is minimal extra work and helps the tenants have a nicer place to live.

You're leasing consultants should research the fair housing laws pertaining to the city, county, and state where the property is located. Your future residents could be protected by their income. Thus could be a protected class in the county and not the state or both.
The rule of thumb is that everyone has to accept section 8 it doesn't matter if you are high class A or a low class D property. This is because section 8 is a federal program; section 8 vouches can be transferred state to state. However the rules and technicalities in every city can be different as to how a section 8 prospect’s application is screened, voucher amounts, building codes, and inspections etc.
Until you find out the correct answer, tell you're leasing consultants that if anyone ask if you accept section 8 that they will have to follow with them. Saying "NO" could cost your dearly.

Hope I helped!!

Tanya - Section 8 is completely voluntary and owners are not required by federal laws or regulations to participate. Saying no is perfectly acceptable. The only exception is if your city/township/county/state includes source of income as a protected class under their Fair Housing laws. In that case they could be in trouble. Of course, I'm not an attorney, so I'd suggest you consult one for full clarity.