New state law prohibits blanket ban of prospects
Anew law that prohibits blanket Section 8 bans by rental housing landlords was passed by the California legislature this month, extending protections statewide that are already in place in many local cities and counties trying to curb the rise in homelessness and address the affordable housing crisis.
SB 329 makes it unlawful to discriminate against any prospective tenant because of source of income, including federal housing assistance vouchers issued under Section 8 of the US Housing Act of 1937.
Roughly 300,000 low-income Californians rely on government subsidies in the form of housing vouchers to help pay the rent each month, the most common being the Housing Choice Voucher HCV known as Section 8.
To qualify for a housing voucher, a tenant’s income cannot exceed 50 percent of the county average median income, currently around $65,000 in Los Angeles County. The voucher holder pays 30 percent of their income towards rent and the remaining portion is subsidized by the federal government.
Section 8 has not been widely accepted by landlords in the SoCal area, even if rents fall within the price range that qualify for the vouchers. Arecent Urban Institute study found that 76 percent of Los Angeles County landlords with units affordable to Section 8 tenants still refused to accept vouchers.
One reason landlords reject Section 8 is because federal rent subsidies have not kept pace with rising rents that higherincome tenants who don’t require assistance are willing to pay. Landlords also cite concerns over government red tape or a belief that people who need the subsidies are problem tenants.
Before the federal government will subsidize rent payments to a landlord on behalf of a tenant, the landlord must comply with certain requirements. Compliance may include attending an informational session regarding the landlord’s rights and responsibilities as a participant in a housing voucher program, or scheduling and passing a HUD Housing Quality Standards inspection to ensure the property meets minimum residential housing codes.
Under SB 329, landlords are still able to screen tenants for suitability, and would not lose the power to deny a tenant based on lawful reasons such as poor credit or a history of evictions; they simply would not be allowed to refuse a tenant solely on the basis that the tenant intends to use housing assistance vouchers to help pay the rent.
SB 329 also outlaws rental ads that say No Section 8.
Adriana Donofrio deasypennerpodley Glendora (626) 926-9700 adonofrio@dppre.com
