A newly released investigation report has found California residents holding Section 8 housing vouchers were refused rental contracts by more than 200 landlords in the state.
According to the Associated Press, the nonprofit Housing Rights Initiative filed complaints with the California Civil Rights Department after publishing its report. The yearlong investigation used undercover operatives acting as prospective tenants who sought rental housing that accepted Section 8 vouchers. The investigation found voucher holders were discriminated against 44% of the time in San Francisco, 53% of the time in Oakland, 58% in San Jose, and 70% in Los Angeles.
The investigation included exchanges with agents from eXp Realty and Sotheby’s International Realty who declined to work with prospective clients relying on vouchers. Representatives from the two brokerages did not comment on the report.
Kate Liggett, program director of Housing Rights Initiative, said the report represents a fraction of what Section 8 tenants face in California.
“By exposing this widespread and harmful practice, we call on the state to provide agencies like the California Civil Rights Department with the resources they need to eradicate voucher discrimination once and for all,” Liggett said in a statement.
A spokesperson for Gov. Gavin Newsom’s office referred comment on the complaints filing to the state’s Civil Rights Department.
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There appears to be two separate and unrelated events described here:
1. Landlords refusing to rent to section 8 tenants, and 2 Realtors refusing to represent Section 8 tenants in their quest for housing.
I recognize how difficult it is for Section 8 tenants to find rentals, but where is this form of tenancy recognized as a protected class? Is there an underlying assumption here that folks seeking this type of tenancy are people of color, hence the discrimination? Then say so.
And may be just maybe the federal government needs to sweeten the pot to make Section 8 more attractive?
yea like make them responsible for the damages they create.
In fairness, in representing tenants the profit margin is so small that any type of hassle in tenant’s background makes it not even profitable to assist. I mean section 8 are lower range usually like $2k and under with a 25-30% (WE HOPE) commission after NAR lawsuits is $600. Then after gas, time, brokerage split, E&O, income tax it’s like $200-250. So add to that any hassle, stress, or continuous showings and it’s just not worth it. It’s the same for anyone who has more than 2 dogs, aggressive breed dog, felonies, evictions, credit issues, poor rental history, super picky, etc. It’s not discrimination against section 8, agents are independent contractors and if the work/pain is too much the juice just isn’t worth the squeeze unfortunately.
It may not be entirely the fault of the realtors. By the time Section 8 sends someone out to approve a home, it will likely be rented, especially if it is in good condition and in a nice neighborhood. Plus, some PMs are under contract with owners who do not want to rent to Section 8 recipients.
A friend of ours rented to a Section 8 recipient once. He had a mortgage to pay and only made about $75 a month after his expenses. When there were repairs reported, he made nothing those months. When they finally left, he was out $4000 getting the place put back together. So he will not take a chance on Section 8 again.
I’m a local agent who has found it extremely difficult to find anything in our databases that allow us to take Section 8 clients out. So at this point it makes no Financial sense for us to take on these clients not because of the their race sex or anything else but by availability of inventory. On top of that landlords don’t want to take the responsibility they already have to do inspections with the city for their property now they would have to do additional inspections with the federal government. They just don’t want to take on the additional cost and time to deal with it. Then if the tenant is partial Section 8 when landlord still has to chase money. I have an awhd designation so I know the responsibility as an agent to take care of everybody. I myself am in a protected class. However as an agent we also have to look out for the property rights owners in it that’s their wishes we cannot override that.
The brokerage has a fiduciary to the property owner/landlord. If they do not want a section8 tenant that is what their realtor will honor. Section8 has guidelines that the property must meet. Property owners/landlords are not obligated to make their property Section8 compliant when putting it available for rent. I agree w the comment by Myrawhite- a tenant is not a protected class. May be Properties that are Section8 approved can be noted as such in the MLS &/or section8 properties can be listed on some site where those seeking section8 housing can find them.
Everyone I met who rented to a Section 8 tenant regretted it. We know there are some decent people who experience hard times, for various reasons. A large percentage of the Section 8 tenants are people who have longstanding habits of not paying their bills. Because they have no skin in the properties, they don’t maintain the houses. Parades of different young men carrying gym bags, and women in skin-tight leather skirts, arrive throughout the night. Property crimes come to the neighborhood. Police vehicles make frequent appearances. After a Section 8 tenancy it is often necessary to do extensive and expensive rehabilitation.
I met a gentleman who specialized in Section 8 tenants. He buys cheap housing in dubious neighborhoods. The Section 8 payment is guaranteed. The constant repairs and renovating make the business a low margin operation.
It is an injustice to force these tenants on small time property owners, or any owners, if the owners don’t want the troubles.