Last year, St. Louis, MO passed a law requiring landlords to accept Housing Choice Voucher (better known as Section 8) tenants. Now, the Metropolitan St. Louis Equal Housing and Opportunity Council (EHOC) has filed its first lawsuit against local landlord M. Jaffe Group for “discriminating” against Section 8 tenants.
The complaint (now a case) has now been referred to the St. Louis’ Civil Rights Enforcement Agency. While many landlords object to the headaches brought on by Section 8 participation, social activists contend the legal interventions are necessary.
The Case for Forced Mixed-Income Housing
Advocates argue that higher-end rental communities will not accept Section 8 vouchers unless required to. So, if the goal of Section 8 is to enable low-income people to live in middle- and high-income neighborhoods, landlords in those neighborhoods must be forced to accept vouchers.
Some go on to contend that St. Louis remains heavily segregated by race, and that most Section 8 voucher holders in St. Louis are African American. Traditionally most properties that accept Section 8 vouchers are on the north side of the city, which remains heavily African American. The argument goes that to disperse African Americans throughout other, higher-income neighborhoods throughout the city, landlords city-wide must be forced to accept vouchers.
Nationwide Trend
Nor is St. Louis alone. Twelve states, plus dozens of cities ranging from Seattle to Los Angeles, Washington D.C. to Atlanta, Chicago to Philadelphia have all passed laws requiring landlords to accept Section 8 vouchers. Austin, TX passed a similar ordnance, which was challenged by the Austin Apartment Association.
In fact, the Department of Housing and Urban Development (HUD) passed a nationwide requirement earlier this year that landlords can’t even bar criminals from their rental units. While falling short of naming criminals a “protected class”, the new rule means that landlords have a harder time screening out criminals.
The HUD rule has similar racial motivation, contending that barring all applicants with a criminal record has a “disparate impact” on minorities. As such, blanket policies barring criminals are deemed a violation of Fair Housing Laws that protect minorities.
Crime & Section 8
But is there a correlation between Section 8 voucher holders and crime? While it’s not a question that many advocates and local politicians want to examine too closely, there is some data available.
Atlanta and Chicago have each experimented with large-scale relocation programs, moving low-income families to mid- and higher-income neighborhoods. The Urban Institute reviewed the data in neighborhoods across the two cities, to identify patterns and results.
In neighborhoods with very low densities of relocated voucher holders – two or fewer per 1,000 households – the crime rate remain unchanged. But in neighborhoods with higher densities of over 14 relocated households per 1,000, the violent crime rate spiked 21% compared to neighborhoods with no relocated Section 8 residents.
For landlords looking to keep their properties and neighborhoods crime-free, the one-two punch of being forced to accept Section 8 and not barring criminals might sting.
Financial Disadvantages of Section 8
Beyond the perceived risk of higher crime rates, why do some landlords avoid Section 8 participation?
Section 8 requires annual inspections of rental properties, which means costly repairs for landlords, every year. I myself rented to Section 8 tenants over the years, and never – not once – saw a Section 8 inspector give a rental property a complete pass. Inspectors show their supervisors that they are actually doing their jobs by failing properties and listing repair demands. They are trained to do so; their job is to demand housing improvements.
In my experience, that meant several thousand dollars in repairs, every year, every rental unit. All of the unit’s proceeds for the year evaporated in one stroke.
But the financial penalties don’t end with the annual inspection and repairs. Section 8 tenants are typically more difficult to evict, requiring a longer and more involved eviction process.
While no one has had the gumption to publish a study on Section 8 rent default rates, anecdotally landlords agree almost universally that Section 8 tenants are less likely to pay their rent on time.
Strong Tenant Screening Can Still Weed Out Rotten Apples
Landlords may have less say over tenant screening than they once did, but that doesn’t mean their hands are completely tied. They can still run criminal background checks, can still run tenant credit checks, can still run eviction history reports. They can still contact prior landlords and current employers.
To weed out bad tenants, landlords of higher-end rental properties should be extremely selective on credit history. Further, they should not accept any rental applicants who have been evicted within the last five years.
For landlords who do want to offer a second chance, there are options available to help ensure payment, including rent deduction from payroll.
Anyone legislating landlord policy should be required to own AND MANAGE a low-end rental property themselves. That might give them a little perspective on what real landlords have to deal with
Section 8 in St Louis Mo was a nightmare, passed home that was unfit for any human, I’m being retaliated on by returning a voucher in July when I am stuck in a lease until September 30th. MN gives me a 30 day extension until October 7th, giving me only 6 days to find housing or I will loose my rental assistance causing homelessness for myself and a disabled grandson that I care for
Just have strict screenings, it will naturally weed out all section 8 tenants.
Responsibility for these atrocities against landlords must be laid at the feet of the landlords themselves! THEY RRFUSE TO LEARN THEIR RIGHTS! THEY REFUSE TO STAND UP FOR THEIR RIGHTS! And when someone comes along who demonstrates a willingness and ability to defend Rights, THE ESSENTIALLY GUTLESS LANDLORDS REFUSE TO SUPPORT THAT PERSON! My son and I fought the license ordinance, pro we, 12 years ago, and ended that ordinance with a Consent Order in our favor. Now the City has reimposed the ordinance in defiance of the Consent Order. BIG MISTAKE! THEY HAVE INCLUDED “OTHER PLAYERS” in their crimes. This time around several landlords have joined with us and refused to pay for the license. The housing auth Administrator is withholding the sect 8 checks because some landlords have refused to purchase the license. Its going to turn out the housing authority Administrator HAS DONE THE LANDLORDS A FINANCIAL FAVOR BY WITHHOLDING THOSE CHECKS!
Go to the Code of Federal Regulations, Sect 14 (away from my office, do not recall the code#, its in your Sect 8 Contract) AND IT ONLY REQUIRES YOUR PROPERTY TAXES BE PAID! IT DOES NOT REQUIRE A LICENSE OF ANY KIND, NOR CAN SECTION 8 REQUIRE AN OCCUPANCY PERMIT! READ THE REG FOR YOURSELF!
There are tens of thousands of landlords across the country. If the landlords unite, all the local ordinance nonsense will Disappear. All the Tenants also have a dog in this fight against these hidden taxes, disguised as “safety ordinances,” since the Tenant is at the bottom of the “food chain” and all those fees can legally be collected from the Tenant. Who is looking out for the Tenants? NO ONE! We can make our cities great again, if we can get the part-time polticians, and their solicitors, out of the way.
Great post. Landlords have to stand up for their rights as well as every citizen.
Amen to that Nelson!
The property managements , real estates, and private owners, black and white home owners” in the counties areas of st louis Florissant, North county, Hazelwood, blackjack city, they are refusing now as I speak the section 8 voucher. Branding everyone in the same boat as peoples who tear up r just poor, r criminals” that’s not me and my daughter we are decent tenants? Something needs 2 be done now and recognised, right now we are having a very hard time trying 2 move and get into something decent and safe quite neighborhood ? We are still looking
SECTION 8 TENANTS ARE DECENT HUMAN BEINGS LIKE EVERYONE ELSE, I WORK FOR USPS AND HAVE A VOUCHER FOR ME AND MY THREE CHILDREN I WORK HARD, MY HOUSE STAYS NICE AND CLEAN ALWAYS,WE ARE NOT ANIMALS WE DO NOT TEAR UP PROPERTIES REFUSING HOUSING TO US IS RIDICULOUS, I KNOW DOCTORS THAT HAD VOUCHERS WHILE GOING TO SCHOOL TO GET DEGREES BUT LUMP US ALL IN ONE CATEGORY AND REFUSE US HOUSING BECAUSE YOU DON’T KNOW HOW IT WORKS ITS CRAZY IF I LOSE MY JOB GUESS WHAT? YOU STILL GET YOUR RENT IF A REGULAR NON SECTION 8 TENANT LOSES THEIR JOB GUESS WHAT HAPPENS THEY FALL BEHIND IN RENT AND CANT PAY!! TREAT US LIKE REGULAR PEOPLE I STILL HAVEN’T FOUND A PLACE BECAUSE NO ONE WANTS GUARANTEED RENT MONEY RIDICULOUS!!!
Glad to see ranting on the internet isn’t a lost art 😉
It’s almost impossible to find a place that accepts vouchers which I think is wrong I’ve moved three times every landlord I’ve moved left said they would love to have me back only reason I left is to be closer to my family or I found something better now I’m stuck in this house that has no insulation nothing and I can’t move because I have nowhere else to go because nobody’s taking my vouchers is wrong I’m a good tendon I keep my eyes cleaner than some people who think they’re better than us nobody’s better than nobody we all deserve a chance One of these days you might be on it
I meant I keep my house cleaner than some other people
My thought is as a senior who has great rental history and not so perfect credit. Do to the events of covid has displaced myself.
I’m not 61 and don’t fit in the senior housing.
Lastly all the rentals that accept voucher are in horrible areas or North . Unsafe.
I agree 100% They haven’t gone through some of the horror we have as owners, including this last legislation with the moratorium. I lot of owners lost their properties, so where was the justice in that? There’s a lot of people who didn’t have a reduction in income but hid under the law for not paying their rent.
Absolutely Caroline!
Very Interesting. I am a landlord that actually accepts Section 8. I have for years. Some of my best tenants have been in the voucher program. Many have been with me 5-17+ years and not a single problem.
I don’t think the problem is the people, but rather how the PHA.
It about how inspectors can arbitrarily site ridiculous repairs and fail to give credit for your quality home. Even to the point where they disregard finished basements as livable space or ignore secondary unfinished space in the square footage.
It’s about how the staff can choose any old ragedy unit as a comparable, despite the fact that it may be 1/2 the size of your unit, with no recent updates to justify rent reasonableness requirements. The PHA can offer to pay you WHATEVER they want even if you provide comparables within your own building. If you don’t believe me, ask the PHA about their housing tiers 1,2,3.
It’s about how the administrators enforce the HUD Regulations and Guidelines they want to enforce while ignoring those they don’t like to enforce. Like when the PHA places ITSELF in the position of “establishing” rents in the local market when neither HUD nor the PHA has that right as a “subsidizing” agency.
It’s about how the PHA forces landlords to lose good tenants on leaseup or renewal because they have redlined the city across the Delmar Divide in St. Louis.
There is proof that landlords with bad properties in good neighborhoods get paid while landlords with good properties in bad neighborhoods good screwed.
These are the reasons why there is no incentive to take HCV tenants and no money to maintain these units. These are the reasons why rents remain lower in St. Louis City vs St. Louis County and why urban tenants and landlords have a harder time and why improvements and investments are not being made.
The PHA administrators and staff are quick to site they are following HUD Regulations and Guidelines (many are not). I suggest landlords read the regulations very carefully. I promise you, you are getting screwed–alledgedly
If suburban landlords don’t want section 8 tenants, I get it. Then MAKE THE PHA PAY a fair price for a fair product and urban landlords will accept those vouchers in urban areas.
I have created an email for anyone who wants to send any proof of their unfair treatment at the hands of HUD/PHA.
[email protected]
So am I reading this correctly that landlords are going to have to accept section 8 vouchers if not they can get sued??
Hi Nathan, that’s the case in some cities and states. It’s why we encourage investors not to buy rentals in jurisdictions with anti-landlord laws.
Hi what if u witnessed your neighbors committing violation after violation and u reported to the apartment manager and they refused and then they did not renew your lease? this is more than you think, i mean marijuana plants in backyard, selling prescription pills at the door, receieiving dividends in $168,000 invested, having a person living there for more than 20 yeasr not in the system i could go on , then u get your lease not renewed , but they get to stay there ans continue? is this a whistle blower case, or just small claims. the apartment manager did not even warn them verbally or in written form.
You can always tip off the cops about the neighbors. But regarding the apartment manager, in most states and cities they are within their rights to renew or not renew leases with tenants.
THe rest of the email above it is your wife and you not just me, she witnessed everything also.