Section 8 is Being Challenged in California

What Is It

Section 8 is a voucher program administered by the FHA to provide income to low income and disabled individuals. it is a worthy attempt to provide an alternative to public housing. The system provides subsidies for qualified individuals. The subsidy check bypasses the tenant and is sent directly to the owner or manager.

In return, the owner/manager is required to sign a federal contract, allow for annual inspections and a market rent rate review can be imposed by FHA.

Is Participation Voluntary

Yes. Because the voucher payment bypasses the tenant, it is not considered a source of income and California owners can reject Section 8 applicants on the basis that the applicants income does not meet the financial requirements. After all, if you had the income you wouldnt need section 8.

There are challenges to California's position. Some section 8 applicants are making the case this is discriminatory and that section 8 should be mandatory.

What Are The Benefits
  1. Yearly inspections of the unit
  2. Fair market rental rates
  3. Strict renter responsibilities defined in the lease addendum
  4. On-time payments
  5. Tenants can be removed from the program for damages to the unit
  6. Owners get rent security
If you would like more info I have two articles on yourpropertypath and ezine

Thanks for Reading
Howard Bell
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