Red Alert! Urge Your Assembly Member to Oppose Bill that Forces Landlords to Participate in Section 8!
Action Item
Call
your Assembly Member TODAY!
Urge a NO Vote on SB
329!
Call 1-800-798-6593
Enter your NRDS ID or PIN number followed by the # sign to be connected to your legislator’s office.
When staff answers the phone, you can use the following script:
“Hi, this is (insert your name). I’m a REALTOR® from your district. Please ask the Assembly Member to Vote No on SB 329. This isn’t about discrimination. Don’t force rental property providers into contractual obligations that they may not be able to meet.”
***Even if you have made this call on a previous Alert for SB 329, it is VITAL to do so again as we are targeting your Assembly Members before they vote for this bill on the Assembly Floor!***
C.A.R. OPPOSES SB 329 (Mitchell) because it
effectively forces all residential rental property owners to participate in the voluntary Section 8
housing program by entering into a legally binding contract with a government
agency – the provisions of which may be extremely difficult to comply with.
Issue Background
Under current law, participation by a rental property owner in the Department
of Housing and Urban Development’s Housing Choice Voucher program, more widely
known as Section 8, is voluntary. Under SB 329, which redefines “source of
income” include Section 8, every residential rental property owner will be
effectively forced to enter into a contract with the local housing authority
upon receiving an application from a tenant who uses Section 8 housing vouchers
to pay a portion of their rent. Because many housing authorities already lack
the resources to process applications and inspect properties quickly, units may
sit unoccupied for many weeks until all the administrative requirements are
met.
Why C.A.R. is OPPOSING
SB 329
Governor Brown vetoed
a bill similar to SB 329 last year. Governor Brown vetoed SB
1427 last year. SB 1427 would have amended “source of income” to include
Section 8 “HUD-VASH” vouchers while SB 329 is far more expansive in that it
will amend “source of income” to include all Section 8 vouchers. In his veto
message for SB 1427, Governor Brown stated: “…this bill goes too far.
Specifically, it forces landlords and property owners to take part in what has
always been a voluntary federal program with numerous requirements. These
include registration with a local housing authority, participation in training,
property inspections and modification of leases to conform with federal
standards. I don’t believe a mandate to comply with all these requirements is
warranted.”
SB 329 isn’t about
discrimination and it doesn’t solve the problem. Proponents of
SB 329 claim the bill is about ending discrimination against those using
Section 8 vouchers. The reality is that the term “discrimination” has been
co-opted to achieve a different goal – to effectively force all property
owners, big and small, to accept Section 8, no matter how onerous the
requirements. And the real kicker – SB 329 doesn’t even achieve the goal of
making more units available for those with Section 8 vouchers. Instead it
creates a murky new world where, according to the proponents, landlords can
continue to refuse to accept Section 8; however, landlords who do refuse will
be subject to claims of discrimination and possible litigation. In the end,
small property owners will take their units off the market rather than be
effectively forced to contract with a local housing authority.
SB 329 effectively
forces landlords into binding contracts. Amending the definition
of “source of income” to include Section 8 vouchers means that you
are effectively forcing a landlord to contract with the local housing authority
when they get a Section 8 applicant. What if the local housing authority does
not have the ability to process Section 8 applications and inspect units in a
timely manner? Obviously in that situation the delays and time off the market
become unduly burdensome for the landlord. SB 329 would seemingly be the only
instance in state law where a private party is effectively forced to enter into
a contract with a government agency.
SB 329 doesn’t fix the
underlying problems with Section 8. Because housing authorities
are understaffed, it can take as long as 60 days before all applications are
submitted, inspections are made, and contracts are signed. During that time,
the unit sits vacant at a substantial loss to the property owner. Instead of
fixing Section 8 by remedying this and other problems to attract more landlords
to voluntarily participate in the program, SB 329 creates new mandates. C.A.R. encourages
the Assembly Appropriations Committee to consider alternative proposals, such
as SB 521 (Portantino), which would establish a tax credit to incentivize more
landlords to voluntarily participate in Section 8.
STATUS: In the
Assembly.
For More Information
Please contact deannk@car.org.