What we’re seeing
A trend in cities and states across the country is on the rise: Lawmakers are trying to mandate that private rental housing providers participate in the Section 8 Housing Choice Voucher (HCV) program. The laws are often framed as combatting discrimination by adding source of income to the list of protected characteristics in fair housing law.
Across the country, 18 states, Washington, D.C. and roughly 120 dozen municipalities have source of income protections. Similar legislation has already been proposed this year in Arizona and New Mexico. Meanwhile, only three states prohibit local governments from mandating participation in the voucher program: Indiana, Iowa and Texas. A recent state bill would make Missouri the fourth.
Hawaii and Illinois were the most recent states to adopt this law in 2022. Last year, protections were added at the local level in Dayton, Ohio; Pheonix, Ariz.; Orange County, Fla.; Lawrence, Kan. and Columbia, Mo.
Why does this matter?
The voluntary HCV program was designed by Congress to help low-income families secure market-rate housing through rent subsidies. Households pay only 30 percent of their income, and the government covers the remainder. This system has helped millions of low-income families find stable, affordable housing and rental property owners around the country are proud participants. For many housing providers, there are significant bureaucratic hurdles that must still be overcome.
When accepting a voucher-holding resident, private rental operators must enter into a contract with their local public housing agency that includes additional requirements like prescribed tenancy addendums, annual inspections, rent “reasonableness” restrictions and more. This makes the program financially infeasible for some rental owners and operators. Congress intended this program to be voluntary, not mandated through “source of income” requirements in fair housing laws.
The HCV program is the single most important tool that the country has to assist low-income families with their housing challenges. The solution is not to try and force that private housing providers participate in the program, but to reform the program so that it is more like the standard leasing transaction. This is why the National Apartment Association is a strong supporter of the Choice in Affordable Housing Act, which would increase the number of vouchers, ease the burden on public housing agencies, and incentivize participation of rental operators across the country. It is critical that advocates for sustainable housing policy take action to make their voices heard by Congress and get the Choice in Affordable Housing Act passed.
For more information about source of income laws and the Section 8 HCV program, please contact Ben Harrold, Manager of Public Policy.