Section 8 as first applicants... discrimination?

Question

We run background and credit checks on our tenants. The first tenants that applied for a place we have for rent were section 8. We have developed a policy that we do not accept tenants:
- with misdemeanors less than 8 years old or any felonies (excluding marijuana possession as it's now legal in this state)
- with collections on their credit report less than 8 years old, any evictions no matter how old
- that smoke

He has misdemeanors going back 6 years, they both have collections up to and including this month for bills that are over 9 months unpaid, and the only income they have is section 8 vouchers, her child support, and WIC. Also, she smokes, but she says she doesn't smoke indoors.

I've already told her that we turned them down because he didn't pass the background check and she jumped in immediately trying to explain what his charges for, then told me they were homeless and that we couldn't discriminate against section 8... what a mess. I finally told her I couldn't speak about it at the moment and she asked me to call her back.

My question is how do you handle when you've passed on an applicant? What specifically do you tell them? What do you do when they try to explain away their issues because I feel at this point that more information is just more fuel for her to argue, beg, etc.? I'm afraid they're going to push this issue with their case worker and try to force us to take them or try to come after us for discrimination.

Aimee Knier · Answer

Update: Thats what I eventually did. Here in Portland we cannot deny section 8 tenants so I can't simply say 'no section 8'. I told her on the phone that we rejected their application because his background check didn't pass our terms. I have them posted on our website now as well if they want to contest it. We ended up with a great tenant (through section 8).

We were approved for the program. I forgot to mention that up-front in my post.

Thomas S. · Answer

Experienced landlords know not to engage in explaining anything to rejected applicants. Unless your state codes indicate otherwise applicants have no right to know why they are not accepted and giving a reason only gives them something to argue or defend.

Landlords only need to inform applicants that they have not been accepted or that someone else more qualified has been accepted.

If you feel better, or it absolves you of guilt, by giving a reason it is at your own risk and is not professional. Never ever do anything by e mail, voice mail, in writing or any other form that can be entered into evidence in court. Rejections should always be done verbally.

Levi T. · Answer

@Aimee Knier Don't shoot yourself in the foot. #1 rule, deny people with little details as you can, otherwise this is how you get in a lawsuit. Keep with what you told them and nothing more, you don't need to repeat yourself or keep explaining, otherwise you could say something wrong and get fined thousands of dollar, or in a lawsuit. If you don't take part in section 8, just tell them you "don't take part in section 8", noting else. If you took an application knowing they are section-8, you likely want to refund their money and try and walk away as section 8 has it's own laws and rules that you can't deny on, like credit score, etc.

For example, just say they did not qualify. When people ask why, just say generally why, like; did not pass the background check, or credit history, you don't need to explain or give them a number or examples. nothing more, you don't owe them anything more and are not required.Really just keep it simple and vague as you can. There was a guy on here a few months ago asking for help, as his partner told an applicant "We don't take part in the section 8 scheme", the word "scheme" landed him in legal trouble with the housing authority, and cost him a few thousand in the end.

*not legal advice, entertainment only*

Deanna McCormick · Answer

You may consider returning her application fee, She was denied because of credit, but because you weren't clear on the section 8 status I really think to be fair you shouldn't have even taken a application, or ran the credit report and need to return her application fee.

In the future if you have applicant that says I have section 8 voucher, just say I don't participate in that program. Unless you want to get approved for Section 8 housing.

It's a involved program that works for some property owners and others it doesn't. It requires a inspection by the Section 8 housing authority before a tenant can move in, and if your building / unit does't pass you wouldn't be able to rent to them anyway, without making the changes that Section 8 inspectors would write up. It also requires periodic inspections by Section 8 at lease renewal and if your building / unit doesn't pass again due to maintanance issues tenant might make, including cleanliness, you have to bring it back to Section 8 standards before they will continue to pay their portion of the rent subsidy. We had a unit fail inspection for burnt out light bulb.

You didn't discriminate it was credit related, and make the disclosure of denial simple in writing, and give her money back.

Ryan B. · Answer

Save her number as "do not answer" in your phone. When it rings, take your phones advice and don't answer it.

I have so many "do not answer" contacts in my phone it is unreal

Gail K. · Answer

I simply send out a form letter and (in this case) would check the part that states the applicant does not meet our rental criteria due to their credit history.   I would not argue/beg/listen to any further discussion from them.  I would not discuss this with any case worker and if he/she insisted I did then I would explain that the credit history is the reason for the denial.  This is perfectly legal when dealing with this program.

You are not discriminating against them for having a Section 8 voucher (and again, are you even approved for this program?).  Their application was denied due to their credit history.

The woman wants you to call her back because she's trying to talk you into this even if this means threats of discrimination.  This is because a number of other landlords have already turned them down.

Gail

Jeff Copeland · Answer

My first question is...is your rental even set up to accept Section 8 tenants? If you have not applied to the housing authority to participate in the program, had them inspect and approve the property, etc., then it may be a moot point - the property is not even approved for Section 8 (at least that's how it works here).

Secondly, you have clearly established and published screening requirements. Stick to them. It is actually crucial that you follow them and generally not allow any exceptions. If you make an exception for Tenant A, and not Tenant B, you open yourself up to Tenant B saying it was because he/she was a member of a protected class and claiming discrimination / fair housing violations.

Sending the link to your published screening requirements sounds like a great idea.

Aimee Knier · Answer

Right now, I'm thinking I'm going to send her an email pointing her to a page on our website where we list our tenancy requirements and leave it at that.

Section 8 as first applicants... discrimination?

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