Section 8 in California, Six Years After SB 329 — What Landlords Actually Need to Know

SB 329 — the protection landlords have to know

Source of income became a FEHA-protected class in California in 2003, but SB 329 (effective January 1, 2020) specifically defined "source of income" to include Section 8 and every other federal, state, or local rental assistance program. Owners who'd been quietly screening out voucher holders by citing the inspection or addendum suddenly had no statutory cover.

What's not allowed:

• "No Section 8" or "no government assistance" in any listing.
• Refusing to accept voucher applications.
• Applying higher credit thresholds or income ratios to voucher applicants.
• Using the housing authority inspection or addendum as the stated reason to decline.
• Selectively enforcing requirements against voucher holders.

What is allowed:

• Declining a voucher applicant for the same legitimate non-discriminatory reasons that would decline anyone else (bad rental history, credit below your uniform standard, income below ratio measured against tenant share).
• Negotiating contract rent with the housing authority in good faith.
• Setting rent at market — you're not required to accept below-market rent.

How the program actually works

The Housing Choice Voucher program is federally funded through HUD, administered locally by public housing authorities (PHAs). The mechanics:

1. Tenant has a voucher from the local PHA, which determines their portion of rent (typically 30% of adjusted gross income).
2. Tenant finds a unit and applies through the landlord's normal process.
3. Landlord approves the tenant through normal screening (against tenant share, not full rent).
4. Request for Tenancy Approval (RFTA) goes to the housing authority. The authority reviews proposed rent and lease.
5. HQS inspection by the housing authority inspector. Unit must pass.
6. Rent reasonableness determination. Housing authority verifies the proposed rent against market comps.
7. HAP contract signed between landlord and housing authority. Lease signed between landlord and tenant.
8. Move-in. Housing authority pays its portion monthly; tenant pays their share.
9. Annual recertification — HQS re-inspection and tenant income recertification.

The HQS inspection

Federal Housing Quality Standards inspections verify the unit meets basic habitability and safety items: working plumbing, heating, electrical, working smoke alarms, lead paint compliance for pre-1978 units, and similar baseline items. Most professionally managed California rentals pass on the first try. Common deficiencies that cause failures:

• Missing or non-functional smoke or CO alarms.
• Exposed wiring or non-functional outlets.
• Plumbing leaks.
• Peeling paint in pre-1978 units (lead concern).
• Broken windows or screens.

The inspector provides a deficiency list with a recheck window (typically 30 days). Address the items and request the recheck.

Rent increases on Section 8

You can raise rent on a Section 8 tenant, subject to:

• AB 1482 cap (or local rent control cap) on covered units.
• Housing authority rent-reasonableness determination.
• Standard §827 notice timing — serve on both the tenant and the housing authority.

The housing authority will compare proposed rent against market comps in the area and either approve or counter. If approved, the HAP contract is amended to reflect the new amount.

Terminating a Section 8 tenancy

Same just-cause framework as any other AB 1482-covered tenancy. The HAP contract supplements the lease but doesn't preempt AB 1482 or SB 567. Termination requires statutory just cause once the 12-month threshold is hit, with appropriate notice timing and relocation on no-fault grounds.

Common questions