Section 8 vouchers and the HOA

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I recently read a story about a Texas HOA that passed declarations that would restrict any landlord from renting to individuals who use section 8 vouchers to subsidize their rental expenses.  The rules also state that landlords can only have one rent house. 

                What are section 8 vouchers?  In Texas it is called The Housing Choice Section 8 Voucher Program.  The program helps low income individuals and families (including the elderly, persons with disabilities and homeless veterans) find affordable housing that is safe and sanitary.  To be eligible, the Texas Department of Housing and Community Affairs examines household income, size and composition of the household, citizenship status, assets, medical expenses, and childcare expenses.  There are multiple public housing authorities that work with the voucher program.  Surprisingly, Section 8 vouchers are not available in all areas of the state.  The voucher program was created by the Housing and Community Development Act of 1974.  The money used to fund the program comes from the US Department of Housing and Urban Development.  A community that wants to utilize the program must go through the local governmental entity and there are state rules and regulations to follow.   

How does section 8 voucher programs effect HOAs.  Well, most likely they don’t.  The thought process may be that section 8 voucher renters effect property values or that just having too many renters effects property values or degrades the community “togetherness” (I am pretty sure that is not a word).  There is no legal requirement for HOAs to accept section 8 voucher recipients in the community and there is no requirement that HOAs inform other residents that the community has section 8 voucher recipients.

I did see some articles that indicated that banning section 8 voucher renters is a Fair Housing Act violation.  In fact, some Texas housing advocates reported the HOA I referenced above to the US Department of Justice to investigate.  There are serious legal implications with banning people from HOAs.  Just banning section 8 voucher recipients could be considered discriminatory because most recipients are considered protected under the law.  Deed restrictions that are discriminatory on its face (meaning that it may seem neutral but discriminates in its application) are void and prohibited in Texas.    

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