Housing laws in California continue to evolve in order to expand access to housing and reduce barriers for renters. Senate Bill 267 (SB 267) has introduced a recent development that affects landlords and property managers. It changes how applicants using housing assistance programs, such as Section 8, must be screened.
This law aims to create fairer access to housing for voucher holders by adjusting income verification and credit screening practices.
What Is Section 8?
The Housing Choice Voucher Program, commonly known as Section 8, is a federal housing assistance program administered by the U.S. Department of Housing and Urban Development. The program helps low-income families, seniors, and individuals with disabilities afford housing in the private rental market.
Under this program, a tenant pays a portion of the rent. The government then pays the remainder directly to the landlord (HUD).
What SB 267 Changes for Landlords
California’s SB 267 expands protections for tenants using housing assistance and places additional requirements on landlords during the screening process.
The two most significant changes include:
1. Alternative Proof of Income Must Be Considered
Landlords must now accept alternative forms of income verification when reviewing applicants who use Section 8 vouchers.
Instead of relying only on traditional employment income, landlords may need to consider documentation such as:
- Housing vouchers
- Government benefits
- Social Security income
- Disability benefits
- Child support or other assistance programs
The goal is to ensure that voucher holders are not unfairly rejected simply because their income comes from non-traditional sources.
2. Credit History Alone Cannot Be the Reason for Denial
Another key component of SB 267 is that a landlord cannot deny an applicant solely due to poor credit. This applies if the applicant is using housing assistance.
Landlords may still review credit reports as part of the screening process. However, they must also consider the applicant’s ability to pay rent with the assistance provided by the voucher program.
This means landlords should evaluate the overall financial situation of the tenant, rather than relying only on credit scores.
Why This Law Was Introduced
California lawmakers introduced SB 267 in response to concerns. Housing voucher holders were frequently denied housing. This occurred even when they had guaranteed rental assistance.
Research and housing advocacy groups found that many landlords rejected applicants due to credit history. They also rejected those with nontraditional income sources. This occurred despite the presence of government-guaranteed rent payments.
The law aims to:
- Increase housing opportunities for voucher holders
- Reduce discrimination in rental screening
- Encourage broader participation in housing assistance programs
What This Means for Property Managers
For property managers and landlords, SB 267 means screening processes may need an update. This ensures compliance with California law.
Best practices moving forward include:
- Updating tenant screening policies
- Accepting housing vouchers as valid income
- Reviewing credit reports as part of a broader evaluation
- Documenting the full reasoning behind any application denial
Property managers who adapt their policies accordingly can help maintain compliance while continuing to evaluate applicants responsibly.
Final Thoughts
California’s SB 267 represents another step toward expanding housing access for renters who rely on housing assistance programs. The law requires landlords to consider alternative income sources. It also limits the role of credit history in tenant screening. This aims to make the rental market more accessible and equitable.
Understanding these changes is important for both landlords and property managers. Compliance with housing regulations helps avoid legal issues. It also supports fair housing practices.
Works Cited (MLA Format)
California Legislature. Senate Bill No. 267: Housing Discrimination: Source of Income. California Legislative Information, 2023, https://leginfo.legislature.ca.gov.
U.S. Department of Housing and Urban Development. Housing Choice Voucher Program (Section 8). HUD, https://www.hud.gov/program_offices/public_indian_housing/programs/hcv.
National Low Income Housing Coalition. Housing Choice Voucher Program Overview. NLIHC, https://nlihc.org.
California Civil Rights Department. Source of Income Protections for Housing. CRD, https://calcivilrights.ca.gov.
