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No Escape from Section 8
According to federal law, landlord participation in the “Section 8″ program, which provides housing subsidies for low-income tenants, is voluntary. In a variety of ways, New York statutes regulating the landlord-tenant relationship have attempted to restrict the right of landlords to stay out of the “Section 8″ program. Landlords have challenged each of these regulatory measures, and have almost invariably lost. In the most recent of these, Tapia v. Successful Management Corp. (Supreme Ct., N.Y. Cty, 7/20/09; NYLJ 7/28/09, p. 34., col. 1), the landlord challenged the application of two separate regulatory measures, and the result was familiar: the court upheld the regulations.
The Voluntary Nature of Section 8
The Housing and Community Development Act of 1974 marked the genesis of the Section 8 program, which provides vouchers to eligible low-income individuals toward rent for privately owned apartments. Landlord participation was always voluntary, but in 1987, Congress enacted two provisions that restricted the right of landlords to exit from the Section 8 program. First, a “take-one take-all” provision, 42 USC sec. 1437(f)(t), provided that a landlord who entered into a rental agreement with at least one Section 8 tenant could not use Section 8 status as a basis for refusing to rent to another Section 8 tenant. Second, an “endless lease” provision, 42 USC sec. 1437(f)(d)(1)(B)(ii), provided that a landlord could not refuse to renew the lease of a Section 8 tenant except for good cause. These restrictions made participation in Section 8 unattractive for many landlords.
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