Why Are HOA Section 8 Tenants Becoming A Problem For HOAs?

A homeowners association in North Texas has recently come under fire for forcing the eviction of HOA Section 8 tenants. Now, the HOA says it will allow the tenants to stay until the end of their lease.

Earlier this month, the Providence Village HOA announced that it had decided to amend its leasing rules to essentially remove Section 8 tenants from the community. Homeowner landlords either have to evict their tenants or force tenants to pay full rent without receiving help from government subsidies. Landlords who fail to do so will need to face a $300 weekly fine.

Section 8 tenants are those who receive government assistance to pay rent under the Housing Choice Voucher Program.

The Perceived Impact of HOA Section 8 Tenants

The Denton County HOA’s decision likely stems from the notion that having Section 8 tenants will negatively impact property values. Housing voucher recipients in the Providence Village HOA also believe that homeowners in the community did not want low-income neighbors. Tenants have started to feel unwelcome in their own neighborhood, even fearing for their own safety and the safety of their children.

Federal law does not require HOAs to notify homeowners of Section 8 housing recipients. The law also does not require HOAs to accept Section 8 tenants. However, associations must tread cautiously, as they may face discrimination claims. Additionally, some state and local laws prohibit landlords from rejecting renters due to their Section 8 status.

The Original Decision, Overturned

The Providence Village HOA had initially planned to have its decision take effect on July 1. However, the attention from local media and advocacy groups likely made the HOA’s board revisit the rule.

On June 15, the HOA released another announcement, saying it would begin enforcing the rules 90 days following its recording with Denton County. Landlords would then have 30 days to ensure compliance after receiving a violation notice.

Now, the HOA has once again changed its decision. Nearly two weeks after the second announcement, the HOA declared in an email that it will allow all Section 8 renters to finish their current leases dated on or before June 15, 2022.

The leases were not to go over a lease term of 12 months. According to the board, they made this decision after learning that the number of housing voucher recipients was almost twice as many as they originally believed. As for those on month-to-month leases or who have expired leases, they have until Sept. 6 to move out, as per the HOA’s recent statement.

If the HOA had upheld its initial ruling, it would have displaced more than 600 residents from 157 different households. Black tenants make up 90% of those residents.

A Potential Violation of the Fair Housing Act

Several advocacy groups at the state and local levels criticized the HOA’s decision earlier this month. The United Way of Denton County, the Texas Homeless Network, and Texas Housers are only a few that denounced the announcement. The groups also asked the U.S. Department of Justice to look into the matter, as the HOA potentially breached the Fair Housing Act.

After the HOA made its original announcement, the Denton Housing Authority asked families to stay put. The agency also informed the residents that they can file a complaint with the U.S. Office of Fair Housing and Equal Opportunity. Moreover, it said it was working to file a Fair Housing complaint with the help of the federal government.

Considering the weight of the subject matter and its possible legal implications, homeowners associations are always encouraged to consult their attorneys before making any similar decisions.

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