Can I Be Forced to Make Side Payments to My Landlord for my Section 8 Rental?

No. Imagine a situation in which the landlord of your Section 8 rental adds charges to the rent not outlined in your agreement. Section 8 housing (known in California as the Housing  Choice Voucher (HCV) program, mandates rents on a strict formula. Anything veering from that formula could mean something illegal is taking place, and both the landlord and the tenant are at financial risk.

How is California HCV Monthly Rent Calculated?

Let’s say your adjusted monthly income is $1000 per month. A HCV rental costing $3,000 per month would require you pay a third of that monthly income – about $300, and the program will cover the $2,700 difference. Applicants who qualify for HCV housing after typically highly competitive, long wait times can eventually benefit from significant housing cost assistance. So why would a tenant every pay more than what their official contract says?

Why Would a HCV Landlord Ask for a Side Payment?

Landlords participating in the program are attracted by the potential for steady, subsidized rental periods for long durations. Their properties may be older, costly to maintain and difficult to rent at higher market rates. Here are a few ways landlords might charge illegal side payments:

• Landlords reviewing potential tenants might attempt to coerce them into paying extra payments to secure the rental over other applicants.
• Some landlords disguise added payments as hidden monthly fees – such as for parking spaces, appliance maintenance, or services not documented in rental contracts.
• A clue you may be paying illegal side payments would be if your landlord asks for those payments in cash or other methods that sidestep written receipts.
• If a tenant is paying their own utility fees, they should be paying an average that is included in the total rent. These costs are clearly allocated in the Housing Assistance Program contract. A landlord cannot demand additional utility payments.

All of these examples, if proven by investigation, could lead to significant fines and civil penalties for landlords. Tenants should be aware side payments are illegal.  Tenants could recover damages going back 10 years. HCV contracts are reviewed and recertified annually.

What if Tenants Make HCV Side Payments Voluntarily?

Sometimes a challenging rental market may influence people to offer cash beyond their required minimum to simply secure a place to live. In this scenario the tenant could also be at risk of penalties and fines, and could result in revocation of the tenant’s HCV voucher.

Side Payments Demanded by HCV Landlords Are Fraud

The rules about side payments are well defined by both HUD and the California Housing Authority. If you are being asked to make side payments, document your experience thoroughly and research your options. Contact a real estate attorney.  Find out your legal options.

Know Your Rights. Protect Yourself.