In 2016, the Housing Authority of the County of Los Angeles (HACLA) unveiled plans to offer several new incentives to all landlords in Los Angeles County participating in the federal Section 8 Housing Choice Voucher Program.
At the time, there were around 1,000 voucher holders residing in the streets, in shelters or other temporary housing situations. Due to the rising number of Section 8 waiting list applicants, the HACLA created two programs designed to incentivize landlords who accept housing vouchers.
These two programs are:
- The Landlord Veteran Incentive Program (VIP), which offers landlords financial and move-in assistance so they may be able to hold vacant units for veteran applicants; and
- The Homeless Incentive Program (HIP), which provides landlords with funding and move-in assistance so they can house homeless tenants and families.
These two programs were established as part of two existing larger projects, the Homes for Heroes Initiative and the Homeless Prevention Initiative. Both initiatives were designed to help reduce homelessness in Los Angeles County and are partly funded by the LA Board of Supervisors, which is a step closer to LA’s goal of reducing homelessness across the entire county. This plan has been successful so far; from 2015 to 2016, the homeless veteran population was reduced by 41%.
Assistance to landlords
Section 8 is a program created to provide rental assistance to low-income, disabled and senior tenants. It is administered by local housing agencies and funded by the US Department of Housing and Urban Development, also known as HUD.
Tenants under the program are required to pay rental amounts equivalent to 30% of their monthly income, subsidizing the remaining cost of the monthly rent and paid to the landlord on the tenant’s behalf.
While the program offered plenty of assistance to housing applicants, many of them encountered difficulty finding landlords willing to accept housing vouchers. Many landlords denied Section 8 applicants mainly due to:
- Fears that Section 8 tenants are financially unstable which poses a risk
- The low rent limits allowed by the program influence landlords to opt for tenants who are able to afford higher rents
New programs created by the HACLA focus on minimizing the risk for landlords by offering financial incentives. Both the VIP and HIP programs
Offer monetary assistance to landlords which include:
- Security deposit coverage
- Free rent equivalent to one month to hold vacant units
- Funding for minor repairs
- Utility assistance
- Furniture essentials
Landlords participating in either the VIP or HIP also get several benefits that will allow for a smoother transition into the program. These include:
- A dedicated HACLA staff member who can assist with the program
- Qualified referrals from HACLA to fill vacancies
- Expedited housing inspections
- Reliable rental payments directly from the HACLA
Another factor that will help reduce the risk for landlords is the program’s Damage Claims component, which will allow a landlord to file a claim for damage to their unit after a Section 8 tenant moves out.
Cost for repairs exceeding the security deposit will be reimbursed by the HACLA after a move-out inspection.
