LOS ANGELES — An undercover investigation has revealed significant discrimination against California tenants utilizing Section 8 housing vouchers, with over 200 landlords, including well-known real estate companies, denying them rental agreements. The findings were reported by the nonprofit organization Housing Rights Initiative, which has taken formal action by filing complaints with the California Civil Rights Department, accusing these landlords of violating state laws that protect these renters. The complaints target 203 individuals and entities for enforcement of penalties due to their discriminatory practices.
The organization is advocating for increased governmental funding to ensure effective implementation of the law, which was signed into effect by Democratic Governor Gavin Newsom in 2019. The Housing Rights Initiative emphasized that this notable filing presents a crucial moment for both the Governor and the housing enforcement agency to uphold the legislation he endorsed and to hold accountable those who breach it.
In response, Newsom’s office directed inquiries to the state Civil Rights Department. A spokesperson, Rishi Khalsa, highlighted the agency’s strong commitment to fighting housing discrimination. He noted that they have successfully negotiated over 200 settlements related to similar cases in recent years. Khalsa expressed openness to additional resources, stating that the agency is actively collaborating with various partners to bolster civil rights enforcement efforts.
The overarching aim of the Section 8 program, part of the federal Housing Act, is to enhance housing affordability and combat the homelessness crisis escalating in California. The program operates with an extended waiting list, allowing participants to usually contribute around 30% of their income toward rent, while the voucher accommodates the remaining expenses.
As part of the investigation, undercover agents masquerading as potential tenants communicated with landlords, property managers, and real estate agents via text messages to check for compliance with fair housing regulations in California. The results were alarming, with voucher holders facing outright discrimination 44% of the time in San Francisco. The situation worsened in other areas, with denials occurring in 53% of cases in Oakland, 58% in San Jose, and a staggering 70% in Los Angeles.
One notable interaction featured an agent from the national brokerage EXP Realty, who informed a potential tenant that utilities were included in the rental price. However, when the agent learned that the tenant had a Section 8 voucher, the response was clear: “I don’t work with that program.” Similarly, a broker from Sotheby’s International Realty told another investigator that the owner was not accepting Section 8 tenants.
Representatives from both EXP Realty and Sotheby’s International Realty had not provided a response at the time of request for comment regarding these allegations.
Kate Liggett, the program director at Housing Rights Initiative, remarked that this filing captures only a small segment of the discrimination experienced by Section 8 tenants across California. She stated, “By shedding light on this widespread and damaging practice, we urge the State to allocate necessary resources to agencies like the California Civil Rights Department to eliminate voucher discrimination definitively.”
