Section 8 Allows Criminals Now to Have Vouchers. Say WHATTT? HUD's Second Chance Rule Landlords Need to Know

I’ve been telling you all the wrong thing! I thought the Public Housing Authorities (PHAs) did a thorough national criminal check and if there’s a record, that’s it. No voucher for them. But I didn’t get the memo sent in April of 2022:

In a memo sent out to staff {in April of 2022} HUD Secretary Marcia Fudge instructed the department to review programs and policies that may "pose barriers to housing for persons with criminal histories or their families." USA Today

I have to say that I understand it and I don’t totally disagree. We landlords just need to be more thorough in our own criminal checks.

STORYTIME: AN UNFORTUNATE CRIMINAL

I received a call from an applicant. She asked me what I do for my background check. It’s illegal in Detroit to deny applicants based on a having a criminal record. We have to look at their whole picture and not deny them on that one checkbox. I explained that part to her and she was so grateful I look at the whole picture, because she was convicted of some kind of fraud. She was reluctant to tell me the story but it sounded to me as though she was just ashamed about it.

She was with a bad boyfriend who was stealing things. She knew he was stealing things but she was not participating. One day he was pulled over by the police who discovered the stolen items. Both she and her boyfriend were arrested. She said she was only 18 years old and she had never done anything wrong in her life and she found herself sitting in jail. Her public defender told her if she wants out of that jail cell, the best way out was to admit guilt to being an assessory. So she did. Now she has a record. She is in the process of having her record wiped clean though, she said. Would I still rent to her?

I would rent to her because she seemed believable to me. She admitted to knowing what the boyfriend was up to. She sounded so remorseful. It was a long time ago. I made a judgment call, having heard her story, and said yes, she could rent from me, considering she qualified otherwise. We never made it that far. I’m not sure how we left it. I talk with a lot of potential applicants!

HUD Offers Second Chances

I found a letter to the PHA’s issued by HUD’s from former Secretary Shaun Donovan:

HUD’s goal of “helping ex-offenders gain access to one of the most fundamental building blocks of a stable life – a place to live.”  HUD has also previously stressed the troubling relationship between housing barriers for individuals with criminal records and homelessness, stating that “the difficulties in reintegrating into the community increase the risk of homelessness for released prisoners, and homelessness in turn increases the risk of subsequent re-incarceration.”” Notice PIH 2015-19 Issued November 2, 2015

What Crimes are NOT Given a Second Chance?

I found this in the same Notice PIH 2015-19

Violent criminal activity, defined by HUD as any criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force substantial enough to cause, or be reasonably likely to cause, serious bodily injury or property damage [24 CFR 5.100].

Each PHA is required to review the criminal activity. They cannot deny someone just because they were arrested. They have to look at the whole situation and even allow the applicant to make a case for themselves of their innocence or show remorse or changed behavior.

But there are two kinds of people who cannot get on Section 8, no matter what.

To be specific

One of them is if someone is on the Lifetime Sex Offender list.

Level 3 or Tier III offenses are considered to be the most serious. This category includes people who have been convicted of violent or non-violent offenses with adults or minors.

The other NEVER EVER criminal is the one who has been convicted of producing methamphetamine in federally-assisted housing. Don’t worry about cocaine, heroin, fentanyl, LSD, mescaline, moonshine. Meth, though? No, no, no, no voucher for them.

I wish I knew what the case was that started this!

I recommend doing your own background check. I use Mr. Landlord’s background check program. Decide for yourself. Ask the applicant yourself and use your own judgment. One of my longest best tenants is actually a reformed car jacker. He did his time and if I ever forget my keys, I know who to call.