Section 8 and Measure H - Not good news
The Rental Housing Board has determined and decreed that any apartment or rental that is in Pasadena that receives Section 8 subsidies is covered by the Measure H rules on rental increases. There are some very specific exclusions if you are a non-profit operator, the city itself or using affordable housing development funds to operate. For almost any ‘mom and pop’ type landlord, you should expect that the Pasadena Rental Housing Board rules will apply.
In my experiences, the overlap of City of LA rent controls with the challenges in managing Section 8 compliance makes for far more complications than I like but the unknown processes in Pasadena with their city managed Housing Authority will hopefully yield better results. In early 2024, I have heard of the Pasadena Housing Department denying rent increases above 2.75%
Background on Section 8: In the US, there is a program created in the late 1930’s with a Section 8 to provide subsidies for housing to people that need it. On a national basis it is operated by the US Department of Housing and Urban Development (HUD) and Pasadena’s Housing Department operates a local housing authority to administer federal funds to provide local subsidies and support.
Most people that are in the landlord business look at the decision to rent to people with Section 8 housing vouchers as a bit of a tradeoff for stabilized income supported by the government in exchange for additional restrictions and complexity as well as renting to people that are more likely to need supplemental support services for other parts of their life.
The amount of rent paid by Section 8 was historically low but in 2024, the voucher payment standards are in some cases equal to or higher than what a standard tenant may be willing to pay for a rental apartment or rental house.
The letter from the City that explains this is pasted below, click on the image to see the full letter on their website:
The Voucher Payment Standards for 2023 are detailed below:
