SB 267 and other Section 8 screening requirements
SB 267 Requires California Landlords To Process
Section 8 Applicants Differently Than All Other Applicants.
Landlords! The rules for Section 8 applicants have changed significantly in recent years. Ignoring these new requirements could result in Fair Housing or Civil Rights complaints, which are not uncommon and can lead to costly fines ranging from $10,000 to $40,000+.
Key Changes For Section 8 Applicants
“No Section 8” policies are against the law since 2020 (SB 329). Landlords must respond affirmatively when someone asks if you accept Section 8 (tenant vouchers).
Income requirements for Section 8 applicants must be applied only to their portion of the rent (California Government Code 12955(o)). For example, if a tenant’s portion of the rent is $200, then a landlord can only require that they earn three times that amount—$600. This means that nearly all Section 8 applicants qualify based on income.
Blanket bans on applicants with a criminal record and policies that consider arrests without convictions are prohibited (Note - this paragraph applies to all applicants - not just Section 8 applicants).
Landlords should also be cautious about policies that automatically exclude Section 8 applicants. Under the legal principle of disparate impact, any policy that disproportionately affects a protected class may be deemed illegal. For instance, your policy could be legally problematic if your local Section 8 program only offers one-year leases and you exclusively offer month-to-month rentals.
The Latest Change: SB 267 And Credit Report Restrictions
A significant new law—SB 267—further modifies the screening process for Section 8 tenants. Specifically, landlords cannot run a credit report on a Section 8 applicant without first offering an alternative way for them to demonstrate their ability to pay rent.
Alternative Evidence: What Can You Accept?
SB 267 allows landlords to consider alternative forms of financial verification, including but not limited to:
- Government benefit payment records
- Pay stubs or payroll records
- Bank statements
- Other verifiable documentation of income and financial standing
Additionally, I believe phone bills and utility payments are good indicators of an applicant's ability to pay.
3 Vital Areas To Comply With SB 267
- Inform Applicants of Their Rights: You must notify Section 8 applicants that they can provide alternative evidence instead of a credit report. This should be part of every landlord’s written screening guidelines offered to prospective tenants before they apply.
- Provide a Reasonable Timeframe: If a tenant chooses to provide alternative documentation, you must give them reasonable time to gather and submit the documents. “Reasonable” means a judge would agree with you if needed. Two weeks seems reasonable to me, but I am unaware of any court precedent confirming that at the time I wrote this blog.
- Fairly Evaluate Alternative Evidence: Landlords must assess these documents objectively and reasonably.
Why This Change?
SB 267 acknowledges that traditional credit reports can be inaccurate or discriminatory when assessing the financial reliability of subsidized tenants. Many individuals have low credit scores due to factors beyond their control, such as medical debt or past financial hardships. The new law ensures Section 8 applicants are not unfairly excluded from rental opportunities.
Best Practices for Adapting Your Screening Process
While SB 267 requires adjustments to the tenant screening process, landlords can still find reliable ways to assess prospective tenants:
- Focus on Rental History: Verifying past rental references and landlord testimonials can strongly indicate a tenant's reliability.
- Income Verification: Carefully review pay stubs, bank statements, and utility payment records to assess financial stability.
- Make a Legal and Reasonable Assessment: Ensure that your decisions comply with the law and are justifiable in court if challenged.
- Seek Legal Counsel: If you are unsure how to comply with these laws, consulting with an attorney is a safer option than risking a legal violation. Any denied applicant may claim a Fair Housing or Civil Rights violation, which is costly and time-consuming.
- Maintain Open Communication: Communicate with applicants throughout the process to ensure transparency and compliance with the law.
By understanding these legal changes and adjusting your screening procedures accordingly, you can remain compliant while maintaining effective tenant selection practices.
Giving credit where credit is due: SB 267 was authored and passed predominantly by Democrats, with one Republican vote, and signed into law by Governor Gavin Newsom (Democrat). You can read the full text of SB 267 here. SB 267 Amend Section 12955 of the Government Code relating to housing.
Disclosure: John Tiner is not an attorney, and Tiner Property Management is not a law firm. Do not consider this blog legal advice - seek legal advice from an attorney for your particular situation.
How to contact us: If you need help with your rental and would like to hire Tiner Property Management, please call 916-974-6003 or email info@tiner.com. To learn more about our services or read our other blogs, check out our website:
www.tiner.com.
About the author: John Tiner is the owner/CEO/broker of Tiner Property Management, a Sacramento-based property management company operating since 1976. Tiner Property Management manages 1,250+ homes with a 99.9% eviction-free track record.
Additional Resources:
CAA Section 8 Compliance Reminder
Consideration of Criminal History and Information in Housing




