Will They Like This? Section 8 Housing Vouchers May SOON Be Required Reading for Dallas Landlords

You may have heard that the City of Dallas got into a little hot water with the U.S. Department of Housing & Urban Development.

Two developers,  Craig MacKenzie and Curtis Lockey, filed a complaint in 2010. The guys had wanted to redevelop the old LTV Tower. The project would have included many, many new apartments for those of reduced or lower backgrounds. The project called for tens of millions in local government subsidies. But the city rejected the plan, didn’t touch the greenstuff, and officials raised their eyebrows over the size of the subsidies.

The developers then accused the city of discrimination, alleging that city officials were segregating lower-income housing into the city’s poorer southern sector. An attorney for the developers on Thursday declined to comment.

HUD said that Dallas basically shoves its low-income residents to one part of the city. South Dallas and City Councilman Scott  Griggs, vice chairman of the city’s housing committee, admits current city policies have resulted in most low- and affordable-income housing being located in South Dallas.

After all, that happens to be a part of town where property values are lower, and the apartment stock is older. HUD and Dallas settled the complaint, and at first blush it appears we just got a slap on the wrist.

HUD was thrilled over the agreement. Said it portrayed Dallas as being committed to “do more to provide affordable-housing opportunities in all areas of the city.”

But really, Dallas has to take action that may not please landlords at all.

As part of it’s settlement with the federal department, HUD officials want Dallas to move affordable housing units more evenly across the city. That is, landlords may be forced to accept Section 8 vouchers for rent payments. Which means, if you have a multi-family complex in your neighborhood, some of your neighbors could be Section 8 tenants. Landlords can no longer say no, we don’t take Section 8 Vouchers. They can no longer  refuse to rent to someone who can pay their rent with such a voucher from the government. Talk about Bitcoin!

In Dallas currently, landlords can refuse to lease to public housing clients who offer Section 8 vouchers to pay the rent.

But that could change, and as early as next year.

“Regardless of your financial means, you need to have choices in this city on where to live,” Griggs said.  “You need to have choices that place you closer to the schools you want to go to. You need to have housing choices that place you closer to jobs.”

It does make more sense to parse low income families around town rather than cluster them all in one tight area. Social engineers believe that mingling low income people, who tend to be low-educated, in a pool of the more educated brings them up to the higher standards, at least in the textbooks. It may also help reduce crime. But a lot of low income people choose homes in areas that are close to their jobs, to save as much as possible on transportation costs. That is difficult to do in a car-centric city like Dallas. Apartments near bus lines could see an influx of Section 8 participants.

Section 8 voucher-holding tenants could easily live Behind the Pink Wall: the neighborhood that just successfully fought off Transwestern is an easy walk from the bus stop at Preston and Northwest Highway. The properties Behind the Pink Wall are hitting their Golden Years, some at Retirement age and ripe to be retired. As the 55 + year old units head toward functional obsolescence, watch landlords make fewer and cheaper repairs.

Landlords who do not wish to rent to public housing clients might very well push against this, and Griggs expects opposition. Dallas City Council members will probably consider the education vouchers early next year.

What if they reject it? HUD can twist arms and waterboard with the best of them. The goal is to spread affordable housing throughout Dallas. Even in Preston Hollow and Preston Center.