With the federal government now in a shutdown, many rental housing providers are asking what this means for federally funded housing programs and for tenants who may be affected. While the situation is dynamic, here is the key information rental housing providers need to know for the time being. 

Will Section 8 payments continue? 

Yes, for now. The U.S. Department of Housing and Urban Development has already obligated funding that allows public housing authorities to continue operating their tenant-based voucher programs through October, and likely into mid-November. This funding covers the government’s share of the rent for Section 8 voucher recipients. 

Several large California housing agencies — including the Sacramento Housing and Redevelopment Agency, Housing Authority of the City of Los Angeles, Fresno Housing Authority, Santa Clara County Housing Authority, and San Diego Housing Commission—have confirmed that the shutdown is not disrupting their immediate operations and that voucher payments are continuing as scheduled. 

What happens if Section 8 payments are delayed? 

If a prolonged shutdown leads to delays in federal payments, landlords cannot evict tenants over delayed payment of the portion of rent owed by the government. Nor can they require tenants to pay the government’s share. 

CAA urges owners to remain patient and to work with affected tenants should disruptions occur, recognizing that these delays are beyond residents’ control and that any delayed payments will be made once the government reopens.  

Are local housing authorities still operating? 

Local housing authorities that administer the Housing Choice Voucher Program, better known as Section 8, are not federal agencies, so they remain open and continue normal operations. However, much of their funding comes from HUD. If the shutdown continues for an extended period, housing authorities could face operational challenges once existing federal funds are depleted. 

CAA encourages housing providers who work with Section 8 tenants to stay in close contact with their local housing authorities to understand staffing and funding plans during the shutdown and any potential impacts on their properties. 

Can I refuse to rent to Section 8 tenants because of the shutdown? 

No. Under California law, it is illegal to refuse to rent to someone because they use a housing subsidy such as a Section 8 voucher to pay rent. This protection falls under the state’s source-of-income discrimination law, which prohibits landlords from denying housing based on the way a tenant lawfully pays rent. 

Even during the federal shutdown, housing providers must continue to treat Section 8 participants in the same manner as other prospective tenants. It is up to housing authorities to determine their ability to support the issuance of vouchers to tenants seeking housing—in the event of funding shortfalls, PHAs will not issue new vouchers they cannot afford to fund.  

What about renters who are federal employees? 

Federal employees who are furloughed or working without pay may struggle to pay rent during the shutdown. While there are currently no special legal protections for these tenants, standard eviction laws remain in place. 

CAA encourages housing providers to communicate proactively with affected tenants and consider reasonable payment plans or temporary accommodations to help renters stay housed during this difficult period.