Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
You do NOT have to take a Section 8 person if they cannot pay all of the deposits. You are being warned to not discriminate based on Section 8, which would violate the Fair Housing
Act, but that would mean that you cannot deny housing based only on the Section 8 voucher. If the person can pay the deposit and necessary payments, they are not being denied because of Section 8.
Unfortunately, if there is a need for eviction
the housing authority has to be involved, even if the tenant signs the rider to allow the association to evict the tenant, because the housing authority is the one who provides the section 8 payments.
As long as your policy is that if the tenant cannot pay the deposits required, you do not rent to them whether they are section 8 or not section 8 (and hold strong to that policy, because HUD
sometimes sends out investigators to try to get you to agree to waive those deposits which would then allow them to make a case for discrimination under Section 8 against you).