Two Lawsuits Force San Diego Housing Commission Policy Change on Illegal Rent Increases
‘It Shouldn’t take a law suit to force the Commission to follow state law to protect tenants.’
by Cody Dulaney / inewsource / September 8, 2026
The illegal rent increase saga that has for years dogged San Diego’s largest housing agency is nearing an end.
The San Diego Housing Commission, which hands out more than $300 million every year in Section 8 vouchers to help low-income tenants pay rent, agreed to settle the latest of two lawsuits related to approving rent increases that exceed the cap set by state law. Under the agreement obtained by inewsource, the agency is set to pay nearly $6,000 in litigation costs and provide records that would show whether rent increases previously approved by the agency were lawful.
Housing attorneys and advocates across the state are hailing the outcome as a boon to Section 8 participants, who rely on vouchers to pay rent, and taxpayers, who fund the program. The Housing Commission declined to comment, citing ongoing hearings.
The settlement marks the latest development in a years-long controversy that drew in the California Attorney General and the U.S. Department of Housing and Urban Development, while taxpayers and Section 8 voucher holders bore the costs of rent increases that went unchecked.

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