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Friday, May 2, 2025
MCCR Secures Court Victory in Source of Income Discrimination Case to Improve Housing Justice in Maryland
Saturday, April 26, 2025
Missouri GOP Close to Passing Bill Letting Landlords Discriminate Against Section 8 Renters
This week, the Missouri Senate passed legislation that if becomes law, the state will prevent municipalities in Missouri from enacting source of income discrimination bans, and will void bans already in place in St. Louis, Webster Groves, Columbia, and Clayton, along with a portion of Kansas City. Kansas City passed a source of income discrimination ban last year, though it was largely paused by the courts in February. Columbia, St. Louis, Webster Groves and Clayton have similar protections on the books. The laws make it illegal for landlords to discriminate based solely on the fact of renters’ lawful sources of income, including Section 8, veterans’ benefits and Social Security.
Source of income discrimination bans are designed to prevent landlords from refusing to rent to potential tenants based solely on the kind of income that they have available to them. Many landlords will only consider W-2 wages when evaluating potential tenants, but this helps to prevent many of the poorest from being able to access safe, stable housing. A single mother may have child support payments as her primary source of income, but a landlord is not bound to consider that when she applies for tenancy. A bus driver who has suffered repetitive stress injuries and now receives Social Security Disability Insurance may also struggle to find a landlord who is willing to rent to them.
The most common form of source of income discrimination is a refusal to accept Housing Choice Vouchers, also known as Section 8, a federal housing program that has been addressing homelessness in the U.S. since 1974. Despite being chronically underfunded by the federal government, these vouchers have proven to raise people out of poverty, improve mental and physical health outcomes, and decrease homelessness. 75% of HCV holders have extremely low incomes, defined as less than 30% of the federal poverty line (currently $32,150 for a family of four) or less than 30% of the local area median income. The Section 8 program allows these families to pay 30% of their income in rent while the government pays the balance.
The legislation, which has cleared the House and Senate in differing forms, would make it extremely difficult for these low-income renters, the majority of whom have already experienced chronic homelessness, to find housing. A 2018 study showed that over 67% of landlords refused to rent to voucher-holders in cities without source of income anti-discrimination laws. In comparison, less than 31% of landlords refused to rent to voucher holders in cities with source of income discrimination bans in place. This demonstrates that source of income discrimination bans are effective local public policy and should not be preempted by our state government.
This legislation is being framed as a protection for landlords, seeking to prevent them from being “forced” to participate in a federal program. They say that this is government infringement on the property rights of landlords. They say that it’s too hard to comply with government regulations for landlords who participate in the section 8 program. To participate as a landlord, property owners simply have to submit to an annual inspection and ensure that their rental rates are in compliance with federal Fair Market Rent standards, which are typically very generous. Inspection protocols have recently been revised to only consider key health and safety factors rather than cosmetic issues.
A Missouri Independent reporter said that in listening to Missouri legislative committee discussion on this issue over the last two years, it seems like the concerns of landlords are actually centered on a prejudiced belief that poor renters are bad tenants.
Federal data shows that renters using housing vouchers are actually excellent tenants who stay in a unit for an average of 7 to 8 years, despite the fact that landlords are free to evict them for breaking the terms of their rental agreement. This is because of the program’s smooth transitions in employment status of renters, adjusting the amount paid by the government based on fluctuations in the income of the renter. Voucher holders are also typically assigned a case manager that helps renters to understand the terms of their lease and comply with landlord regulations.
Over 86% of rental units in the country are owned by for-profit entities. If we allow these landlords to opt-out of renting to single parents living on child support, individuals with disabilities that prevent them from working full-time, and seniors and other low-income families utilizing these federal vouchers, where do we envision they will go?
Read the April 26, 2025 Missouri Independent article.
Wednesday, April 16, 2025
Ballot Measure Seeks to End Discrimination Based on Source of Rental Income in Lincoln, Nebraska
In Lincoln, Nebraska, housing advocates and national civic engagement organizations hope that a ballot measure in a May 6th special election can end the practice and allow tenants to tap into vital rent affordability assistance such as the federal Section 8 Housing Choice Voucher program. In 2022, more than 2 million families nationwide used housing vouchers, rental assistance that subsidizes households’ rent. “Source of income discrimination is when someone is turned away from housing because of the way that they would pay for that housing,” said Kasey Ogle, a senior staff attorney at Appleseed Nebraska, an organization that advocates for just causes. “It is a common and pervasive practice to turn tenants away because of Section 8 housing vouchers.”
In the absence of federal protection for voucher holders, source of income discrimination has frequently served as a proxy for race, disability, and gender discrimination. According to the American Bar Association (ABA), some 66% of federal Housing Choice Voucher (HCV) recipients are Black or Latino; 26% of households with an HCV have at least one family member living with a disability; and 77% of HCV households are female headed. In St. Louis, Missouri, for example, 94% of HCV recipients identify as Black or African American: “A refusal to accept [HCVs] means African-Americans are disproportionately turned away from these housing providers” (Metropolitan St. Louis Equal Housing and Opportunity Council, Locked Out/Locked In: Section 8 Discrimination in St. Louis City, 2019).
To codify source-of-income discrimination protections, Ogle and other advocates are working with national groups such as the Fairness Project, a nonprofit with a track record of effecting change through ballot measure initiatives. After the coalition crafted a persuasive message and outreach plan, it gathered more than 15,300 signatures to get source-of-income discrimination protections on the ballot. Lincoln’s City Council unanimously voted in early March to have the ballot proposition ready for voters.
Ogle said that the proposition amends the city’s ordinances on antidiscrimination laws to include lawful sources of income as a protected class in housing matters. The amendment also empowers the local equal employment opportunity commission investigative unit, the Lincoln Commission on Human Rights, to investigate and prosecute complaints of discrimination based on the source of income.
“About a third of people who get a housing choice voucher from the local housing authority have to return that voucher because they’re unable to find someplace that will rent to them using that voucher,” Ogle said. If tenants are unable to find a suitable home, the vouchers must be returned to the housing authority. Because Section 8 vouchers are annually renewed, the risk of not being able to remain in a home due to source of income discrimination is palpable. Sometimes the landlord has refused to renew a lease because they do not want to cooperate with the housing authority anymore, Ogle said. In Lincoln, the number of people without a home as of January 2025 rose by almost 10% from January 2024. Some of those displacements occurred due to almost 2,400 eviction filings last year in Lancaster County, where Lincoln is the county seat.
As of 2025, only 24 states (including Maryland) and roughly 180 municipalities have clear antidiscrimination laws based on source of income, with some others joining in, according to a recent policy memo from the Washington, D.C.-based Poverty and Race Research Action Council (PRRAC). For example, Kansas City, Missouri passed an ordinance in June 2024.
These state laws and local ordinances have varying degrees of effectiveness. Only about 60% of voucher holders are protected against source-of-income discrimination, the PRRAC estimates.
National advocates who helped get the Lincoln proposition on the ballot say propositions are a good way to get around legislative logjam. Kelly Hall, the executive director of the Fairness Project, said that local advocates tried to get the City Council in Lincoln to pass source-of-income discrimination protections. Hall said this ballot measure may get these protections across the finish line.
Read the April 16, 2025 Prism article.
Read the March 19, 2025 ABA American Bar Association article.
(Image courtesy of Kansas City, Missouri.)
New York State Attorney General's Office Stops Illegal Source of Income Housing Discrimination in the Albany Capital Region
New York Attorney General Letitia James has stopped two brothers and their spouses who own three rental buildings in the Capital Region from illegally denying housing opportunities to low-income renters. An investigation by the New York Office of the Attorney General (OAG), found that Greg and John Karian – who own or manage 24 rental units in buildings located in Glenmont, Albany, and Troy – violated New York’s human rights laws by refusing to rent to New Yorkers with housing vouchers. The Karians advertised that they do not accept Section 8 vouchers and charged exorbitant fees on late rent payments in violation of the law. As part of a settlement with OAG, the Karians and their employees must rent at least three units to applicants using housing vouchers, undergo anti-discrimination training, and take other actions to make housing more accessible for low-income renters.
Rental vouchers such as the Section 8 Housing Choice voucher program provide housing assistance to the lowest-income households to rent decent, safe housing in the private market. These programs also aid senior citizens and disabled persons on fixed incomes, displaced families, and homeless individuals with disabilities.
The OAG opened an investigation into the Karians’ alleged discrimination in September 2024 after online rental listings for their properties warned that they did not accept renters using Section 8. Throughout the investigation, OAG found multiple instances of discriminatory practices, including refusing to rent, lease, or negotiate with prospective tenants who intended to pay for some or all of their rent with housing subsidies; advertising that their rental properties do not accept Section 8 housing vouchers; and charging exorbitant fees of $100 for late rental payments.
The settlement with OAG requires the Karians: (1) to rent at least three units to applicants who use a housing subsidy within the next year, and must also renew the lease of these tenants for at least a one-year term, provided the tenant elects to renew; (2) to attend anti-discrimination training and implement an anti-discrimination policy to distribute to everyone involved in the rental process at their properties; (3) to publicly advertise their acceptance of Section 8 and other housing subsidies by placing an “Equal Housing Opportunity” sign at each of their properties and indicate they are an “Equal Housing Opportunity Provider” on any advertisement, listing, or social media post; (4) to provide OAG with copies of the application, lease, and renewal lease of any applicant or tenant who pays for all or some of their rent with housing subsidies and must update their lease to limit late fees to 5% of the monthly rent or $50, whichever is lower, and solely one late fee may be charged per month; and (5) to pay $3,000 in penalties and $6,000 more if they do not comply with the terms of OAG’s agreement.
It is illegal in New York State for any owner, managing agent, broker, or any other representative to refuse to rent, sell, or lease housing to any person based on their source of income. New Yorkers who suspect they are victims of source of income discrimination are encouraged to file a complaint online.
Read the April 15, 2025 New York State Attorney General's office press release.
Monday, April 7, 2025
Maryland Fair Housing Month Free Activities & Trainings
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Friday, January 24, 2025
Housing Rights Initiative Files Massive Discrimination Case After Testing Finds Rampant Housing Discrimination Across Chicago Area
The Housing Rights Initiative (HRI) has filed a series of 176 complaints against 165 real estate agents, brokerages, and landlords in Chicago. The group claims that this is the largest housing discrimination case in Illinois history. The lawsuits are the result of an undercover investigation conducted by HRI. In total, the housing watchdog group filed 176 complaints against 165 defendants with the Illinois Department of Human Rights. Defendants in the suit include major brokerage companies such as Coldwell Banker, Christie’s International Real Estate, Keller Williams, and Berkshire Hathaway Home Services Chicago.
HRI is represented in these complaints by two public interest law firms, Peter Romer-Friedman Law PLLC and Handley Farah & Anderson PLLC, and by Disability Rights Advocates (DRA), a national nonprofit disability rights legal center with offices in Chicago, Berkeley, and New York.
An HRI testing project found that real estate professionals often declined to rent Chicago-area properties to investigators posing as low-income families. The HRI claimed that real estate agents, brokerage firms and landlords discriminated against prospective renters who sought to use vouchers provided through the federal rental assistance program known as Section 8. A group of investigators went undercover last year as prospective tenants, contacting hundreds of brokers and landlords by text message to determine whether they were complying with the Illinois Human Rights Act, which prohibits discrimination against people with housing vouchers. The group found that voucher holders were explicitly discriminated against about 36% of the time, according to a statement issued by the HRI. A range of real estate heavyweights were among the firms that allegedly broke the law.
Gov. JB Pritzker signed the Illinois Human Rights Act in 2022 (HB 2775), making it illegal for landlords, brokers, and agents to discriminate against housing applicants looking to use Section 8 or disability vouchers to help pay their rent. This historic filing builds upon that foundation by holding discriminatory real estate companies accountable and sending a message that landlords cannot refuse to rent to qualified low-income families in Illinois.
Peter Romer-Friedman, founder of one of the law firms (PRF Law) that filed the complaints, said the measure was drafted to “fill the gap” of the Fair Housing Act, a federal law that does not protect against so-called source of income discrimination. He said some of the complaints could be brought to court.
Emily Roznowski, DRA Staff Attorney, commented: “People with disabilities make up a disproportionate share of housing choice voucher holders. HRI’s investigation and the complaints filed today will ensure that people with disabilities in Illinois have access to the decent, safe, and accessible affordable housing of their choice. No one should be turned away from renting an apartment based on their source of income, whether that income comes from a voucher or Social Security Disability Insurance.”
Read the January 20,2025 WBEZ Chicago article.
Read the January2025 PRF Law article.
Thursday, October 24, 2024
Fannie Mae Improves and Extends its "Expanded Housing Choice" Voucher Initiative Nationwide
Fannie Mae (FNMA/OTCQB) has announced improvements to its Expanded Housing Choice (EHC) initiative that: (1) make it available nationwide - including states with no source of income protections - for new loans to multifamily property owners who accept U.S. Department of Housing and Urban Development (HUD) Housing Choice Vouchers (HCVs); (2) increase eligibility thresholds to stimulate a more sustainable program; (3) streamline its data collection process; and (4) make its more transparent regarding inclusive renter screening requirements. It was previously limited to eligible properties in North Carolina and Texas. These changes will support a more equitable housing market.
The Housing Choice Voucher federal program helps very-low-income families, senior citizens, and people with disabilities afford stable, quality housing in the private market. Fannie Mae’s Expanded Housing Choice initiative, begun in 2022 and extended through April 2026, is a pilot initiative to expand housing opportunities for HCV holders by incentivizing multifamily borrowers to accept vouchers as a valid source of income. Approximately 30% of voucher holders are unable to find housing that accepts their vouchers.
Multifamily property owners are now eligible if their property is not already legally required to accept HCVs and that at least 40% of units are affordable at or below HUD Fair Market Rents or Small Area Fair Market Rents. Borrowers and property managers who leverage EHC and accept HCVs can benefit from lower pricing, flexible loan terms, certain completion, lower turnover and vacancy rates, and a steady stream of competitive rent payments backed by HUD. Fannie Mae's Delegated Underwriting and Servicing (DUS®) lenders partnered with it in the initiative.
For more information on Fannie Mae’s Expanded Housing Choice initiative, including background on the Housing Choice Voucher program, lender and borrower best practices, frequently asked questions, and more resources, go to FannieMae.com.
Tuesday, July 23, 2024
PD&R Quarterly In-Person & Virtual Update on Source of Income Discrimination will be on July 25th
On Thursday, July 25th, HUD's Office of Policy Development & Research (PD&R) will host a hybrid PD&R Quarterly Update on source of income (SOI) discrimination and laws. Over the past 20 years, evidence of discrimination against housing choice voucher holders has grown. Over half of voucher households live in states and localities that have adopted ordinances to prevent this kind of discrimination - such as Maryland. Go to the Source of Income Protections for Housing Choice Voucher Holders website of HUD’s Office of Public and Indian Housing to see jurisdictions that have adopted SOI protections.
Thursday, July 25, 2024
2:00-4:00 pm ET
Hybrid Event
HUD Headquarters
451 7th Street SW
Washington, DC 20410
Attending this HUD event will be researchers, municipal and state government officials, and fair housing practitioners. They will discuss recent passage of local anti-discrimination ordinances; evaluate research about the impacts of these anti-discrimination laws; and discuss challenges to the enforcement of these ordinances.
Data Spotlight - Veronica Helms Garrison, Analyst, PD&R/HUD
Panel Discussion: Overview of Source of Income Protections and What the Research Tells Us About Their Effectiveness - Panelists are:
- Martha Galvez, Executive Director, Housing Solutions Lab at the Furman Center, NYU.
- Philip Tegeler, Executive Director, Poverty & Race Research Action Council (PRRAC).
- Dan Teles, Principal Research Associate, Urban Institute.
- Moderator: Dr. Calvin Johnson, Deputy Assistant Secretary for Research, Evaluation, and Monitoring, PD&R/HUD.
Panel Discussion: Lessons from State and Local Implementation - Panelists are:
- Adria Crutchfield, Executive Director, Baltimore Regional Housing Partnership.
- Sandra Park, Chief of the Civil Rights Bureau, New York State Office of the Attorney General.
- Manon Vergerio, Co-Founder and Head of Data & Advocacy, Unlock NYC.
- Moderator: Chang Chiu, Chief of Staff for the Office of Fair Housing and Equal Opportunity, HUD.