The New Taboo: "Sorry, I don't accept Section 8."

Source of Income Discrimination

Does your state or your municipality have a Source of Income discrimination law? You’d better find out! The governor of the state of Michigan is about to sign the bill here. I’me going to break it down in this video. What does it mean? What if you violate it? What’s really going to happen?

What We Cannot Do

Link to New Ruling

  1. Denying or terminating a tenancy.

  2. Denying them a rental unit or making it unavailable to them when they would otherwise (i.e., if not for their source of income) be eligible to rent it.

  3. Attempting to discourage the rental or lease of a rental unit to them.

  4. Falsely representing to them that a rental unit is not available for inspection, rental, or lease; knowingly failing to bring a rental listing to their attention; or refusing to allow them to inspect a rental unit.

  5. Making a distinction or restriction against them in the price, terms, fees, or privileges related to the rental, lease, or occupancy of a rental unit—including, House Fiscal Agency Page 1 of 6 separately and specifically, doing so on the basis of their use of emergency rental assistance.

  6. Making a distinction or restriction against them in the provision of facilities or services related to the rental, lease, or occupancy of a rental unit.

  7. If the landlord requires tenants to have a certain threshold level of income, excluding any income in the form of a rent voucher or subsidy (but not emergency rental assistance) in calculating whether those criteria are met.

What is Source of Income

Housing assistance, housing choice vouchers provided under 42 USC 1437f, public assistance, veterans’ benefits, Social Security, supplemental security income or other retirement programs, and other programs administered by any federal, state, local, or nonprofit entity.

What is NOT Source of Income

  1. Income the prospective tenant cannot prove. I woud think this includes self-employed people and maybe people doing illegal business.

  2. Housing assistance that is not approved by the appropriate agency within 30 days after the landlord provides all information required as a condition of the agency’s approval, including evidence that all repairs required before occupancy have been completed.

This last one would mean that once I have turned in my Section 8 application, the housing commission has to get through the inspection and I have to pass it within 30 days.

What happens if we violate this?

Damages would mean actual damages for injury or loss caused by each violation, or up to three times the monthly rent for the rental unit or units at issue, whichever is less, together with court costs and reasonable attorney fees.

What’s Really Going to Happen?

I don’t believe in discriminating against people with sources of income from the government. I think a lot of landlords are going to look at this and say okay to renting to Section 8 but the tenant has to come up with first month’s rent upon move in. That’s what the landlord does with everyone else anyway. But would that be discriminating against source of income? Or the landlord could refuse to sign a HAP contract. There’s some wacky things in there we have to sign if we choose to rent to someone on Section 8. For instance, if my house is in abatement because I failed two inspections and the damages were all tenant caused damages and Section 8 stops paying me, can I charge the tenant the missing Section 8 rent? No! Credit score. Home visit.