Existing Source-of-Income Non-Discrimination Laws Protect Only One in Three of Housing Voucher Holders

A report by the Center on Budget and Policy Priorities (CBPP), Prohibiting Discrimination Against Renters Using Housing Vouchers Improves Results, finds that only one out of three housing voucher holders are protected by source-of-income (SOI) non-discrimination laws. Based on interviews with policy experts and practitioners, the authors recommend ways to improve the effectiveness of and build public support for SOI non-discrimination laws.

Source-of-income non-discrimination laws prohibit landlords from discriminating against potential tenants based on their sources of income like alimony or disability benefits, and they frequently prohibit discrimination against households with Housing Choice Vouchers (HCVs). Ten states, the District of Columbia, and approximately 50 counties and cities have such non-discrimination protections for voucher holders, but only 34% of households using HCVs in the U.S. are protected by them. A recent HUD report (see Memo, 8/27) found that landlords in places without SOI non-discrimination laws were significantly more likely to reject vouchers than landlords in places with these laws. The voucher denial rates were 77% and 35% in places without and with these laws, respectively.

CBPP interviewed policy experts and practitioners from various states, counties, and cities to gain insights into enacting and implementing SOI non-discrimination laws. Based on these interviews, the authors recommend that an administrative agency responsible for monitoring and enforcement of SOI non-discrimination laws be clearly identified and sufficiently funded to collect, investigate and remedy complaints, perform regular compliance testing, continuously inform HCV participants and landlords about the law’s requirements, work with local housing authorities to encourage complaints when violations occur, and publicly report the number of complaints, resolutions, compliance tests, and overall effectiveness.

The experts identified landlord opposition as one of the main challenges to enacting SOI non-discrimination protections. The report recommends encouraging landlord support by reminding them that voucher payments are a reliable source of income, landlords still charge market-rate rents and security deposits for voucher holders, and regular tenant screening criteria are applicable for voucher holders. The authors note that as SOI non-discrimination laws become more widespread, political support for a federal law may arise.

Prohibiting Discrimination Against Renters Using Housing Vouchers Improves Results can be found at: https://bit.ly/2yzl8V2