WARNING: Discrimination Against “Source of Income” Violates Fair Housing Rules

The U.S. Department of Housing and Urban Development (HUD) HUD has issued a memorandum to fair housing groups receiving HUD funding (e.g., Section 8, VASH, etc.), clarifying that testing for “source of income” discrimination and discrimination enforcement (in states and localities where it is prohibited) are eligible activities under the Fair Housing Initiatives Program (FHIP) because of the significant discriminatory impact of such policies and also as part of the agency’s mission to affirmatively further fair housing. The memorandum states that “FHEO reliably approves and provides payment for source of income testing and enforcement activities designed to address such discrimination even if the FHIP agency decides to pursue individual relief by filing a source of income complaint in a local or state court.” Source of income discrimination’ refers to the practice of refusing to rent to a housing applicant because of that person’s lawful form of income.

As of January 1, 2020, California has a state-wide law prohibiting landlords from rejecting potential tenants solely on their use of a housing voucher. The law, known as Source of Income (SOI) protection, replaces SOI ordinances that were previously in place in several California cities, such as Los Angeles, San Francisco, and Santa Clara County to cover voucher holders across the state.

Beware, “secret shopper” testers are out there and they may place or phone call or pay a visit to you when you have a vacancy. Don’t advertise that you are unwilling to accept a housing voucher. Paid Fair Housing Testers help HUD to make sure that people are not denied housing because of their race, color, national origin or ancestry, religion, sex, sexual orientation, disability, family status (living with minor children), or because they are getting public assistance (e.g., “Source of Income”). If you are uncertain about Fair Housing Rules, it is important that you take a fair housing course at least every other year to keep up to date. These courses are offered through the Apartment Association of Greater Los Angeles.

**Clarification on source of income discrimination testing and enforcement: HUD has issued a memorandum to fair housing groups receiving HUD funding, clarifying that testing for source of income discrimination and SOI discrimination enforcement (in states and localities where it is prohibited) are eligible activities under the Fair Housing Initiatives Program (FHIP), because of the significant discriminatory impact of such policies and also as part of the agency’s mission to affirmatively further fair housing. The memo states that “FHEO reliably approves and provides payment for source of income testing and enforcement activities designed to address such discrimination even if the FHIP agency decides to pursue individual relief by filing a source of income complaint in a local or state court.” See the memo here.