Source of Income: Policy Issue

Overview

Various state and local jurisdictions have added “source of income” to their list of protected classes under fair housing laws, which prevents housing providers from using the lawful source of an applicant’s income as a determining factor in leasing decisions.   

In practice, this has the effect of mandating rental housing provider participation in the U.S. Department of Housing and Urban Development’s (HUD) Section 8 Housing Choice Voucher (HCV) Program, which Congress specifically designed to be voluntary, mandated participation ultimately adds burdensome regulatory requirements, uncertainty and legal ambiguity that are not otherwise imposed in a standard leasing transaction. (see the difference between a standard leasing process and a housing voucher leasing process). 

Industry Position

In practice, this has the effect of mandating rental housing provider participation in the U.S. Department of Housing and Urban Development’s (HUD) Section 8 Housing Choice Voucher (HCV) Program, which Congress specifically designed to be voluntary, mandated participation ultimately adds burdensome regulatory requirements, uncertainty and legal ambiguity that are not otherwise imposed in a standard leasing transaction. (see the difference between a standard leasing process and a housing voucher leasing process). 

As an Owner or Operator, How Does this Affect My Business?

The HCV Program’s Burdensome Requirements 

Contact Information

To learn more about this issue, please contact NAA's Public Policy team.

The HCV Program and the Public Housing Authorities (PHAs) that administer it require property owners to adhere to additional regulatory requirements which are not present in a standard apartment leasing transaction. These requirements include, but are not limited to:  

  • Rent and rent increase limits that do not keep pace with rising operational expenses and inflation. Delays and unreliable payment disbursements, and even arbitrary withholding. 

  • Lengthy and irreconcilable PHA approval processes for housing assistance and tenancy. 

  • Inspection challenges, including delays, inconsistent application and implementation issues across PHAs and inspectors. 

  • Additional terms and conditions of tenancy related to the required tenancy addendum. 

  • Recertification-related burdens. 

  • Inconsistent, sometimes unreliable, support from local PHAs to address resident noncompliance or housing providers’ administrative challenges. 

Many rental housing providers are dedicated partners with HCV Program and understand the mutual benefit from keeping low-income households in affordable units. However, the burdensome regulations and lengthy leasing process is not practical or financially feasible for all rental communities.  While the HCV Program is a critical tool to assist low- and moderate-income households in accessing quality affordable housing, it was designed to be a voluntary program and should remain that way.