RENT Magazine Q4 '24

UNDERSTANDING THE LEGAL LANDSCAPE

STEERING AND ITS DETRIMENTAL EFFECTS In these regions, it is illegal for property managers to refuse an application solely because a potential resident’s rent payment comes from a subsidy program. This means that landlords and housing providers must accept all legal forms of income as part of their applicant’s financial qualifications and may not exclude individuals simply because their income comes from non-traditional sources, such as government programs. Discrimination based on income source is becoming an area of heightened legal focus. While the Fair Housing Act protects individuals from discrimination based on race, color, religion, sex, disability, familial status, and national origin, it does not directly address the source of income. However, an increasing number of states and local jurisdictions have taken proactive steps to address this gap by passing laws that prohibit housing discrimination based on income source, particularly in relation to housing vouchers or government assistance programs such as Section 8. While discrimination based on source of income is overtly unlawful in areas where it is protected, steering is a more covert form of housing discrimination that can be harder to identify and combat. Steering typically manifests as subtle suggestions or behaviors that guide individuals away from certain properties or neighborhoods based on perceptions of their financial status. Housing providers may not directly say that a unit is unavailable to someone with a low income, but they may recommend different properties they perceive as “more appropriate” for that individual. Steering is harmful because it reinforces housing segregation and limits choices for residents, especially those from lower income backgrounds. Furthermore, it violates fair housing laws and can lead to significant legal and financial repercussions for housing providers who engage in this practice, whether consciously or unconsciously.

DISCRIMINATION BASED ON INCOME SOURCE IS BECOMING AN AREA OF HEIGHTENED LEGAL FOCUS.

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