Fair Housing and
Source of Income
1
What is the law regarding source of income protecons?
California has a law called the Fair Employment and Housing Act (FEHA)
1
that protects people
from housing discriminaon based on protected characteriscs, including the source of a housing
applicant or tenant’s income. This includes the use of a federal, state, or local housing subsidy,
such as a Housing Choice Voucher (also known as an “HCV” or “Secon 8”), that helps parcipants
aord their rent. The law also protects people from source of income discriminaon in housing
other than rental housing.
2
What types of housing subsidy programs are included under the source of
income protecons?
The law prohibits discriminaon against any applicant or tenant because they are using any type
of federal, state, or local housing subsidy to assist with paying rent. This includes, but is not limited
to, the Secon 8 voucher/HCV program, the HUD-VASH program, Homelessness Prevenon and
Rapid Re-Housing programs, Housing Opportunies for Persons with AIDS, and security deposit
assistance programs. The law also protects the use of subsidy programs created by cies, counes,
and public agencies to address growing homelessness.2
3
What is a Secon 8/Housing Choice Voucher? What is a HUD-VASH voucher?
A Secon 8 voucher/HCV is rental assistance funded by the U.S. Department of Housing and
Urban Development (HUD). The funds are administered by local public housing authories to
help households with low incomes pay their rent. A tenant with a voucher pays a predetermined
poron of rent, and the Secon 8 voucher/HCV program pays the remainder of the rent directly to
the housing provider.
The HUD-VASH program is a type of Secon 8 voucher/HCV that provides assistance to
veterans and their families who are experiencing homelessness. The program also includes case
management and clinical services provided by the Department of Veterans Aairs.
4
Who must comply with the law regarding source of income protections?
All housing providers must comply with FEHA’s source of income protecons.
This includes private landlords, property management companies, homeowners associaons,
corporaons, and others who rent residenal property in California.
3
Addionally, providers
of housing-related services and programs such as mortgage lenders, insurance providers, and
appraisers must also comply with the law.
4
However, homeowners who live in their house,
condominium, or other single-family unit and rent out only one room within that unit are
exempt from the law.
5
1 Cal Govt. Code § 12900 et seq.
2 2 CCR § 12140(b)(4)
3 2 CCR § 12005(v)
4 2 CCR § 12140.1
5 2 CCR § 12052
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PAGE 1 OF 5
Fair Housing and Source of Income
5
What are some examples of pracces that are prohibited?
Examples of acons a housing provider or a provider of housing related services/programs
cannot take based only on a person’s source of income include but are not limited to:
1.
Adversing a preference for tenants with certain sources of income
6
2. Refusing an applicaon from a prospecve tenant, charging a higher deposit or rent,
or treang the prospecve tenant or tenant dierently in any other way because the
prospecve tenant or tenant uses a Secon 8 voucher/HCV or another housing subsidy
7
3. Refusing to enter into a lease with someone ulizing security deposit assistance
8
4. Harassing or evicng an exisng tenant because they begin ulizing a housing subsidy to
pay rent
9
5. Interrupng or terminang any tenancy because the tenant is using or plans to use a
Secon 8 voucher/HCV or other housing subsidy
10
6. Falsely represenng that a rental unit is not available for tenancy because the
prospecve tenant will be using a HUD-VASH voucher
11
7. Requiring any clause, condion, or restricon in the terms of an agreement solely
because the tenant will use a Secon 8 voucher/HCV (with the excepon of those
required by a parcular subsidy program)
12
8. Restricng a tenant’s access to facilies or services at the rental property (such as a pool
or tness center) or refusing repairs or improvements to the property associated with
the tenancy because of the use of a Secon 8 voucher/HCV or another subsidy
13
9. Refusing to approve a mortgage for a qualied applicant because they will make
payments with rerement benets
14
10. A city requiring social service providers to purchase a special license to provide hotel
rooms to people experiencing homelessness
15
6
Can housing providers post noces or adversements that say, “No Secon 8”
or indicate preferences for, or bans on, other rental assistance?
No. It is unlawful to make, print, publish, adverse, or disseminate in any way a noce,
statement, or adversement that indicates that a tenant will be declined because of their
source of income, including a Secon 8 voucher/HCV.
16
6 2 CCR § 12141(7)
7 2 CCR § 12141(a)
8 2 CCR § 12141(a)
9 2 CCR § 12140.1(e)
10 2 CCR § 12141(a)
11 2 CCR § 12141(a)
12 2 CCR § 12141(a)
13 2 CCR § 12141(a)
14 2 CCR § 12140.1(d)
15 2 CCR § 12140.1(k)
16 2 CCR § 12141(7)
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CRD-H07P-ENG / January 2024
7
Are housing providers prohibited from screening applicants with rental
assistance based on other factors?
No. While housing providers cannot decline a tenant or treat a prospecve tenant dierently
than other applicants, based only on the applicant’s receipt of housing assistance, housing
providers sll have the right to screen all applicants according to their lawful tenant screening
criteria.
17
However, as of January 1, 2024, housing providers must give applicants with housing
subsidies the chance to present veriable and lawful evidence that they can cover their
poron of the rent. If the housing provider receives such evidence, they should consider
this informaon instead of the applicant’s credit history. Such proof could include, but is not
limited to, documentaon of the receipt of public benets, bank statements, or pay stubs.
18
Addionally, all fair housing laws sll apply, ensuring that tenant selecon is never based
on race, color, naonal origin, religion, sex, familial status, disability, age, ancestry, sexual
orientaon, gender identy, gender expression, genec informaon, marital status, military
and veteran status, cizenship status, primary language, or immigraon status.
19
8
Can a housing provider sll screen for income eligibility to ensure an applicant
will be able to pay their rent?
Yes. However, housing providers must consider all legal and veriable sources of income for
an applicant or resident. Any money that will be paid by a household must be included as
part of the applicant’s or resident’s annual income when determining whether their income
meets the requirements for the rent amount or other nancial standards. This means that the
housing provider must consider the total income of persons residing together or proposing to
reside together on the same basis as the total income of married persons residing together or
proposing to reside together.
20
9
Are applicants receiving rental assistance permied to provide documentaon
of their ability to pay rent through evidence other than a credit report?
Yes. If a housing provider plans to check the credit history of an applicant with rental
assistance, the provider must oer the opportunity, and give the applicant reasonable me, to
present alternave, lawful, and veriable evidence of their ability to cover their poron of the
rent. If the applicant submits such evidence, the housing provider must consider this instead
of the credit report. The evidence can include documentaon of the receipt of public benets,
bank statements, or pay stubs.
21
10
If a housing provider uses a nancial eligibility standard that requires a
household to have a certain amount of income to qualify for a unit, how can a
tenant with a Secon 8 voucher/HCV meet the nancial standard?
If a tenant or applicant is using a housing subsidy, such as a Secon 8 voucher/HCV, the
housing provider is only permied to consider the tenant’s poron of the rent. If a housing
17 2 CCR § 12141(b)
18 Cal. Govt. Code § 12955(o)(B)
19 2 CCR § 12141(b)
20 2 CCR § 12142
21 Cal. Govt. Code § 12955(o)(B)
Fair Housing and Source of Income
PAGE 3 OF 5
CRD-H07P-ENG / January 2024
provider uses a nancial or income standard that is not solely based on the poron of the rent
to be paid by the tenant, then the housing provider has commied an unlawful discriminatory
housing pracce.
22
For example:
A two-bedroom unit is adversed at a rent of $2,500 per month. The building has a A two-
bedroom unit is adversed at a rent of $2,500 per month. The building has a policy that
all households must have an income of at least three mes the rent in order to qualify for
a unit. A household with a Secon 8 voucher/HCV applies for the apartment. The tenant’s
poron of the rent is $500, and the housing authority will pay the addional $2000. The
housing provider is permied to require that the tenant have an income of at least $1500
a month (the tenant poron X 3). The housing provider cannot require that the tenant
make three mes the total rent for the unit ($7500), as this would include the poron that
will be paid by the housing authority. See chart illustrang this:
Standard Secon 8
R
ent Due by Tenant:
$2,500 $500
Income Minimum:
$7,500 $1,500
11
Does this mean a housing provider cannot set their own rent amounts?
No. The local public housing authority only determines whether or not the rent requested
by the housing provider for a household with a Secon 8 voucher/HCV is reasonable. Crical
market factors that impact rent are considered, such as the locaon, quality, size, unit type,
and age of the contract unit, as well as any amenies. To raise the rent, the housing provider
rst must comply with any local or state law that limits rent increases for certain residenal
properes. Housing providers must also provide the tenant and the local public housing
authority with a wrien noce of a proposed rent increase and submit a rent increase
applicaon. Rents for exisng Secon 8 voucher/HCV holding tenants may not exceed the
rents charged for units with tenants who do not receive rental assistance.
12
How are tenants with Secon 8 vouchers/HCVs screened by the housing
authority?
Households that receive a Secon 8 voucher/HCV undergo a vericaon process of their
income and background checks for certain factors related to tenant suitability, such as criminal
convicon history* and evicon history. Addionally, many rental assistance programs,
including the Secon 8 voucher/HCV, require recipients to adhere to specic rules and
standards regarding conduct in housing to receive assistance. This provides an addional
incenve for tenants to comply with lease provisions. Housing providers are also permied
to do their own background checks if the screening complies with all federal, state, and local
laws.
*
FEHA also has specic regulaons related to the use of criminal history informaon in housing decision-making.
22 Cal. Govt. Code § 12955(o)(A); 2 CCR § 12143
Fair Housing and Source of Income
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CRD-H07P-ENG / January 2024
13
Do source of income protecons apply in non-rental situaons?
Yes. All providers of housing-related services and programs are prohibited from engaging in source
of income discriminaon, including in non-rental circumstances. Examples include, but are not
limited to: 1) banks, mortgage companies, and other nancial instuons providing nancial
assistance related to housing accommodaons; 2) businesses that provide insurance for housing
accommodaons; and 3) persons or businesses performing appraisals.
23
For more informaon on
what enes are prohibited from engaging in source of income discriminaon, see California Code
of Regulaons, tle 2, secon 12140.1.
14
What could happen if a housing provider does not follow the law?
Tenants, applicants, and others who believe they have experienced prohibited source of income
discriminaon can le a private lawsuit against housing providers who violate the law, or they
can le a complaint with CRD. CRD will in
vesgate and aempt to resolve the complaint. If the
complaint isn’t resolved and CRD determines there has been a legal violaon, CRD can le a
lawsuit in court seeking remedies that may include recovery of out-of-pocket losses, an injuncon
prohibing the unlawful pracce, access to housing that the landlord denied, damages for
emoonal distress, civil penales or punive damages, and aorney’s fees.
15
Where can I obtain more informaon?
Please see our website at www.calcivilrights.ca.gov for more informaon and resources about
source of income discriminaon.
Fair Housing and Source of Income
PAGE 5 OF 5
If you think you have been a vicm of discriminaon, please contact CRD.
TO FILE A COMPLAINT
Civil Rights Department
calcivilrights.ca.gov/complaintprocess
Toll Free: 800.884.1684
TTY: 800.700.2320
California Relay Service (711)
Have a disability that requires a reasonable accommodaon? CRD can assist you with your
complaint.
For translaons of this guidance, visit: ww
w.calcivilrights.ca.gov/posters/housing
23 2 CCR § 12140.1
This guidance is for informational purposes only, does not establish
substantiv
e policy or rights, and does not constitute legal advice.
CRD-H07P-ENG / January 2024
