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SOURCE OF INCOME
DISCRIMINATION IN
HOUSING
ChristaWalikonis,TCDD Policy Fellow
Housing Goals
• Affordable
• Accessible
• Integrated
2
Sources of Housing Assistance
■ Section 8 Housing ChoiceVouchers (est. 1974)
■ Low-Income HousingTax Credits (est. 1986)
3
■ Federal Program
■ Locally Administered
■ Periodically open waitlist and select
a number of applications on a lottery
system.
■ Income cannot exceed 50% of MFI
■ A family pays between 30 – 40% of
their monthly income toward rent,
and the housing authority covers the
rest.
■ Once approved, they have 120 days
(4 months) to find a suitable unit.
Assists low-income families,
the elderly, and the disabled to
afford decent, safe, and
sanitary housing in the private
market.
4
5,270
HCV Holders
in Austin
62%
have a disability
5
Classes Protected by the Fair Housing Act
■ race
■ color
■ religion
■ national origin
■ sex
■ disability
■ familial status
■ source of income
6
Relationship between SOI and protected classes
■ The FHA prohibits discrimination that is intentional and/or that has a
disproportionately negative effect on a protected class.
– However, a refusal to rent to a voucher holder may be a pretext for
discrimination based on a protected class,
– Or, because protected classes disproportionately represented
among HCVP participants, the refusal to accept a voucher may have
a disparate impact on them.
7
Where Are Section 8 HousingVoucher Holders Protected by SOI Anti-Discrimination
Laws?
*Texas is the only jurisdiction to pass a law that protects a landlord’s right to discriminate
Source: Affordable Housing Online
8
■ 91% of landlords in Austin
refused to accept Section
8 tenants
■ 94% of units in the right
rent range were not
accessible to voucher
holders
9
SOI LAWS inTEXAS
2014
• Dallas & Austin pass Source-
Of-Income ordinances
2015
•Legislature negates
ordinances, passing SB 267
2017
• Fair housing advocates sued
Texas, case pending.
10
11
Reasons Landlords Don’t Accept HCV
■ Administrative burdens
■ Aversion to contracting with a federal program
■ Having to track down late payments from local housing authorities
■ Unnecessary standards for units
■ If a unit fails its inspection, it can take weeks to reschedule — costing them money
12
Research Questions
For the Austin vouchers issued in 2018:
■ How many people weren’t able to find housing before their voucher
expired?
■ For those who found housing, how long did it take them?
■ In what neighborhoods were people finding housing?
13
The average
rent in Austin is $1,369
14
2018Voucher Issuance: 437
362
10 1
65
Leased Up Ported Out Searching Expired
83%
15
Average Lease-UpTime
74 days
or
2.4 months
16
17
18
Benefits of Mixed-Income Neighborhoods
■ Poverty alleviation
■ Improved mental health
■ Increased tolerance for diversity
■ Improved housing quality
■ Increased accessible services
■ Improved neighborhood conditions
19
■ An federal subsidy used to finance the
construction and rehabilitation of affordable
rental housing.
■ Developers compete every year for this tax
credit based on a point system.
■ Owners must keep units rent restricted and
available to low-income tenants.
■ Required to accept housing vouchers
20
164 LIHTC Properties within Austin City Limits
0%
5%
10%
15%
20%
25%
30%
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7
Distribution of LIHTC Properties by % in Poverty
21
Percent in Poverty Percent of LIHTC Properties
10% 17%
20% 24%
30% 25%
40% 21%
50% 10%
60% 3%
Barriers to
Affordable
Housing
Development
22
QUESTIONS?
23

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Source of Income Discrimination in Housing

  • 1. SOURCE OF INCOME DISCRIMINATION IN HOUSING ChristaWalikonis,TCDD Policy Fellow
  • 2. Housing Goals • Affordable • Accessible • Integrated 2
  • 3. Sources of Housing Assistance ■ Section 8 Housing ChoiceVouchers (est. 1974) ■ Low-Income HousingTax Credits (est. 1986) 3
  • 4. ■ Federal Program ■ Locally Administered ■ Periodically open waitlist and select a number of applications on a lottery system. ■ Income cannot exceed 50% of MFI ■ A family pays between 30 – 40% of their monthly income toward rent, and the housing authority covers the rest. ■ Once approved, they have 120 days (4 months) to find a suitable unit. Assists low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. 4
  • 6. Classes Protected by the Fair Housing Act ■ race ■ color ■ religion ■ national origin ■ sex ■ disability ■ familial status ■ source of income 6
  • 7. Relationship between SOI and protected classes ■ The FHA prohibits discrimination that is intentional and/or that has a disproportionately negative effect on a protected class. – However, a refusal to rent to a voucher holder may be a pretext for discrimination based on a protected class, – Or, because protected classes disproportionately represented among HCVP participants, the refusal to accept a voucher may have a disparate impact on them. 7
  • 8. Where Are Section 8 HousingVoucher Holders Protected by SOI Anti-Discrimination Laws? *Texas is the only jurisdiction to pass a law that protects a landlord’s right to discriminate Source: Affordable Housing Online 8
  • 9. ■ 91% of landlords in Austin refused to accept Section 8 tenants ■ 94% of units in the right rent range were not accessible to voucher holders 9
  • 10. SOI LAWS inTEXAS 2014 • Dallas & Austin pass Source- Of-Income ordinances 2015 •Legislature negates ordinances, passing SB 267 2017 • Fair housing advocates sued Texas, case pending. 10
  • 11. 11
  • 12. Reasons Landlords Don’t Accept HCV ■ Administrative burdens ■ Aversion to contracting with a federal program ■ Having to track down late payments from local housing authorities ■ Unnecessary standards for units ■ If a unit fails its inspection, it can take weeks to reschedule — costing them money 12
  • 13. Research Questions For the Austin vouchers issued in 2018: ■ How many people weren’t able to find housing before their voucher expired? ■ For those who found housing, how long did it take them? ■ In what neighborhoods were people finding housing? 13
  • 14. The average rent in Austin is $1,369 14
  • 15. 2018Voucher Issuance: 437 362 10 1 65 Leased Up Ported Out Searching Expired 83% 15
  • 17. 17
  • 18. 18
  • 19. Benefits of Mixed-Income Neighborhoods ■ Poverty alleviation ■ Improved mental health ■ Increased tolerance for diversity ■ Improved housing quality ■ Increased accessible services ■ Improved neighborhood conditions 19
  • 20. ■ An federal subsidy used to finance the construction and rehabilitation of affordable rental housing. ■ Developers compete every year for this tax credit based on a point system. ■ Owners must keep units rent restricted and available to low-income tenants. ■ Required to accept housing vouchers 20
  • 21. 164 LIHTC Properties within Austin City Limits 0% 5% 10% 15% 20% 25% 30% 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 Distribution of LIHTC Properties by % in Poverty 21 Percent in Poverty Percent of LIHTC Properties 10% 17% 20% 24% 30% 25% 40% 21% 50% 10% 60% 3%

Editor's Notes

  1. Marked a shift in government housing assistance for the poor: moving away from building and maintaining public housing developments to handing out subsidies in the private market.
  2. But refusing to rent to applicants who have Section 8 vouchers won't violate the FHA because source of income isn't a protected class under federal law.
  3. While federal law sets the minimum protections, states and localities can expand the number of protected classes. In an effort to address the affordable housing shortage, 12 states, District of Columbia, and several municipalities have made source of income a protected class. This protection is generally defined to include any lawful source of income including government assistance (such as HCVP subsidies), alimony, child support, or other compensation or benefit. Texas does not have a law prohibiting source of income discrimination. Texas has the most restrictive laws when it comes to SOI discrimination
  4. SB 267 says that landlords cannot be punished for discriminating against families using federal housing assistance.
  5. This is what people with vouchers are up against.
  6. However, voucher recipients are more financially stable than their counterparts. HCV provide consistent income to landlords.
  7. The Housing Authority of the City of Austin (HACA) Section 8 Housing Choice Voucher waiting list is currently closed. It was last open for one week in September, 2018; and before that in October, 2014. There is no notice of when this waiting list will reopen.
  8. 83% were able to find housing within the allotted time.
  9. Vouchers holders end up living in impoverished neighborhoods
  10. Discuss NIMBYism and Rep Letter issue