Bill that Prohibits Housing Discrimination Based on Income Passes Michigan Senate

Michigan lawmakers are considering legislation that would prohibit landlords from discriminating against a person based on his or her source of income.

SB 205-206 was recently passed by the Senate and was referred to the Michigan Judiciary Committee. If signed into law, the legislation would ban landlords and persons engaging in real estate transactions from discriminating against persons who receive specified benefits and subsidies, including public assistance and social security.

Currently, landlords can choose not to rent to tenants or prospective tenants using housing subsidies, specifically tenants or prospective tenants using House Choice (Section 8) Vouchers. (The Housing Choice Program is a federal program that assists low-income families, elderly, and disabled individuals in affordable housing.)

If signed into law, Senate Bill 205 would amend the Landlord-Tenant Act to do the following:

• Prohibit a landlord from discriminating against a tenant or prospective tenant based on the tenant’s or prospective tenant’s source of income.
• Prohibit a landlord from publishing or causing to publish information indicating a preference, limitation, or requirement based on any source of income.
• Require a landlord to subtract from any rental unit’s required threshold level of income a rent voucher or subsidy.
• Allow a person who suffers a loss because of a landlord’s source of income discrimination to bring a civil action to recover actual damages or a specified amount of rent.

In addition, the bills note that the law would not apply to an individual, partnership, corporation, association, LLC, or any other legal entity that owns, controls, or indirectly controls fewer than five rental units in the state.

What is defined as a source of income according to the bill?

Sources of income would include the following:

• Housing assistance;
• Public assistance;
• Housing Choice vouchers;
• Veteran’s benefits;
• Social Security;
• Supplemental security income or other retirement programs; or
• Programs administered by any Federal, State, local, or nonprofit entity.

Help is available

The landlord-tenant attorneys at O’Reilly Rancilio are available to answer questions related to landlord-tenant law. To speak with an attorney, please call 586-726-1000 or visit our website.