Understanding Source of Income Protections in Ann Arbor and Ypsilanti
Jessilyn Averill
A household’s source of income (SOI) encompasses all forms of legal household finances – such as wages from employment, federal assistance, alimony, child support, and more – that contribute to the households renting ability. Often, landlords impose income requirements for leasing a unit, but some will choose to exclude some sources of income in calculating the household’s rental payment ability.
When a landlord chooses to ignore a tenant’s income from a particular source, it is source of income discrimination. To counter this discrimination, many states and municipalities have begun passing source of income protections that enshrine the right for tenants to use all their legal sources of income for rental payments and makes it illegal for a landlord to deny a prospective renter based solely on their source of income. A full list of all locations with SOI protections can be found here.
Importantly, SOI protections guarantee that prospective renters with a housing choice voucher can actually utilize the voucher. Housing choice vouchers are given to only one in four eligible households and cover the remaining needed rent after the voucher holders contribute 30% of their household income.
Without SOI protections, landlords are permitted to ignore a prospective tenant’s actual income – including vouchers and other forms of government assistance – thus limiting housing options for those who need it most. In a pilot study from the Department of Housing and Urban Development, the three sites studied without SOI protections had denial rates of 67% or higher for voucher holders. Meanwhile, in the sole site with complete SOI protections, the denial rate was only around 15%.
Source of income legislative protections allow voucher holders to have greater mobility and access to housing units, thus fulfilling the real purpose of the Housing Choice Voucher program.
Ann Arbor and Ypsilanti SOI Protections
The map above shows in green where source of income protections are in Washtenaw County. In yellow are the municipalities that do not have these protections.
Ann Arbor
The City of Ann Arbor, in the city code’s Non-Discrimination policy, guarantees that a landlord must take into account all of a prospective tenant’s potential income. When calculating an applicant’s income, landlords must account for all forms of government housing assistance at three times the rate the landlord will receive from them. In Ann Arbor, this applies to all persons leasing a unit. If you have faced any form of protected housing discrimination in Ann Arbor, including source of income discrimination, you can file a complaint with the Ann Arbor Human Rights Commission either:
In person at HRC meetings during public comment period (meeting calendar link here)
By phone at (734) 794-6141
By email at HRC@a2gov.org, or
Online at https://www.a2gov.org/departments/city-clerk/Pages/HRC-Fair-Chance-Access-to-Housing-Complaint.aspx
Ypsilanti
In Ypsilanti, no person may discriminate against a prospective tenant due to their source of income – including those with vouchers – according to the city’s Discrimination Ordinance. If you have faced any form of protected housing discrimination in Ypsilanti, including source of income discrimination, you can file a written complaint within 120 days of the offense with the City Manager that includes:
The incident
The location of the property
Names of yourself and landlord/property manager
Dates
Witnesses
Any other factual
Written complaints can be sent to the City Manager’s office at 1 South Huron Street on the 4th Floor in Ypsilanti. You can also call the City Manager’s office at (734) 483-1810 to ask questions about submitting a written complaint.
Future Needs for Washtenaw County
SOI Protections Are Needed in Pittsfield Township and Ypsilanti Township
To better serve the voucher-holding population of Washtenaw County, as well as other low-income households who receive government aid, it is necessary to expand source of income protections beyond Ann Arbor and Ypsilanti. Specifically, the most need is for expansion of protections in areas near Ann Arbor and Ypsilanti such as in Pittsfield Township and Ypsilanti Township. The Washtenaw Housing Alliance (WHA) is reaching out to elected officials in these municipalities to create policies that protect households from source of income discrimination.
Michigan is the closest it has ever been to passing statewide source of income protection legislation! Contact your MI House representative to urge for HB 4062 and HB 4063 be heard in committee and voted on before the legislative session ends in 2024.
But! Statewide SOI Protections Are Best
Separately, the WHA is part of a statewide coalition of community partners called the Coalition for Expanding Housing Access (CEHA) that is pushing for the adoption of statewide SOI protections in Michigan. If legislation is passed, our state would join 17 others such as California, Colorado, Illinois, Maryland, New York, North Dakota, Oklahoma, Rhoda Island, Utah, and Virginia. Seven of these states passed their laws as recent as between 2019 and 2022. Minnesota is one of the most recent states to approve substantial updates to its landlord-tenant law, strengthening tenant protections. The governor signed the package into law on May 19, 2023. Most of the new provisions took effect on January 1 of this year.
In 2023, bills that will prohibit discrimination against voucher holders were introduced in the Michigan Senate and House. In October 2023, the three Senate bills passed. Now, the two House bills wait for a hearing in committee. Michigan is the closest it has ever been to passing this legislation!
MI House Bills 4062 and 4063 will protect tenants from source of income discrimination. These bills could be slated for a vote in the House this year, after being favorably voted out of the MI Senate last fall. The WHA, Michigan Coalition Against Homelessness, and other CEHA members support this legislation and urges that the bills get passed in 2024.
Find your House Rep at house.mi.gov & contact them TODAY! Indicate your support for HB 4062 & 4063 and ask they get a Judiciary Committee hearing. If you need talking points check out the flyer on the right.
You can ALSO directly contact Representative Kelly Breen (District 21), Chair of the Judiciary Committee, who has expressed interest in bringing these bills up for a hearing in the committee this legislative session. You can email kellybreen@house.mi.gov or call (517) 373-2575.