California law protects tenants from discrimination based on source of income and may impact when you can consider credit histories – here’s what you need to know.
Zillow Rental Manager • May 10 2024
This blog post is intended to help both landlords and tenants better understand the California Fair Employment and Housing Act (FEHA), which seeks to protect current and prospective tenants and homeowners from discrimination based on protected characteristics. Protected characteristics include race, national origin, ancestry, disability, sexual orientation, marital status, and religion, source of income, and more. Source of income refers to the way a person obtains money to pay for housing or housing-related services like rent or a mortgage.
We partnered with the California Civil Rights Department (CRD), which enforces FEHA and other California fair housing laws that prohibit housing discrimination, to develop this resource.
What does the law require of landlords when screening applicants who use housing subsidies to pay the rent?
Since Jan. 1, 2020, people with rental assistance and/or housing vouchers (including Housing Choice Vouchers also known as Section 8) have been protected from discrimination in California. Landlords and housing providers are prohibited from turning away applicants because they are receiving rental assistance or a voucher and cannot state a preference for tenants with certain sources of income when advertising.
As of Jan. 1, 2024, it is illegal for housing providers to rely on the credit history of applicants who receive housing subsidies without first providing the opportunity for the applicant to present other verifiable and lawful evidence that they can cover their portion of the rent. If such evidence is provided, the housing provider must consider that information instead of considering the applicant’s credit history.
Who does the law regarding source of income protections apply to?
All housing providers in California must comply with the state’s source of income protections. This includes private landlords, property management companies, homeowners’ associations, corporations, and others who rent residential property in California. Additionally, providers of housing-related services and programs such as mortgage lenders, insurance providers, and appraisers must also comply with the law. 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.
What are key provisions of the law?
Key provisions of the law protecting tenants from discrimination based on source of income include:
What types of housing subsidy programs are included under these protections?
California law prohibits discrimination against a tenant or applicant for using any type of federal, state, or local housing subsidy to pay rent. This includes, but is not limited to, Section 8, the HUD-VASH program, Homelessness Prevention and Rapid Re-Housing programs, Housing Opportunities for Persons with AIDS, and security deposit assistance programs. The law also protects the use of subsidy programs created by cities, counties, and public agencies to address homelessness.
Can housing providers still screen applicants using rental assistance?
Yes. While housing providers cannot decline to rent to a tenant or treat a prospective tenant differently than other applicants based only on the receipt of housing assistance, housing providers still have the right to screen all applications according to their lawful tenant screening criteria including rental history, credit (if not presented with alternative evidence-explained in detail below) and a lawful criminal background check .
However, as of January 1, 2024, housing providers must give applicants using housing subsidies a chance to present verifiable and lawful evidence that they can cover their portion of the rent. If the housing provider receives such evidence, they must consider this information instead of the tenant’s credit history. Such evidence may include, but is not limited to, documentation of the receipt of public benefits, bank statements, or pay stubs.
Can housing providers continue to screen for income eligibility to ensure the applicant is able to pay their rent?
Yes. However, housing providers must consider all legal and verifiable sources of income for an applicant or tenant. And, If the housing provider has a minimum income standard they use to screen applicants, they should only consider the tenant’s portion of the rent when applying it to tenants or applicants who are using a rental subsidy, such as a Section 8 voucher. Consideration of more than the tenant’s portion of the rent is an unlawful discriminatory housing practice.
Where can I learn more?
The State of California’s Civil Rights Department has resources for housing providers available via an FAQ document and on its website . CRD hosts regular trainings, including a monthly training series.
