Source of Income Protection

This protection prohibits landlords from discriminating against tenants because they use housing vouchers or other forms of government assistance.

State Law (SB 329)

State law prohibits housing discrimination based on a person’s source of income (California Government Code Section 12921).

SB 329 (the Housing Opportunities Act of 2019) became a California State law on January 1, 2020. SB 329 amends the existing Fair Employment and Housing Act to clarify that housing vouchers, including but not limited to Housing Choice Vouchers (Section 8) and Veterans Affairs Supportive Housing (VASH), are included within California’s prohibition on discrimination based on the source of income or income from rental assistance programs.

SB 329 redefines sources of income received from federal, state, or local public or housing assistance programs, paid directly to a tenant, landlord, or housing owner as lawful verifiable income. Landlords cannot advertise income preferences, discriminate or treat tenants or potential tenants differently based on their source of income used to pay rent.

To learn more, see Frequently Asked Questions from the California Civil Rights Department: Fair Housing and Source of Income | Vivienda Justa y Fuente de Ingresos

Landlords with questions regarding the Housing Choice Voucher (Section 8) program should contact the Marin Housing Authority for more information.

San Rafael Policy

Prior to the change in state law in 2020, the City of San Rafael adopted its own Source of Income Protection. The City of San Rafael’s Source of Income Ordinance went into effect on January 17, 2019.

Background

In 1968, Congress passed the Fair Housing Act, which was intended to protect buyers and renters from seller or landlord discrimination. Its primary prohibition makes it unlawful to refuse to sell to, rent to, or negotiate with any person because of that person’s inclusion in a protected class. In 1974, Congress passed the Community Development Act, which created the Housing Choice Voucher (Section 8). Housing vouchers are not free housing. Voucher recipients are required to pay 30% of their income towards their housing expenses, and the voucher covers the rest.

Fifty years after the passage of the Fair Housing Act, housing discrimination persists in our community. To substantiate the need for source of income protections, the Marin Housing Authority reported to the Marin County Board of Supervisors that between January 1, 2014 and August 31, 2016 a total of 2,194 Housing Choice rental subsidy vouchers were issued to low-income Marin households. Nearly half were unable to find landlords in the county willing to accept their vouchers and, as a result, lost their vouchers. Rental listings advertising “no Section 8” were found to be common in Marin, as evidenced by the examples below from San Rafael specifically.

The City of San Rafael’s Source of Income Ordinance went into effect on January 17, 2019. The City Council discussed this policy on December 3, 2018 (Staff Report) and October 1, 2018 (Staff Report).

FREQUENTLY ASKED QUESTIONS

1. What units are covered by this law?

The Source of Income Ordinance applies to all rental units in San Rafael.

2. What does the Ordinance prohibit?

The Ordinance covers four primary activities:

- To interrupt, terminate, or refuse to initiate any transaction in real property because of a tenant’s source of income.
- To include in the terms or conditions of a transaction in real property any discriminating clause, condition or restriction due to the tenant’s source of income.
- To refuse or restrict facilities, services, repairs or improvements because of the tenant’s source of income.
- To make, print, publish, advertise, or disseminate any notice, statement or advertisement with respect to a transaction in real property that indicates preference, limitation or discrimination based on source of income.

3. What does the Ordinance NOT cover?

In evaluating prospective tenants, landlords are still able to screen renters based on factors including:

- Credit score
- Rental history
- References
- Total income (can only apply income requirement to tenant’s portion of the rent if they receive a third part subsidy)

4. How do I get assistance exercising my rights under this law?

If a tenant believes the Ordinance has been violated, they make seek redress with the court through a civil injunctive. For assistance with this, tenants can contact organizations such as: