HomeMy WebLinkAboutCDN 2017-02-27 Item 2C - Ordinance - Regulations Prohibiting Residential Rental DiscriminationCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Community Development and Neighborhoods Committee
FROM: Laurel Humphrey, Council Analyst
CC: Mayor Ekberg
DATE: February 17, 2017
SUBJECT: An Ordinance Prohibiting Source of Income Discrimination in Rental
Housing
ISSUE
Source of Income Discrimination (SOID) Legislation is a mechanism used by many cities and
states to prevent landlords from denying tenancy to renters based solely on the fact that their
income includes government housing subsidies e.g., Section 8 and HUD -VASH (Veterans
Affairs Supportive Housing) vouchers. The 2016 Community Affairs and Parks Committee was
briefed on SOID legislation and gave staff direction to return in 2017 with a proposal for further
consideration. House Bill 1633, currently in play in the State Legislature, would ban source of
income discrimination on a state level.
DISCUSSION
In Tukwila, the average asking rent for 800 sf has increased 14% since 2015, 41% since 2007,
and the current rental occupancy rate is 96.7 %. (Source: CoStar) Incomes have not kept pace
with this increasingly competitive housing market, and families or individuals receiving housing
subsidies are subject to discrimination by landlords. While the Fair Housing Act prohibits
discrimination based on race, national origin, religion, etc., it is legal for a landlord to
discriminate against type of income unless specifically prohibited by a jurisdiction. Some cities
are responding by enacting laws to prevent this discrimination and thereby helping to decrease
barriers to housing access for vulnerable residents.
Washington agencies that have enacted SOID legislation include King County, Renton,
Redmond, Kirkland, Tumwater, Bellevue, Seattle, Vancouver, and Kent. Seattle, Vancouver,
and Kent's ordinances prohibit discrimination on the basis of all types of housing assistance
while the others in the list are targeted only to Section 8 vouchers. The City of Renton enacted
emergency legislation on November 7, 2016 in response to actions taken by certain landlords
who gave notice to all Section 8 tenants that their leases would not be renewed. The eviction
notices in question were rescinded or extended due in part to the swift response by the City.
The 2016 Community Affairs and Parks Committee gave direction to develop an ordinance with
an expanded definition of income to include other types of assistance beyond Section 8.
If a City implements SOID legislation, a landlord may still use legal and fair screening criteria on
applicants, and can still reject tenants who do not have enough income to meet the rental
payment or who have a negative rental history. In addition, the 2016 Washington State
Legislature directed the Department of Commerce to develop a mitigation program to provide
financial assistance to landlords who have had units damaged by tenants who use Section 8
vouchers. However, this program is only available in jurisdictions that have adopted SOID
legislation.
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INFORMATIONAL MEMO
Page 2
The attached draft ordinance proposes a new chapter in the Tukwila Municipal Code entitled
"Fair Housing Regulations." The chapter title is purposely broad so that future housing related
regulations could be added under this section if directed by Council. The draft defines "source of
income" to include legally- derived income from social security, supplemental security, retirement
programs, or federal, state, local or nonprofit administered benefit or subsidy programs. It
establishes exceptions, gives enforcement authority to the Department of Planning and
Development, and sets civil penalties for violations. It is important to consider impact to the
Code Enforcement staffs workload in light of the recent significant expansion of pest control
requirements along with other competing priorities.
RECOMMENDATION
The City of Tukwila's Strategic Plan includes a goal of "A solid foundation for all Tukwila
residents." One of the adopted budget priorities for 2017 -2018 is to "encourage healthy, safe
and affordable housing." Adoption of this ordinance would provide another tool to combat
housing instability in Tukwila. Staff is seeking Committee review of the draft ordinance with a
recommendation to the March 27, 2017 Committee of the Whole for further discussion. If
approved by the Committee of the Whole, the final proposed ordinance will be presented at the
April 3, 2017 Regular Meeting for possible action.
ATTACHMENTS
• Draft ordinance
• Housing Development Consortium Local Policy Toolkit — SOID excerpt
• Washington Low Income Housing Alliance Policy Information Page
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ESTABLISHING REGULATIONS
PROHIBITING RESIDENTIAL RENTAL DISCRIMINATION,
TO BE CODIFIED AT TUKWILA MUNICIPAL CODE
CHAPTER 8.47; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, Tukwila and all communities in King County are experiencing an
unprecedented demand for rental housing units; and
WHEREAS, there are government programs that assist families, the elderly, veterans
and people with disabilities through financial subsidies that allow them to afford decent and
safe housing in the private market; and
WHEREAS, a significant number of people have difficulty securing adequate rental
housing without such financial assistance, and it is essential to ensure housing is available
to those families and individuals; and
WHEREAS, it has come to the City Council's attention that in a housing market such
as King County's, families and individuals using rental subsidies are subject to denial of
housing; and
WHEREAS, when people lose their homes as a result of income - source -based
discrimination, there is an increased risk of homelessness, and children can experience
disruptions to education and social development; and
WHEREAS, practices of discrimination on the basis of participation in housing subsidy
programs are a matter of local concern and contrary to the public welfare, health, peace and
safety of Tukwila residents;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
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Section 1. Regulations Established. Tukwila Municipal Code Chapter 8.47, "Fair
Housing Regulations," is hereby established to read as follows:
CHAPTER 8.47
FAIR HOUSING REGULATIONS
Sections:
8.47.010 Source of Income Discrimination Prohibited
8.47.020 Definitions
8.47.030 Applicability
8.47.040 Exceptions
8.47.050 Enforcement
8.47.060 Penalties
Section 2. Regulations Established. TMC Section 8.47.010, "Source of Income
Discrimination Prohibited," is hereby established to read as follows:
8.47.010 Source of Income Discrimination Prohibited
No property owner, property manager, landlord or agent who rents or leases rental units
may refuse to rent or lease a rental unit to any tenant or prospective tenant, or otherwise
discriminate or retaliate against that person, solely on the basis that the person proposes to
pay a portion of the rent from a source of income as defined in this chapter.
Section 3. Regulations Established. TMC Section 8.47.020, "Definitions," is hereby
established to read as follows:
8.47.020 Definitions
For purposes of this chapter, the following words or phrases shall have the meaning
prescribed as follows:
1. "Source of income" includes legally- derived income from social security;
supplemental security income; other retirement programs; or any federal, state, local, or
nonprofit administered benefit or subsidy programs, including housing assistance, public
assistance and general assistance programs.
2. Other terms used in this chapter shall be defined as set forth in Tukwila
Municipal Code Chapter 5.06, "Residential Rental Business License and Inspection
Program."
Section 4. Regulations Established. TMC Section 8.47.030, "Applicability," is
hereby established to read as follows:
8.47.030 Applicability
Nothing in this chapter will apply if the rental unit does not qualify for participation in the
tenant's "source of income" program, although any property owner or manager that refuses
to rent a rental unit to a person on this basis must notify that person in writing of the reasons
why the rental unit is ineligible. Refusal to allow a health and safety inspection of the
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property by a public housing authority shall not be considered a legitimate basis for refusing
to rent due to program ineligibility.
Section 5. Regulations Established. TMC Section 8.47.040, "Exceptions," is hereby
established to read as follows:
8.47.040 Exceptions
Nothing in this chapter shall:
1. Apply if the tenant's source of income is pre - scheduled to terminate during the
term of the initial lease;
2. Apply to the renting, subrenting, leasing or subleasing of a portion of a single -
family dwelling, wherein the owner or person entitled to possession thereof maintains a
permanent residence, home or abode therein;
3. Prohibit a religious organization, association, or society, or any nonprofit
institution or organization operated, supervised or controlled by or in conjunction with a
religious organization, association or society, from limiting the rental or occupancy of
dwellings it owns or operates for other than a commercial purpose to persons of the same
religion, or from giving preference to such persons, unless membership in such religion is
restricted on the basis of race, color, national origin or other illegal discriminatory basis;
4. Be construed to prohibit treating people with a disability more favorably than
people who do not have a disability; or
5. Be construed to protect criminal conduct or prohibit any person from limiting
the rental or occupancy of a dwelling based on the use of force, threats, or violent behavior
by an occupant or prospective occupant.
Section 6. Regulations Established. TMC Section 8.47.050, "Enforcement," is
hereby established to read as follows:
8.47.050 Enforcement
The provisions of TMC Section 8.45.050 shall be adopted by reference herein, and shall
apply to violations of this chapter.
Section 7. Regulations Established. TMC Section 8.47.060, "Penalties," is hereby
established to read as follows:
8.47.060 Penalties
A. Any person violating or failing to comply with the provisions of this chapter may be
issued a civil infraction citation pursuant to TMC Section 8.45.050.C. Each civil infraction
shall carry with it a monetary penalty of $1,000 for the first violation, and $2,500 for the
second violation by the same person within a two -year period.
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B. Any order imposing a civil penalty pursuant to TMC Section 8.47.060.A. shall
summarize the factual and legal basis for the violation and notify the recipient of the right to
appeal the penalty pursuant to TMC Section 8.45.090.
Section 8. Corrections by City Clerk or Code Reviser. Upon approval of the City
Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to other
local, state or federal laws, codes, rules, or regulations; or ordinance numbering and
section /subsection numbering.
Section 9. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to be
invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 10. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City, and shall take effect and be in full force five days
after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2017.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Allan Ekberg, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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Source of Income Discrimination Protection (SOID)
Description
In a competitive housing market, Section 8 voucher
holders and people whose primary income comes from
public assistance often face discrimination in the
private market, making it difficult for them to access
housing. Source of Income Discrimination (SOID)
disproportionately affects African Americans, who
make up the majority of Section 8 voucher recipients
in Washington State, as well as people with disabilities,
veterans, and elderly people. Under the Fair Housing
Act and the Washington Law Against Discrimination, it
is already illegal for landlords to discriminate based on
gender, race, ethnicity, religion, familial status and
other characteristics. Local and state legislation to
prevent discrimination based on source of income can
decrease barriers to accessing housing.
Tool Highlights
Expands anti - discrimination
laws
Increases access to housing for
vulnerable and very low
income residents
Increases success of public
benefit programs
Target Population: 50% AMI &
Below
HDC Recommended Tool
Benefits
This policy ensures that people already facing high barriers to housing are not discriminated against and
have access to available housing that they can afford. A 2001 study showed that Section 8 voucher
holders experiences higher success rates in areas with SOID Protection legislation in place.41 Without
SOID protection, many public benefit programs cannot achieve their goals of stabilizing individuals and
preventing homelessness.
Considerations for Implementation
This policy is relatively easy to enact from a technical perspective. However, the policy will likely face
significant political opposition from the property owner and management community. When
implementing, it is important to consider how that ordinance will be enforced and what consequences
landlords may face if they violate the ordinance. Advocates in Washington State have been working for
many years to pass SOID legislation at the state level.
Application:
Redmond: After one of Redmond's large property owners, a national company called Archstone,
terminated tenancies of all their Section 8 voucher holders throughout the country, the Tenants Union
and the Northwest Justice Project started organizing to fight for the tenants who lost housing. Archstone
responded to the public pressure and reinstated the residents, however only three of the residents
returned to Archstone housing, one after temporarily being homeless. After this incident, Redmond City
Council recognized the importance of protecting residents in their city against source of income
41 Meryl Finkel and Larry Buron, "Study on Section 8 Voucher Success Rates: Volume I Quantitative Study of Success Rates In
Metropolitan Areas," Abt Asosications, Cambridge, MA, 2001, http: / /www.huduser.gov/ publications /pdf /sec8success.pdf.
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discrimination. In February 2012, Redmond City Council went on to pass Ordinance 2645 which bans
discrimination against Section 8 voucher holders.
Other cities in Washington State with SOID protection:
• Bellevue
• Kirkland
• Redmond
• Unincorporated King County
• Seattle
• Vancouver
Resources
• Galvez, Martha. What do We Know About Housing Choice Voucher Program Location Outcomes:
A Review of Recent Literature. What Works Collaborative. Aug. 2010.
• Finkel, Meryl, and Larry Buron. "Study on Section 8 Voucher Success Rates: Volume I
Quantitative Study of Success Rates In Metropolitan Areas." Cambridge, MA: Abt Associates.
2001.
• Poverty & Race Research Action Council. Expanding Choice: Practical Strategies for Building a
Successful Housing Mobility Program, APPENDIX B: State, Local, and Federal Laws Barring
Source -of- Income Discrimination. Updated March 2015.
• Washington Low Income Housing Alliance. "Provide Choice & Mobility for Renters: Outlaw
Discrimination." Jan. 23, 2015.
• Tenants Union of Washington State. "Source of Income Discrimination." Accessed Sept. 9, 2015.
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WASHINGTON LOW INCOME
Housing Alliance
Provide Choice & Mobility for Renters: Outlaw Discrimination
Landlords shouldn't be allowed to discriminate against renters
who pay with housing subsidies.
Track our advocacy on these issues on Twitter using this hashtag: #501D2015
How you pay for your home shouldn't prevent you from having one.
In a home search, many vulnerable individuals and families face discrimination by
landlords unwilling to rent to Housing Choice (Section 8) voucher holders. Also,
seniors, veterans, and people with disabilities receiving other legal sources of
income (e.g. government and nonprofit subsidies) face similar discrimination.
Already, several municipalities in Washington and many states have adopted laws
prohibiting housing discrimination based on source of income (see sidebar). These
protections are crucial to maximizing a family's ability to secure a safe and healthy
home when paying with a housing subsidy or other legal sources of income other
than those from current employment.
Discriminating against tenants who pay with a subsidy
further harms already vulnerable people.
In most of Washington, landlords can and often do refuse to rent to people with
Section 8 vouchers. Whatever their reasons, this ultimately results in huge
disparities. Veterans, people with disabilities, & seniors on public assistance often
face much longer home searches or are unable to find an appropriate home at all.
Discriminating against tenants who pay with housing vouchers
is often a cover -up for racial discrimination.
This discrimination prevents
economic & housing
mobility.
When landlords refuse to rent t
housing subsidy holders, this
decreases choices for tenants on
public assistance & dashes their hopes
of escaping low- opportunity
neighborhoods. This practice also
clusters low- income communities,
making it difficult for them to break
cycles of poverty.
These laws work.
Martha Galvez's 2011 study, "Defining
Choice in the Housing Choice Voucher
Program... "found that households on
public assistance were unevenly dis-
tributed in a manner similar to black
residential segregation. Also average
neighborhood poverty rates for
voucher holders were lower in areas
with source of income discrimination
laws in place.
Spotlight on Clark County
"Something like 300 households in
Clark County, including 90 families
with children, qualified for private -
market rental vouchers in the year
after the new Housing Solutions Cen-
ter opened its doors in March 2013 —
but then couldn't find a landlord
who'd accept them."
ame
Housing Solutions Center in Vancou-
ver found that "...even with vouchers
in hand, only 56 percent of house-
holds found a landlord willing to rent
to them"
The Columbian, July 27, 2014
Cities & municipalities across
Washington already protect
these vulnerable tenants.
• Bellevue • Kirkland • Redmond
• King County • Seattle
Including these states:
California, Connecticut, District of
Columbia, Maine, Massachusetts,
Minnesota, New Jersey, North Dakota,
Oklahoma, Oregon. Utah, Vermont,
and Wisconsin.
Updated 1/23/2015
Source of income discrimination disproportionately affects
African American communities. Both federal & local policies
over time have led to huge racial disparities in African
American communities, preventing opportunities for
economic mobility and safe, healthy, affordable homes. Thus, a
disproportionately high percentage of voucher recipients are
African American. In many cities, discrimination against
Section 8 vouchers is often a cover up for discrimination on
basis of race. This discrimination is also a loophole in the
nation's fair housing law that prohibits housing
discrimination based on race, national origin, religion, etc.
s, vaulted ceilings, ne
utility room, and baths,
d porches front and b
ul de sae in Parkland's
fluent. No Section 8. On
licited services or offers
Screenshot of a Craigslist
ad for a rental home in
Tacoma taken on 10/10/14.
The new owner of Jon and Kelly Penfold's
rental home started investigating his
tenants'finances. When he discovered Jon
was using a HOPWA Voucher to help pay
rent, he tried to make them move out,
despite Jon and Kelly always paying their
rent on time. Jon described the full kitchen
as very important to maintaining his health.
After continued harassment from the
landlord, Jon and Kelly felt they had no
choice but to move.
What is the legislative solution?
Pass legislation to prevent landlords from denying tenancy based solely on the
grounds of the tenant relying on a subsidy or "public subsidy" (e.g. Housing
Choice voucher, SSI, etc.) to pay all or a portion of their rent.
Landlords could still reject tenants who do not have enough income /resources to
meet the monthly rental payment and could still deny tenancy on legal grounds
equally applied to all applicants.
More information: www.wliha.org or Director of Policy & Advocacy Michele Thomas at 206.442.9455 x205 or at michele@wlihaS