Can Landlords Still Reject Section 8 in Michigan? Latest News Update
The Michigan State legislature has already approved Senate Bills 205-208, which together make it illegal for landlords to discriminate on the basis of income source. So can landlords still reject Section 8 tenants in Michigan?
As of the time of writing (November 2024), the answer is: Yes.
But for how long remains to be seen.
This would mark a huge shift in tenant-landlord dynamics in the state of Michigan by complicating financial screening – arguably the HUGEST factor which landlords use when selecting tenants.
Let’s break down the legislation and what it would mean for Michigan landlords, if implemented.
Key Takeaways for Landlords on Proposed Michigan Section 8 Legislation
Here’s an overview of the key points of the legislation:
- Mandatory Acceptance of Section 8 Vouchers: If the proposed bills become law, landlords with five or more rental units must accept Section 8 Housing Choice Vouchers, eliminating the option to refuse based on the program’s voluntary nature.
- Prohibition of Income Source Discrimination: The legislation would prohibit discrimination against tenants based on income sources, including housing assistance, Social Security, and veterans benefits.
- Amendments to Civil Rights Act: House Bill 4063 and Senate Bill 207 propose to include income source as a protected category under the Elliott-Larsen Civil Rights Act, providing legal grounds for tenants to challenge discrimination based on source of income.
- Potential Legal Repercussions: Landlords could face lawsuits for non-compliance, with tenants able to seek damages or injunctive relief for violations of these proposed laws.
However, the new law wouldn’t apply to all landlords. There are some exemptions:
- Owner-Occupied Units: Multifamily properties where the landlord also resides in one of the units will be exempt.
- Small Number of Units: If you only own a small number of units (5 or less) and landlording is not your main source of income, you’ll also be exempt.
This new law would therefore have a monumental impact on Michigan landlords with 5 or more properties.
And landlords are already fighting back.
What Does This Mean for Landlords?
Senator Jeff Irwin (D-Ann Arbor) – who supported the bills – recently appeared on WJR’s All Talk with Kevin Dietz to discuss the possible ramifications of this legislation.
He was asked: Will landlords still have a say over their property and the significant investment they’ve made?
Here’s what he had to say:
Rental property owners will “still have the opportunity to accept or deny applicants based on… all the reasons that people who are leasing units might make those decisions. But the ones who are taken off the table with this legislation is you can’t simply blanket deny people because they’re part of a public assistance program.”
He then went on to say that income source discrimination is the same as discrimination based on religion or race, so eliminating it is crucial to make housing available to everyone.
Is it the same, though? Your race or religion have nothing to do with your ability to pay your rent. Your source of income does.
And what about if you have 2 applicants for the same property – one who’s a Section 8 voucher holder and one not? Are you allowed to pick the non-voucher holder, with little else to distinguish between them, or will that be discrimination?
Property Management Association of Michigan’s Standpoint
These are just some of the reasons why the Property Management Association of Michigan is actively fighting the bill (of course).
The association highlights that the Section 8 program is “strictly voluntary in nature,” and many landlords opt out due to its inefficiencies.
They plan to collaborate with legislators to find alternative solutions to enhance affordable housing access in Michigan, emphasizing the need for workable solutions that address both landlord and tenant needs. But they remain opposed to legislation that would mandate landlord participation in the program.
If you want to get involved, contact the Property Management Association of Michigan.
Can Landlords Legally Deny Section 8 Tenants in Michigan?
For now, yes. The program is still voluntary, but if the new legislation passes, all of this will change.
Keep an eye on the news (or follow us!) for updates.
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