Summary: United States: Under the new law, cities and counties cannot adopt or enforce ordinances that require landlords to accept federal housing vouchers.
On Friday, April 30, Governor Reynolds signed into law SF252, a bill pertaining to federal housing choice vouchers issued by HUD (including Section 8 vouchers). This bill was discussed in my prior blog post.
In short, the bill forbids cities and counties from adopting or enforcing any so-called source of income ordinance or other ordinance to the extent such ordinance does not allow landlords the freedom of choice regarding whether they will accept or refuse federal housing vouchers (including Section 8 vouchers) issued by the HUD.
Scope of the new law
The full text of the bill, in regard to cities, is below. The bill also contains this same language in regard to counties.
13. A city shall not adopt or enforce an ordinance or regulation that prohibits an owner, lessor, sublessor, managing agent, or other person having the right to lease, sublease, or rent out a dwelling unit from refusing to lease or rent out the dwelling unit to a person because of the person’s use of a federal housing choice voucher issued by the United States department of housing and urban development. Such an ordinance or regulation in effect on January 1, 2021, is void and unenforceable on and after January 1, 2023. For purposes of this subsection, “dwelling unit” means the same as defined in section 562A.6.
As shown above, the bill is limited to “dwelling units” as defined in Iowa Code section 562A.6 and, thus, is limited to leases of dwelling units that fall within Chapter 562A (Iowa’s Uniform Landlord Tenant Law), but not leases of home sites within Chapter 562B. See section 562A.6(3): “‘Dwelling unit’ means a structure or the part of a structure that is used as a home, residence, or sleeping place.”
Effect of the new law
The law prevents cities and counties from enacting so-called source of income ordinances to the extent they require landlords to accept federal housing choice vouchers issued by HUD, including section 8 vouchers. This portion of the law takes effect immediately.
The law also has a retroactive effect and would invalidate source of income ordinances that currently exist in the state, including Iowa City, Marion, and Des Moines, as discussed in my prior blog post. Per the bill, these preexisting ordinances will be void and unenforceable on and after January 1, 2023, which allows time for landlords and tenants in those cities to adjust to the new law.
Conflicting opinions regarding the new law
There are conflicting opinions regarding the new law. Proponents of the new law reiterate:
- Source of income is not a protected class under federal or state fair housing law;
- HUD’s section 8 and other housing choice voucher programs were established as voluntary programs that landlords were not required to participate in; and
- Accepting vouchers means participing in the HUD housing choice voucher program that has many strings attached for landlords.
It is this last factor that many do not understand. In particular, if a private landlord chooses to accept a section 8 or other housing choice voucher, the landlord must agree to a host of modifications to the rental agreement and tenancy, including limits to the landlord’s ability to non-renew or terminate the lease, additional inspections, and additional obligations upon landlords regarding the premises. Thus, proponents of the new law believe HUD’s housing choice voucher program should remain a voluntary program for landlords.
Conversely, critics of the new law disagree with the notion that landlords should be able to turn away renters merely because they receive assistance through a HUD housing choice voucher program and say the new law will limit the housing options for certain people.
Landlords with questions about contacting legislators or concerns should contact an attorney.
