Source of Income Legislation Passes the Senate

Michigan Coalition Against Homelessness (MCAH), a nonprofit membership and advocacy organization, is pleased to announce the final passage of Source of Income legislation SB 205-207 in the Senate, which affirmed the modifications in the House bill yesterday, Sept. 26, 2024.

The legislation for Source of Income protections* (SB 205, 206, 207) was sponsored by Senators Jeff Irwin, Rosemary Bayer and Mary Cavanaugh in the Senate and in the House (HB 4062, 4063) sponsored by Reps. Jason Morgan and Jennifer Conlin.  

The adopted bills will make it illegal for a landlord, property manager or other entity to discriminate against anyone based on their legal income source, including those with a housing voucher (former Section 8 program), SSI/SSDI, retirement/pensions, veteran benefits, alimony, child support or government assistance program. This legislation will enable Michiganders to access housing that they can afford in the community of their choice.

MCAH initiated and is the convenor of the Coalition for Expanding Housing Access, a group of 120 housing advocates, legal aid organizations and nonprofits across the state that have worked for passage of the Source of Income legislation and other tenant protections.  

“This legislation has been introduced in the last three legislative sessions, going back to its first introduction in 2019 by Reps. Wittenberg and Rabhi,” noted MCAH’s CEO Eric Hufnagel. “This demonstrates the persistence and tenacity of advocates and legislators to see this important work come to fruition.”

 “We are extremely grateful to our legislative champions for sponsoring this important protection for renters and extend our deep appreciation to the superb work of our housing advocates and colleagues on these bills,” stated Lisa Chapman, Director of Public Policy for MCAH.  She furthered, “When enacted, this legislation will expand housing opportunities for the many families and individuals that receive income support.  Vouchers and other forms of rental assistance and income support can be a lifeline for Michiganders who are struggling to get back on their feet.”

Source of Income was not protected under the Federal Fair Housing Act or the Michigan Elliott-Larsen Civil Rights Act.  Outside of the 16 cities in Michigan with Source of Income ordinances, landlords around the state could still refuse applicants based solely on their source of income, however this legislation will change that for landlords with five or more units. All Michigan residents should have equal access to housing opportunities. 

*Source of Income means that a potential renter’s ability to pay rent is evaluated by the prospective Landlord according to the income source. Some landlords refuse to accept sources that do not come from earned income such as employment. Under current MI law, there is no clear prohibition against a landlord refusing to accept Housing Choice Vouchers (Section 8), veterans’ benefits, alimony, MDHHS cash assistance, SSI/SSDI as part of a person’s legal total combined income. Source of Income protections through this legislation would require landlords to accept any legal source of income.