California residential landlords are no longer able to tell prospective and existing renters that they do not participate in Section 8 or other rental assistance programs. This is in response to the passage of SB 329 and SB 222.

The California Fair Employment and Housing Act, prohibits housing discrimination, including discrimination through public or private land use practices, decisions, or authorizations, based on specified personal characteristics, including source of income. SB 329 defines the term “source of income” for purposes of the provisions relating to discrimination in housing accommodations described above, to include lawful, verifiable income paid directly to a tenant or to a representative of a tenant, or paid to a housing owner or landlord on behalf of a tenant, including federal, state, or local public assistance and housing subsidies. Under SB 222 this same definition defines as a “source of income” federal Department of Housing and Urban Development Veterans Affairs Supportive Housing vouchers and prohibits discrimination by landlords against veterans who receive them.

We are advised that tenants’ right groups will be administering testing of the new laws. As a result, landlords and property managers must be careful in their replies to phone calls about rental properties. It is illegal to make, print, or publish any notification, statement, or advertisement relating to the sale or renting of a housing accommodation that restricts tenants based on the source of income for their rent, according to the FEHA. Landlords should consider adding discrimination coverage to their Landlord Policies to assure their insurer will defend against such claims. In addition, landlords should have their legal counsel review the notices they post for rental properties they manage or own and approve a script for landlords to answer questions from potential renters.

The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.