Philadelphia's Source of Income Law: A Landlord's Guide to Compliance
As a Philadelphia property owner or manager, staying compliant with local housing laws is non-negotiable. One of the most critical local mandates is the Source of Income protection, enforced under the Philadelphia Fair Practices Ordinance. This law mandates that a landlord cannot discriminate against a prospective tenant based on how they legally pay their rent. Understanding this is vital to avoid costly penalties and discrimination claims.
What is a 'Source of Income' in Philadelphia?
In Philadelphia, "Source of Income" is a protected class in housing and real property transactions, just like race, sex, or familial status.
Key Examples of Protected Income Sources:
The protection extends to any lawful source of income a person uses to pay rent. This includes, but isn't limited to:
- Housing Vouchers: The most common example is the Housing Choice Voucher Program (Section 8) or PHA (Philadelphia Housing Authority) Vouchers.
- Public Assistance: Temporary Assistance for Needy Families (TANF) or General Assistance (GA).
- Non-Employment Income: Child support, alimony, Social Security Disability Insurance (SSDI), and pension proceeds.
- Wages: Traditional earned income.
It is important to remember that while Federal and State law may not protect Source of Income, Philadelphia's local law explicitly does, making compliance mandatory for all Philadelphia rental properties.
What Constitutes Source of Income Discrimination?
For landlords, discrimination is any action that treats a tenant unfavorably because of their protected status. When it comes to Source of Income, this includes:
- Refusing to Rent: Declining an applicant solely because they use a Housing Choice Voucher or other subsidy.
- Advertising Restrictions: Stating "No Section 8" or "We do not accept voucher holders" in rental advertisements.
- Different Terms: Charging a higher rent or larger security deposit to a voucher holder than a non-voucher holder.
- Applying Different Standards: Requiring a voucher applicant to meet an income threshold (e.g., 3x the market rent) that effectively disqualifies all voucher holders, even when their portion of the rent is manageable.
Crucial Note for Landlords: Landlords must treat the rent portion covered by a voucher as guaranteed income and apply the same screening criteria to all applicants, focusing on the applicant's ability to pay their portion of the rent and other standard factors (credit, criminal history, rental history).
The Landlord’s Best Practice for Compliance
Your goal is to maintain a professional, fair, and legally compliant process that protects your investment property while respecting the law.
1. Universal Screening Criteria
- Establish Written Policy: Create a clear, written tenant screening policy that applies to every single applicant.
- Focus on the Applicant's Responsibility: If a voucher covers \$1,000 of a \$1,500 rent, your screening should evaluate the tenant’s ability to reliably pay the remaining \$500.
2. Non-Discriminatory Advertising
- Avoid Prohibited Language: Never mention "Source of Income" status in rental listings. Instead, use inclusive language like "All legal sources of income accepted."
3. Education and Training
- Staff Training: Ensure anyone involved in leasing, including administrative staff and property managers, is fully trained on the Philadelphia Fair Practices Ordinance and the protected classes in housing.
If a discrimination complaint is filed against a housing provider in Philadelphia, it is handled by the Philadelphia Commission on Human Relations. They will investigate the complaint, and if substantial evidence is found, it can lead to a public hearing and serious penalties, including damages and attorney fees. Partnering with a professional Philadelphia property management company like TrustArt Realty ensures your procedures are always fully compliant.
Need Help With Fair Housing Compliance?
Navigating the complexities of Philadelphia landlord-tenant laws and local ordinances is a full-time job. Let the experts at TrustArt Realty handle your property management needs, ensuring full compliance while maximizing your investment returns.
