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Updated over 1 year ago,

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Richard F.#1 Tenant Screening Contributor
  • Property Manager
  • Honolulu, HI
1,582
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Recurring question about subsidized programs and discrimination

Richard F.#1 Tenant Screening Contributor
  • Property Manager
  • Honolulu, HI
Posted
Aloha,

Many locales have added "source of income" as a so-called Protected Class under Fair Housing. The predominate assumption is that a LL is required to rent to such an applicant. There are varying opinions on how to screen prospective Tenants with regard to calculating income vs. monthly rent amount (there does not seem to be anything authoritative on this aspect), and using other screening criteria as you would any fully employed or other prospect to acquire an acceptable Tenant.

The primary element that I take issue with is this: Currently the 13 page HAP contract the LL is required to sign and abide has a number of terms and conditions that I would never willingly agree to. I believe the threat of receiving a Fair Housing violation creates duress and signing such an agreement under these circumstances would be coercion, based on fundamental contract law. There is no "meeting of the minds", negotiation, or lining out of paragraphs, and the document is drafted primarily to the benefit of the Tenant.

Also, fundamentally, Fair Housing requires that all prospects be treated the same; terms and conditions should be the same for all, regardless of protected class. If, for example, I require non-subsidized prospects to pay our standard Security Deposit within two business days of application approval; and require that rent will begin being charged the earlier of 15 days from our approval, or actual possession; and that both deposit and initial rent be paid prior to occupancy, how can I be required to change those standards for subsidized prospects in order to fit with their subsidy program?

The entire process of inspections, document processing, and receipt of initial payments is far longer for subsidized than non-subsidized Tenants. This results in lost days of rent that can never be recovered. What do the Legal Eagles of BP think about all of this...hypothetically of course? 

I certainly am not an Attorney, and this is not legal advice, but merely for discussion.

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