Staying Compliant: What California’s Latest Fair Housing Testing Results Mean for Rental Housing Providers
Fair housing compliance is once again in the spotlight.
The California Civil Rights Department recently released findings from 2024 testing efforts in Los Angeles and Ventura counties. Alarmingly, over half (54%) of the properties tested were found out of compliance with California’s fair housing laws — particularly around source of income discrimination involving Section 8 housing vouchers.
Why These Results Matter for Rental Housing Providers
Although the sample size was limited, the results serve as a crucial reminder:
Fair housing laws are actively enforced, and housing providers must stay vigilant.
Since 2020, California law prohibits discrimination based on a tenant’s use of government assistance programs like Section 8. This means housing providers cannot:
- Refuse applicants solely because they use housing vouchers.
- Advertise with terms like “No Section 8.”
- Apply income requirements without properly adjusting for voucher support.
Rental owners may continue to apply standard screening criteria — such as background checks or rental history — but income standards must only consider the tenant’s portion of the rent, not the full market rent. Additionally, if a voucher-holder lacks traditional credit history, providers must offer alternative ways to document financial responsibility.
Beyond Source of Income: Other Key Compliance Areas
The report also highlighted concerning practices beyond Section 8 discrimination, including:
- Differential treatment based on race, disability, or familial status.
- Overly restrictive criminal history policies that could unintentionally have a disparate impact on protected groups.
Blanket bans on applicants with any criminal history — without considering the nature and recency of offenses — are particularly risky under California fair housing standards.
Why Ongoing Education Is Essential
Fair housing laws are complex and evolving. Even well-intentioned housing providers can inadvertently violate regulations without updated policies and regular training.
Best practices include:
- Conducting annual policy reviews.
- Providing ongoing fair housing education for property management teams.
- Updating marketing and tenant screening practices in line with current laws.
Staying informed isn’t just good business — it protects rental investments and minimizes legal risk.
Compliance Is a Continuous Commitment
As fair housing enforcement efforts grow stronger across California, it’s vital for property owners and managers to prioritize compliance.
A strong understanding of the rules around source of income protections, screening policies, and nondiscrimination will help ensure success in an increasingly regulated market.
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