According to the complaint filed with CRIO, in August 2021 a Detroit resident called a management company to ask if they had any apartments available for him to rent using his housing choice voucher (HCV). He was seeking to rent a unit at a Detroit apartment complex. The rental rate for the 1-bedroom apartment that the complainant sought to rent is $1,100 per month. The agent stated that they had apartments available to rent using his voucher, but that he must make three times the rent to qualify. Three times the rent amount meant that he would have to make a minimum of $3,300 per month, or $39,600 annually.

In general, to qualify for a HCV a family's income may not exceed 50% of the median income for the county or metropolitan area in which the family chooses to live. 24 C.F.R. § 5.603(b)(defining a “Very low income family” as “A family whose annual income does not exceed 50 percent of the median family income for the area, as determined by HUD with adjustments for smaller and larger families . . . .)”; 24 C.F.R. §982.201 (b)(1)(i). According to 2021 estimates by the U.S. Census Bureau, the median household income in Wayne County was $49,359. A HCV holder, based on the 50% of median income eligibility standard, would earn no more than $24,679.50 per year. As such, three times the rent amount meant that no HCV holder would qualify to rent an apartment.

The Fair Housing Center of Metropolitan Detroit, following the intake of the Detroit resident’s complaint, conducted an investigation and found that the apartment complex accepts HCVs and that 3 times the rent amount policy applies to the entire rent amount, not just the portion to be paid by the HCV holder. Further, the management company confirmed that the 3 times the total rent amount policy applied to all of its properties.

In general, tenants receiving HCVs are responsible for paying a percentage based on their income, usually 30 to 40 percent of their monthly income. The complainant receives social security. The Detroit resident was thus able to show that his monthly income at three times the tenant portion of his rent.

The policy of the management company and the apartment complex, requiring three times the rent amount rather than the HVC holders’ portion of the rent amounts, discriminates and excludes the Detroit resident and other HVC holders from renting properties. This policy violates the “public benefit status” provisions of Article VI, Section 23-6-1 (Selling or leasing real estate—Unlawful practices). See CityLimits, Bronx Rental Complex Must Accept Housing Vouchers, Judge Rules (Aug. 1, 2022); Decision and Order, Olivierre v. Parkchester Preservation Company, L.P., No. 22-452058 (N.Y. Supreme Court July 28, 2022)(violation of source of income provision for landlord to require HVC holders to show monthly income of three times the total rent rather than three times the tenant portion of the rent).

The complaint is currently pending before CRIO.