Pontiac Considers Adding Source of Income to Housing Nondiscrimination Ordinance
(Crystal A. Proxmire, Feb 21, 2024)
Pontiac, MI – Pontiac City Hall was packed Tuesday evening as City Councilmembers passed the first reading of an ordinance amendment that would add “source of income” to the list of reasons that a person cannot be denied access to housing. That means that a landlord would not be able to turn someone away just because of the way they pay their rent as long as their income is lawful, including those receiving section 8 vouchers, veterans benefits, alimony, child support etc.
The landlord could still use discretion in their rental choices, for example declining to rent to someone based off past evictions, court proceedings, and criminal convictions. Landlords also retain the right to set their own prices. They do not need to lower the cost of their rentals to accommodate low income residents, unless they are specifically required to do by an agreement such as tax incentives, or public housing.
Several cities across Michigan have passed similar ordinances including Ann Arbor, Jackson, East Lansing, Ferndale, Lansing, and Royal Oak. In 2021 Oakland County Commissioners launched the Fair Housing Initiative to encourage cities to pass local source of income protections. And in the State Legislature HB 4063 has been introduced that would make it the law statewide.
In Pontiac the proposed amendment passed the first reading unanimously, with Councilperson Brett Nicholson not in attendance. The amendment requires a second reading and final vote, which will take place at an upcoming meeting with the date to be announced later this week.
Prior to voting, officials heard from residents in favor of the amendment, and landlords who oppose it. Mayor Tim Greimel also expressed concerns.
Katie Wagner, who works for a property management company, gave a number of reasons to oppose the amendment. “The tenant is not the issue, it’s the program and the system that’s broken,” Wagner said. “Just a few things to take into consideration – additional inspections and certifications Section 8 requires us to do… Why do we have to delay the process to do two inspections?”
She also said that with Section 8 renters there is difficulty recouping money if the property is damaged. They can keep the security deposit, but that may not be enough. Though the same is true of renters who pay in other ways. Even with Section 8 landlords can take tenants to court for damages.
Mayor Greimel thanked Councilperson Mikal Goodman for his work on issues relating to housing. Greimel and Goodman helped lead three recent public information sessions about renter’s rights, and they have worked together on reforming other ordinances to ensure that property owners are properly registering rentals and having them inspected.
Also on the agenda Tuesday was the first reading of an ordinance that clarifies that all properties that are not owner-occupied but have others living there are required to have inspections, adding types of housing including co-ops. That provision comes about because a property self-described as a “co-op” has refused to be registered or inspected.
As far as the source of income amendment, the men agree on the need for housing access, but not on this approach.
“The first concern is that when one community does it, and surrounding communities do not do it, it can end up leading to those who are receiving Section 8 vouchers from the entire area or region really gravitating towards that one municipality which can have the effect of concentrating poverty, or more greatly concentrating poverty…thereby amplifying segregation by income, and racial segregation,” Mayor Greimel said.
Greimel also noted that there is a housing shortage in the region and nationwide and that making it more difficult could potentially turn away new developers. “To the extent that investors and landlords have concerns about this kind of ordinance, they can disincentivize the initial investment in housing that we really need, especially if they can go to other neighboring communities and invest there,” he said.
The Mayor was also concerned about the time and expense to the city who would be responsible for investigating claims of discrimination. “The ordinance would really put the onus on the city to enforce and that creates a big administrative burden for the city,” Greimel said.
On the other side of administrative concerns and landlords who don’t want the hassle, are the people who are approved for vouchers, yet still have no where to go.
In a city with a per capita income of $15,842 and 64% of housing being rentals, issues around poverty often are part of discussions. Even those on City Council have shared their experiences. Goodman, who grew up on Section 8 in Riverside, campaigned on improving access to housing. Councilperson Melanie Rutherford also has relied upon vouchers and shared that she’s had experiences with landlords both good and bad.
“When running for office, when working for Oakland Forward, being in this community, knocking on doors day in and day out, talking to residents, you would not believe the number of people who have had to move out of the city because they can not find Section 8 housing in the city,” Goodman said.
“People have moved into hotels because there are people in the city who have vacant homes who refuse to even consider them to be eligible for renting… It’s a rampant problem and this is one of the solutions we can have to our affordable housing problem.”
Councilperson Goodman added that one of the benefits of Section 8 and other sources such as VA benefits is that “It is guaranteed money from the Federal government that pays these bills.”
One of the speakers in the audience also noted that during the pandemic landlords who had Section 8 tenants continued to be paid while many suffered losses due to renters who lost their ability to pay.
Councilperson Rutherford supported the amendment, stating “We have to be the first because they’re not going to do it if we don’t do it.”
She also addressed the landlords in the audience. “I understand your fear,” Rutherford said. “But do you understand how you treat people who have Section 8? How you belittle us, demean and demoralize, and most importantly how you disrespect people who are just trying to get along?”
Councilperson Rutherford also asked for an update on Council’s request that a housing study be done by City administration. The Mayor told her that a consulting firm has been selected and that approval of the firm will be presented to Council at an upcoming Council meeting.
A date has not yet been announced for the second reading of the amendment, but this story will be updated when we learn of the date. For more on They City of Pontiac, including City Council agendas, visit https://www.pontiac.mi.us/.
Pictured: Councilperson Mikal Goodman
