Beginning Jan. 1. 2023, “source of income” (SOI) will be included on the list of statewide protected classes under the Illinois Human Rights Act. The new law bans discrimination in housing based on source of income, including housing choice vouchers.

For many years, attempts have been made to add “source of income” (SOI) to the list of protected classes under the Illinois Human Rights Act (IHRA). Historically, Illinois REALTORS® advocated to keep this out of IHRA so housing providers could elect whether to participate in the federally subsidized housing voucher program.

Many local municipalities already include SOI as an additional protected class in their local fair housing ordinances, so housing providers are charged with following the strictest program where there is no conflict with federal law. Illinois communities that have protected SOI include Chicago, Cook County, Naperville, Urbana and Champaign (which protects SOI, but currently does not include Section 8 in the SOI definition).

In the 2022 spring legislative session, the proposal to include SOI in the IHRA as a protected class came back, along with proposed measures to require “just cause” evictions (which takes choice out of the equation for housing providers, i.e., where the housing provider might not renew a lease in favor of making it the residence of the owner/housing provider), affirmative defenses to eviction, a form of rent control by limiting the amount a housing provider could increase rent and the requirement that housing providers pay assistance to relocate an evicted or non-renewed tenant. Illinois REALTORS® advocated against those extreme measures in exchange for including SOI as a protected class.

The time to do this was right.

A substantial portion of Illinois’ population is already operating under SOI as a protected class through local ordinances. However, for some housing providers, this will be new and require some education.

Best Practices for Housing Providers to Prevent Discrimination Against All Protected Classes

  • Apply consistent screening criteria, such as:

    • First come, first served for applicants
    • Review credit score with a reasonable threshold; or alternatively, if applicant does not have a credit score
      • Consider rental/housing payment history
      • Utility payment history
      • Other bill payment history
    • Landlord references using legal parameters – i.e., were they habitual lease breakers?
    • Ability to pay based on consistent criteria
      • If housing provider uses a ratio income to rent amount, i.e., 3 X rent, only consider applicant’s portion that does not include the amount of a housing choice voucher (See FAQs)
  • If limiting or denying the housing, document the legal reason for doing so, such as regardless of SOI, applicant cannot afford the unit.
  • Housing provider should consult their attorney with questions or concerns.

Illinois REALTORS® has collected resources to help guide its members and housing providers as they prepare for the Jan. 1, 2023, effective date for this protected class.

The definition of SOI means “the lawful manner in which an individual supports himself of herself or his or her dependents.” [Illinois Human Rights Act Section 5/1-103(O-5)] Presumably, this definition includes wages, commissions, alimony, child support, veterans’ benefits, social security and any public assistance including housing choice vouchers sometimes referred to as Section 8 subsidies.

Section 5/3-102 prohibits the following based solely on a person being a member of any of the protected classes, which will now include SOI:

  • Refusal to engage in a real estate transaction.
  • Altering terms or conditions to deny or limit housing based on membership in a protected class.
  • Refusal to negotiate with a person in a protected class.
  • To represent that property is not available to inspect, sell or lease to members of a protected class.
  • To publish any intent to discriminate based on a protected class, including advertising by any means. This includes no more use of this type of language: NO SECTION 8 as part of an ad or an MLS listing.
  • To accept a listing knowing the owner’s intent to discriminate based on a protected class.

There are a few exemptions under the IHRA, summarized as follows:

  • A private sale of a home where absolutely no advertising, even word-of-mouth advertising, is done to indicate an intent to discriminate.
  • Apartments with four or fewer families where the owner lives in one of the units. Again, there must be no advertising, even word-of-mouth indicating an intent to discriminate against a protected class.
  • A private room in a home where the owner or another family resides.
  • Restrictions based on maximum occupancy of a room.

NOTE: Always check your local community for ordinances that may be stricter than state law.

About the writer: Betsy Urbance is Illinois REALTORS® General Counsel and Vice President of Legal Services.

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