CLARK BAR UPDATE: MARCH 8TH 2023
Clark & Walker, P.C. - Attorneys at Law
Date: March 8, 2023
By: Christopher R. Walker, Esq.
ATTORNEY GENERAL CLEARS PATH FOR ENFORCEMENT OF SOURCE OF INCOME ORDINANCES (TUCSON AND PHOENIX)
On March 8, 2023, Attorney General Kris Mayes issued a ruling which has overturned a prior ruling made by her predecessor that decreed the Tucson Source of Income Ordinance violative of state law. In her opinion, Attorney General Mayes reverses all points of law that the prior attorney general relied on in rendering the decision that the Tucson ordinance violated state law, paving the way for Tucson to start enforcing its ordinance.
As of the date of this publication, there has been no official comments from the City of Tucson but we expect that the city will quickly respond and release a statement concerning the effective date of the SOI ordinance. Unfortunately, this has a domino effect as earlier this month the City of Phoenix adopted its own ordinance concerning source of income, substantially similar to Tucson’s. It is highly probable that both localities will make announcements in the coming days as to the effective date of their respective SOI ordinances.
IMPORTANT FACTS ABOUT THESE ORDINANCES:
• The Ordinances in Tucson and Phoenix prohibit discrimination based solely on Source of Income.
• Prospective tenants must still qualify under all other legal screening criteria so long as those requirements are evenly applied to all tenants.
• The Ordinances will require you to determine financial qualification based on the tenant’s share of the rent, not including the voucher value.
(EXAMPLE: Monthly rent of $1,000.00 with a voucher for $700.00. If the property has an income requirement of three times the monthly rent the tenant would need to make $900.00 per month ($300 X 3) as opposed to $3,000.00 per month ($1,000 X 3).
• If a prospective tenant qualifies under all rental criteria you may not deny them because they hold a Section 8 or public housing voucher.
• Landlords are not able to advertise or make the following statements: “No Section 8 accepted” or “There is a wait list for people with vouchers.”
WHAT THE ORDINANCES DO NOT DO:
•
Does not require landlords to lower rent but may not charge a higher rent based solely on the applicant holding a public housing voucher.
•
Does not prohibit landlords from enforcing all provisions of the lease up to and including eviction.
ENFORCEMENT
It is likely that enforcement with penalties will not begin immediately. We suspect there will be some level of a grace period before the penalties authorized in the ordinances take effect. If Phoenix follows the same model as Tucson, the agencies enforcing the ordinance will be seeking compliance and education more than they will seek to enforce through penalties. However, you should be aware that there are potential fines for violating this ordinance and they are set forth below:
• FIRST VIOLATION = A fine of no less than $300.00 and no more than $2,500.00
• SECOND VIOLATION = A fine of no less than $600.00 and no more than $2,500.00
• THIRD VIOALTION = A fine of less than $900.00 and no more than $2,500.00.
If you have questions about this information, please consult with an attorney.
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