Under new policy, some Charlotte landlords would be fined for not renting to voucher holders
Some developers would be fined hundreds of dollars for refusing to rent to voucher holders if Charlotte’s City Council approves a policy up for a vote Monday night.
The policy says developers or housing providers who deny renters who use what are known as Section 8 vouchers could receive a warning or fines. The vouchers provide a federally-funded subsidy to assist the tenant in rent payment.
The policy would apply only to landlords and developers who receive city subsidies. The policy was spearheaded by City Councilwoman Victoria Watlington, with the purpose of providing “opportunities for individuals and families to obtain safe, quality affordable housing,” city documents read.
Anyone who violates the policy would first receive a written notice and undergo mandatory compliance training. A second violation would result in another training and a daily $500 fee until the violation is fixed.
If a housing provider violates the policy a third time, they will receive a written notification of default under the agreement between the city and the developer, which will provide a time period to cure the violation.
Charlotte severely lacks affordable housing as just 1% of apartments in Mecklenburg County rent for less than $1,000 per month.
While Section 8 vouchers, also known as Housing Choice vouchers, provide additional support for the renter, 1 in 5 renters who get a voucher return it after failing to secure housing within the search period. Under the federal housing program, renters in Charlotte can wait up to eight years before it’s their turn for a voucher and then have 180 days to find housing.
A 2018 Urban Institute study commissioned by HUD shows widespread discrimination by landlords who refuse to accept vouchers. Tenants fared better, however, in cities that had protections.
Watlington, who chairs Charlotte’s Great Neighborhoods Committee, hopes this program can change those statistics. City Councilman Malcolm Graham, who chaired that committee before Watlington, agreed.
“It is as far as we can go without really pushing the envelope with our friends in Raleigh,” Graham said at the June 27 City Council meeting, referring to the state legislature. “I think it’s a step in the right direction to focus on what we can control here locally.”
If approved Monday, Charlotte would be the first city in North Carolina to pass such protections and ban “source of income discrimination.” The term refers to disparate treatment of tenants who pay rent with federal and local housing vouchers or other subsidies. Landlords might set different application terms, deny applications, or refuse to show a unit to these tenants.
The properties that would be included in the city’s policy are:
- Any affordable housing developments that receive city-provided subsidy or financial incentives, including conveyance of real estate for the housing’s production
- Any market rate housing that received city infrastructure reimbursement incentives, Tax Increment Grants or capital-funded partnerships
Properties not included in this policy would be:
- Properties with city-supported rezoning requests but no other financial support
- Housing with no city support
If the policy is approved Monday night, city staff will begin compliance monitoring and incorporate the policy into all applicable city contracts.
Charlotte City Council meets for its business meeting at 6:30 p.m. Monday, July 11, at the Charlotte-Mecklenburg Government Center chambers. The meeting can be streamed live at charlottenc.gov/newsroom.
This story was originally published July 11, 2022 at 6:00 AM.
