Chapter 5.10

HOUSING PAYMENT EQUALITY

Parts:

• 1 Purpose and Findings

• 2 Definitions

• 3 Applicability

• 4 Prohibited Acts

• 5 Enforcement

Part 1

PURPOSE AND FINDINGS

Sections:

The City Council finds and declares as fol-

lows:

• A. The Housing Choice Voucher Program (HCV), commonly known as the Section 8 Program, provides rental subsidies to low-income residents so they can rent

housing on the private market. Voucher holders across the U.S. experience difficulty finding housing where landlords will rent to them. Nationwide studies have estimated that at least 20% of all housing searches using an HCV are unsuccessful in obtaining housing.

• B. As of June 2019, there are 6,549 HCV recipients who are renting in San José and approximately 1,000 HCV actively seeking housing in the County of Santa Clara. Compared to the average population, voucher holders in San José are more likely to have special needs, to possess disabilities, and to have experienced homelessness. Of these clients, 52% are disabled heads of household, 20% are families with a person with disabilities who is not the head of household, 31% are families with minor children, and 8% are formerly homeless.

• C. The 2019 waitlist to participate in HCV last opened briefly in 2006 with 50,000 applicants and now has approximately 4,500 applicants. Because of the administrative burden to maintain the list, which includes tracking the status and address of each household, the list has been mostly closed since 2006. As of June 2019, the Housing Choice Voucher utilization rate for Santa Clara County was 88% with approximately 1,465 voucher holders without a lease.

• D. A 2018 survey conducted by the San José Housing Department found that most landlords who listed apartments in San José on Craigslist.org and Apartments.com did not accept HCVs. The Housing Department found that 26.7% of the 559 listings reviewed explicitly stated "no section 8" and 39.4% verbally stated that they would not accept Section 8 or HCVs. In total, 66% of apartment listings indicated they would not accept vouchers. As of November 2018,

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over 2,000 housing choice vouchers went unused in San José and Santa Clara County.

• E. As of December 2018, forty-two (42) jurisdictions nationwide, including Santa Clara County, have adopted policies or ordinances protecting voucher holders with the goal of increasing housing options for rental voucher holders. A 2011 study prepared for the U.S. Department of Housing and Urban Development (HUD) found that voucher utilization rates improved by 4 to 11 percentage points in localities with source of income ordinances.

jurisdictions nationwide, including Santa Clara County, have adopted policies or ordinances protecting voucher holders with the goal of increasing housing options for rental voucher holders. A 2011 study prepared for the U.S. Department of Housing and Urban Development (HUD) found that voucher utilization rates improved by 4 to 11 percentage points in localities with source of income ordinances.

• F. The ordinance codified in this Chapter is being adopted pursuant to the City's police power authority to protect the health, safety, and welfare of its citizens. Preventing discrimination against those lowincome households receiving rental assistance is intended to address a pervasive discriminatory practice disproportionately affecting the disabled, single-parent female households, as well as those formerly homeless. A housing payment equality ordinance will provide increased access to opportunity for residents with low incomes which includes residents in protected classes including, but not limited to, color, religion, national origin, sex, disability, and familial status, in step with the City's duty of affirmatively furthering fair housing.

(Ord. 30304)

The purpose of this chapter is to enhance the public welfare by providing increased access to housing opportunities for low-income residents through a policy that prohibits different treatment of persons based upon whether they receive a rental assistance subsidy. This Ordinance is intended to promote equal consideration and treatment of Housing Choice Voucher Holders and other individuals who

receive rental assistance through local agencies, Federal, State, or non-profit organizations. The adoption of a housing payment equality ordinance will enable tenants who are receiving financial assistance to be equally considered as candidates for housing and not systematically denied simply because of their source of income. (Ord. 30304)

Part 2

DEFINITIONS

Sections:

The definitions set forth in this part shall govern the application and interpretation of this chapter. Words and phrases not defined in this Part 2 shall be interpreted so as to give this chapter its most reasonable application. (Ord. 30304)

"Aggrieved Person" includes any person who claims to have been injured, or will be injured, by a prohibited act listed in Part 4 below. (Ord. 30304)

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"Director" means the City's Director of the Department of Housing or the Director's designee. (Ord. 30304)

"Multiple Dwelling" shall have the meaning provided in Section 20.200.340 of the San José Municipal Code.

(Ord. 30304)

"Co-Living Community" shall have the meaning provided in Section 20.200.197 of the San José Municipal Code. (Ord. 30304)

"Guest Room" shall have the meaning provided in Section 20.200.460 of the San José Municipal Code. (Ord. 30304)

"Guesthouse" shall have the meanings provided in Sections 20.200.470 and 20.200.480 of the San José Municipal Code. (Ord. 30304)

"Landlord" means any individual, firm, corporation, or other organization or group of persons however organized, including their agent(s), that offers, or is otherwise involved in, the rental or leasing of residential real property. (Ord. 30304)

"Mobilehome" means a structure transportable in one or more sections, designed and equipped to contain not more than one dwelling unit, to be used with or without a foundation system. (Ord. 30304)

"Mobilehome park" means any area or tract of land where two or more mobilehome lots are rented or leased, or held out for rent or lease, to accommodate mobilehomes used for human habitation for permanent, as opposed to transient, occupancy. (Ord. 30304)

"One Family Dwelling" shall have the meaning provided in Section 20.200.320 of the San José Municipal Code.

(Ord. 30304)

"Secondary Dwelling" shall have the meaning provided in Section 20.200.325 of the San José Municipal Code.

(Ord. 30304)

"Source of Income" shall mean all lawful sources of income or rental assistance from any Federal, State, local or non-profit administered benefit or subsidy program including, but not limited to, the Section 8 Voucher Program. (Ord. 30304)

"Two- Family Dwelling" shall have the meaning provided in Section 20.200.330 of the San José Municipal Code.

(Ord. 30304)

Part 3

APPLICABILITY

Sections:

The provisions of this Chapter shall apply to the following:

• A. One-family dwellings, except those that are owner-occupied as the owner(s) primary residence;

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• B. Two-family dwellings;

• C. Secondary dwellings;

• D. Co-Living Communities;

• E. Multiple Dwellings;

• F. Guest Rooms in any Guest House; and

• G. Mobilehomes and Mobilehome Parks.

• (Ord. 30304)

Part 4

PROHIBITED ACTS

ment, or advertisement involving the rental of real property that unlawfully indicates preference, limitation, or discrimination based on an individual or household's source of income; or

• G. To use a financial or income standard in assessing eligibility for the rental of housing that is not based upon the portion of the rent to be paid by the tenant.

• (Ord. 30304)

Part 5

Sections:

ENFORCEMENT

It shall be unlawful for a Landlord to do any of the following:

• A. To interrupt, terminate, fail or refuse to initiate the rental of real property based on an individual or household's source of income; or

• B. To falsely represent that an interest in real property is not available for rent, lease, or tenancy based on an individual or household's source of income; or

• C. To require different terms for such transaction based on an individual or household's source of income, unless those terms are lawfully required by the particular source of income; or

• D. To include in the terms or conditions of a transaction in real property any clause, condition, or restriction based on an individual or household's source of income, unless such terms or conditions are lawfully required by the particular source of income; or

• E. To refuse or restrict facilities, services, repairs or improvements for any current or prospective tenant or lessee based upon an individual's or household's source of income; or

• F. To in any way make, print, or publish, advertise or disseminate any notice, state-

• A. This Part 5 shall become operative six months from the effective date of Chapter 5.10. Notwithstanding the suspension of this Part 5, the Director may issue written warnings for violations of Chapter 5.10.

• B. Notwithstanding subsection B. below, a civil action may be brought by the City Attorney and a court may assess a civil penalty in an amount up to $10,000 per violation, payable to the City, against any Landlord who repeatedly violates this Chapter. The City Attorney may seek injunctive relief to restrain or enjoin any violation of this Chapter.

• C. The Director may enforce any violation of this Chapter, including the issuance of an administrative citation in accordance with Chapter 1.15 of the San José Municipal Code.

  1. First time violations of this Chapter shall result in a written warning prior to issuing a citation.

  2. For subsequent violations following the first violation, the Director may issue an administrative citation in accordance with Chapter 1.15 of the San José Municipal Code, with escalating fines for each subsequent violation, in an amount adopted by Resolution.

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• D. An aggrieved person may file a civil action in a court of competent jurisdiction for any violations of this Chapter, provided that prior to the filing of any such action the aggrieved person notifies the Department of Housing of the alleged violation and the Director determines that there is no ability to cure the alleged violation.

• E. Reserved.

• (Ord. 30304)