The Paletz Law Blog

Whitmer Signs Source of Income Legislation

December 31st, 2024 | By: John M. Mione, Esq.

As a result of a package of Michigan Legislative Bills signed by Governor Whitmer on Monday, landlords will no longer be able to consider a tenant’s source of income. Fortunately, a couple of even more aggressively written anti-landlord pieces of legislation have died in the Michigan House. 

As expected and as we have detailed in previous alerts and newsletters, the Governor signed Senate Bill 205, which prohibits “source of income discrimination,” Senate Bill 206, which adds a new definition of source of income, and Senate Bill 207, which adds “source of income” to the Elliot-Larsen Civil Rights Act. 

The bills affect the tenant screening process for landlords or property owners with more than five rental units.

In good news, legislation pushed by tenants’ rights organizations and legislators failed in committee that would have made it illegal for landlords to consider credit scores or criminal history in determining tenant eligibility and so failed to reach the floor for a vote. 

Regarding the source of income changes, Michigan landlords must now consider subsidy programs, including federal housing vouchers, VA benefits, social security and social security disability. However, ongoing income from a source the tenant cannot show is legal, and housing assistance not approved by the agency within 30 days after the landlord provides the required information is excluded. 

As always, Paletz Law will keep you informed on any governmental and legislative activities affecting your properties and will continue to advocate diligently on your behalf. 

Any questions about the bills’ application or best practices should be sent to [email protected].