Court Strikes Down Protections For NYC Renters

NEW YORK, NY — A New York appeals court invalidated a 2019 state law that barred discrimination against tenants using government rental assistance, delivering a setback to tens of thousands of low-income renters seeking apartments on Thursday.

The five-judge panel ruled against Letitia James, determining that the law violated property owners’ constitutional rights because the Section 8 housing program requires inspections to ensure building safety.

Under the federal Section 8 program, tenants pay no more than 30 percent of their income toward rent, with vouchers covering the remainder. About 123,000 households in New York City rely on Section 8, while tens of thousands more use vouchers elsewhere in the state.

Tenants often face discrimination from landlords, brokers, and property managers who reject or ignore applicants using vouchers.

Judges acknowledged the discrimination that prompted the law but said the inspections required by the program “force landlords to consent to governmental searches of their rental properties and records” in violation of the Fourth Amendment.

Halima Elmariah, a spokesperson for James, told the Gothamist the attorney general’s office is reviewing the ruling and considering an appeal.

City Hall spokesperson Matt Rauschenbach said the Zohran Kwame Mamdani administration is “evaluating any potential implications for New York City.”

The decision stems from a 2022 lawsuit James filed against Ithaca landlord Jason Fane and his companies after two tenants reported being denied apartments for using Section 8 vouchers.

Fane argued that participating in Section 8 would require him “to consent to inspections of my buildings as well as my companies’ books, records and computers.”

A state judge sided with Fane, prompting the attorney general to appeal in 2023.

Fane’s attorney, Curtis Johnson, said his client “is extremely pleased with the result” and that the ruling confirms that landlords cannot be compelled to waive Fourth Amendment rights.

Lawyers representing tenants sharply criticized the decision.

Evan Henley of the Legal Aid Society, who filed a brief supporting the attorney general, called the ruling “fundamentally flawed” and warned it could increase discrimination in the housing market.

“The ruling places thousands of New Yorkers who rely on housing vouchers at greater risk of discrimination in the housing market,” Henley said. “Source-of-income protections were enacted precisely because voucher holders have long been excluded from housing opportunities despite having lawful, reliable rental assistance.”

More than 60,000 New York City households use a separate city-funded voucher program, CityFHEPS, which costs over $1 billion annually. Other local rental assistance programs, including support for people with HIV/AIDS, could also be affected if landlords cite the ruling to deny applicants.

The City recently expanded CityFHEPS to allow tenants to rent outside the five boroughs, prompting some towns and counties to enact rules blocking landlords from leasing to voucher holders.

This ruling immediately impacts Section 8 tenants and could influence broader anti-discrimination protections in housing statewide.