Maryland’s Attorney General recently announced a series of fair housing enforcement actions across the state, securing several major settlements with housing providers. These efforts are part of an increased push to address discriminatory housing practices, particularly those related to income source discrimination and blanket criminal background screening policies. The state’s Civil Rights Division is focusing on ensuring that landlords comply with Maryland’s fair housing laws, including the 2020 HOME Act.
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Source of Income Now Protected by State Law
Maryland’s HOME Act, passed in 2020, made it illegal for landlords to reject tenants based solely on their source of income. This includes housing vouchers such as Section 8 and other government aid. Unlike federal law, Maryland explicitly protects “source of income” as a class, meaning housing providers must consider vouchers and subsidies as legitimate forms of rent payment.
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Discrimination Through Income Standards
In one notable case, a housing provider implemented a rent policy that resulted in voucher holders facing higher rent increases than other tenants. The Maryland Civil Rights Division found this to be a violation of state fair housing laws. The landlord was required to reimburse affected tenants, pay civil penalties and damages, and retrain its staff on fair housing compliance. The landlord must also provide the state with regular reports to ensure continued adherence.
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Crackdown on Blanket Criminal Record Bans
Another housing provider came under scrutiny for a tenant screening policy that automatically excluded anyone with a felony conviction, regardless of the conviction’s age or type. The Civil Rights Division found that such blanket bans can lead to discriminatory outcomes, especially for racial and ethnic minorities. The settlement in this case included the adoption of a new individualized screening policy, fee waivers for applicants with felony records for the next two years, and civil penalties.
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Legal Framework for Criminal Record Use
While criminal history is not a protected class under state or federal law, housing providers using this information must avoid practices that disproportionately impact certain groups. The Fair Housing Act requires that providers conduct case-by-case evaluations when considering criminal records. Factors such as the nature of the offence, its relevance to housing, the time elapsed, and signs of rehabilitation must be considered. Blanket bans generally fail to meet these standards.
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Legal Dispute Over Minimum Income Policies
In addition to settlements, the Maryland Civil Rights Division filed an amicus brief in a case before the state’s Supreme Court: Hare v. David S. Brown Enterprises. The case centres around a landlord’s requirement that tenants earn at least 2.5 times the monthly rent. Critics argue this kind of policy can effectively exclude many voucher holders, as the voucher covers part of the rent, reducing the income tenants need to contribute. We have heard oral arguments and anticipate a decision by the end of August.
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Tenant Screening Policies Under Review
These enforcement actions serve as a signal to landlords across Maryland to review their tenant screening policies. The Civil Rights Division is clearly prioritizing policies that could lead to discrimination, whether intentional or not. Housing providers are encouraged to revise their procedures to align with fair housing laws and to consider individualized assessments where appropriate.
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Focus on Fair Housing Enforcement
The Civil Rights Division has indicated that it will continue to focus on source-of-income discrimination and unfair screening practices. Its recent investigations show a commitment to protecting voucher holders and applicants with criminal histories from policies that unfairly block access to housing. Settlements now include not only monetary penalties but also oversight requirements such as staff training and reporting obligations.
