Court Rules Against Letitia James on Voucher Discrimination

Letitia James was dealt a major blow to her push to root out income discrimination across New York state.

The New York Appellate Division’s Third Judicial Department handed New York Attorney General James and the Legal Aid Society a loss on Thursday, the Commercial Observer reported, striking down a state law that banned housing discrimination based on source of income.

The case revolved around the law enacted in 2019. That law contains components deemed unconstitutional, according to the appellate court, particularly regarding the rights of landlords.

“Landlords are now forced to consent to governmental searches of their rental properties and records,” the ruling stated. “Given that, for the reasons that follow, the source-of-income discrimination law violates landlords’ Fourth Amendment rights to be free from unlawful searches.”

Following the ruling, James’ office said it was reviewing the decision. It could still appeal the case to the state’s highest court.

James initially filed the lawsuit against an Ithaca-based apartment owner, a move that appears to have backfired. James launched the case against Jason Fane after two tenants were allegedly denied apartments because they utilized Section 8 vouchers to pay rent, according to Gothamist.

Fane’s attorney told the publication he was “extremely pleased with the result.”

The big question is what happens to Section 8 tenants and their landlords next. Tenants typically pay up to 30 percent of their earnings for rent and the voucher covers the rest.

Approximately 123,000 households in New York City alone are involved in Section 8 housing. Tens of thousands of other households are enrolled across the state.

“The ruling places thousands of New Yorkers who rely on housing vouchers at greater risk of discrimination in the housing market,” Legal Aid Society attorney Evan Henley told Gothamist, expressing concern that tenants could face obstacles related to other aspects of their profile.

— Holden Walter-Warner