FISCAL NOTE
L.R. No.: 1536H.01I Bill No.: HB 595 Subject: Public Assistance; Landlords and Tenants; Property, Real and Personal Type: Original Date: January 21, 2025
Bill Summary: This proposal prohibits local governments from requiring private property owners to accept section 8 vouchers.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND FUND AFFECTED FY 2026 FY 2027 FY 2028
Total Estimated Net Effect on General Revenue $0 $0 $0
ESTIMATED NET EFFECT ON OTHER STATE FUNDS FUND AFFECTED FY 2026 FY 2027 FY 2028
Total Estimated Net Effect on Other State Funds $0 $0 $0 Numbers within parentheses: () indicate costs or losses. L.R. No. 1536H.01I Bill No. HB 595 Page 2 of 5 January 21, 2025
ESTIMATED NET EFFECT ON FEDERAL FUNDS FUND AFFECTED FY 2026 FY 2027 FY 2028
Total Estimated Net Effect on All Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE) FUND AFFECTED FY 2026 FY 2027 FY 2028
Total Estimated Net Effect on FTE 0 0 0
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDS FUND AFFECTED FY 2026 FY 2027 FY 2028
Local Government $0 $0 $0
NM:LR:OD L.R. No. 1536H.01I Bill No. HB 595 Page 3 of 5 January 21, 2025
FISCAL ANALYSIS
ASSUMPTION
§441.043 – Rental Property and Federal Housing Assistance Program
Officials from the Department of Mental Health (DMH) assume the proposal modifies §441.043. It prohibits local government from requiring private property owners to accept federal housing assistance vouchers as payment for rent. The DMH has a few programs which offer rental assistance that are funded through federal sources. It is very challenging for DMH consumers to obtain rentals in the current market. If landlords in areas that protect “source of income” revert back to disallowing tenants because of subsidies, this could cause additional housing instability within the DMH service population which typically leads to poorer treatment outcomes and higher utilization of crisis services. This could also require funding of incentive programs to encourage landlords to give DMH service population the opportunity to rent in the private market. Those could include landlord mitigation funds or landlord incentive payments. DMH currently does not have any such funds and it would be challenging to predict how much would be necessary. The Division of Behavioral Health (DBH) assumes this will likely impact consumers seeking housing. It is unknown the level of impact to consumer or the potential increase in those consumers seeking crisis services. Fiscal impact to DBH is unknown.
Oversight notes the following on DMH’s website:
Federal Housing Subsidies (Section 8, etc.) for Low-Income Households Public Housing Agencies - Many cities and towns in Missouri have Public Housing Agencies (PHA's). These agencies administer federally funded low-income housing in their towns or counties; some also own their own affordable rental properties to rent to area residents who cannot afford the normal rents in the area. Most PHA's also administer the federal Housing Choice Voucher Program, commonly known as Section 8. If you cannot find affordable housing on your own, or wish to apply for Section 8 housing, your local Public Housing Agency may be able to help. In some cases, your local Community Action Agency office will also be your Public Housing Agency.
Oversight assumes the state may be impacted from this proposal, however; Oversight assumes this would be more of an indirect impact for this proposal.
Officials from the Department of Economic Development and the Department of Labor and Industrial Relations each assume the proposal will have no fiscal impact on their respective organizations. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for these agencies.
Officials from Kansas City assume a potential negative impact as it may increase homelessness from this proposal.
NM:LR:OD L.R. No. 1536H.01I Bill No. HB 595 Page 4 of 5 January 21, 2025
Oversight assumes local political subdivisions could be impacted from this proposal, however; Oversight assumes this would be more of an indirect impact for this proposal.
Oversight notes Kansas City submitted a different response in HB 343 from this year, even though the language is very similar for both proposals. Oversight has inquired Kansas City regarding this discrepancy and will reflect any updates to the fiscal note in future versions.
In response to similar legislation from 2024, Perfected HB 2385, officials from Lincoln County assumed the proposal will have no fiscal impact on their organization.
Oversight only reflects the responses received from state agencies and political subdivisions; however, other cities and counties were requested to respond to this proposed legislation but did not. A listing of political subdivisions included in the Missouri Legislative Information System (MOLIS) database is available upon request.
FISCAL IMPACT – State Government FY 2026 FY 2027 FY 2028 (10 Mo.)
$0 $0 $0
FISCAL IMPACT – Local Government FY 2026 FY 2027 FY 2028 (10 Mo.)
$0 $0 $0
FISCAL IMPACT – Small Business
Small businesses who operate rental properties could be impacted as a result of this proposal.
FISCAL DESCRIPTION
This bill specifies that no county or city can enact, maintain, or enforce any ordinance or resolution that prohibits landlords from refusing to lease or rent certain residential or commercial property to a person because the person's source of income includes aid from a Federal housing assistance program.
The bill specifies that no city or county may enact an ordinance that: (1) Prohibits landlords from using income-qualifying methods to determine whether to rent or lease a property to a prospective tenant; (2) Prohibits landlords from requesting tenant criminal records; (3) Limits the amount of security deposit required from a tenant; or (4) Requires tenants to automatically receive the right of first refusal.
NM:LR:OD L.R. No. 1536H.01I Bill No. HB 595 Page 5 of 5 January 21, 2025
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Mental Health Department of Economic Development Department of Labor and Industrial Relations Kansas City Lincoln County
Julie Morff Jessica Harris Director Assistant Director January 21, 2025 January 21, 2025
NM:LR:OD
Statutes affected: