Legislative Analysis
HOUSING DISCRIMINATION BASED ON INCOME SOURCE Phone: (517) 373-8080
http://www.house.mi.gov/hfa
Senate Bill 205 (S-2) as passed by the Senate Analysis available at
Sponsor: Sen. Mary Cavanagh http://www.legislature.mi.gov
Senate Bill 206 (S-1) as passed by the Senate
Sponsor: Sen. Rosemary Bayer
Senate Bill 207 (S-3) as passed by the Senate
Sponsor: Sen. Jeff Irwin
House Committee: Judiciary
Senate Committee: Housing and Human Services
Complete to 4-16-24
SUMMARY:
Senate Bills 205, 206, and 207 would prohibit landlords with five or more rental units in
Michigan from engaging in housing discrimination based on a tenant’s source of income (e.g.,
housing assistance or veterans’ benefits). In the case of a violation, the bills would allow a civil
action to be filed for damages, injunctive relief (e.g., a court order to stop the violation), or
both. Senate Bill 207 also would allow a complaint to be filed with the Department of Civil
Rights.
Senate Bills 205 and 206 would amend 1972 PA 348, known as the landlord-tenant act. Senate
Bill 205 contains the provisions described below, and Senate Bill 206 describes what source
of income includes when used in those provisions.
Prohibitions
The bills would prohibit a landlord with five or more rental units in Michigan from doing any
of the following to a current or prospective tenant based on their source of income:
• Denying or terminating a tenancy.
• Denying them a rental unit or making it unavailable to them when they would otherwise
(i.e., if not for their source of income) be eligible to rent it.
• Attempting to discourage the rental or lease of a rental unit to them.
• Falsely representing to them that a rental unit is not available for inspection, rental, or
lease; knowingly failing to bring a rental listing to their attention; or refusing to allow
them to inspect a rental unit.
• Making a distinction or restriction against them in the price, terms, fees, or privileges
related to the rental, lease, or occupancy of a rental unit—including, separately and
specifically, doing so on the basis of their use of emergency rental assistance.
• Making a distinction or restriction against them in the provision of facilities or services
related to the rental, lease, or occupancy of a rental unit.
• If the landlord requires tenants to have a certain threshold level of income, excluding
any income in the form of a rent voucher or subsidy (but not emergency rental
assistance) in calculating whether those criteria are met.
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 In addition, a landlord could not (by their own action or through another’s) publish, circulate,
or display a communication, notice, advertisement, or sign related to the rental or lease of a
rental unit that indicates a preference, limitation, or requirement based on a source of income.
Finally, the bills would prohibit a landlord from doing either of the following:
• Assisting, inducing, inciting, or coercing another person to commit an act or engage in
a practice that violates the bill.
• Coercing, intimidating, threatening, or interfering with any person in the exercise or
enjoyment of a right granted or protected under the bill, because the person exercised
or enjoyed a right granted or protected under the bill, or because the person aided or
encouraged another person in the exercise or enjoyment of a right granted or protected
under the bill.
Landlord means either of the following:
• The owner, lessor, or sublessor of a rental unit or the property it is a part of.
• A person authorized to exercise any aspect of the management of the premises.
(This includes a person that, directly or indirectly, acts as a rental agent or
receives rent, other than as a bona fide purchaser, and has no obligation to
deliver the receipts to another person.)
Tenant means an individual who occupies a rental unit for residential purposes with
the landlord’s consent for an agreed-upon consideration.
Source of income would include benefits or subsidy programs such as housing
assistance, housing choice vouchers provided under 42 USC 1437f, public assistance,
veterans’ benefits, Social Security, supplemental security income or other retirement
programs, and other programs administered by any federal, state, local, or nonprofit
entity. Source of income would not include either of the following:
• Income that a prospective tenant cannot demonstrate is derived from sources
and activities allowed by law and is provided on an ongoing basis.
• Housing assistance that is not approved by the appropriate agency within 30
days after the landlord provides all information required as a condition of the
agency’s approval, including evidence that all repairs required before
occupancy have been completed.
Applicability
As mentioned above, the bills would not apply to persons that, including their related entities,
are landlords of fewer than five rental units in Michigan.
Person would mean an individual, partnership, corporation, association, limited
liability company, or any other legal entity.
Related entity would mean a person that, directly or indirectly, controls, is controlled
by, or is under common control with another person.
Remedies
A person alleging a violation of the above provisions could bring a civil action for appropriate
injunctive relief or damages, or both, in the circuit court for the county where the alleged
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 violation occurred or where the person the action is filed against resides or has their principal
place of business.
Damages would mean actual damages for injury or loss caused by each violation, or
up to three times the monthly rent for the rental unit or units at issue, whichever is less,
together with court costs and reasonable attorney fees.
MCL 554.601 (SB 206) and proposed MCL 554.601c (SB 205)
Senate Bill 207 would amend the Elliott-Larsen Civil Rights Act. Article 5 of the act prohibits
discrimination in real estate transactions based on religion, race, color, national origin, age,
sex, sexual orientation, gender identity or expression, familial status [having children], or
marital status. The bill would amend Article 5 to prohibit discrimination based on a current or
prospective tenant’s source of income by landlords with five or more rental units in Michigan.
These provisions (including the definitions of landlord, tenant, and source of income) would
be identical to those of Senate Bills 205 and 206 as described above under “Prohibitions.”
Applicability
As with Senate Bills 205 and 206, the bill would not apply to persons that, including their
related entities, are landlords of fewer than five rental units in Michigan. Senate Bill 207 also
would not apply to any of the following:
• The rental of a housing accommodation in a building that contains accommodations
for up to two families living independently of each other (e.g., a duplex) if the owner
or their spouse, parent, child, or sibling resides in one of the housing accommodations
• The rental of a room or rooms in a single-family dwelling if the lessor or their spouse,
parent, child, or sibling resides in the dwelling.
• The rental of a housing accommodation for up to 12 months by the owner or lessor if
it was occupied by the owner or lessor and maintained as their home for at least three
months immediately before occupancy by the tenant and is maintained as the owner’s
or lessor’s legal residence.
Remedies
Generally speaking, the Elliott-Larsen Civil Rights Act is enforced by the Michigan Civil
Rights Commission, which through the Michigan Department of Civil Rights investigates and
acts on discrimination complaints. In addition, a person alleging a violation of the act may
bring a civil action for appropriate injunctive relief or damages, or both, in the circuit court for
the county where the alleged violation occurred or where the person the action is filed against
resides or has their principal place of business. The court may award the person filing the action
all or part of the costs of litigation, including reasonable attorney fees and witness fees, as it
determines appropriate.
Damages means damages for injury or loss caused by each violation of the act,
including reasonable attorney fees.
MCL 37.2502
Senate Bills 205 and 207 cannot take effect unless SB 206 is enacted. Senate Bill 206 cannot
take effect unless SB 205 is enacted.
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FISCAL IMPACT:
The bills would have an indeterminate fiscal impact on the state and on local court funding
units. The fiscal impact would depend on how provisions of the bills affect court caseloads and
related administrative costs. Costs would be incurred if the bills result in an increase in the
number of landlord/tenant cases filed. It is difficult to project the actual fiscal impact to courts
due to variables such as judicial discretion, case types, and complexity of cases. An increase
in civil case filings would result in additional filing fee revenue. Filing civil cases in court
requires payment of a variety of fees which depend on the value of the case. A portion of filing
fee revenue is transmitted to the state and deposited into the Civil Filing Fee Fund. Revenue
from the Civil Filing Fee Fund is distributed to a variety of state programs and fund sources on
a percentage basis according to statute.
Senate Bill 207 also would likely lead to an increase in costs to the Department of Civil Rights.
The cost increase would be related to additional staffing to support an anticipated increase in
civil rights complaint cases on the basis of source of income, which would be a new protected
group category under Article 5 of the Elliott-Larsen Civil Rights Act as described above. The
number of expected new cases and the corresponding number of staff needed to support the
new caseload are not yet known. The annual salary costs for an additional complaint
investigation investigator are approximately $160,000. Complaint cases related to housing
made up 250 cases, or 15% of all complaint cases received, in the 2022-23 fiscal year.
Legislative Analyst: Rick Yuille
Fiscal Analysts: Robin Risko
Michael Cnossen
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
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Statutes affected:
Substitute (S-1): 554.601
Senate Introduced Bill: 554.601
As Passed by the Senate: 554.601