The Virginia General Assembly during the 2020 session revised the Virginia Fair Housing Law to include “source of funds” as a newly protected class effective July 1, 2020. According to the Guidance Document issued by the Virginia Real Estate Board (VREB), the primary impetus for the bill was to protect prospective renters and buyers from discrimination if they intended to pay for housing using a Housing Choice Voucher (HCV).

This does not prohibit a housing provider from asking about a potential buyer’s or renter’s income, including the source. Nor does it prohibit a seller’s non-discriminatory consideration when reviewing multiple offers. However, they must accept all lawful sources of income equally and qualifying criteria must be applied fairly.

What does “source of funds” mean?

The Virginia Code defines “source of funds” as “…any source that lawfully provides funds to or on behalf of a renter or buyer of housing, including any assistance, benefit, or subsidy program, whether such a program is administered by a governmental or nongovernmental entity.”

Are there any exemptions?

Yes, there are two specific exemptions.

First, according to the statute, nothing will prohibit an owner or an owner’s manager from denying the rental or occupancy of a dwelling unit based on source of income if an owner “…does not own more than four rental dwelling units in the Commonwealth at the time of the alleged discriminatory housing practice…(or) whether individually or through a business entity, owns more than 10 percent interest in more than four rental dwelling units in the Commonwealth…”.

Second, the statute states that it would not be “unlawful under this chapter for an owner or an owner's managing agent to deny or limit a person's rental or occupancy of a rental dwelling unit based on the person's source of funds for that unit if such source is not approved within 15 days of the person's submission of the request for tenancy approval.” The fifteen days refers to the time between when a complete Request for Tenancy Approval (RFTA) packet is submitted to the voucher administrator and when the subject unit passes inspection. The housing provider is exempt as long as they act in good faith to facilitate the process.

Can landlords refuse funds based on duration of such funds?

No, housing providers must accept all lawful sources of funds equally, regardless of their duration.

In summary, the law requires housing providers to treat all tenants, applicants, purchasers, clients, etc. equally, regardless of their source of income.

For additional information, the link to the VREB Guidance Document can be found on the Virginia Realtors Blog post: https://virginiarealtors.org/2021/04/21/vreb-issues-guidance-document-on-source-of-funds/