Push in Cedar Rapids To Make Source Of Income Protected Class Under Housing

By Jillian Petrus, Reporter

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By Jaime Sharer

Story Created: Nov 24, 2011 at 12:21 AM CDT

Story Updated: Nov 24, 2011 at 12:21 AM CDT

CEDAR RAPIDS, Iowa – Should where your money comes from give you special protection when trying to find a place to live?

As part of an overall evaluation of fair housing standards in Cedar Rapids, the city’s Civil Rights Commission is looking at adding Lawful Source of Income as a protected class specific to housing. This would prevent anyone from discriminating against people with income sources coming from federal or state financial aid programs, alimony, pensions, grants or vouchers (not Section 8).

“If some of their income is being subsidized by outside means, they should not be penalized to find adequate housing,” said Karl Cassell, Executive Director.

In the 2010 legislative session, Congress failed to pass a federal bill to add source of income as a protected class under the Federal Housing Act. However, The District of Columbia and 12 other states – not including Iowa – do have laws to prevent income discrimination.

“We’re asking them to treat those individuals the same way they’d treat someone whose had a job and has been working twenty years,” Cassell said.

Local Realtors and Landlords are unhappy with the change and say homeowners should be as well.

“If you compare a cash offer to a government loan, the risk factor is much higher,” said Sheryl Jahnel with Iowa Realty.

Jahnel says it’s not the government’s decision what monetary offer is best for a homeowner’s situation and argues different conditions come with every state or federal financial program. She says that’s likely why few states have created a protected class based on income. If income source becomes a protected class in the city, Jahnel believes homeowners will find themselves in court if they’re not careful.

“You probably will be charged, if you take the lesser offer of cash up front versus FHA or Veterans benefits or whatever government subsidy program that might be there,” Jahnel said.

Cassell says people may take up lawsuits but that’s out of the commission’s jurisdiction. His bigger concern is if Cedar Rapids doesn’t act, people might consider calling somewhere else home.

“Better to address this now than wait for complaints,” said Cassell, “or worse people don’t want to live here because those are issues.”

There is a public hearing set for December 6th at which time the city will be presented with more information from the Civil Rights Commission and a first vote on the changes will then take place.

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