The Indianapolis City-County Council has a new proposal to tie into the other proposed Landlord Registration.
Here’s the information as published by the REALTORS Political Action Committee posting…read the entire article here: http://editor.des09.com/vo/?FileID=cd1e86be-a74a-47b5-bf10-55e9052900df&m=9a45f859-879e-47b2-bf49-43a071cb1432&MailID=28660553&listid=70279
Now the City Council wants to strip away your private contractual right to select tenants based on source of income.
“Proposal 215 amends the existing Human Relations ordinance to say an applicant cannot be screened on the source of income. Specifically, the proposed definition of source of income includes “income derived from Social Security, supplemental security income, housing assistance, child support, alimony, or public or state-administered general assistance.”
This would mean that landlords would not be able to deny an applicant strictly because they are a participant in the Section 8 program. Section 8 is a federal program that was designed to be a voluntary due to the fact that participation also includes a list of additional regulations, including inspections.“
Have you stopped the blood from squirting out of your eyeballs yet?
In simple language, Landlords will not be allowed to build a risk profile of a prospective tenant based on the source of income. The mandatory acceptance of Section 8 tenants is obvious, but let’s consider the other mentions of income….which are just as ominous for Landlords.
This is what the Council is requiring Landlords to do–not screen tenants on this fundamental risk element.
This is in COMPLETE OPPOSITION to the purpose of a risk profile! Different sources of income have different intrinsic risk levels and this concept is accepted in all forms of financial affairs. For example, anyone self employed realizes just how banks and lenders view their income source vs a W-2 paycheck–IT’S DEEMED RISKIER! Fannie Mae, Freddie Mac, FHA, VA, and HUD in general–ALL FEDERAL ENTITIES AND QUASI-GOVERNMENTAL ENTITIES deem this concept as true.
Put into rental language, protected sources of income including Social Security, Child Support, Veterans Benefits also all fall into RISKIER SOURCES OF INCOME for the clear reason that they are EXEMPT FROM CREDITORS. So, if your tenant breaches the lease or trashes the property, you as a Landlord are S-O-L from collecting any money from them via a civil judgement.
Your ONLY resource is to call and email and PESTER THE HELL out of the elected officials who are responsible for this bad legislation and then to show up at the hearing this coming Tuesday, August 5th to be counted as AGAINST THIS socialistic agenda. The meeting starts at 5:30 PM in Room 260 of the City County Building.
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