Category Archives: Disparate Impact

The Debate Around the Legality of Fees During the Rental Application Process

affordable housing, Disparate Impact, Economic Inequality, housing crisis, housing inequality, rental housing market, renters

A consideration of the issue and the resources available for renters

Illustration by Natalie Williams/VTDigger

You may have seen this recent VTDigger article, which highlights the illegal practice of collecting rental application fees and the uncertainty created by vague wording in Vermont law around what constitutes an “application fee.” Under Vermont state law, rental application fees are clearly illegal. But are other fees related to the rental application process illegal too? According to Vermont Legal Aid, the answer is clearly yes; according to the Vermont Landlord Association, the answer is clearly no.

This blog post is intended to clarify some of the context around the issue and provide resources for renters who are trying to secure housing in this uncertain environment.

The Definitive Guide to Renting in Vermont, published in 2015 by CVOEO’s Vermont Tenants Program in collaboration with the Vermont Landlord Association, states that application fees are not legal, but that “charging potential renters for the actual cost of background and credit checks is permitted.”

This is a stance Vermont Tenants has maintained since the guide was written. Vermont Tenants cannot present a stronger position on the debate until a legal precedent is set. As a service and education organization (rather than a legal one), we don’t have the tools or the credentials to interpret the legislative intent of the statute – that is for the lawyers.

Meanwhile, even with the interpretation that the actual cost of credit and background check fees are permitted, it is likely that fees are collected for credit and background checks that don’t happen. In this rental housing market with the lowest vacancy rate we’ve seen in many years and a high number of applicants for every available apartment, if a landlord is charging all applicants the credit and background check fees, it is highly unlikely that all of these checks are actually being run. And if landlords are running the checks for all applications submitted, this practice is wasteful and impractical in a market where hundreds of applications are submitted for any single unit.

In the meantime, it is the lowest-income Vermonters who are most negatively impacted

Unfortunately, in this confusion, the people most impacted are the lowest-income Vermonters. A competitive rental market means that even slight disadvantages can pose real barriers to renting for those pinched hardest by the housing crisis, and discrimination is harder to prove. Leaving the decision up to the renter on whether or not they choose to speak up about their rights and refuse to pay a rental application fee or file a complaint will negatively impact the people already most vulnerable in their housing search. As VTDigger reports, the charging of any kind of fee to apply for housing will continue to prevent many people from submitting enough applications to actually get access to the housing they need. This is a systemic problem that could be addressed by clarity in statute – and better enforcement.a variety of illustrated apartments, apartment buildings and houses

What can we do?

One solution some tenant advocates propose to renters in their housing search is to pull their own credit check report and offer to share the report with each potential landlord. Another solution offered is for prospective tenants to ask for a copy of their credit report after the landlord pulls it. Of course, this still puts the tenant in a vulnerable position, and some may not want to jeopardize their relationship with a potential landlord.

Although the law is very clear that rental application fees are illegal in Vermont, the practice is still common. One contributing factor is the third-party application platforms used by many larger rental companies which don’t allow customization to the forms. Some housing providers, report that the software they rely on doesn’t allow them to change the language from “application fee” to “credit check” fee. Not every renter is aware of the laws around rental application fees, and even those who do know may be hesitant to assert their rights with such stringent competition for rental units. 

Some renters have found remedy by contacting the state Attorney General’s Consumer Assistance Program. If Vermonters are unjustly charged an application fee (worded as such), they may be able to recoup their costs by filing a complaint through the Attorney General. According to VTDigger, some rental companies stopped charging rental application fees after receiving several complaints through the program. Landlords can choose to include the cost of background checks and credit checks in their overall business operating expenses, and adjust their rent accordingly. 

9 V.S.A. § 4456a “Residential rental application fees; prohibited says “A landlord or a landlord’s agent shall not charge an application fee to any individual in order to apply to enter into a rental agreement for a residential dwelling unit. This section shall not be construed to prohibit a person from charging a fee to a person in order to apply to rent commercial or nonresidential property. (Added 1999, No. 115 (Adj. Sess.), § 5.)

Resources for renters

CVOEO has supports available for renters with questions about their rights and responsibilities under landlord-tenant law. For renters seeking support finding housing, working through barriers to renting, and developing application materials, the Finding Housing workshop – offered both as live Zoom classes and a self-paced, on-demand workshop – is a great resource. For renters seeking to repair their credit, to better understand their finances, or needing one-on-one financial coaching, CVOEO’s Financial Futures program has free educational opportunities as well. For people who are currently without housing or at risk of loosing their housing, CVOEO’s Community Action program can assist people with housing navigation, and potentially help with back rent, first month’s rent, security deposits and short-term rental subsidies for eligible applicants. As always, the Vermont Tenant’s Hotline – (802) 864-0099 and vttenants@cvoeo.org – is a resource for people with any questions about their tenancy.

Vermont Racial Justice Housing Jam: Speaker Series Starts Nov. 3

civil rights, Disparate Impact, Event, fair housing, housing, housing discrimination, housing inequality, Housing Inequality, racial justice
Register now for Increasing Racial Justice in Vermont Housing speaker series

A group of Vermont housing organizations is hosting a free four-part series examining how racial inequities impact access to housing in Vermont.

The public speaker series has been developed by Abundant Sun, together with the Vermont Racial Justice Housing Jam, a committee of community members with lived experience and representatives from nonprofit housing organizations. Local, national, and international speakers will address selected topics focused on increasing racial justice and equity in Vermont housing.  The goal of the initiative is to identify actions on policy, programmatic and cultural levels to expand access to affordable housing for all Vermonters.

All sessions are free and open to the public, and will be held via Zoom from 4:30-6pm with presentations followed by discussions (click on each title to register):

The Vermont Racial Justice Housing Jam is coordinated by the Vermont Housing & Conservation Board, working in partnership with Abundant Sun, Champlain Housing Trust, Downstreet Housing & Community Development, RuralEdge, Windham & Windsor Housing Trust, NeighborWorks of Western Vermont, NeighborWorks America, and Vermont Housing Finance Agency, with additional support from the Federal Home Loan Bank of Boston.

Fair housing and climate: Are affordable housing developments more likely to be located in risky areas?

affordable housing, climate change, Disparate Impact, environmental justice

The development of affordable housing is a key response to the housing crisis – but where are these homes located? “Smart growth” – the idea that we should encourage dense, mixed-use developments with access to services including public transport and green space – is increasingly a buzzword in housing. But recent research suggests that affordable housing is increasingly being built in environmentally risky areas, including those prone to flooding or wildfires and historically polluted areas.

A damaged mobile home in Berlin, VT, following Tropical Storm Irene (image: VTDigger)

One Shelterforce article, written by Collen O’Connor-Grant, discusses how 300 low-income housing units, due to be built in Holmdel Township, NJ (a wealth NYC suburb), were relocated from the main redevelopment area to a recently rezoned wetland. The new lot was a known flooding hotspot and, given the devastation caused by recent storms like Sandy and Ida, authorities were undoubtedly area of the risks of the new location. Other concerns were also raised, including the potential for soil and water contamination from nearby businesses – but no plans to conduct testing to check this were ever announced.

The proposed plan for the affordable housing development in Holmdel, located on a flood-prone lot (image: Shelterforce)

The Holmdel case is a classic example of “climate gentrification”, where certain properties or areas are valued over others because of their perceived ability to withstand the effects of climate change. Climate gentrification is also a problem in Vermont, as recent articles discussing “climate refugees” have shown. While everyone deserves a safe place to live, some are concerned that the influx of often-wealthy folks from out of state looking for “climate havens” will further displace long-term Vermont residents struggling with the state’s housing crunch.

Locating affordable homes in more environmentally risky areas is also a problem in Vermont. A 2013 study by UVM and the Department of Housing and Community Development found that mobile homes are disproportionately located in flood zones: nearly 12% of mobile homes in parks are located in flood hazard areas, compared to 6% of mobile homes on private land and just 4% of single-family homes.

The St George Community Cooperative mobile home park; mobile home parks in Vermont are more likely to be located in flood-prone areas (image: VTDigger)

An article published last year in the Valley News highlights how susceptible mobile home parks are to flooding events. The Riverside Mobile Home Park in Woodstock suffered major flooding and associated damage, including problems with mold, in Tropical Storm Irene. Equity issues became increasingly apparent during clean-up: many residents lacked proper flood insurance coverage, FEMA assistance was insufficient or entirely absent, and residents struggled to find the funds to repair their homes. Similar scenarios are playing out across the country, as natural disasters often further exacerbate high costs of building materials, leaving people unable to afford the costs of rebuilding.

Senator Kesha Rams Hinsdale (D-Chittenden) introduced the recently signed Environmental Justice bill

Given that the effects of climate change are only predicted to increase, we need to think about how to approach the intersecting affordable housing and climate crises. Unfortunately, no ready solutions are forthcoming. While some advocate for increased regulation by local governments (e.g., through changing zoning codes), others contend that it is local authorities that are the problem, and states should pass legislation enabling them to override “bad” local planning decisions. Vermont recently passed a new environmental justice bill (S.148) that aims to reduce the burden on communities that experience disproportionate impacts from environmental stress, including flooding and pollution by requiring the state to incorporate environmental justice into their work and establishing two new state-wide advisory groups, the Environmental Justice Advisory Council and the Interagency Environmental Justice Committee. Criticism of the bill centers on its implementation, with concerns that the bill does not allocate enough funding to ensure its long-term viability or to allow for meaningful community engagement. Nonetheless, passing the bill is still a big step forward for environmental justice in our state.  

What do you think? Leave a comment below or visit our Facebook page to join in the conversation!

Executive Order Limiting Diversity Training Could Have Chilling Effect

Disparate Impact, Diversity, segregation

Please see CVOEO’s statement below on the recent presidential Executive Order limiting federal government, contractors, and grant recipients from conducting diversity training containing “divisive concepts” which “promote race or sex stereotyping or scapegoating.” This could include discussions on systemic discrimination, institutional patterns of segregation, disparate impact, white privilege, internalized racism, and other topics related to implicit bias or the history of systemic racism. These concepts are an integral part of our fair housing education and outreach efforts.

Read the full Executive Order here: https://www.whitehouse.gov/presidential-actions/executive-order-combating-race-sex-stereotyping/

If this order concerns you, please reach out to Vermont’s Congressional Delegation with comments:

CVOEO Response to New Executive Order Limiting Diversity Training

President Trump’s Executive Order on Diversity Training and Promotion of “Divisive Concepts” on September 22, 2020 raises deep concerns for the staff of the Champlain Valley Office of Economic Opportunity (CVOEO). Whether it applies to grantees of federal agencies or not, it is a fundamentally unsound order which does not address the need for continuous improvement toward racial and social justice. Although the terms of this order assume protection to grantees of federal programs such as CVOEO from compliance with the order, there remains a risk that such compliance will be required as federal agencies are asked to revisit their grant programs and to consider compliance with the requirements of the executive order. This could impact any grantees’ ability to continue to address the issue of systematic and structural racism observed in our workplaces.

CVOEO is one of five Community Action Agencies in Vermont. Since forming in 1965, the staff and board of CVOEO carries out the Economic Opportunity Act of 1964, by addressing the fundamental issues of economic, social, and racial justice, intended to help people achieve economic independence.

We are an anti-racist organization among the signatories of the City of Burlington’s recent petition which classifies racism as a public health emergency. Our recently hired Director of Racial Equity’s mission includes identifying areas of disparity within the organization, and implementing anti-racist actions such as enhancing learning opportunities with diversity and inclusion training, adopting best practices that comply with Title VI and Title VII of the Civil Rights of 1964, and creating a support system that will help our diverse workforce and the individuals we serve to thrive.

We believe that this executive order does not promote inclusion and could instead deepen the preexisting gap observed in our country’s social and economic systems. We are also concerned that these measures will prevent people from being informed of their rights. Additionally, this executive order could serve as a rationale deterring them from taking the necessary steps to achieve racial equity.

In Vermont, practices in compliance with the requirements of the executive order will go against the recommendations made by the Racial Equity Task Force to the governor earlier this month. These recommendations emphasize “mandated training for organizations and agencies receiving federal/state funding on cultural and linguistic appropriate services, federal laws on access, anti-racist practices.”

We hope you will join us in speaking out against this executive order and share our concerns with others.

In deep appreciation for the work you do to end social and racial injustice.

Thriving Communities Round Up – and we want to hear from you!

This week, the Fair Housing Project of CVOEO and the Thriving Communities campaign bring you a sampling of Vermont news related to fair housing, affordable homes, and inclusivity, as well as a plea for comments on a proposed federal policy change that could fundamentally reshape federal fair housing enforcement.

Read on… but first, a few questions for you:

  • What types of articles and resources would you like to see in the Thriving Communities blog?
  • Would you or your organization like to contribute to this blog?

The Thriving Communities blog reaches a diverse cohort of housing and service providers, planners, municipal officials, advocates, and community members who are committed to promoting affordability and inclusiveness as a mainstay of flourishing communities across Vermont and beyond. Send your suggestions and ideas to us at fhp@cvoeo.org. We’re looking forward to hearing from you!

CALL TO ACTION! Submit comments on proposed changes to the disparate impact rule

HUD’s proposed revisions to the disparate impact rule could fundamentally reshape federal fair housing enforcement and we encourage you to submit a comment – no matter how brief – in support of the existing rule without amendments.

Disparate impact refers to practices or policies that have an adverse impact on certain classes of people without discriminating against them in explicit terms, such as a landlord who only accepts people with full-time jobs, which bars disabled veterans and other people with disabilities who may not be able to work full-time, even though they can afford the apartment, or a housing authority that distributes housing tax credits, which are used to build low-income housing, in a way that consolidates construction in mostly immigrant areas.

The Supreme Court has recognized this form of bias as prohibited under the Fair Housing Act, but the proposed amendments would substantially raise the burden of proof for parties claiming discrimination. The changes would also result in special defenses for business practices that rely on statistics or algorithms, such as credit scoring, pricing, and automated underwriting systems. This could create a loophole for lenders and landlords using third-party vendors by shielding them from liability while making it more difficult to attribute the discrimination to the model or algorithm.

Please take a few minutes to submit a comment. You can sign on to the National Fair Housing Alliance (NFHA)’s letter, or better yet, write your own. The deadline Oct. 18 and the official submission form is here: https://www.federalregister.gov/documents/2019/08/19/2019-17542/huds-implementation-of-the-fair-housing-acts-disparate-impact-standard

More resources:

The 2019 Housing & Conservation Conference: Building and Sustaining Healthy Communities, is Oct. 10 in Barre. The day will be filled with workshops, discussions, presentations and field trips to provide fresh perspectives around six themes that cross the boundaries between housing and conservation. A highlight of the day will be Dr. Tiffany Manuel‘s return to Vermont. Dr. Manuel gave a powerful presentation on messaging strategies to advance a strong affordable housing and community development agenda at last year’s Statewide Housing Conference. She joins Alfred Diaz-Infante and Todd Farrington, representing two housing and conservation organizations in the Salinas Valley of California, for a discussion on collaboration, diversity, impact, equity, and community engagement. Register now.

Upper Valley commissions join forces in support of housing: Keys to the Valley is a new initiative of the Two Rivers-Ottauquechee Regional and Southern Windsor County Regional Planning Commissions of Vermont and the Upper Valley Lake Sunapee Regional Planning Commission of New Hampshire to increase the amount of safe and affordable places to live in the Tri-Commission region, which covers 67 communities on both sides of the Connecticut River. The “A Home For All” video on the Keys to the Valley website, created a few years ago by TRORC, does a nice job of connecting housing to the long-term sustainability and success of communities. Learn more here.

In other Upper Valley housing news, Vital Communities Workforce Housing initiative is holding a business breakfast Nov. 1, 7:30-9am, at Fireside Inn and Suites in Lebanon, N.H. with a focus on how businesses can support the creation of workforce housing. More info and registration link.  

Laurentide Apartments opens in Burlington: Champlain Housing Trust’s 76-unit development at Cambrian Rise on North Avenue is now open. CHT and Housing Vermont will hold a ribbon-cutting 10-11am Monday, Oct. 7. Laurentide will soon be joined by Juniper House, Cathedral Square’s newest housing community for older adults. The ceremonial groundbreaking for the 70-unit development was Sept. 26. Read the VTDigger article here.

New homes being built, but affordability lags: Building Homes Together, a campaign to encourage housing production in Chittenden County is keeping apace of its overall production goals, but the gap between housing costs and wages is growing, according to housing leaders. There were 620 homes developed and ready for occupancy in 2018. Over the first three years of the campaign an average of 758 homes were built each year, which is ahead of the pace needed to meet the campaign’s goal of 3,500 homes over five years. However, only 280 of the 2,200  homes built in the last three years – 13% – are permanently affordable.  Read more here.

BHA names new executive director:  Burlington Housing, Vermont’s oldest and largest municipally chartered housing authority has hired Laura Zeliger as its new executive director, replacing Allyson Laackman. Zeliger currently serves as the community and restorative justice director for the Vermont Department of Corrections. Please join us in welcoming Laura! Read more here.

Members of the Vermont Senate Committee on Economic Development, Housing and General Affairs have been traveling all over the state to hear from people about the state’s housing shortage. The next meeting is in St. Albans on Oct. 29 and  there will also be hearings in December in Windham County and in early January in Chittenden County.  Read more here.

For more events, check out the Vermont Affordable Housing Coalition calendar.

In case you missed it:

VPR’s Brave Little State asks “What are the causes of Vermont’s tight housing market — and why aren’t things getting better?”

⇒ Want to see your Vermont housing news featured in this periodic roundup?
Contact us at fhp@cvoeo.org

⇒ For more information about your fair housing rights and printable resources in multiple languages, visit www.cvoeo.org/fhp